Welcome to Finance and Fury, the Say What Wednesday Edition

Today’s question from Zed “I recently noticed that Australia seems to be opening lots of lithium mines as the demand for Electric Vehicles rises and we turn away from oil. Is Australia at risk of their lithium mines being undercut by competition from South America in the near to medium future?”

 

Today:

  1. Demand for Lithium
  2. Who is providing it?

 

What is Lithium?

  • Alkali metal
  • Used in rechargeable batteries
  • The supply is increasing

 

Where Lithium comes from?

  • Lithium from brine (70%)
  • It can take over a year to extract the Lithium through evaporation
  • Lithium from hard rock (30%)
  • Hard rock drilling and extraction through traditional methods
  • Lithium can potentially be recycled

 

Who are the producers?

  • Bolivia, Argentina, Brazil, and Chile
  • South America produces a lot of the Lithium
  • Australia holds more than 2.7 million MT of identified lithium reserves
  • Chinese companies own more than half of the world’s production

 

What are the Issues?

  • Oversupply dropping prices
  • Australia has a low cost of production
  • Perhaps there is lithium hoarding happening?
  • Long-term issue is the alternatives to lithium-ion batteries
  • The Ryden dual carbon battery, sand battery, and sodium ion battery

 

Looking to invest in companies in this space:

  • They lack the circle of competence
  • Price takers rather than price makers
  • Lithium miners have dropped by 50% in prices
  • A look at 3 ASX companies – Pilbara minerals, Galaxy Resources, and Orocobre Limited
  • Price is based around fair values

 

Summary:

  • Australian mining of Lithium isn’t in too much risk from South America
  • Long-term risk for Lithium is the global demand dropping from alternatives
  • Very speculative – prices determined from supply and demand

 

If you want to get in contact you can do so here at the contact page.

 

 

Never let a crisis go to waste – Why to watch out for proposed economic solutions after a financial collapse.

Welcome to Finance and Fury, The Furious Friday Edition Today – want to explain why to watch out for proposed solutions to economic or societal issues Last ep – talked about the battleground between the Bankers and Governments back in the early 30s – Was a wild...

How do I transfer an overseas pension fund to Australia?

Welcome to Finance and Fury, the Say What Wednesday Edition Today we have a question from Luke. Hi Louis, I listen to you often. Very informative and interesting episodes. My question is regarding super/pensions. I lived and worked in the U.K. for about 10 years - and...

5 property investing myths you have to stop believing immediately.

Welcome to Finance & Fury! Today we’re talking about five property investing myths you have to stop believing. At the moment property has gone from being the most talked about, exciting thing… to the most talked about, negative thing. Since 1994 there has been...

What is happening in the Repo Market? Banks bankruptcy or just business as usual?

Welcome to Finance and Fury, The Say What Wednesday Edition Question from Mark part 2: Can you explain the repo markets that are going on at the moment? Apparently the banks are loaning money from the Feds at 10% so they have enough liquidity to survive the night/Bank...

Welcome to CHAZ! Is it the manifestation of a behavioural sink or a true revolution against authority?

Welcome to Finance and Fury, the Furious Friday edition. Been watching a very interesting social experiment play out – the rise of the nation of CHAZ – Capital Hill Autonomous Zone – If you haven’t heard about it – it is a LARP – live action role playing for an...

Say What Wednesday: The tax implications of investing in shares; owning, holding, selling, dividends

Say What Wednesdays The tax implications of investing in shares; owning, holding, selling, dividends Welcome to Finance & Fury’s ‘Say What Wednesday’! Today’s question is from John; What are the tax implications of investing in shares, owning, holding, selling,...

Are the risks from investments in structured products worth their potential returns?

Welcome to Finance and Fury, the Say What Wednesday edition. This week the question comes from Mina. “I would love to get your view on Structured products like the ones being offered by sequoia. Is the risk worth the return?” Great question – thanks Mina - this...

Why aren’t conservatives conserving anything?

Welcome to Finance and Fury, the Furious Friday edition Today we will be talking about conservatives and why they are not conserving anything anymore. In particular, the new form of conservatives the neo-con conservatives and the noble lie or the big lie. Remember the...

Porsches, Paintings and Property Prices: Alternative investments and what they can mean for property and the economy

Episode 18 Porsches, Paintings and Property Prices: Alternative investments and what they can mean for property and the economy Alternative investments and what they can mean for property and the economy Classical Car Index The CommSec Luxury Vehicles Index lists the...

(Intro Series) The wrap up party

Intro - Episode 6 The wrap up party Hey guys! Welcome to the wrap up party for this little intro series Well done if you’ve made it to this point listening. I know a lot of it could have come across pretty confusing …and don’t worry I was quite confused myself by this...

Pin It on Pinterest

Share This