December 13, 2025

CATL Delay, Battery Costs Near Limits, Solid-State Reality, Demand Forecast Risks, $NILI Update

1 hour 9 minutes

In this episode, we’re joined by Keith Phillips for a wide-ranging, data-driven discussion on lithium markets, battery economics, and critical minerals strategy as 2026 approaches.

Chapters

(00:00:00) Intro

(00:05:24) CATL Restart And Lithium Prices

(00:07:45) Solid-State Battery Reality Check

(00:12:02) Battery Costs: What's Next

(00:15:02) Lithium Demand Forecast Pitfalls

(00:17:56) EV Battery Size And Mass Market

(00:22:52) Autonomy And Battery Demand

(00:24:17) Power Metals Deal Update

(00:25:29) Q2 Metals And Cisco Overview

(00:27:59) Rio Tinto Quebec Strategy

(00:30:09) Faster Permitting In Canada

(00:31:18) Picking Winners In Lithium Projects

(00:35:29) Offtakes Vs. Traders

(00:38:53) US Critical Minerals Funding

(00:45:09) What's Truly "Critical"

(00:47:35) Where To List A Lithium Company

(00:55:02) Surge-Evolution JV And 2026 Plans

(01:03:43) SLR Breakdown

Strategic Lithium Reserve (SLR) White Paper: https://blog.rkequity.com/2025/12/08/strategic-lithium-reserve/

We begin with a deep dive into the Strategic Lithium Reserve (SLR), explaining why price volatility—not geology—is the biggest constraint on Western lithium investment, and how China’s pricing power via CATL, BYD, and the G-FEX exchange has reshaped the global market. We discuss price floors, market stabilization, and why lithium sits at the center of energy security, industrial policy, and the emerging “electrostate” economy.

From there, we analyze near-term lithium price drivers, including delays to Chinese supply restarts, seasonal demand patterns, and the growing role of energy storage systems (ESS). We examine battery technology trends, including semi-solid and solid-state batteries, falling battery costs, and what consumer price sensitivity means for EV adoption, battery size, and lithium intensity.

The conversation also tackles a critical forecasting issue: whether lithium demand is being overstated due to unrealistic assumptions around battery chemistry and average EV battery size. We compare LFP, mid-nickel, and high-nickel batteries, and discuss how China’s mass-market EV model differs from Western assumptions.

Keith shares insights from his experience as a former lithium CEO, including how to evaluate lithium projects, the importance of location and permitting timelines, the realities of offtake agreements versus spot sales, and how government funding and capital markets shape project outcomes. We also discuss Quebec’s growing role in hard-rock lithium, Q2 Metals’ Cisco project, Rio Tinto’s conversion strategy, and the outlook for permitting reform in Canada.

We close with a market update on recent deals, including Power Metals and Surge Battery Materials, and discuss where institutional interest in lithium may return as prices stabilize and policy priorities shift.

This episode is designed for investors, industry professionals, and policymakers looking for a clear, grounded view of lithium markets, battery economics, and the strategic decisions shaping the next phase of the energy transition.