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This is no longer a question of economic axioms, but of the facts on the ground. How do we know that the scale effects relative to lithium mines as they stand today will be sufficient to offset the price increase inherently caused by the increased demand? Do you have a source for this?


The increased demand only causes a temporary increase in price. Lithium is a commodity, and for commodities price == marginal cost.

The marginal cost for lithium is about 1/10th of the current price, so the price of lithium will eventually fall.

Of course "eventually" could be a long time away...




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