• Battery Metals Investment Forum 2019

    Enabling bank financing and synergies to manage price risk and meet the exponentially growing demand for EVs and battery metals
  • The LINQ Las Vegas | 24 October 2019

    Understand, Model and Communicate the Real Long-Term Value of Lithium & Vanadium Projects and Stocks
  • Register Today!

    Join institutional investors, exchange operators, fund managers, battery metals producers, end users, and leading automotive firms
  • 1
  • 2
  • 3

Despite the electric vehicle revolution sparking rapid development and growing demand for lithium, it differs from other EV-related metals such as copper by having no current traded price.

In today’s system of contract-by-contract pricing, demand uncertainty from the fast-growing EV market in turn generates supply uncertainty, with no forward price curve to allow for forward hedging.

Forward hedging, which requires a forward price curve, is a key facilitator of bank financing in the minerals sector. Without it, the danger is that supply isn’t going to be there to meet the exponential growth expected in the demand for EV batteries, and suppliers will miss boom cycles.

In a downcycle, low lithium prices then translate into low equity prices for junior mining companies, making it difficult for them to raise sufficient financing to bring new capacity to the market once the market moves from surplus to shortfall.

And established producers, even if they have latent expansion potential, will not be able to bring new capacity on stream fast enough, causing a lag in the supply response, which causes an oversupply, which then causes prices to bust. And around again we go.

In the past few years we have already witnessed unprecedented price volatility in the lithium market, driven by EV battery demand.

And the price volatility will only get worse. Plug-in EVs already make up 7.8% of all cars sold in California, but they are still at 2.1% nationally, and the market is forecast to grow at a CAGR of 21.1%.

    - How do we effectively manage the price risk of battery metals moving forward?
    - How do we enable the supply chain to meet changes in demand fast enough?
Join institutional investors, exchange operators, fund managers, battery metals producers, end users, and leading automotive firms as we rethink the pricing of lithium, cobalt, and other battery metals to enable all players to manage their price risk exposures at this year’s Battery Metals Investment Forum (Fall 2019 Meeting) on Thursday, October 24, 2019 in Las Vegas, NV. The Fall 2019 meeting will tackle:
    - Pros and cons of global reference pricing vs contract-by-contract pricing
    - Price risk management tools for lithium and other battery metals
    - Reconciling battery metals price indexes with how the underlying industry works
    - For futures and options contracts: physical vs cash settlement, prompt date structures
To register, call +1 (310) 622-9159, email info@amgfirst.com, or visit www.amgfirst.com/bmif2019. Group discounts are available for teams of 3 and 5.

Newsletter