Themes and Questions for 2024

The podcast episode highlights three major themes from 2023. First, the volatility of lithium prices and the need to look beyond spot prices to evaluate the true state of the lithium market. Second, the impact of the inflation reduction act (IRA) on the domestic mining business in the United States, which has made it more expensive for American miners compared to other countries. Third, the influence of interest rates and inflation on the capital-intensive nature of decarbonization and supply chain buildout. These themes raise two important questions for 2024: What is a realistic cost of capital for lithium projects? And how do you price geopolitical risk, especially with the US aiming to reduce its reliance on the Chinese supply chain?