The Era Of Low Inflation May Be Over. Are Commodities The Solution?

Frank Holmes | |

A growing number of prominent financial groups believe the era of low inflation is behind us, and that one investment strategy is to boost exposure to commodities and natural resources.

Pacific Investment Management Company, or PIMCO, recently joined Capital Group and Union Investment in raising doubts that global central banks will succeed in stabilizing prices long-term. Recent changes in the world economy, including higher labor costs and a retreat from globalizati...

Tesla Signs Five-Year Lithium Supply Deal With China's Yahua Group

Reuters | |

China’s Sichuan Yahua Industrial Group Co Ltd said on Tuesday it had signed a deal to supply battery-grade lithium hydroxide to U.S. electric vehicle (EV) manufacturer Tesla Inc for the next five years.

Yahua, which is based in southwest China’s Sichuan province, put the total value of the contract, signed by its wholly-owned subsidiary Yaan Lithium, at $630-$880 million over 2021-25, a Shenzhen Stock Exchange filing showed.

Analysts at Daiwa Capital Markets said that value translated into a total lithium hydroxide procurement amount of 63,000-88,000 metric tons, or 12,600-17,600 metric tons per annum.

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