Global cathode and precursor short-term outlook January 2023

The dust has settled on a successful year of record electric vehicle (EV) penetration and battery material production, and New Year bringing new challenges to the supply chain with uncertainty remaining regarding the effect of EV subsidy cuts in China, and the potential effect of IRA in the USA. OEMs being forced to compete on a pure-market basis will be forced to move to a price war. The good news is that expectations on the market are it will be affordable for major producers, so we're definitely not expecting a collapse of EV sales, however, smaller companies and newcomers will be in the "make-or-brake" situation and forced to cut costs and make an all-in bet expecting their product will be met with appreciation by customers.