The shortage of Lithium is going to be prevalent in the market for the next decade, and it’s a sure shot fact. Wang Xiaoshen, the vice chairman of JGLC (Jiangxi Ganfeng Lithium Co.) is asking the industry to go volatile in the next year.
The supplier to Tesla Inc. and BMW AG dropped by 28% on Thursday due to the turbulence in the boarder and lithium markets. The Shenzhen shares of Hong Kong Stock Exchange fell down to their daily limit for the consecutive second day. To cope up with this, Ganfeng is soon going to develop its battery interests to capture a wider market.
The demands are rising tremendously and the lithium industry is definitely going to be volatile for the next year. This will open up the opportunities for new suppliers to come into the picture. Not only this, this will also delay the production of some new car projects in the near future. But with Tesla ramping up steadily with the production of Model 3, it might speed up its purchases, again leaving a supply shortage on the global market.
Source- Bloomberg
