Just cutting and pasting this bullet from last week\u2026 lithium spot prices are still in the doldrums\u00a0
\nBut worry not, because we have a list of bullish bolstering for the battery metals faithful
\nASX gainers in the sector over the past week led by: LNR and DM1<\/p>\n
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Our High Voltage column wraps the news driving ASX stocks with exposure to lithium, graphite, cobalt, nickel, rare earths, manganese, magnesium, and vanadium<\/em><\/p>\n After 2022\u2019s big year for lithium and pals, perhaps 2023 was always destined to struggle to live up to the same kind of hype. A bit like a second-album disappointment.<\/p>\n That said, Kings of Lithium and the Battered Metals are back in the studio for what they\u2019re hoping will be a stellar next production \u2013 or just a decent year. Or at the very least, maybe a mild improvement on this one.<\/p>\n We\u2019re not out of the 2023 woods yet, though, so how are things tracking? For a surface-level take on that, let\u2019s turn to this weekly chart from Miner Deck, published Dec 11.<\/p>\n It\u2019s only mildly crap for nickel pricing this week, but it\u2019s downright ugly for lithium.<\/p>\n\n And here\u2019s Lithium Price bot with specifics, below. Those YTD figures continue to get worse every week at present. This time last week, lithium carbonate\u2019s YTD was about -75.6% and spod was around -70.8%.<\/p>\n 2023-12-12#Lithium<\/a> Carbonate 99.5% Min China Spot<\/p>\n Price: $15,590.40 Price: $1,535.00 Sponsored by @SiennaResources<\/a> $SIE<\/a> $SNNAF<\/a>https:\/\/t.co\/MmcWAPc9WW<\/a><\/p>\n \u2014 Lithium Price Bot (@LithiumPriceBot) December 12, 2023<\/a><\/p>\n\n Righto, so where\u2019s this good news then?<\/p>\n \u00a0<\/p>\n Despite lithium prices floating somewhere beyond the S-bend, and despite the cooling off of many a battery metal stock this year (not you, WC8) thanks to a glut of Li supply and periods of slowed uptake of EVs, there are still reasons to be cheerful if you\u2019re a battery metals investor.<\/p>\n And more than three.<\/p>\n\n We don\u2019t think this is clutching at straws, because it\u2019s a lot of straws if so. Here we go then, as briefly as we can make it\u2026 and in no order or priority\u2026<\/p>\n \u00a0<\/p>\n 1. Big increase in Chinese EV Sales<\/strong>: Just lately, there\u2019s been a notable increase in electric vehicle sales in China, which appears to be bringing an end to a cool-off amid the troubling economic climate in the Middle Kingdom. Maybe it has something or everything to do with late-year fiscal stimulus over there, maybe not.<\/p>\n In any case, according to Electric Cars Report<\/a>, Chinese motor vehicle company XPENG, for instance, reported a significant increase in Smart EV deliveries in November 2023, indicating strong growth in the Chinese EV market.<\/p>\n And according to CNEV Post (Chinese EV news media) stats (as pointed out by noted lithium bull Joe Lowry, below), monthly new EV sales have actually exceeded 1 million for the first time \u2013 in November.<\/p>\n \u201cThe demand for EVs globally is clearly strong,\u201d writes Lowry, forecasting future FOMO\/panic buying once again for lithium-related things.<\/p>\n Demand for #EVs<\/a> globally is clearly strong. The longer China #lithium<\/a> spot prices stay below the high end of the cost curve, the more likely another panic buying scenario happens when serious restocking starts in 2024. https:\/\/t.co\/xoCYmU7pUp<\/a><\/p>\n \u2014 Joe Lowry (@globallithium) December 11, 2023<\/a><\/p>\n\n \u00a0<\/p>\n 2.<\/strong> Rise in nationwide Chinese EV deliveries<\/strong>: Further to this, according to China Daily<\/a>, wholesale deliveries of electric vehicles and plug-in hybrids in China were expected to reach 940,000 units in November \u2013 and that\u2019s up 29% year-on-year.<\/p>\n And total sales in the first 11 months of this year are estimated to have reached 7.74 million units, up 35 per cent year-on-year, according to the China Passenger Car Association.<\/p>\n \u00a0<\/p>\n 3. ExxonMobil\u2019s monster lithium extraction plans<\/strong>: This is a big, underrated point of validation for the continuation of the lithium rush and continued demand, wethinks. As we wrote here<\/a>, this American fossil fuels giant\u00a0has major plans in the works to start lithium drilling in Arkansas, targeting lithium supply for over 1 million EVs per year by 2030.<\/p>\n \u201cIn many ways, extracting lithium from deep brine reservoirs is similar to our existing businesses,\u201d said Exxon CFO Kathryn Mikells. \u201cIt involves upstream skills like geoscience and reservoir management, as well as efficient drilling.\u201d<\/p>\n Exxon Mobil Gets More Confident Its Lithium and Hydrogen Bets Will Pay Off https:\/\/t.co\/KHu3IjaNHj<\/a><\/p>\n \u2014 Barron’s (@barronsonline) December 11, 2023<\/a><\/p>\n\n \u00a0<\/p>\n 4. <\/strong>European Battery Funding Initiative<\/strong>: The EU is offering \u20ac3 billion in subsidies to battery makers to stimulate the electric vehicle industry.<\/p>\n That\u2019s hardly a world shunning the EV and lithium-battery narrative, is it.<\/p>\n According to the the International Energy Agency (IEA)<\/a>, the European Commission has approved under EU State aid rules an Important Project of Common European interest (\u201cIPCEI\u201d) jointly notified by Belgium, Finland, France, Germany, Italy, Poland and Sweden to support research and innovation in the common European priority area of batteries.<\/p>\n \u201cThe seven Member States will provide in coming years up to approximately \u20ac3.2 billion in funding for this project, which is expected to unlock an additional \u20ac5 billion in private investments,\u201d wrote the IAE.<\/p>\n ASX-listed Euro Manganese (ASX:EMN)<\/strong><\/a> liked the news, noting that the funding will create impact \u201cacross the entire battery value chain, including its upstream raw material segment\u201d.<\/p>\n The European Battery Alliance, meanwhile, has also welcomed the new EU financial stimulus for the sector.<\/p>\n \u00a0<\/p>\n 5. European and UK expansion of the EV market<\/strong>: Despite its well-documented current challenges, the global electric vehicle market continues to grow significantly. Toyota, for instance is planning to expand its EV lineup in Europe to six vehicle models by 2026, while Nissan is in the process of producing three new EV models at its UK plant.<\/p>\n \u00a0<\/p>\n 6. Anglo American eyes up lithium<\/strong>: This mining giant, the world\u2019s biggest producer of platinum, is reportedly<\/a> actively seeking opportunities in the lithium market, further highlighting the commodity\u2019s strategic importance for the energy transition.<\/p>\n \u00a0<\/p>\n 7.\u00a0<\/strong>\u00a0Investment in lithium downstream processing:<\/strong> Investments in midstream processing facilities for lithium in Australia are also expected to enhance the economics of lithium projects throughout coming years.<\/p>\n Per a recent High Voltage<\/a>, some of the WA state gov\u2019s renewed strategic thinking on battery metals includes placing greater than previous emphasis on the midstream and downstream elements of the sector in resources-rich WA.<\/p>\n And, for the downstream element at least, this means potentially increasing the level of output when it comes to the processing stage of minerals, such as lithium and nickel, required for batteries.<\/p>\n \u201cDomestic value-adding and manufacturing\u201d is part of the newly energised strat. And \u201cconverting exploration activity into producing mines will be integral to WA\u2019s ability to continue moving down the value chain,\u201d reads a recent WA state gov report.<\/p>\n \u00a0<\/p>\n 8. White-hot M&A activity in Australia\u2019s lithium sector:<\/strong> This has been turning heads globally in the latter stages of this year. Notable merger and acquisition activities include the US$10.6 billion deal between Livent and Allkem and Albemarle\u2019s US$3.7 billion offer for Liontown Resources, ultimately stymied by Hancock Prospecting\u2019s blocking stake.<\/p>\n Going, Going \u2026 Albemarle pulls the pin on $6.6 billion Liontown mega lithium deal amid Rinehart shenanigans https:\/\/t.co\/zOXYxHSA5u<\/a><\/p>\n \u2014 Maureen O’Mahoney (@cheerio46) October 16, 2023<\/a><\/p>\n\n \u00a0<\/p>\n 9. SQM\u2019s long-term outlook:<\/strong> Leading Chilean lithium producer SQM has made it clear it remains confident in the future of the EV market, forging ahead with its global operations and plans Down Under.<\/p>\n As Stockead\u2019s Reuben Adams reported<\/a> about a week ago:<\/p>\n Lithium darling Azure Minerals (ASX:AZS)<\/strong><\/a> has now filed paperwork for SQM\u2019s proposed takeover at $3.52\/sh, despite Gina Rinehart and MinRes potentially running interference, Liontown style.<\/em><\/p>\n Rinehart and Minres have accrued 18.9% and 13.6% stakes in the tier 1 explorer in the wake of SQM\u2019s $1.63 billion takeover offer in October.<\/em><\/p>\n SQM, potentially learning from Albemarle\u2019s mistakes, will launch a simultaneous conditional off-market takeover offer for $3.50\/sh should the scheme not be successful.<\/em><\/p>\n The deal is being pushed through as lithium prices plumb new lows, with most stocks bearing the brunt.<\/em><\/p>\n \u00a0<\/p>\n Did we\/I miss some big reasons to keep the battery metals faith? Let me know: rob.badman@stockhead.com.au\u00a0<\/em><\/strong><\/p>\n \u00a0<\/p>\n Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop. (Note: figures accurate per ASX at 3pm.)\u00a0<\/strong><\/p>\n Stocks missing from this list? <\/em>Email\u00a0rob.badman@stockhead.com.au\u00a0<\/em><\/strong><\/p>\n WordPress Tables Plugin<\/a><\/p>\n \u00a0<\/p>\n (Circa 5pm-ish on December 12)<\/p>\n Charged up <\/strong><\/p>\n Lanthanein Resources (ASX:LNR)<\/strong><\/a>+67% <\/strong>(Acquiring a 70% interest in Lady Grey lithium-tantalum project, just 400m west of the massive Earl Grey lithium mine at Mount Holland, WA. More > here<\/a>)<\/p>\n Desert Metals (ASX:DM1)<\/strong><\/a>+49% <\/strong>(Oversubscribed $3.75m funding placement to help support the company\u2019s gold and lithium acquisition in C\u00f4te d\u2019Ivoire \u2013 CDI Resources Limited. More > here<\/a>)<\/p>\n West Cobar Metals (ASX:WC1)<\/strong><\/a>+34% <\/strong>(A battery metals hunter, yes, but actually making recent gains based on its Salazar REE project operations in WA. More > here<\/a>)<\/p>\n \u00a0<\/p>\n Some more battery metals pertinence kicking about on the head of Tesla\u2019s social platform\u2026<\/p>\n This first one especially caught our eyes, given the attention lepidolite has been receiving lately as a potential rival to spodumene.<\/p>\n Thought i might do a quick post giving my view on lepidolite given its getting so much attention recently. The general consensus is that the reason the spot price of lithium hydroxide and spodumene concentrate are decreasing is due to the Chinese rapidly processing significant\u2026 pic.twitter.com\/PSF2yoXGhS<\/a><\/p>\n \u2014 Dwayne Sparkes (@sparkes_dwayne) December 12, 2023<\/a><\/p>\n\n TLDR? The tweet\u2019s author, prospector Dwayne Sparkes concluded with this:<\/p>\n \u201cIn my opinion, there is no chance that lepidolite will ever be processed cheaper than spodumene. Also, it seems that spodumene is actually more common than lepidolite from the deposits I\u2019ve studied. Has anyone ever found an Andover that\u2019s lepidolite dominated!? I think the market is flooded with artisian mined lepidolite that will soon become exhausted.\u201d<\/em><\/p>\n Elsewhere\u2026<\/p>\n The energy storage revolution 2016 to 2023 in one @benchmarkmin<\/a> chart <\/p>\n We expect the total lithium ion battery market to stop just shy of 1TWh in size in 2023.<\/p>\n While the growth of EVs have been front and centre of the discussion, ESS is emerging and now accounts for 13% of\u2026 pic.twitter.com\/a7uRDLoNmX<\/a><\/p>\n \u2014 Simon Moores (@sdmoores) December 11, 2023<\/a><\/p>\n\n The best indicator of #lithium<\/a> demand is GWH produced. The 2023 narrative of \u201csoft demand\u201d requires nuance. Demand is clear \u2013 but much of the lithium supplied has been from dwindling inventory across the SC in the form of chemicals, cathode, cells. Guess what happens in 2024? pic.twitter.com\/zXV252tf30<\/a><\/p>\n \u2014 Joe Lowry (@globallithium) December 11, 2023<\/a><\/p>\n\n All #lithium<\/a> ore & chemical prices fell today in the Chinese spot market reinforcing the downward trend of the last 4 months or so. In addition, all futures but 2 also went down changing to a great extent last week’s upward trend. Volatility continues to be the order of the day. pic.twitter.com\/UhwovfsSuS<\/a><\/p>\n \u2014 Juan Carlos Zuleta (@jczuleta) December 11, 2023<\/a><\/p>\n\n LOL @GoldmanSachs<\/a> was \u201cright\u201d like a stopped clock is correct twice a day. A gross over simplification of the #lithium<\/a> mkt & price narrative. Let\u2019s see if the \u201cflood\u201d of lepidolite does anything more long term than prop up the cost curve & ensure high margins for low cost brine. https:\/\/t.co\/1sz5pFE52p<\/a><\/p>\n \u2014 Joe Lowry (@globallithium) December 11, 2023<\/a><\/p>\n\n In a lithium ion battery industry that has grown an order of magnitude in 7 years, what has become clear is the basic tailwinds for this technology. <\/p>\n Lithium ion batteries are getting better <\/p>\n Cell chemistries, pack technology, vehicle engineering are all significantly\u2026<\/p>\n \u2014 Simon Moores (@sdmoores) December 11, 2023<\/a><\/p>\n\n <\/span><\/p>\n The post High Voltage: Reasons to stay plugged into lithium and other battery metals in 2024<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"
1 day: $417.60 (-2.61%)
YTD: -78.84%#Spodumene<\/a> Concentrate (6%, CIF China)<\/p>\n
1 day: -30 (-1.92%)
YTD: -73.65%<\/p>\nReasons to be cheerful\u2026 1, 2, 3\u2026 (and plenty more)<\/h2>\n
ASX battery metals form guide:<\/h2>\n
What\u2019s been surging?<\/h2>\n
Plugged in elsewhere<\/h2>\n