Banter and General Comments, page-4642

This article from Motley Fool provides validity on the lithium space still being wildly misunderstood. Here are a few sections that are either inaccurate or just plain wrong:

1) “Why are lithium stocks falling? ...like most material stocks, lithium producers are heavily dependent on the spot price”

False, the spot price is ~5% of the market and heavily manipulated. 95% are through long term contracts in the EV sector, and misunderstands what battery producers need, the quality assurance, lead time etc

2) “Sentiment is still poor” agree, but “lithium spot prices are subject to poor demand/supply conditions”

Nope. Demand has been revised already upwards of 1Mt LCR by numerous brokers and producers, and many have gone onto say that we will not be able to supply enough to reach projected demand. PLUS spot prices don’t mean anything when long term contracts have been steady if not increasing. PLUS supply this year has already been revised by Orcobre and SQM to the downside on previous ambitions.

3) “We have yet to see much government support for elextric vehicles...”

This is the worst sentence, arguably, because government policy around the world currently dictates that death sentence of ICE vehicles, AND incentivises EVs through subsidies and air pollution standards to bring forward ICE vehicles demise.

4) Galaxy is their No1 pick, which is interesting as PLS has held up pretty well, but...

5) “However, I believe more time is needed for ASX lithium stocks to make an appealing investment case” - Oh for goodness sake!!

Only my opinion!

https://www.fool.com.au/2019/03/20/have-asx-lithium-stocks-hit-rock-bottom/