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The free market unfortunately responds quite slowly in capital intensive markets like lithium (or oil).
by ceeplusplus 4y ago
The free market unfortunately responds quite slowly in capital intensive markets like lithium (or oil).
- pkulak 4y agoMore unfortunately, planned economies respond even slower.
- xiphias2 4y agoIt depends on how well they are planned and who's doing the planning. Tesla leaadership has a clear understanding that access to raw materials will be a key challenge in the next 15 years in the move to battery storage based technologies.
- deleted 4y ago[deleted]
- nostrademons 4y agoWhich is working-as-intended, because the market needs to remain in disequilibrium long enough for entrepreneurs to reap the windfall profits to finance the large capital investment. If the market responded instantly, the price would drop quickly, no profits would be generated, and the capital would've been misallocated into an industry with no payoff. This is the market saying "It's going to take a significant amount of effort to fix this problem. Is it really such a big problem that it's worth sacrificing all the other things that capital could've been invested into?"
- imtringued 4y agoIs it really free if we are dependent on the benevolence of a handful of countries? At least lithium has the potential to kickstart a circular economy (recycling).