Battery raw materials: From marginal cost to incentive price
At this point in the market cycle for materials, when prices are at rock bottom, two key price levels are the focus for corporates and investors. Of the most importance as we wait for prices to trough is the marginal cost of production, but as prices start to bounce off the trough, a new price level comes into play; the incentive price that’s required for investment in new production. At current prices, we’re pretty close to the marginal cost of production in most battery materials, which means we’re close to the trough in prices. We believe that it’s between 50-80%...