Trade wars and geopolitical uncertainty have made 2019 a difficult yr for commodities traders typically. Nonetheless, few sources have been trickier to fathom, or extra unpredictable, than cobalt and lithium.
Earlier than the arrival of recent electrical automobiles (EV), lithium was recognized for many years as a medicinal treatment for despair. However plummeting costs have given traders within the commodity – which is a vital uncooked materials within the manufacture of high-powered lithium-ion EV automobile batteries – the blues.
Lithium carbonate costs assessed by S&P International Platts have tumbled greater than 20computer this yr to round $10,000 per metric tonne amid a world glut of provide, which has outstripped demand for EVs.
As soon as…