New Sodium battery announced from CATL (17 april)
Bit more background and detail
Equity mates podcast talked to Bernard Rowe a geologist and the managing director of Ioneer ( ASX: INR) a U.S. based lithium company and boron company. Definitely worth a listen some interesting stuff.
Argentine Govt limiting the amount of Lithium that can leave the country. They wish to process some of the resource internally to retain some of the profits.
Allkem, Argosy, Lake Resources, Galan Lithium on alert.
Headwinds for Lithium
Goldman Sachs is calling for Lithium supply to overtake demand in late 2023.
Tesla share price has fallen more than 50% - back to reality some would say. More significant is that Tesla is cutting car prices and the price of Teslas in the second-hand market has slumped. In case you thought that this may drive increased sales, Tesla has suspended production in their Shanghai plant. Lower price and lower volume can't be good for upstream minerals.
In Europe, it can cost more to charge an EV than to refuel an ICE, depending where you are and what time of day.
Rising interest rates are hitting vehicle finance (all types) and EVs tend to be more expensive.
I would argue that most EV purchases are driven by virtue signalling rather than the economics of transport. Elon Musk's falling star and Tesla's falling price tend to reduce the virtue of that brand. And the virtue market segment may be nearly saturated.
Toyota continues to stick with hybrids (smaller batteries) with good demand. No range anxiety in a Prius, just harvest some of that inertia when braking and use it to start again. It doesn't matter if the fast charger in Taree is out of action, just put in E10.
Lastly, the macro situation is looking fragile with many pundits predicting recession. That's not going to help either.
2022 may have been a good year for EVs but the bubble seems to be deflating, in not outright bursting as we roll into 2023.