lithium-ion battery demand sends shares in miners soaring, but analysts predict bubble will burst - lithium batteries for sale
Demand for lithium to produce electric cars and home storage batteries has driven a sharp rise in local companies' share prices, up 2,000 in recent months.
However, analysts warn that while demand for the mine is fundamentally strong, interest in the industry is driving a speculative bubble that could burst.
The global lithium reserves are abundant, but due to sluggish demand, only five lithium mines have been developed in the past 20 years.
Now, this metal is increasingly needed to produce lithium.
Ion batteries that shift globally to electric vehicles and solar energy
Power companies are driving huge interest in lithium stocks.
"We see the features of the lithium stock market bubble," said Giuliano Sarah tenner, senior adviser to Bell Port Securities . ".
"I don't think the spot market can reflect the bubble at all --
This is about supply and demand.
We see that the price of lithium has increased a lot because demand has increased a lot. "Perth-
In the past year, the shares of mining companies have risen sharply.
Chris Reed, managing director of Neometals, said his company is preparing to start production at the Mt Marion mine near Kalgoorlie this year.
He said that in this booming market, his company has reached a lucrative supply agreement with Jiangxi Ganfeng Lithium, one of China's largest lithium producers.
"The battery has grown at a rate of more than 20," Reid said . "
"In the context of very limited supply, demand for electric vehicles and renewable energy storage has surged.
"We tried to develop this in 2010.
Unfortunately there was a price war and the Australian dollar was flat and we stopped [project]but]
The demand now exceeds supply, so we are very lucky.
"The effort to produce more lithium also proves the benefits of battery suppliers such as Perth --
According to the company's solar balance, lithium batteries are mainly sold
Ion batteries produced by Chinese manufacturer BYD.
Rod Hayes, chairman of Solar Balance, said he believes electric vehicles will drive initial demand.
"I think in the next five years, we will see the production of household energy storage batteries. commercial energy storage does grow very fast, but I think in the short term.
"The word driver will be mass transit, electric vehicles," he said . ".
"A community like Shenzhen will
The current fleet of electric buses has driven a huge increase in demand for lithium batteries.
"At the moment, some big boys are really competing to expand their battery manufacturing capabilities.
"The hype of lithium batteries has also prompted dozens of miners who are in trouble to reshape their shell stocks into lithium companies.
However, analysts do not believe that many of these stocks will last for a long time as share prices rise.
"You went through an interesting life cycle of a supply shortage, which led to a sharp rise in the physical price of the goods and then a speculative bubble in the stock market, which is what we see in lithium, mr. sala Tenna said.
"We think it could last two to three years before we see the spot price of lithium start to heat up.
"Graphite has also been a hot stock.
WA company Graphex was listed on ASX on Tuesday, and its share price closed above the listed price of 80.
"That's why you saw our graphite peers including our IPO go so well. ""[It is]
We focus on expandable graphite. . .
It is used as a heat shield in electronic products and also in flames
Flame retardant building.
"Using a little graphite in a normal polystyrene foam, it becomes a thermal insulator that protects the building from fire.
"The goal of Graphex is to produce 2018 vehicles for the first time in a mine in Tanzania.
Topic: electricity-energy-and-
Electricity, energy, mining-
Perth-industrial, stock market
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