"In reality, actually, lower lithium prices would make it cheaper for the manufacturers, who are the buyers of lithium. So this is actually an advantage for the buyer rather than the seller," Thomas W. Pauken II, geopolitical commentator and consultant on Asia-Pacific affairs, shared with Sputnik.
"Most of all because they continue to really do a big push into EVs. But there's also talk that perhaps Biden will do some trade protection measures on China's EV batteries. If that happens, that will also cause lithium prices to go lower because the Chinese companies, who are connected to EVs cannot do any type of business in the US," Pauken II added.
"So this statement by Elon Musk should not be taken as guarantees that the lithium market is booming. Everything in the markets go up and down. It is how markets work. If they don't go up and down, then we would have terrible inflation in our world and everything would get too expensive. We need up and down markets to create more balance between supply and demand," Pauken II stressed.