C-MACC Weekly “CRETER” (Climate etc.)
Lithium – A “Special” Commodity For Now – Adding To Inflation
- Despite lithium price strength, the equities of those within this product chain on avg. have fallen but have outperformed the overall ESG sector in recent months.
- While Electric Vehicle (EV) demand surges – especially outside the US, the recent market sell-off cut EV equity values – we prefer equipment suppliers to producers.
- EV and lithium demand will likely continue to grow very strongly, but materials inflationary pressure could limit margins for battery producers and EV makers.
- We discuss broader problems with bias in energy transition narratives, with the loud voices pushing focused agendas and the common sense lobby far too quiet.
- Otherwise, we look at recycled polymers shortages (not surprised), rising carbon values (again not surprised), and solar installation shortfalls (even less surprised).
See PDF below for all charts, tables and diagrams