Simon Moores of Benchmark Mineral Intelligence talked to INN about the lithium-ion battery supply chains, investments and more.
At this year’s Benchmark Minerals Week, the Investing News Network caught up with Simon Moores, managing director at Benchmark Mineral Intelligence, to talk about the battery metals space.
Moores, who testified to the US Senate for a second time earlier in the year and recently briefed the White House, talked about the increased awareness of the importance of developing lithium-ion battery supply chains.
“In the US, which really is quite far behind but is absolutely within their capabilities to step up quickly, is an ongoing discussion,” he said. “First is awareness, it’s making sure all government departments know what the state of play is … the accurate, consistent discussion is the first point, then everything comes from that.”
Moores also talked about megafactories, saying that there are now 103 battery plants in the pipeline, of which 72 are in China, 14 are in Europe and 5 are in the US — representing about 2,028 gigawatt hours or about 38 million electric vehicles by 2030.
“We have seen the most significant investments on the battery side … but then you think about what’s happening with the cathode manufacturers?” he said. “They might have the capacity, but do they have the capacity in the right jurisdictions? At the moment that is a big question for the cathode industry.”
The expert said he expected to see more strategic decisions this year, far more from anode makers, but he still expects that to pick up pace in 2020.
“Once you have that midstream investment … then the rest of the supply chain starts filling out and the miners can start to supply the actual industry — until that point China will continue to dominate,” he said.
Moores also shared his insight on what he calls the lithium-ion battery supply chain double-digit paradox.
“The price is down. It obviously gets people upset,” he said. “Prices in our lithium chemical index are down on average 12 percent, but demand is up 18 percent. What industries in the world have growth of 18 percent a year and you can walk around the industry and everyone is depressed?”
Watch the video above for more of Moores’ thoughts on battery metals investments, supply chains and prices. You can also click here for more video interviews from Benchmark Minerals Week.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.