Rockstock Channel Recap with Y.J. Lee

Introduction

• Date: Tuesday, October 29th
• Focus on lithium market insights
• Guest: Y.J. Lee from Arcane Capital Advisors, Singapore
• Topics: Lithium market, solar energy, electric vehicles (EVs), investment strategies

Key Market Trends

Solar Energy

• Solar installations have significantly increased from 101-106 GW in 2017-2018 to 444 GW recently.
• Battery storage is essential for managing excess solar power.

Lithium Market and Demand

• Battery storage requires a lot of lithium; current production is insufficient.
• Electric buses and their demand are growing, requiring more lithium.
• Forecasted lithium demand is underestimated; supply growth has been postponed.
• Currently, there are significant cuts in lithium supply projections.
• Demand for lithium from solar and EVs may trigger a price spike due to lack of substitutes.

Industry Insights by Y.J. Lee

Overview of Arcane Capital Advisors

• Manages two funds focusing on renewable energy and green metals.
• Successful track record outperforming green indices.

Lithium Market Analysis

• Demand for lithium to grow due to increased solar and EV adoption.
• Chinese markets are showing strong performance in EV adoption.
• Prediction of a resurgence in lithium demand.

Global Lithium Supply Chain

• Chinese companies, such as BYD and CATL, are expanding into Europe.
• Challenges for Western OEMs in competing with Chinese EV companies.
• Predictions of possible disruptions in traditional ICE manufacturers.

Investment Strategy

• Preference for carbonate lithium due to its role in LFP batteries.
• Exploration of brine and hard rock lithium plays.
• Focus on proven production methods over unproven technologies.

Market Outlook and Projections

• Lithium prices may see a significant increase in the future.
• Forecasts suggest potential undersupply in the lithium market by late next year.
• Bullwhip effect expected with delayed supply adjustments.

Conclusion

• Y.J. Lee is optimistic about the lithium market trajectory and anticipates price increases.
• Discussion on the potential impact of political changes on the energy transition.
• Final comments on investment implications and strategic positioning in the lithium sector.