Money of Mine Lithium’s True Inflection Point (YJ Lee)
Aug 19, 2025
YJ Lee, a fund manager at Arcane Capital with a focus on energy transition and battery markets, dives into the volatile world of lithium. He discusses China's recent policy shifts and their effects on lithium supply and demand, especially in the EV sector. YJ highlights the booming demand for lithium iron phosphate batteries compared to traditional options, and he addresses common misconceptions about inventory levels. Additionally, he sheds light on innovations in the battery space and the global trends shaping electric vehicle adoption.
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China’s Competitive Darwinian Model
- China's battery growth came from a competitive private-market Darwinism across provinces and companies.
- That competition created many firms, drove prices down, and produced winners with scale and expertise.
Limits Of Anti-Involution Against Market Forces
- Anti-involution seeks to curb destructive price wars but fights natural market incentives.
- YJ doubts a top-down policy can instantly stop firms from undercutting to win long-term market share.
The Jiangxi Lepidolite Example
- YJ recounts how lepidolite mines rose when prices were high despite pollution and low grades.
- He highlights the Jiangxi/Jianxia mine example requiring huge ore movement and producing serious pollution concerns.