TORONTO (miningweekly.com) – The increase in lithium prices has tempted more companies to enter the space and take advantage of the growing market interest, said Disruptive Discoveries Journal newsletter writer Chris Berry at the recent Prospectors and Developers Association of Canada conference.
“A lot of companies have changed their names and focus to get into the lithium game,” he said. “And they’ve started saying some things that, quite frankly, stretch the truth a little bit.”
But Berry warned that the current climb in lithium prices should not be the main investment focus, adding that the 2009 bubble offered an important cautionary tale. “Parabolic moves either always crash or revert,” he said. “Whether that’s back to the original long-term trend or not remains to be seen.”
The real contest related to production, economics and market share. That included the positions of “insurgents” like Galaxy Lithium, Western Lithium, Nemaska Lithium, or the “incumbents” like SQM, Albemarle and FMC.
Another contest, but one further down the lithium chain, was between companies entering or already established in the electric vehicle (EV) space. That included Google, Apple and Tesla, and traditional automakers, such as General Motors, Chevrolet, Hyundai, VW, BMW and more.
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