The lithium sector has already delivered 3 chapters over the last 5-years with the respective swings dictated by optimism around the growth in electric vehicles (EV) and good old fashioned supply and demand.
- Stocks like Orocobre (ORE) surged through 2016/7 as investors sought lithium exposure as the EV pick up gathered momentum globally if not particularly in Australia.
- However gains were reversed as the market realised increasing lithium supply was relatively easy and again too many people were caught long a crowded traded with huge valuations.
- Over the last 12-months the sectors taken off again as the EV and clean energy revolution has again surged but after massive gains we think further upside is limited into 2022 – time for the transient money to look elsewhere perhaps?
MM is neutral ORE around $10
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