Telecoms are generally assumed to offer investors cash-flow stability and good dividends, which stand out as havens when markets are expensive or becoming more volatile. These shareholder priorities can, over the short term at least, oppose the ongoing need to invest in the future of the business.
It is generally accepted that lithium demand will grow significantly over the next 10 years, driven by both increased penetration of electric vehicles (EVs) and increased storage capacity from renewable energy. A fairly natural outcome has followed on from this, in that, as the full scale of potential future lithium demand has emerged the valuations of lithium-producing companies appear to be on an ever-increasing trajectory.
