Preference for Hard Rock Lithium and Nickel
Spodumene concentrate and Nickel remain our preferred materials from an asset allocation point of view at the beginning of August. There are signs of industry sentiment improving in hard rock lithium with greater shipping demand for product in recent weeks. With high nickel batteries dominating the EV space ex-China, we re-iterate our preference for the high-nickel value chain consisting of Nickel, lithium hydroxide and spodumene concentrate producers; we believe that these stocks will see more rapid recoveries than those in the lithium carbonate supply chain. Flake graphite and cobalt are our least-preferred materials currently, primarily due to the short-term supply/demand...