E20: Woodstock. Lithiumstock @MorganStanley Part Two

In the latest episode of Lithium-ion Rocks!, Howard Klein and Rodney Hooper take a look at the latest Lithium market happenings. S2 E20 Part Two.

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Nov 20, 2019
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LEAVING ARGENTINA.

DECLINE OF LI PRICES IS JUST BEGINNING.

Deja Vu, Hey Joe?!

Lithium equities have fallen precipitously since late February 2018 as the above and similar headlines entered the public domain from a global team of research analysts at Morgan Stanley which has amongst the most extensive breadth of coverage across the EV supply chain - from mining/chemical to cathode to battery to Autos.

Is the bear lithium price thesis underpinning their call correct? Or have they been “right for the wrong reasons” so far?

Helplessly Hoping as back to school September begins Rodney Hooper and Howard Klein continue their Season 2, Episode 2 interview with Morgan Stanley’s Javier Martinez de Olcoz Cerdan who covers (Somebody to Love) SQM, one of the largest, lowest cost lithium suppliers and has articulated aggressive supply expansion from their world class Salar da Atacama project.

Howard connected with Javier in March 2016 following SQM's 50% equity stake in Lithium America’s Cauchari-Olaroz in Argentina, an investment he looked at skeptically at the time as a ploy as SQM re-negotiated its Atacama concession with CORFO. Anyone invested in lithium shares interested in preserving their capital should have listened to Javier and the Morgan Stanley team, if not in February 2018 when they made their initial call, then perhaps in August that year, when their call on SQM exiting Argentina proved correct.

As VW & other German auto Lords continue to make Dieselgate amends at the Frankfurt Auto Show - less with Mercedes Benz & Hippie vans and more with Taycan Porsches and ID.3s, please enjoy Part Two of Lithium-ion Rocks! 20th episode, inspired by the 50th anniversary of the legendary Woodstock concert, With a Little Help From Janis, Joe Cocker.

And please also visit the Lithium-ion Rocks “tip jar”: www.patreon.com/lithiumionrocks

Podcast Index:

0:00 - 1:18 - Introduction

1:19 - 8:00 - Q&A European OEM need for diversity of supply, Carbon footprint of the battery supply chain, Subsidies

8:01 - 14:00 - Q&A SQM supply ramp to 2025, SQM environmental

14:01 - 22:50 - Q&A SQM quality of product, market share. Lithium as a global product, technology and the future

22:51 - 42.44 - Q&A Price forecasts, what multiple should lithium companies trade at? Can incumbent producers meet future lithium demand? Chilean lithium market share, SQM sustainability

42:45 - end - Ending and disclaimer

Not Investment Advice. Do Your Own Research

For important disclosures, please see the Morgan Stanley Research Disclosure Website atwww.morganstanley.com/researchdisclosures

Go to the profile of Howard Klein

Howard Klein

Founder & Partner, RK Equity

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