What’s CATL up to with lithium?
CATL has reportedly entered into strategic agreements with some customers, guaranteeing to supply them with cells at a fixed price for lithium carbonate of US$29.1/kg. Why? This is an interesting move by CATL and there’s all sorts of speculation in the markets about why they are doing this. Did they get a tap on the shoulder from the Chinese government asking them to try and quell runaway lithium prices? Are they perhaps trying to show the miners who’s boss? Or are they trying to guarantee profitability for certain preferred counterparties? We think this deal makes the point we’ve been making...