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1) According to Jefferies, the huge Chinese demand for metals such as copper, iron ore and aluminum is over, the "supercycle" comes to an end. Jefferies analyst Christopher LaFemina said that China's falling population and geopolitical challenges, as well as long-term demand that will now be dominated by the US and Europe are indications that the "supercycle" comes to an end. The industrialization and urbanization of Chine is over and the decarbonization cycle has just begun according to the analysts.
2) Lithium producers are becoming anxious that delays in starting new projects and mines will hinder their efforts to supply the world with enough minerals to meet the demand for electric vehicles. "You could end up in a crisis situation where the battery companies don’t have the security of (lithium) feedstock," Stu Crow, chairman of Lake Resources, said on the sidelines of this week’s Fastmarkets Lithium and Battery Raw Materials conference in Las Vegas. There are about 45 mines operating in the world, 11 expected to open this year and 7 more next year. Albermarle, the US based miner and largest lithium producer, is trying to expand rapidly across the Americas, Asia and Australia. With the demand for critical minerals, not just lithium, set to sky rocket, the US needs to look at opening and permitting new projects for the safe and available supply chains.
3) The US Senate voted in favor of a tax treaty with Chile as this is seen as a win for US companies to gain access to lithium needed for the green energy transition. The tax treaty was first introduced in the US government in 2012 and Chile's Congress approved it back in 2015. Business interests have been supporting the tax agreement for years as according to the US Chamber of Commerce said that US companies that have operations in Chile, could be paying about 44% more in taxes. "As the world races to advance clean technologies, Chile will be a critical ally for anyone looking to lead the way," the Senate's Democratic majority leader, Chuck Schumer, said on Thursday as he urged passage.
"If the United States is serious about remaining ahead of countries like China, it's imperative we pass this treaty today," Schumer said.