SmarterMarkets™ The State of Play in Battery Metals Episode 2 | Andy Home, Senior Metals Columnist, Thomson Reuters
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Jan 18, 2025 Andy Home, Senior Metals Columnist at Thomson Reuters, delves into the tumultuous world of battery metals amidst the energy transition. He discusses the surprising downturn in the market and challenges faced by Western countries in establishing sustainable supply chains, especially with China's dominance. The conversation also covers evolving consumer preferences, the transformation of nickel trading, and the necessity for diverse pricing mechanisms. Home emphasizes the importance of hedging as the market shifts amidst uncertainties in demand and supply.
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Brutal Year for Battery Metals
- The battery metals market experienced a brutal year in 2024, with steadily declining prices.
- This caused mine closures, project delays, and financial difficulties for producers.
China's Dominance
- China's dominance in battery metal production and processing has significantly impacted the market.
- Chinese companies, often vertically integrated, are better insulated from price drops.
Early Adoption in China
- Andy Home recounts an experience in Beijing where he noticed the prevalence of electric vehicles years ago.
- This illustrates China's early adoption of electric vehicle technology, giving them a significant head start.