Tossed up whether I should add this post to the Lithium forum, or here -- went with the latter as I think the trend is broader than just one critical material.
When Warren and co start to invest in a big way like this, I take note -- albeit acknowledging that this adds to my confirmation bias nicely.
There are some significant investments, with respect to critical materials, being made for two reasons:
- Build up supply ex China (most important). This is fueled by existing and growing tensions between major nations, with trade one of the first things to be impacted in a big way with further deterioration in the relationship with China.
- EVs and energy storage systems will continue to grow, and as that happens we will need more critical materials.
I have lithium investment, although not a direct play, through Mineral Resources. For a more pure-play, I have recently added Pilbara Minerals. Both of these are through my super holdings, which I tend not to add to Strawman, so I likely wont be adding them on here.
Where I am most bullish is the anode side, specifically battery-grade anode (high quality graphite). There are existing traditional uses for graphite, including refractories, foundries, lubricants. But in 2022, for the first time, the demand for graphite in battery anodes surpassed all other uses combined. This isn't going away. On the anode side, my pure play is Novonix in the US, and in Europe I like Talga, although I am less bullish there due to the shit show that is the EU and Sweden.
I think there will be a few winners (like in most industries), with lots of investment wasted by minnows trying to get there. I think thats why I like MinRes and to a lesser extent Pilbara, they can invest using their existing cash flow and won't be sent broke in striving for growth. Novonix is a little different in that, there is no existing operation/cash flows helping them scale up. This will likely mean lots more dilution in getting there, but I am put at ease by the fact that the US continues to support them in a big way and they are shaping up as one of the leading case studies for the US government i.e. 'we are helping develop critical minerals onshore in the US'
For the most part though, I think there is a sizeable opportunity here provided you can pick the winner/s. Lots of risk obviously, but I think we are starting to get a much clearer picture on who might benefit from the new world order and who won't make it.
I agree. The market right now is in a slump so Im thinking of starting to build a position here. Take note today LTR (liontown) that looks to be hitting a Double bottom patter on the Weekly charts. The weekly Stochastic and Stochastic/Rsi indicator seem bottom out (well cant go any lower than zero on the scales. That said, the price can still go lower as scales will just go side ways on zero while the price drops. As Usual, I will wait for the first waves 1/2 up and then possibly take a 2.5K position and add as it climbs (if). I watch two You tube articles today that I think were very intersting posted by someone here in the group. Sorry cant remember who posted them (gave a thiumbs up but would have like to mention here a thanks to them also), regarding rare earth minerals, narrated by a geologist with experience in the field. It really goes hand in hand with your comments and Mr Buffett's plans.
Just thought i'd add my thoughts
13-May-2024, ahead of tomorrow's federal budget... One of tomorrow's budget papers will be all about women. Here's what you need to know - ABC News
Goodo, perhaps a boost for listed Childcare centres, but that's not a sector I dabble in. However, here's another idea: Australia’s Budget Will Boost Critical Minerals, Treasurer Jim Chalmers Says - Bloomberg
The video was recorded yesterday - or posted by Bloomberg yesterday anyway - so is recent:
Plain text link to that section of the discussion: https://youtu.be/b14Xad6EkBY?t=154
[or just click on Jim's right ear above]
And to the entire video - from the start: https://youtu.be/b14Xad6EkBY
Do you remember this announcement from ARU in mid-March? Commonwealth-Government-supports-Nolans-with-US$533m-package.PDF
Sounds like there's more where that came from.