Stick with HR lithium, add Ni and think about REE
Last month’s suggestion to take profits on REE and switch into hard rock lithium seems to have worked as REE prices paused in April, leading to a flattening out and small negative move in stock price performance. However, we remain very positive on the longer term outlook for REEs, with demand growth (tied to EVs and wind turbines) likely to remain extremely high and supply likely to struggle. As a result, we add REE back into our top three segments this month. We would re-iterate our preference for hard rock lithium. Lithium hydroxide prices are finally catching up with the...