Long-term battery materials prices: Higher than you think?
We believe that many commentators are going wrong in their interpretation of the industry cost structure, and this could have major ramifications on the setting of long-term prices and hence the return potential of the battery materials sector in the long-term. There are a number of ways to set long-term prices; in a rapidly-growing industry like battery materials some element of capital costs must feature, but this is generally added to the marginal cost of production. Of course, when setting long-term prices, that should be the marginal cost of production both today and in the medium-term and we don’t think...
Topics
Cost pressure
Discount rate
Forecasting
FX
Graphite
Lithium
LT prices
Marginal Cost
Nickel
Prices
WACC
