Global cathode and precursor short-term outlook July 2023

H1 2023 closes with the second best month for EV sales. If trends continue we can expect a 50% gain on sales vs last year. China continues to demonstrate it's dominance in EV sales and cathode manufacturing by fast-tracking 200kt of LFP production in just 18 months. The world looks to lower cost, more abundant chemistries to reduce their reliance on other nations. It is clear that even with attractive incentives in the west, China show no signs of slowing down. Their supportive legislation and efficient processes means the west will be playing catch-up for some time. We see trade exports out of China increase and improved prices for LCO as lithium and cobalt chemical prices gain this month. Although the short term price out look remains relatively flat