This why I have lithium companies on my Watch List

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

This why I have lithium companies on my Watch List

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Trading Economics (5-24-2023)
"Lithium carbonate prices rose past CNY 200,000 per tonne, extending its rebound from the 19-month low of CNY 165,500 on April 24th amid renewed optimism for electric battery demand. Fresh data showed that new EV sales and output in China both soared by 110% year-on-year in April, trimming concerns about poor demand levels at the start of the year. During the first quarter, the drop in demand coincided with a significant oversupply of batteries in the period as producers took advantage of final inflows of government subsidies and ramped up production until the end of 2022, creating unsustainably high inventory levels. Robust expectations for longer-term demand also supported the bets that lithium will extend its rebound from its plunge this year, as government incentives to switch to EVs lead analysts to forecast that lithium demand by 2040 will be 16 times higher than present-day levels."

I want to remind everyone that batteries are not a source of energy, they are actually a source of energy demand. Even if half of this world’s vehicles become EV’s running on large battery packs, we will still need primary energy sources to produce the energy to recharge them. For many years like it or not, the majority of primary energy will come from fossil fuels. The United States and Canada need to work together on a common sense energy policy that includes all forms of energy.
Dan Steffens
Energy Prospectus Group
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