Can Western World companies afford developments at current RM prices?
Wherever you look in battery raw materials markets at the moment momentum seems to be negative, with prices weak across the board – lithium, nickel, cobalt, manganese – all are recording multi-year lows in prices. While the environment for battery raw materials looks weak in the near-term, we believe that current price weakness may actually be an opportunity for the sector in the medium to longer-term, because it deters companies from investing in new capacity. Current price levels are low enough to be below incentive prices for many new Greenfield raw materials projects. While Brownfield capacity expansions may still be...
Topics
Brine
China
Economics
Geopolitics
Graphite
Hard rock
Incentive prices
Investment
Lithium
Marginal Cost
Nickel
Supply chains
Two tier pricing
