[HN Gopher] Why Are Lithium Prices Collapsing?
       ___________________________________________________________________
        
       Why Are Lithium Prices Collapsing?
        
       Author : xbmcuser
       Score  : 178 points
       Date   : 2023-04-30 06:16 UTC (16 hours ago)
        
 (HTM) web link (internationalbanker.com)
 (TXT) w3m dump (internationalbanker.com)
        
       | xbmcuser wrote:
       | The more I read about prices of different commodities the more I
       | realise the biggest movement in prices is not because of demand
       | and supply but rather because of speculation and gambling. And
       | how most of the news is manipulated. For example they are
       | equating lithium price fall with stagnating car sales. Where as
       | car sales might be stagnating but electric car sales are taking a
       | larger portion of total car sales ie electric car sales/lithium
       | use is still increasing.
        
         | nurettin wrote:
         | Price increase is governed by how much a buyer is willing to
         | pay and how long a seller is willing to hold. That is supply
         | and demand. Their reason to supply or demand is 100% due to
         | speculation or gambling or whatever you want to call it. There
         | is no intrinsic value for anything. Supply and demand is not a
         | magic spell that saves people from guessing what prices should
         | be.
        
         | marcosdumay wrote:
         | > is not because of demand and supply but rather because of
         | speculation and gambling
         | 
         | That's what a zero interest rate policy buys you.
        
         | tourgen wrote:
         | [dead]
        
         | nprateem wrote:
         | > speculation and gambling
         | 
         | Of course. The net present value of a stock or asset can only
         | be calculated based on its expected future price and earnings.
         | Since there's no way to know this with 100% certainty, stock
         | prices are inherently speculative. Even value investors must
         | struggle to accurately value a company's intangible assets.
        
           | danaris wrote:
           | But there's a material difference between "attempting, in
           | good faith, to determine what the demand for a commodity will
           | be in the future, and buying based on that" and "attempting
           | to determine what the _price of a commodity on the futures
           | market will be_ and buying based on that ".
           | 
           | When people say that a commodity's price is being driven by
           | speculation and gambling, they mean that it has shifted from
           | the former to the latter. This means that the price is
           | _disconnected_ from the actual, physical use of the
           | commodity, and is instead being driven by the inconstant
           | passions of the commodities market itself.
        
             | kortilla wrote:
             | People who say that don't understand what's going on. Those
             | futures eventually resolve to delivery so this is the real
             | price that producers are selling and and consumers of
             | commodity buy at.
             | 
             | All of the speculation is entirely based on how the news
             | might impact the physical product.
             | 
             | Oil prices went negative precisely because storage was full
             | and people didn't want the obligation to take delivery of
             | the oil when nobody was using it.
        
             | achates wrote:
             | The price should be disconnected from the actual, physical
             | use. If we have a surplus of a substance now but there is
             | reason to believe that we'll need a lot more of it later
             | then the sensible thing to do is to hoard most of it until
             | it is needed and to start producing more of it. Speculators
             | help do that by driving up the price which is a signal to
             | both producers and consumers.
             | 
             | The market thought that China was going to need a lot of
             | lithium for EVs, so the price went up which incentivized
             | higher production and lower use. That's a good thing
             | because it made it more likely that China would meet their
             | demand. Now the market has better information that China is
             | going to need less lithium than previously thought so the
             | price drops which makes it viable for previously marginal
             | users.
        
             | lotsofpulp wrote:
             | >But there's a material difference between "attempting, in
             | good faith, to determine what the demand for a commodity
             | will be in the future, and buying based on that" and
             | "attempting to determine what the price of a commodity on
             | the futures market will be and buying based on that".
             | 
             | These are indistinguishable. Unless you want to restrict
             | markets to being only between suppliers and consumers,
             | there will always be middlemen attempting to predict the
             | price, and since they need to eat, they will be attempting
             | to profit from changes in price.
             | 
             | Which is fine because suppliers and consumers are many
             | times willing to let others handle the risks of price
             | changes (volatility), hence the market for futures.
        
               | BeFlatXIII wrote:
               | > Unless you want to restrict markets to being only
               | between suppliers and consumers
               | 
               | That is what I would like to do, yes.
        
               | parmenidean wrote:
               | Read up on the onion futures markets; due to a (rather
               | fascinating) historical decision, they are one of the few
               | commodities without speculative futures. As a result,
               | price volatility in the market is massive, with far worse
               | swings compared to the efficient markets where
               | speculators operate.
        
               | kortilla wrote:
               | I challenge you to write out what scenarios you think
               | reducing market participants will solve. Historically it
               | has 100% so far been highly illiquid markets with huge
               | price spreads, which is terrible for both sellers and
               | buyers.
               | 
               | What you're suggesting means a farmer selling wheat
               | futures for delivery a year from now needs to be at the
               | market at the same time a bread maker is looking to buy
               | wheat a year from now. That basically doesn't happen
               | because the bread maker doesn't need that level of
               | forward looking price stability.
        
               | lotsofpulp wrote:
               | That is how they were in the beginning. I recommend
               | reading about the development of markets and futures
               | trading to see what benefits they provide, as they are a
               | component of any developed economy around the world.
        
               | GolfPopper wrote:
               | Of course there's a difference. It's based on information
               | asymmetry, i.e. the 'greater fool' theory. When the
               | information asymmetry is deliberately created, that's
               | being done in bad faith, and is the sort of thing we call
               | fraud when done on an individual level. It often feels
               | like a great deal of our corporate and financial
               | machinery are designed around diffusing actions that
               | would be criminal, or reprehensible if done person to
               | person, in order to allow them to be done at scale
               | without consequence.
        
               | lotsofpulp wrote:
               | > When the information asymmetry is deliberately created,
               | that's being done in bad faith, and is the sort of thing
               | we call fraud when done on an individual level.
               | 
               | What information asymmetry? The previous comments
               | referred to speculators betting on price movements.
               | 
               | Deliberately creating fraudulent information asymmetry
               | would be altering data in industry reports and publishing
               | false manufacture/consumption data. Which, I assume, is
               | illegal.
        
               | zamnos wrote:
               | What _is_ illegal is financial advising without a
               | license. Which recommending a stock falls under. Altering
               | some one else 's report and claiming your rendition is
               | the real one is forgery or something, but writing your
               | own report and making up numbers is totally fine.
        
               | GolfPopper wrote:
               | By, for example, deliberately delaying delivery while
               | owning a significant segment of the available commodity,
               | such as Goldman Sachs did with aluminum a decade ago.
               | [1], while simultaneously selling derivatives based on
               | the very commodities they were manipulating. To the best
               | of my knowledge, there were no consequences - if anyone
               | knows of a financial penalty or change to law or
               | regulations, please share!
               | 
               | 1. https://www.usnews.com/opinion/blogs/economic-
               | intelligence/2...
        
               | lotsofpulp wrote:
               | I agree that there is concern of malfeasance in that
               | scenario, but I was under the impression the context of
               | the discussion was solely around the purchase and sale of
               | contracts for the commodities (i.e. betting on the future
               | price of a commodity), not manipulation of the actual
               | supply and demand.
        
               | GolfPopper wrote:
               | When the same legal entities are in a position to do both
               | (participate in the futures market _and_ manipulate
               | supply and demand) I do not see how or why you would try
               | to make such a distinction.
               | 
               | It feels like you're trying to say, "this market would
               | work fine if it weren't for those meddling bad actors" as
               | a response to "the problem is the bad actors".
        
           | bookofjoe wrote:
           | True. Even the master of value investing, Warren Buffett,
           | sometimes suffers huge losses and write-offs.
        
         | broast wrote:
         | You're definitely right that the news loves to write headlines
         | after any daily price fluctuations and pretend they know the
         | reason, when in reality it usually explains nothing and becomes
         | irrelevant by tomorrow.
        
         | chii wrote:
         | > the biggest movement in prices is not because of demand and
         | supply but rather because of speculation and gambling
         | 
         | the movement reflects the expected future supply and demand at
         | the time.
         | 
         | The speculation is something that financial engineers use to
         | offload the risks of such commodities from one party to another
         | (such as from producers to consumers of said commodities).
        
           | xbmcuser wrote:
           | With the way derivatives are used these days to
           | speculate/gamble they do not help rather result in the boom
           | bust cycles we see in more and more industries these days.
        
             | sigstoat wrote:
             | and when exactly do you think that changed? if "these days"
             | are in some sense bad, when were the good ones?
        
         | bullen wrote:
         | Markets in a high energy cost environement make their margin
         | more on volatility and speculation.
         | 
         | You will also see margins themselves widen until the system
         | falls in on itself.
         | 
         | We dont have a financial margin tracker.
         | 
         | Also increasing interest rates in a highly indebted economy
         | increases inflation; short term by widening of margins and long
         | term by offputting energy extraction.
         | 
         | Lithium will explode soonish.
         | 
         | Margins amplify volatility.
        
         | JumpCrisscross wrote:
         | > _how most of the news is manipulated. For example they are
         | equating lithium price fall with stagnating car sales_
         | 
         | Mass media is mostly crap at price-move stories. It's less
         | manipulation than false correlation. (The writers are
         | incentivised to write, not to write a particular story.) There
         | is a lot of thought that goes into lithium pricing. Current
         | price moves are mostly speculation about supply, given near-
         | term demand can be pretty precisely measured given battery
         | production in operation and breaking ground. (Battery supply
         | limits EV production, which itself outstrips demand, so
         | volatility in consumer demand is tamped at the extraction
         | layer.) Recent debate is about potential supply from brine in
         | China.
        
         | z3t4 wrote:
         | Monopoly and cartels has the most impact on prices. and the
         | market can not work if there are few partisipants. also
         | gatekeepers, those that stand in between producers and
         | consumers can screw up the market if they have a large potion
         | of the market.
        
         | bboygravity wrote:
         | It's interesting to see that people still believe there is some
         | type of fair price discovery when things like dark pools,
         | market maker exemptions, naked shorting, tokenized securities,
         | trillions in derrivative bets (hello 2008), spoofing (JP Morgan
         | getting fined 1 billion after making 10 billion in profit in
         | gold price spoofing) and so on and so forth exist.
         | 
         | Speculation and gambling about what future prices will be are
         | not the big issues here, the markets themselves are completely
         | broken (by design).
        
           | danaris wrote:
           | It's _not_ by design, though.
           | 
           | No one _designed_ this system. It grew, organically. People
           | started recognizing parts of it they could take advantage of,
           | and pushing to have those parts become more prominent,
           | largely individually (as opposed to in one grand conspiracy
           | of collusion).
           | 
           | It may be true that some of those people believe it is in
           | their best interests that the markets be "broken", and so
           | have pushed that far intentionally, but there is no one
           | overriding will and no single hand on the rudder to even be
           | able to do that on purpose. It's all just greedy people
           | trying to get their own interests put before everyone else's.
        
           | Rufbdbskrufb473 wrote:
           | You just listed a bunch scary sounding financial buzz words,
           | but I doubt that a thorough analysis of them would support
           | your conclusion.
           | 
           | In fact, many have the opposite effect and result in more
           | efficient price discovery. Take naked shorting for example.
           | Without shorting, it would be far more difficult for an
           | equity research firm to be incentivized to look into
           | fraudulent stocks, as was widespread with Chinese companies a
           | few years ago. Without their efforts, stock prices would have
           | remained inflated for longer.
        
             | quote wrote:
             | Isn't that argument somewhat strange or dishonest? To
             | paraphrase you: I'd rather have naked shorting and the
             | associated manipulation and problems with it than better
             | price discovery for stockholders. In your example, the
             | stockholder isn't protected either, only an equity firm
             | derives profit from this information. In a more ideal world
             | the stockholders themselves would do this due diligence,
             | which is something that already happens. Also there's
             | differences between shorting and naked shorting. I could
             | well imagine allowing fully hedged shorting and outlawing
             | naked shorting. Especially considering the issue of fail to
             | deliver, that's just absurd with our technology.
        
               | JumpCrisscross wrote:
               | > _could well imagine allowing fully hedged shorting and
               | outlawing naked shorting_
               | 
               | Many markets ( _e.g._ Australia and Switzerland) do this.
               | We have the comparative data to show it doesn't do
               | anything good while increasing volatility.
        
             | johnnymorgan wrote:
             | You referenced due diligence as naked shorting but they are
             | different.
             | 
             | You listed a bunch of financial buzz words and didn't
             | disprove OP.
             | 
             | Please show how naked shorting incentivized good due
             | diligence.
             | 
             | You could have just pointed to the massive new supply that
             | was announced, it's the logical reason why the price
             | dropped.
             | 
             | Geopolitics are the primary mover of markets currently.
        
             | machina_ex_deus wrote:
             | You don't understand what naked shorting is. Naked shorting
             | is shorting without first borrowing from someone. Normal
             | shorting is limited by the availability of stock to borrow
             | (by the way, if stock holders wish, they can request from
             | their broker that their stock won't be available for
             | borrowing, potentially causing short squeeze), by the
             | interest rates on borrowing the stock.
             | 
             | Naked shorting skips it all. Some market makers are
             | privileged and can sell stock they don't own and didn't
             | borrow. So they have a privilege of printing stocks in the
             | short term, and that's quite broken, and many of them
             | abused this position to manipulate markets. Normal
             | participants in the market can't naked short.
             | 
             | Naked shorting means that the market maker who supposedly
             | sold you a stock, can now fail to find the stock he sold
             | you, leading to "fail to deliver".
             | 
             | The excuse given is that naked shorting allows for more
             | liquidity, but given the other problems, I think it's bad.
        
               | JumpCrisscross wrote:
               | > _excuse given is that naked shorting allows for more
               | liquidity, but given the other problems, I think it 's
               | bad_
               | 
               | I assume you have a counterpoint to the decades of data
               | the NYSE, SEC, Financial Crisis Inquiry Commission and
               | others around the world have collected that show naked
               | shorting improves liquidity without FTDs negatively
               | impacting price discovery while tamping volatility,
               | evidence made particularly robust by the fact that naked
               | shorting is permanently banned, and has been temporarily
               | banned, in many markets, such as Australia, Switzerland
               | and, for some stocks post crisis, in the United States?
               | (See _Wikipedia_ for a summary.) The whole affair reminds
               | me of the lead up to the Onion Futures Act [1].
               | 
               | [1] https://en.m.wikipedia.org/wiki/Onion_Futures_Act
        
           | RandomLensman wrote:
           | What is the issue with a dark pool, for example? They are
           | generally not designed for price discovery anyway.
        
             | quote wrote:
             | But wouldn't it be better if the volume at least is shown
             | on open exchanges?
        
               | JumpCrisscross wrote:
               | > _wouldn't it be better if the volume at least is shown
               | on open exchanges?_
               | 
               | Empirically, no. Large blocks of stock don't have a
               | liquid market. Forcing them into the open means chopping
               | it into tiny pieces while using derivatives to hedge, for
               | the sophisticated, and getting hosed, for the
               | unsophisticated.
        
           | bookofjoe wrote:
           | "The secret of success in business is to know something no
           | one else knows." --Aristotle Onassis
           | 
           | How do you spell "insider trading?"
        
             | lotsofpulp wrote:
             | My plumber/electrician/doctor is insider trading?
        
               | layer8 wrote:
               | What does your plumber/electrician/doctor know that other
               | plumbers/electricians/doctors don't know and that is the
               | secret of their success?
        
               | lotsofpulp wrote:
               | Forgot about the "no one else" knows part, but the point
               | is being good at something (or knowing something others
               | do not) is not a bad thing, as implied by "insider
               | trading".
               | 
               | For example, if you figure out a cheaper alternative to
               | lithium, and want to bet that lithium prices will fall as
               | a result of reduced demand, then those are your spoils
               | for figuring that out.
        
               | [deleted]
        
             | pfdietz wrote:
             | Insider trading involves trading that violates a fiduciary
             | responsibility. That is: you work for a company owned by
             | shareholders, and you trade based on information you have
             | as a consequence of that employment, harming the
             | shareholders.
             | 
             | Without that fiduciary responsibility, it's not insider
             | trading, it's just trading. If you overhear someone with
             | inside information talking about some inside knowledge,
             | then trade based on that, you're in the clear (as long as
             | you didn't collude with the leaker.)
        
             | barrysteve wrote:
             | How do you spell "research and development".
             | 
             | We aren't rushing to make nuclear fusion because we have
             | insufficient electricity... and you can't replace what the
             | scientists know with another coal plant.
             | 
             | Global survelliance, inifinte database records and instant
             | comms has really destroyed the potential to keep and
             | develop real secrets. It's going to hurt (badly) in the
             | long run.
             | 
             | So insider trading for as long as GCHQ/CIA/NSA refuses to
             | rat people out....
        
         | 226_ebro_treaty wrote:
         | Wait until you learn about OPEC and oil prices :-)
        
           | KingOfCoders wrote:
           | Because they will change their mind?
           | 
           | "demand and supply"
           | 
           | OPEC is a cartel constraining supply to increase prices, it's
           | not a free market but an example of "demand and supply" in
           | it's most brutal form. OPEC prices are not about "gambling".
        
             | jimbob45 wrote:
             | OPEC has gambled several times in the last decade on future
             | oil prices (and not always won).
        
               | KingOfCoders wrote:
               | In which way has OPEC gambled on future oil prices that
               | moved prices? To my limited understanding this would
               | involve buying oil futures.
        
               | [deleted]
        
               | jpgvm wrote:
               | You don't need to use derivatives to gamble, they control
               | the supply but that control is a lagging control. Any
               | decision they make is essentially a bet about where the
               | oil market is going to move in several months. They are
               | usually big enough that any move they make is going to
               | set the tone but that isn't always the case.
               | 
               | They need to make continual bets on the health of
               | transports, changes in energy mix etc in order to move or
               | keep the price in a favorable band for them. Misstep and
               | the price of oil falls, cutting into their profits or
               | push it too high and face demand destruction and shale
               | extraction coming online because it's profitable at those
               | higher prices, increasing competition and stifling
               | volumes simultaneously.
        
           | rhaway84773 wrote:
           | I mean, that's a straight up cartel. There's nothing
           | surprising about that.
           | 
           | But the OP is confused about their comment about commodities
           | in general. They are largely based on supply and demand, but
           | most companies need to predict supply and demand months and
           | years in advance because converting raw material into a sale
           | to the end user is a multi month to multi year process, so a
           | natural result is that the prices are based on speculation of
           | supply and demand, months to years in advance.
        
             | mr_toad wrote:
             | > the prices are based on speculation of supply and demand,
             | months to years in advance.
             | 
             | There's also an element of speculation on speculation
             | driving short term trends.
        
             | tsimionescu wrote:
             | > They are largely based on supply and demand, but most
             | companies need to predict supply and demand months and
             | years in advance because converting raw material into a
             | sale to the end user is a multi month to multi year
             | process, so a natural result is that the prices are based
             | on speculation of supply and demand, months to years in
             | advance.
             | 
             | But that practically means they are based on speculation
             | about possible future supply and demand, and we are more or
             | less taking it on faith that that speculation is correlated
             | to actual supply and demand.
        
               | avianlyric wrote:
               | > But that practically means they are based on
               | speculation about possible future supply and demand, and
               | we are more or less taking it on faith that that
               | speculation is correlated to actual supply and demand.
               | 
               | This statement almost seems tautological. Of course
               | prices are based on speculation about possible supply and
               | demand, nobody has a crystal ball that can tell them
               | "actual" supply and demand.
               | 
               | In a competitive and liquid market, you expect prices to
               | rapidly approach "optimal", because otherwise there's an
               | opportunity there for someone make money out of the
               | market inefficiency, buy correctly predicting when supply
               | is high, and buying, then selling when supply is low.
               | Which is exactly what future etc do, except without the
               | need to actually move the physical commodity around.
        
               | tsimionescu wrote:
               | > Of course prices are based on speculation about
               | possible supply and demand, nobody has a crystal ball
               | that can tell them "actual" supply and demand.
               | 
               | Exactly, no one has such a crystal ball. And this
               | actually generally applies not just to future supply and
               | demand, but even to the past: it's actually impossible to
               | measure supply and demand across any significant
               | industry, to check whether prices matched it or not.
               | 
               | And yet, economists and economical theory enthusiasts
               | talk about the "law of supply and demand" as if it's some
               | scientific observation, and not just a simplistic model
               | that seems intuitive.
               | 
               | > In a competitive and liquid market, you expect prices
               | to rapidly approach "optimal", because otherwise there's
               | an opportunity there for someone make money out of the
               | market inefficiency
               | 
               | You might expect that if you believe in the law of supply
               | and demand, but as we were discussing, that is not how
               | prices are actually formed, and anyone betting based on
               | observed supply and demand (to the extent that it is
               | actually possible to observe them) will be beat in
               | general by others who are betting based on current
               | speculation, which is how prices are actually formed.
               | 
               | For example, if you are betting that gain prices will
               | increase in the winter because that's what you think they
               | did every year, and ignore some prominent pundit
               | predicting that they will decrease this year, you may
               | well lose the bet if everyone else believes the pundit.
               | And that will be true regardless of whether grain will be
               | in low supply or not.
        
               | avianlyric wrote:
               | > You might expect that if you believe in the law of
               | supply and demand, but as we were discussing, that is not
               | how prices are actually formed, and anyone betting based
               | on observed supply and demand (to the extent that it is
               | actually possible to observe them) will be beat in
               | general by others who are betting based on current
               | speculation, which is how prices are actually formed.
               | 
               | But we do see prices approach optimal. Your argument is
               | predicated on the idea that the law of supply and demand
               | is only a useful model if the actual price _always_
               | follows observed supply and demand. But for that to ever
               | be true, it would require speculators to have a crystal
               | ball, otherwise there's no reason to believe the
               | speculated price will always match the "optimal" when the
               | point in time being speculated about actually occurs.
               | 
               | The law of supply and demand tells what market systems
               | will trend towards. But like complex control system,
               | having a governing idea about long term trends doesn't
               | mean momentary perturbations don't occur, it just helps
               | you understand what the system will do after the
               | perturbation.
               | 
               | To claim that the law of supply and demand is useless, is
               | like claiming that Hooks Law is useless for understanding
               | how suspension systems in cars work, because perfect
               | springs don't exist, and cars don't remain stationary.
               | 
               | Perfect markets don't exist, perfect information doesn't
               | exist, so why would anyone expect real markets to
               | perfectly follow the law supply and demand? And clearly
               | markets do follow the law of supply demand at the macro
               | level, when long periods of time are considered,
               | otherwise commodity pricing would be entirely arbitrary
               | and wouldn't in anyway reflect the value of the commodity
               | to society at large.
        
               | tsimionescu wrote:
               | > But we do see prices approach optimal.
               | 
               | Where do you see that? What does it even mean, how can
               | you objectively tell what is the optimal price for a good
               | or service, so that you can later say that the market
               | converged to it?
               | 
               | For example, is 1000$ the optimal price for an iPhone? Or
               | is it simply the price Apple chose? If they sold it for
               | 500$, would they make more or less money? How do you
               | know?
               | 
               | > And clearly markets do follow the law of supply demand
               | at the macro level, when long periods of time are
               | considered, otherwise commodity pricing would be entirely
               | arbitrary and wouldn't in anyway reflect the value of the
               | commodity to society at large.
               | 
               | I would argue that it often is, at least for many non-
               | essential products. The price of many non-essential goods
               | is much much higher than the price of essentials, even
               | when those non-essential goods are cheap and easy to
               | manufacture (say, softdrinks or many cosmetics). The
               | price of most energy resources is largely controlled by
               | non-market forces, even on the face of it.
               | 
               | Also, why restrict this discussion to commodities? If we
               | switch to investments, the price of stocks is quite
               | obviously arbitrary as well, with "market makers" often
               | controlling the allowed prices (or at least, price
               | volatility) for stock. The price of real-estate is often
               | determined to a large extent by the price of borrowing,
               | and that is quite explicitly set by banks and the central
               | bank based on nothing related to supply and demand.
               | Services are even more complex, with huge variations in
               | price based on entirely subjective factors.
        
               | avianlyric wrote:
               | > Also, why restrict this discussion to commodities?
               | 
               | Because they're generally pretty fungible, and have a
               | larger number of sellers and buyers involved in the
               | market, hence their markets are more likely to behave
               | like an ideal market. The same does not apply to housing,
               | or services.
               | 
               | > Where do you see that? What does it even mean, how can
               | you objectively tell what is the optimal price for a good
               | or service, so that you can later say that the market
               | converged to it?
               | 
               | For commodities, I would point to the reasonable price
               | stability that exists. As evidenced by the fact that
               | basic goods don't frequently suffer from repeated
               | shortages or gluts of supply. Strongly indicating that
               | the price is both high enough to incentivise production,
               | and stable/low enough to allow for relatively low risk
               | long term investment in production, because continuous
               | long term demand is expected.
               | 
               | > For example, is 1000$ the optimal price for an iPhone?
               | Or is it simply the price Apple chose? If they sold it
               | for 500$, would they make more or less money? How do you
               | know?
               | 
               | These is nothing about the iPhone market that suggests
               | it's anything close to an ideal market (for one Apple
               | have a monopoly on iPhone sales), so I don't know why you
               | would expect it to behave like an ideal market.
               | 
               | > The price of real-estate is often determined to a large
               | extent by the price of borrowing, and that is quite
               | explicitly set by banks and the central bank based on
               | nothing related to supply and demand. Services are even
               | more complex, with huge variations in price based on
               | entirely subjective factors.
               | 
               | What's your point? Of course a law describing how ideal
               | markets work doesn't correctly describe markets well know
               | for being extremely distorted and non-ideal. Next you're
               | going to tell me Newtons laws of motions are all useless
               | because they can't help you model the behaviour of
               | objects travelling at relativistic speeds.
               | 
               | You seem to be struggling with the idea that a model
               | doesn't need to be perfect, or applicable to every real
               | world scenario, to be useful. All _models_ have their
               | limits, that no surprise to anyone. That doesn't make
               | them useless, it just means you need to be aware of
               | limitations, and adjust expectations appropriately.
        
               | signatoremo wrote:
               | > you may well lose the bet if everyone else believes the
               | pundit
               | 
               | Can you give a real life example of when a pundit giving
               | a predict against the actual supply that had everyone
               | buy-in? Says, oil price goes down even when demand is
               | hot?
        
               | tsimionescu wrote:
               | The price of oil is a particularly bad example, since it
               | is heavily controlled everywhere in the world, as is
               | supply. The international price of oil is largely set by
               | OPEC or the USA or a few other countries (depending on
               | geographical region).
               | 
               | Also, this type of pundit influence is common with the
               | price of stocks. It also happened with the price of
               | natural gas in Europe last year, when it increased based
               | on lack of confidence in reserves that turned out to be
               | misplaced, and never really recovered.
        
               | PinkRidingHood wrote:
               | An inverse example would be any bubble, for example the
               | housing bubble that happened over a decade ago.
               | Prediction of house prices going up eventually reached a
               | point where house prices were going up, despite low
               | "actual demand" (of course, if you count "demand for
               | investment", then prices are absolutely a measure of
               | that).
        
               | PinkRidingHood wrote:
               | The pundit's claims are part of the speculation. If you
               | speculated that the pundit's words would matter, you'd
               | short or sell out grain, making the pundit's words
               | matter. Supply and demand are only sometimes good
               | measures of people actually using or producing these
               | products (and when they fail bubbles occur), but are
               | always good measures of the spending of both people
               | actually using the product, and the investors buying it
               | in wanting to sell it.
               | 
               | In any case, as the investors buy the product they
               | eventually have to sell it, meaning over the long run
               | demand and supply are good measures of "actual" usage and
               | production. You know this because there's never a bubble
               | that doesn't collapse and return to equilibrium.
        
               | tsimionescu wrote:
               | > In any case, as the investors buy the product they
               | eventually have to sell it, meaning over the long run
               | demand and supply are good measures of "actual" usage and
               | production.
               | 
               | That's not necessarily true. It depends on the product
               | and industry, but it's absolutely possible to horde
               | products for long periods of time (see diamonds and gold)
               | or to choose to destroy products rather than sell them at
               | a price you don't like (see public transportation in many
               | US cities in the 50s, or fancy food items).
        
           | xbmcuser wrote:
           | Are they any different than the Isp and telcos in the states
           | or Walmart, Amazon, Alphabet, Apple, Microsoft or payment
           | service providers like mastercard and visa all of them work
           | as cartels or monopolies. All these companies cost Americans
           | more than when OPEC manipulate oil prices I think
        
         | mmiliauskas wrote:
         | I personally have an impression, that commodity prices are a
         | function of shocks. Gas prices in Europe, uranium prices in mid
         | 2000s, lithium due to sudden EV demand, etc. World then
         | adjusts, and prices "collapse" or rather stabilize. Basically,
         | don't buy commodities when the price is high.
        
           | taneq wrote:
           | That always bugs me when these things are reported. Something
           | goes up 30% in a year due to speculation and/or supply chain
           | shocks, and then drops by 5% and it's "prices crash!" No it's
           | still up ~25% year on year.
        
             | lotsofpulp wrote:
             | Which is why one should stick to obtaining their data from
             | the source and ignore clickbait articles.
        
             | j16sdiz wrote:
             | For lithium, it was ~300% up in a year and back to original
             | price in a few months.
        
             | [deleted]
        
             | ipaddr wrote:
             | You are looking at different horizons. It might be up year
             | over year but month over month if it trends down that
             | information is more accurate as to where the future price
             | will grow.
        
             | mmiliauskas wrote:
             | If media made well adjusted statements, it wouldn't be the
             | media then wouldn't it :D
        
         | blablabla123 wrote:
         | Speculating/gambling is a huge factor in anything that can be
         | traded. But commodities also rely on physical deliveries which
         | have influenced prices directly on various occasions. Of course
         | for commodities also the selling side has direct influence on
         | prices. That can go so far that for oil deliveries the tab is
         | opened/closed on convenient times. So understanding prices is
         | significantly more difficult than e.g. for stocks. Also
         | speaking about the news part, a lot of data on commodities
         | isn't freely available so you need to buy it. Trading itself on
         | those is highly restricted - and speculative - anyway.
         | 
         | > Where as car sales might be stagnating but electric car sales
         | are taking a larger portion of total car sales ie electric car
         | sales/lithium use is still increasing.
         | 
         | I'm quite surprised the article doesn't mention sodium
         | batteries. Li-Ion batteries are notorious for thermal runaways,
         | so CATL and Tesla already shifted to LiFePO batteries quite
         | some time ago. I think everybody would be more than happy to
         | ditch Lithium based batteries altogether.
        
         | bawolff wrote:
         | Speculation & gambaling is just second order supply & demand.
        
           | newswasboring wrote:
           | No it's not. Finance bros like to tell themselves that, so
           | that they can justify their place in morality.
        
             | puppymaster wrote:
             | commodities suppliers (miners, farmers, distributors) use
             | futures market to hedge against their inventory everyday.
             | Trade exchanges serve a very important function in this
             | ecosystem.
        
             | akira2501 wrote:
             | If the commodities market can't set prices through
             | discovery, then the government has to by fiat.
             | 
             | Neither are great, but one is definitely preferred.
        
             | rocket_surgeron wrote:
             | Bros treat it like a law of nature.
             | 
             | "nah brah it's just rational actors rationally acting with
             | rationality"
             | 
             | Supply and demand is a thing the same way the convention of
             | shaking hands upon meeting is a thing.
        
               | diroussel wrote:
               | There are alternatives to shaking hands; no greeting,
               | bowing, classes hands, high five, fist bump etc.
               | 
               | If supply and demand is just a convention, they what are
               | the alternatives?
               | 
               | I guess I'm ignorant, but central planning is the only
               | one I can think of.
        
             | CogitoCogito wrote:
             | I don't think supply and demand has much to do with
             | morality.
        
               | yunohn wrote:
               | Counterpoint - consumption/sin taxes.
        
               | avianlyric wrote:
               | Not sure what they have to do with morality either.
        
               | yunohn wrote:
               | I'm not a huge fan of taxes, but they are absolutely
               | about morality. Society as a whole deciding to discourage
               | consumption of harmful/unhealthy things like sugar, soda,
               | cigarettes, alcohol, etc.
        
               | smitty1e wrote:
               | A moral argument can be offered, sure.
               | 
               | However, there is copious cause/effect data showing that
               | non-sobriety is expensive in terms of health- and
               | societal repercussions.
        
               | yunohn wrote:
               | What do you think morals are?
               | 
               | > Morality is the differentiation of intentions,
               | decisions and actions between those that are
               | distinguished as proper and those that are improper.
               | 
               | https://en.m.wikipedia.org/wiki/Morality
        
               | avianlyric wrote:
               | It's not a requirement for consumption taxes to driven my
               | morality as a first order effect.
               | 
               | It's entirely reasonable for law to take the moral stance
               | that people should broadly pay for the benefits as
               | participating in organised society, so to ensure the long
               | term upkeep and maintenance of that organisation they
               | derive benefits from.
               | 
               | At which point consumption taxes have nothing to any
               | moral judgement about the consumption of various
               | products, but simple calculus that the _voluntary_
               | consuming those products increases the cost of running
               | our society, and so you should pay a bit more for
               | engaging in these activities.
               | 
               | But none of that is judgement on the morality of
               | activity. I personally couldn't give a shit what drugs
               | you or anyone else consumes. But I don't particularly
               | like the idea of having pick up the bill later for an
               | activity I didn't participate in. So if you pay some
               | extra taxes to cover to cost of additional healthcare,
               | then feel free to consume whatever the hell you want.
        
               | yunohn wrote:
               | > But I don't particularly like the idea of having pick
               | up the bill later for an activity I didn't participate
               | in.
               | 
               | The repeated grouping of morality/ethics into purely
               | religion/judgement throughout this thread really bothers
               | me. IMHO your argument is an argument of moral propriety
               | of making people pay for others choices. You're
               | semantically choosing to not call it that is all.
        
               | avianlyric wrote:
               | Nah I'm more than happy to agree that I'm making an
               | argument of moral propriety. There has to be some
               | consistent basis for forming laws, and some sort of
               | coherent social order.
               | 
               | But my point is there's a difference between moral basis
               | for having laws and taxes, and their specific
               | implementation. Consumption taxes are just one approach
               | for implementing a social system build on the basis "fair
               | contribution/usage", or whatever we want to call it (my
               | views on "moral" behaviour are too nuanced and confused
               | to fit into an internet comment, so let's just work with
               | something simple). But the taxes themselves aren't a
               | direct expression of moral judgment themselves, but
               | rather an implementation detail of a broader governing
               | moral system that provides legitimacy to laws and the
               | states rights to enforce them.
               | 
               | It might be a distinction without a difference. But if
               | someone is going to call out consumption taxes as somehow
               | more inherently driven by moral judgments than any other
               | part of a system of law, then I think making the
               | distinction is reasonable.
        
               | smitty1e wrote:
               | Source?
               | 
               | Morality seems more of a subjective call, e.g. "Thou
               | shalt marry heterosexually ahead of procreation", than a
               | stochastic analysis, e.g. "X percent of fatal car crashes
               | involve blood alcohol above Y concentration."
        
               | yunohn wrote:
               | Straight from Wikipedia, which is an objective source for
               | such a general topic. Religious morality is a sub-
               | category, not all of morality itself.
               | 
               | https://en.m.wikipedia.org/wiki/Morality
        
               | smitty1e wrote:
               | What I'm after is that much of the ethics by which our
               | legal system operates, e.g. a BAC limit for legal
               | driving, is divorced from moral questions such as: "Is
               | drinking beer a sinful act?"
        
               | yunohn wrote:
               | I think you're gravely misguided. BAC has nothing to do
               | with sin, it's connected to the morality and ethics of
               | putting your fellow citizens at risk of your impaired
               | driving.
        
               | smitty1e wrote:
               | Indeed, this is the point I'm after. Glad we could get
               | there.
        
               | yunohn wrote:
               | My repeated point has been that morality != religious
               | sin, rather the latter is a subset. I don't necessarily
               | agree with laws/taxes in this regard, but it's important
               | to understand where they come from.
        
               | newswasboring wrote:
               | Supply demand doesn't, but this rampant gambling is
               | morally detrimental as it has unnecessary negative
               | externality in society. They don't want to accept that
               | their jobs are just a leech on society and has no other
               | benefit than to fill their own pockets.
        
               | CogitoCogito wrote:
               | I certainly agree there are many morally degenerate
               | speculators whose presence is an overall net negative,
               | but I think speculating on a commodity's price is pretty
               | much required to make any sort of long term plans
               | involving that commodity. It all depends on the specific
               | circumstance really.
        
               | newswasboring wrote:
               | I work in manufacturing, in the high end of the tech. Our
               | products have perhaps the most complex supply chain. I
               | have talked to the industry best about this. I have never
               | once heard an expert cite speculation as helpful for
               | there 5 year or 20 year plan. But I don't want to make an
               | argument from personal incredulity, can you cite a source
               | on how speculation helps long term planning? Not pop sci
               | stuff, something concrete like a trade article a
               | manufacturing trade or something written by a supply
               | chain engineer?
        
               | CogitoCogito wrote:
               | > can you cite a source on how speculation helps long
               | term planning
               | 
               | Unless you lock in all commodity costs, how is long term
               | planning even possible without speculation? If you plan
               | to open a distribution center somewhere, the optimal
               | location depends on e.g. fuel costs. You can't do
               | anything but speculate about the costs of those
               | commodities. So I don't even see the need to track down
               | sources. Do you not see that you just need to guess at
               | the (future) cost of certain things?
        
               | newswasboring wrote:
               | I see you didnt reciprocate the courtesy of not making an
               | argument from personal incredulity. These things are
               | complex af. When the people who optimize supply chains
               | all day every day tell me that speculation market is more
               | of an hindrance than help, I'm not going to take your
               | random argument to be worth anything.
        
               | kortilla wrote:
               | The futures market is the only thing that allows you to
               | lock in a price to buy something 12 months from now at a
               | reasonably consistent price. How is that a hindrance?
               | 
               | The existence of the futures market does not prevent a
               | copper provider from entering into an exclusive sales
               | contract to sell 12 months from now to a specific
               | consumer. However, unless they match the current 12 month
               | contract price, one of them is taking a bad deal with
               | what they can get on a much more liquid market.
               | Additionally, their counter party risk is now much more
               | significant because they are tied to one other party.
               | 
               | Maybe you could actually offer something specific about
               | how "the speculation market is more of a hindrance than a
               | help"?
               | 
               | So far whenever I see this, it's people who don't like
               | that the price changes on them but their solution is to
               | remove participants from the market to a point where it
               | is so illiquid the lack of trading looks like the price
               | isn't moving.
        
               | CogitoCogito wrote:
               | All your arguments are anecdote and opinion.
        
               | newswasboring wrote:
               | What do you expect, you are one making a positive claim.
               | That the speculation market is helpful.
        
               | CogitoCogito wrote:
               | I see. Your claim that it it is entirely negative is fine
               | to make without any support whereas my claim that there
               | are some situations that could be positive (only one
               | suffices) is not okay even when support has been given
               | (any mine that is opened or distribution center that is
               | opened employs speculation).
               | 
               | You are just making a bunch of claims with no support but
               | "people I trust say so so the claims are true". Now I
               | really will bow out.
        
               | newswasboring wrote:
               | I am taking the null position here. That the speculation
               | market doesn't help. If something isn't helping and is
               | extracting value from the market its by definition
               | detrimental. The onus is on you to provide the proof for
               | positive positions, that the speculation market does
               | help.
        
               | kortilla wrote:
               | Nobody is forced to use the futures markets. The onus is
               | on you to explain why it's negative despite all of the
               | sellers and buyers choosing to participate there.
        
               | hutzlibu wrote:
               | To me it seems, you both are rather debating semantics.
               | 
               | Of course it is "speculating" trying to estimate fuel
               | prices, but this is not meant, when people condemn
               | "gambling" on the stock market. What they mean is people
               | with lots money investing wherever short term profits are
               | possible and often gaming the market while doing so. So
               | creating unexpected price changes for the actual
               | industries needing those supplies and they obviously
               | don't like that. But I couldn't draw a clear line between
               | "necessary gambling" and "unnecessary gambling".
        
               | newswasboring wrote:
               | > So creating unexpected price changes for the actual
               | industries needing those supplies and they obviously
               | don't like that.
               | 
               | Followed by
               | 
               | > But I couldn't draw a clear line between "necessary
               | gambling" and "unnecessary gambling".
               | 
               | What? you literally just drew a very crisp line.
        
               | hutzlibu wrote:
               | I merely brought 2 examples and I can surely bring more,
               | but this is not the same as in general being able to draw
               | a clear line on the topic.
               | 
               | Basically, I couldn't define this clear line in a law.
               | And I am not sure, anyone can.
        
               | PinkRidingHood wrote:
               | To ask for an expert quote on a thread on hackernews
               | sounds like a little bit overkill for me, and for me (and
               | probably parent), it does feel a little obvious.
               | 
               | Let me try to answer this though: one example out of many
               | is how Kodak speculated that the transition to digital
               | cameras would lead them to lose profit over the long run,
               | so they chose not to pursue the route. This was a long
               | term plan that lead them to bankruptcy. (of course, they
               | changed course once they realized that digital cameras
               | were competitive options, but the original long term goal
               | was to continue the film camera route, shown by their
               | unwillingness to even try to produce digital cameras as
               | an possible option)
        
             | vasco wrote:
             | It's nothing to do with morality or any justification, it's
             | just what it is. Since there's an instrument to gauge
             | supply and demand, that instrument can also be wanted, so
             | there can be supply and demand of the thing that measures
             | supply and demand.
             | 
             | You can also do "bad" things on first order by hoarding the
             | items themselves.
        
               | newswasboring wrote:
               | There is more to economics than supply and demand. This
               | unnecessary gambling has too many negative externality
               | and IMO no positive effects other than making some people
               | some money with no work.
        
               | RandomLensman wrote:
               | How do you measure the amount of unnecessary vs necessary
               | gambling?
        
               | newswasboring wrote:
               | Necessary gambling is what helps the market figure out
               | the real long term availability of something. I have not
               | seen any necessary gambling in my years in manufacturing.
               | So in my view all speculation on commodities seem
               | unnecessary.
        
               | RandomLensman wrote:
               | Opening a new mine is nothing but speculation, for
               | example, and price signals from markets play a role in
               | such decisions.
               | 
               | More narrowly, the ability to forward sell or buy things
               | allows financing of production but in turn it needs
               | people willing to take the other side. Derivatives money
               | is a thing.
        
               | nindalf wrote:
               | > I have not seen any necessary gambling in my years in
               | manufacturing.
               | 
               | You need to manufacture a widget and it must cost no more
               | than $5. You have a few inputs to your widget, some made
               | with steel and some with plastic. If steel and plastic
               | prices increase, your inputs cost more than $5 and you're
               | making a loss on every widget you sell.
               | 
               | So you go to the futures market and take a bet that the
               | input prices will increase. If you're right, you win $,
               | which makes your widget manufacturing profitable and
               | you're still in business. If prices fall you lose the
               | bet, your profits are lower. But hey, at least you're
               | still in business.
               | 
               | A responsible, well run manufacturing business benefits
               | from the existence of such a market because it allows
               | them to de-risk.
        
               | Reason077 wrote:
               | In this example, the use of futures contracts isn't
               | really gambling. Quite the opposite: it's insurance!
        
               | JumpCrisscross wrote:
               | > _it 's insurance_
               | 
               | What's the person on the other side of the trade up to?
               | 
               | This debate reminds me of the lead up to the Onion
               | Futures Act, where moral outrage over speculation led to
               | a ban and subsequent lack of insurance (and higher price
               | volatility) for onion farmers. To the point that the son
               | of the farmer who first lobbied for the ban returned to
               | Congress to ask for its repeal.
               | 
               | [1] https://en.m.wikipedia.org/wiki/Onion_Futures_Act
        
               | Reason077 wrote:
               | > _" What's the person on the other side of the trade up
               | to?"_
               | 
               | The same thing: hedging/insuring against price changes.
               | The supplier (ultimately, a farmer, steel mill, gold
               | miner, electricity generator, etc) is getting a
               | guaranteed price for the commodity they're selling,
               | reducing risk.
        
               | JumpCrisscross wrote:
               | Virtually no hedging happens between natural buyers and
               | sellers precisely because they approach the market at
               | different times, and don't have the in-house pricing
               | expertise to discern good and bad bids and offers _ex
               | ante_. This is why, absent financial participants, the
               | natural participants get hosed. (And why they use
               | financial markets versus direct purchases and sales.)
               | 
               | Again, these aren't theoretical considerations, we've
               | always had naive Puritanical elements seeking to ban
               | speculation, and in some assets and jurisdictions they
               | have succeeded. Reducing market participation has never
               | worked.
        
               | uoaei wrote:
               | You can try to play word games all you want but they are
               | faulty in a very transparent way. No one is falling for
               | it.
        
               | Reason077 wrote:
               | Faulty how?
        
               | quote wrote:
               | I'd assume that hedging buy prices or long term buy
               | contracts are not the same as gambling.
        
               | newswasboring wrote:
               | > So you go to the futures market and take a bet that the
               | input prices will increase. If you're right, you win $,
               | which makes your widget manufacturing profitable and
               | you're still in business.
               | 
               | This isn't remotely how manufacturing works.
               | Manufacturers are focused on making the widget, for them
               | the most important thing is that material is available,
               | not a paper contract.
        
               | kortilla wrote:
               | Futures offer physical delivery. At least try to
               | understand how the market works before you claim it's
               | pointless.
        
               | newswasboring wrote:
               | Yes, but finance bros are not buying it for physical
               | delivery. We are talking about speculation here after
               | all.
        
               | bawolff wrote:
               | That's kind of begging the question.
               | 
               | Essentially you are saying 100% of bad things are bad.
               | Which is true, but also meaningless statement. Since it
               | would still be true in a utopia with no bad things.
        
             | refurb wrote:
             | I can give you a great example of the positive aspect of
             | speculation.
             | 
             | Look at the futures market. Speculators are a big part of
             | the liquidity of the futures market.
             | 
             | Price of wheat is $60/bushel. Farmer won't harvest for
             | another 6 months and is worried prices will drop. They can
             | secure a future and lock in the price now.
             | 
             | Wheat purchasers aren't on the other side of that trade,
             | because why would they lock in a higher price? A lower
             | price benefits them.
             | 
             | Speculators come in and bet on the price of wheat, creating
             | a deep pool of futures that can be bought and sold.
        
             | agumonkey wrote:
             | "speculation" was a bit improper, but prices are
             | intertwined.. demand in one sector will affect demand in
             | other, so forecasts cause price fluctuation that reaches
             | afar.
        
           | Joeri wrote:
           | And betting at the horse race track is just second order
           | horse riding?
        
             | benj111 wrote:
             | No because market 'gambling' actually impacts the outcome.
             | 
             | You can paint it as a bad thing but there are useful things
             | that come out of this.
             | 
             | If someone wants to 'gamble' that grain prices will be
             | higher in the future, they can buy futures. Where do these
             | futures come from? Farmers today who want a fixed price for
             | their future harvest.
             | 
             | And what about the 'gamblers' who bet that the demand for
             | lithium is going to increase, and therefore invest in
             | building a lithium mine?
        
             | [deleted]
        
           | [deleted]
        
           | yunohn wrote:
           | If you have massive buy/sell orders between finance bro
           | speculators - how does that equate to real supply/demand for
           | the underlying commodity?
        
             | jpgvm wrote:
             | There is a finite supply of the underlying, each sold
             | future equates to agreed upon future deliveries. So in
             | reality the number of contracts sold (not traded) does
             | equate 1:1 with demand for the underlying.
             | 
             | When that doesn't hold true you will end up with Failure To
             | Deliver (FTD) which causes Very Bad Things(tm).
             | 
             | Generally speaking though commodities markets aren't rigged
             | in the way that people complain about in some other markets
             | but they are subject to pretty violent volatility in the
             | face of uncertainty.
             | 
             | This is largely due to pretty fixed supply with highly
             | variable demand. i.e I can't just shut off all the oil
             | wells right now and return ships currently on-route to
             | energy exchanges and even if I could I wouldn't have the
             | storage. Storage is also an interesting one because storage
             | costs money and was pretty much why oil contracts went
             | negative for a short period.
        
               | yunohn wrote:
               | All of what you say could be true - I just find it hard
               | to believe given IRL finance bros are constantly trading
               | and profiting off of futures/commodities trading without
               | a single worry of the underlying commodity.
        
               | hhmc wrote:
               | If your claim is that 'finance bros' (perhaps let's call
               | them commodity traders) don't consider anything about the
               | fundamentals of the underlying, then you simply have no
               | meaningful understand of trading.
        
               | RandomLensman wrote:
               | Most future positions are closed out or rolled before
               | delivery - so open interest can easily exceed demand for
               | the underlying.
        
           | barrysteve wrote:
           | Speculation and gambling is just complicated casting lots.
           | 
           | Predatory gambling where the participant can only win good
           | feelings and lose money, is the immoral, addictive nightmare
           | nobody wants. When talking about regular joes anyway. Be
           | honest enough to sell good feelings straight.
           | 
           | I can't comment on the select finance bros who have
           | manipulated the rules towards a specified outcome. Not really
           | casting lots anymore at that point.
           | 
           | If it gets too corrupt all bets will be off, and that will
           | hurt everyone who needs short term liquidity and to take
           | speculative moon shots.
        
         | seizethecheese wrote:
         | Your two premises don't necessarily relate to each other. I
         | believe both:
         | 
         | - journalists attribute price changes to whatever story they
         | can find. Sort of like how every day there's a story of why the
         | Dow moved by a fraction of a percent.
         | 
         | - price moves are almost entirely supply and demand. Sure,
         | speculation can change price in the near term, but considering
         | the size of these commodity markets, you'd have to believe an
         | absolutely enormous amount of capital is at play in
         | speculation.
        
         | metalspot wrote:
         | there are two factors that control market prices: supply
         | elasticity and demand elasticity.
         | 
         | commodities with inelastic supply and inelastic demand are
         | prone to very wide price swings.
         | 
         | inelastic supply means that increasing prices don't increase
         | supply. in the case of lithium, it take time to bring new
         | production capacity online, so supply is very inelastic in the
         | short term.
         | 
         | inelastic demand means that increasing prices do not decrease
         | demand. in the case of lithium, batteries are a very valuable
         | product, and the raw cost of lithium is a small percentage of
         | their total value, so increasing prices for lithium do very
         | little to reduce demand.
         | 
         | the price movement here is totally predictable and exactly what
         | you would expect based on standard economic formulas taking
         | into account supply/demand elasticity. it is not speculation or
         | gambling.
         | 
         | demand went up, supply lagged, the price spiked, supply
         | increased, the price went back down.
         | 
         | electric car sales may still be growing but growing at a lower
         | rate, and projected demand growth is probably decreasing
         | relative to projected supply, so the price is falling.
        
         | puppymaster wrote:
         | car manufacturers seeing the same sales data would then secure
         | lithium supply 12 months ahead for an expected 12x growth,
         | which then turns out to be only 5x. From macro data pov, the
         | graph is still trending up. This is why guidance is important
         | and also why lithium miners hedge against their inventory using
         | future market. Supply and demand still applies, just that its
         | effect is being amplified by overleveraged commodities trading
         | market.
        
         | rsecora wrote:
         | Batteries has a long supply chain, and in this case the market
         | is forecasting a drop in demand. Due to more sources and
         | increase output in the early stages of the chain, the offer has
         | increased.
         | 
         | Note also the article refer explicit to EV in different
         | paragraphs .
         | 
         | it's described in the article.
         | 
         | > with the expiry of a more than decade-long programme of
         | subsidies for EV purchases.
         | 
         | > the expanding supply outlook for the metal is mainly what is
         | pushing prices lower this year
         | 
         | > Supply is coming on stream faster than you can say 'boo'. >
         | first-ever lithium deposit to be discovered in Iran's
         | mountainous western province of Hamedan. At an estimated 8.5
         | million tonnes,
         | 
         | > China is also expanding its lithium-supply capacity from
         | lepidolite, which, while considered the most abundant lithium-
         | bearing mineral,
        
       | canadiantim wrote:
       | A loooot of supply coming down the pipe, basically
        
       | nickpinkston wrote:
       | The quote from the article below [1] demonstrates why the
       | doomers, degrowers, Neo-Malthusians, etc. keep getting resource
       | scarcity wrong. They keep quoting the "proven reserves" numbers
       | [2] that only count what is extractable with current tech at
       | current prices, factoring out new technologies / techniques, as
       | well as reserves not discovered yet or discovered but not yet
       | "proven".
       | 
       | [1] "But while demand for lithium has been subdued, many believe
       | the expanding supply outlook for the metal is mainly what is
       | pushing prices lower this year, with a wave of fresh supply
       | expected to come online from facilities in China, Australia and
       | Chile. Five analyst forecasts, including ones from Bank of
       | America (BofA), JPMorgan Chase and Morgan Stanley that were
       | reviewed by Bloomberg in mid-January, for instance, anticipated
       | production increases of between 22 percent and 42 percent in 2023
       | alone. "Supply is coming on stream faster than you can say 'boo'.
       | Demand remains strong, but prices have been unsustainable for
       | some time now," analyst Dylan Kelly of Ord Minnett recently told
       | Mining.com."
       | 
       | [2] https://en.wikipedia.org/wiki/Proven_reserves
        
         | tim333 wrote:
         | Even with no changes in tech the 'proven reserves' are way less
         | than the amount of minable stuff out there as turning an area
         | of land with say gold in into proven reserves involves drilling
         | a load of holes in it and sending the drill cores off to be
         | analyzed which is expensive and so only done on the bit you are
         | about to mine.
        
         | notjes wrote:
         | Yes, resources are infinite. That is why the carrying capacity
         | of the earth is also infinite. Because the ingenuity of humans
         | is infinite.
        
           | thephyber wrote:
           | Straw man fallacy. Your parent comment didn't make that
           | argument, only that resources are relatively more plentiful
           | than the assumptions that many people make. I would argue the
           | GP is correct.
           | 
           | Technological advances in the 1970s in agriculture (incl.
           | genetic engineering of more nutritious yellow rice,
           | artificial fertilizer from petrol products, improved planting
           | density) allowed us to increase food staple yields. These
           | improvements have expanded world food yields to double the
           | amount of population that can be sustained by the current
           | number of farm operations.
           | 
           | Fracking and horizontal drilling have made US oil/gas
           | drilling (not just pumping of existing wells) profitable
           | again. The explosion of cheap oil in the 2010s (and the
           | cratering of oil prices in Trump's term) was created by this
           | technology. Fracking isn't as cheap as the cheapest pumping
           | in the world (probably Saudi light oil), so assumptions must
           | be made about prices and when this technology can add to the
           | world supply. But re-pressurizing existing wells (which is
           | what fracking is) had been tried for 50+ years and only
           | around 2005+/- did the technology work to make it become
           | profitable.
           | 
           | Both of these are examples of modern technology that has bent
           | the supply curve by breaking the simple, fixed assumptions of
           | some economists. And no, no one thinks the supply curve bends
           | infinitely.
        
           | sanderjd wrote:
           | See, this is it right here, you're doing it! You're resorting
           | to extremist hyperbole, when what matters are actual details.
           | 
           | Resources are not infinite, but that is not relevant. What is
           | relevant is the (finite) amount and the rate at which they
           | are used.
           | 
           | To go hyperbolic in the other direction, if there are a
           | trillion accessible grams of something and humanity uses a
           | kilogram a year, then we won't run out for a billion years.
           | 
           | But both your hyperbole and mine are pointless. The question
           | can't be answered without the actual details. Your argument
           | is just "resources aren't infinite so we shouldn't use any of
           | them!" That's not a good argument.
           | 
           | Another thing people often seem to miss when comparing
           | lithium for batteries to oil for combustion, is that lithium
           | is not a fuel in a battery, it's a vessel. It doesn't get
           | burned up. Whether we can recycle it efficiently enough is a
           | big open question, but it's not _gone_ the way fossil fuels
           | are.
        
           | osigurdson wrote:
           | Anti-human nihilist much?
        
       | cpufry wrote:
       | maybe has something to do with the military leadership advising
       | the senate recently about lithium deposits "in our backyard" aka
       | south america
        
       | rmm wrote:
       | I work in hard rock mining.
       | 
       | Lithium is opaque market. It's opening up.
       | 
       | Contracts get fixed. Supply costs shoot up. Miners open more
       | mines. Prices collapse. Bigger miners eat smaller miners. Rinse
       | and repeat
        
         | blitzar wrote:
         | This is the way.
        
       | m3kw9 wrote:
       | More significant supply discovered..
        
       | [deleted]
        
       | quags wrote:
       | Has there been a commodity that has spiked in price due to true
       | lack of supply and non new supplies were found? From peak oil, to
       | copper , lithium and rare earth minerals predictions of we will
       | run out during a price shock always seem to turn into a price
       | collapse.
        
         | mech765 wrote:
         | Wooly mammoth prices were pretty expensive for a few years.
        
         | Mistletoe wrote:
         | Ethereum after it switched to proof of stake, but it just
         | started.
         | 
         | https://ultrasound.money/
        
         | ComputerGuru wrote:
         | > [..] and non new supplies were found
         | 
         | What do you mean by "non new supplies" being found (or is that
         | a typo)?
        
         | RobotToaster wrote:
         | Helium maybe?
        
           | mharig wrote:
           | Tritium, too.
           | 
           | https://www.researchgate.net/figure/Available-global-
           | tritium...
        
       | TheDudeMan wrote:
       | Why does this website scroll differently than every other
       | website? Do not want.
        
       | elif wrote:
       | Because I see so much "conflict metals" discussion when lithium
       | is discussed, I would like to contribute that less than 3% of
       | global lithium production takes place on small artisanal mines,
       | in which place human rights abuse may occur.
       | 
       | Over 85% of lithium is produced by just 2 international
       | corporations with large scale mines complying with multiple
       | international regulation requirements.
        
         | landemva wrote:
         | > mines complying with multiple international regulation
         | requirements
         | 
         | Really? Please cite which regs apply in North Korea.
         | 
         | I am an actual miner. We have State and national regulators who
         | visit and have authority to stop work. I have neither seen nor
         | heard of international regulators.
        
           | oblio wrote:
           | Why North Korea?
        
             | landemva wrote:
             | Escapee stories of unsafe coal mining. Or try Iran or
             | Ukraine or USA.
        
         | paganel wrote:
         | > with multiple international regulation requirements.
         | 
         | How is that meant to be re-assuring?
         | 
         | As far as I know Chevron hasn't yet paid the money it is due to
         | pay to the Ecuador state for past environmental damages
         | inflicted on the ecosystem there, I'm positive they were
         | branding their work to their stakeholders back-home as
         | respecting "international regulation requirements".
        
         | influxmoment wrote:
         | Wow the replies to this are nuts. All sorts of mental
         | contortions to make lithium sound controversial when it's way
         | down the list of controversial industries
        
         | api wrote:
         | The space is saturated with anti-EV FUD.
        
           | olivermarks wrote:
           | >The space is saturated with anti-EV FUD.
           | 
           | It's crazy out there right now - massive political pressure
           | with tax breaks, climate anxiety marketing for EVs, mass
           | confusion about energy supply chains and pollution whether
           | oil or electric, a lack of clarity about battery ingredients
           | and lifecycles from extraction to disposal.
        
           | [deleted]
        
           | aintgonnatakeit wrote:
           | Same thing happens with the gas stove threads. I can't
           | believe that actual people are that invested in burning
           | hydrocarbons.
        
             | oceanplexian wrote:
             | They put out less BTUs (9k vs 15k-25k from a high end gas
             | burner) and you can't cook certain types of cuisines like a
             | stir fry, getting a good sear on steaks, etc. As someone
             | who went from Gas to Electric it really is a massive
             | downgrade.
        
               | ryukafalz wrote:
               | > As someone who went from Gas to Electric it really is a
               | massive downgrade.
               | 
               | Resistive or induction?
        
               | comte7092 wrote:
               | > They put out less BTUs (9k vs 15k-25k from a high end
               | gas burner)
               | 
               | How much of that makes it into the pan, and how much is
               | waste heat?
        
               | oceanplexian wrote:
               | The reason gas is superior is due to heat recovery time.
               | Recovery time is the time it takes to reach temperature
               | after adding food to a pan. Gas is superior to all forms
               | of electric in recovery time. There simply is /more
               | energy/ in a cubic foot of gas compared to what a home
               | electric circuit can deliver in the same time frame. It's
               | science, plain and simple.
               | 
               | The practical effect is food spends less time steaming,
               | so for example, a stir fry doesn't come out soggy and
               | unappetizing.
        
               | rootusrootus wrote:
               | Induction kicks the crap out of gas for energy delivered
               | to pan. It's not even close.
        
               | vel0city wrote:
               | A gas stove might be able to create more BTUs/min but if
               | half of that heat misses the pan because it's rapidly
               | rising and being vented out of the kitchen it's not
               | really helping me much.
               | 
               | Meanwhile most of the energy from my electric stove
               | actually makes it into my pan instead of out a vent or
               | into my kitchen.
        
               | comte7092 wrote:
               | I have an induction wok, it cost a couple hundred dollars
               | on Amazon, heats up instantly and goes up to very high
               | temps.
               | 
               | I do not have the problem you are describing.
               | 
               | > Gas is superior to all forms of electric in recovery
               | time.
               | 
               | This is really going to be dependent on which stoves we
               | are comparing, along with the type of pan being used.
               | 
               | > There simply is /more energy/ in a cubic foot of gas
               | compared to what a home electric circuit can deliver in
               | the same time frame. It's science, plain and simple.
               | 
               |  _Science_ as I alluded to in my previous comment, would
               | account for waste heat. Which is where a significant
               | amount of the energy of a gas stove goes.
        
               | vel0city wrote:
               | I have an electric stove and can assure you it's entirely
               | possible to stir fry and have a good sear on a steak. I
               | do it pretty often.
        
             | grogenaut wrote:
             | I'm not hugely invested but I do prefer cooking on gas.
             | I've had element stoves, they suck. I then had gas, it's
             | great. I stayed in an Airbnb for a month and a friend's
             | condo for a week with induction, it was better than radiant
             | but worse than gas to me.
             | 
             | Also the power goes out at my house about 2x a year when we
             | have windstorms. The stove still works, induction doesn't.
             | So I can still cook and make coffee. My other option would
             | be to use my grill in that situation. I like having
             | backups.
             | 
             | It's not some conspiracy with me, I just didn't like it as
             | much. There are dozens of us.
             | 
             | I also ran an experiment a few years back with some
             | particulate sensors. I noticed when measuring during wild
             | fire smoke the particulates went way up when I cooked
             | bacon. So I did it again on a hot plate not gas. Same
             | thing. The bacon grease and cooking itself was giving off a
             | ton of particulates. To me the lesson was maybe cook
             | outdoors. Or figure out how to plumb a vent through an
             | upstairs living space attic and roof to vent outside.
             | 
             | I've also been hesitant on electric cars. My friend has an
             | original roadster that I've driven several times. It's
             | great even tho I can't even get out of it because of my
             | size. However I go out to ski and road trip a lot. I
             | constantly am evaluating if an ev is ready for that use,
             | it's getting closer but not yet. The ski hills I go to are
             | near range for a EV and the charging spots are all taken as
             | are all the spots so that's a risk. Camping and backpacking
             | is more iffy. There was charging at Yellowstone in a few
             | spots but I doubt they ran it to mowich lake yet.
             | 
             | But the kicker is I just have several old cars (08) that
             | are in great shape and I hate all the shit on new cars when
             | I rent them. There's a few features that are great like the
             | anti-tbone feature, and some backup cameras. But he'll they
             | used to beep whenever someone was near you, or they freak
             | out when your 5 feet from a hedge when parking moving .2
             | mph and slam on the brakes, or the infotainment system is
             | slow, crashes, and has no buttons. So I'll just hold while
             | those bugs are worked out. I think these cars may all get
             | to 20 years easily.
        
               | eric-hu wrote:
               | That's really interesting that the particulates were
               | comparable from induction and gas cooking. If you did any
               | more comparisons and recorded them anywhere, I'd be
               | curious to read more about them.
               | 
               | I'm guessing this might be a temperature dependent issue.
               | I enjoy using a cast iron to brown meats, but I really
               | dial it back in homes without true range hoods (e.g. they
               | vent back indoors). If I go for maybe 25% browning, I can
               | massively reduce the smoke. It feels a shame to not do a
               | steak to perfection, but when I'll prefer that to venting
               | the whole place for an hour.
        
               | grogenaut wrote:
               | The sensor I used was one of these
               | (https://www.amazon.com/gp/product/B07NSGY7B3) attached
               | to a ESP32 sending data to my grafana/prom setup on my
               | nas. If you have done those it's like 2 hours of work and
               | about $40 per sensor/esp pair. I couldn't leave the house
               | without a respirator when our aqi got up to 650 for 2
               | days.
               | 
               | Anyway it's pretty easy to play around with. I didn't
               | save the data anywhere unfortunately.
        
             | CyberDildonics wrote:
             | Gas stoves and plastic straws are distractions, they don't
             | matter either way.
        
               | kibwen wrote:
               | Gas stoves need to go away because getting rid of gas
               | infrastructure in the long term will be a huge win, but
               | the gas industry spends heavily on propaganda to convince
               | people otherwise: https://youtube.com/watch?v=hX2aZUav-54
        
               | CyberDildonics wrote:
               | If gas infrastructure is the problem, why focus on gas
               | stoves and not gas water heaters and furnaces?
        
               | ororroro wrote:
               | You may have confused the debate with the legislation. In
               | NYC all gas is out under Local Law 154 of 2021.
        
               | rhaway84773 wrote:
               | No one is banning gas stoves. They're banning gas hookups
               | which will indeed remove gas water heaters and furnaces.
               | 
               | The fact that NY's decision to ban gas hookups in new
               | buildings is being framed as banning gas stoves is in
               | itself the result of gas industry propaganda. In fact,
               | Gas stoves are the one thing that can easily be continued
               | because people can use gas cylinders.
        
               | throwaway5959 wrote:
               | Why not all three? Just stop using gas altogether. I pass
               | enough of it myself, thanks.
               | 
               | Edit: why am I being downvoted? Is it not a legitimate
               | question to ask why not go all the way with converting to
               | electric when appliances exist for all three use cases?
               | Do my farts stink too bad?
        
               | CyberDildonics wrote:
               | Because gas stoves are the easiest to replace. If someone
               | doesn't have gas lines in their house, they'll just use
               | an electric stove. Replacing a water heater or furnace
               | either needs heat pumps or resistive heat and it becomes
               | potentially much more expensive.
               | 
               | Stoves don't matter in the big picture here, they are
               | secondary to whatever people are already doing for heat.
        
               | [deleted]
        
               | SoftTalker wrote:
               | If you have a gas stove, you probably don't have a
               | circuit or wiring or receptacle to plug in an electric
               | stove. So you'll need to get a 240V circuit installed,
               | which for most people will require hiring an electrician.
               | Same as putting in a heat pump.
        
               | CyberDildonics wrote:
               | So what? You already have electricity. If you don't have
               | a gas line to your house, you aren't going to get one for
               | a gas stove. Again, gas stoves are secondary to having
               | gas in the first place, focusing on them is nonsense
               | whether someone wants gas or not.
        
               | SoftTalker wrote:
               | You said "gas stoves are easiest to replace" when in fact
               | if that is what you have, replacing it with anything but
               | another gas stove is difficut (or at least, more
               | expensive)
        
               | CyberDildonics wrote:
               | Replacing a gas stove with an electric stove is much
               | easier and less expensive in the long run than replacing
               | water heaters and furnaces with electric versions.
               | 
               | Also this isn't about replacing a working stove in an
               | existing building it's about substituting electric
               | versions for gas versions if there are no gas lines, so I
               | think you missed the entire context of the thread.
        
               | brewdad wrote:
               | I sure do and my house was very much a basic median
               | market build but built by a smaller builder who only does
               | 2-6 homes a year. An electric oven is far superior to a
               | gas oven but I do enjoy my gas cooktop. It's all in one
               | like a standard range but is listed as a dual-fuel model.
               | As an easy first step, we need to mandate the 220v hookup
               | in all new kitchens and then phase out the gas. A simple
               | building code adjustment would do the trick and putting
               | the receptacle in at the time of construction is cheap
               | compared to a retrofit.
        
               | paganel wrote:
               | > in the long term will be a huge win
               | 
               | Huge win for whom?
               | 
               | > but the gas industry spends heavily on propaganda to
               | convince people otherwise:
               | 
               | Propaganda goes both ways.
        
               | rnk wrote:
               | Obviously getting rid of gas stoves is good for the
               | environment. In the US, the only conceivable use I see
               | for them longer term is camping stoves and extremely
               | remote houses that don't have electricity.
               | 
               | I'm guessing you have some other view from your comment,
               | please explain.
        
               | oblio wrote:
               | > Huge win for whom?
               | 
               | Us. We can make electricity from lots of things and turns
               | out in about 10 years a lot of it will be made from
               | renewables in most countries, and the trend is only going
               | one way.
               | 
               | There's a reason there is a push to electrify everything.
        
               | xyzzyz wrote:
               | Much more money is spent on climate change propaganda
               | than there is on gas propaganda. I see climate change
               | propaganda almost every day, but pro fossil propaganda
               | extremely rarely. I think that this is because fossil
               | fuels are extremely useful in practice, and so the users
               | don't need to be convinced of their benefits.
        
               | oblio wrote:
               | > I see climate change propaganda almost every day, but
               | pro fossil propaganda extremely rarely.
               | 
               | Ever heard of "the status quo"?
               | 
               | If my stuff is dominant, I either say nothing or make it
               | so that any other proposal looks like it's new and risky
               | or crazy. You know, FUD.
               | 
               | Propaganda has a lifecycle. Not every kind of propaganda
               | is the same or as obvious.
               | 
               | And you're falling for the fossil fuel one, good job!
        
               | xorcist wrote:
               | > climate change propaganda almost every day, but pro
               | fossil propaganda
               | 
               | Most people would understand those two phrases to mean
               | the same thing.
               | 
               | Is there any _other_ kind of propaganda?
        
               | xyzzyz wrote:
               | [flagged]
        
               | CydeWeys wrote:
               | Gas stoves matter as far as indoor air quality and giving
               | people asthma/allergies goes.
        
               | CyberDildonics wrote:
               | Do you have a source for gas stoves giving people
               | allergies?
        
             | simoncion wrote:
             | > I can't believe that actual people are that invested in
             | burning hydrocarbons.
             | 
             | Yeah, it's weird, right? Why _are_ people so invested in
             | burning natgas and coal and other hydrocarbons for large-
             | scale power generation when a plethora of proven near-zero-
             | emissions alternatives exist?
             | 
             | From a climate-change perspective, banning natgas
             | cookstoves is a few pennies saved on like a thousand dollar
             | expenditure. It's similar to the performative "charging for
             | plastic takeaway bags" and "not bringing out table water"
             | nonsense that California likes to do from time to time...
             | it's _way_ easier than making a _real_ dent in the
             | underlying problem, it inconveniences a _ton_ of people (so
             | they _know_ you 're doing _something_ ), and because
             | "something" has been done, enough of those people don't
             | bother finding out about and loudly and continually
             | agitating for making a _real_ dent in the underlying
             | problem.
        
               | kibwen wrote:
               | Forget burning, even pumping gas to residences is itself
               | a big source of emissions, because of how leaky the pipes
               | are. Between two to seven percent of all gas put into the
               | system is lost directly to the atmosphere, and it's a
               | very potent greenhouse gas.
               | 
               | One way or the other, it needs to go away. It's not
               | performative, it's necessary for achieving long-term
               | emissions goals, and it's low-hanging fruit.
        
               | simoncion wrote:
               | > One way or the other, it needs to go away.
               | 
               | Sure, agreed.
               | 
               | > It's not performative...
               | 
               | Right _now_ it very much is because, as you say:
               | 
               | > ...it's low-hanging fruit.
               | 
               | As I said:
               | 
               | > ...banning natgas cookstoves is a few pennies saved on
               | like a thousand dollar expenditure.
               | 
               | and
               | 
               | > [Low-impact, high-visibility stuff like that is done
               | because] it's way easier than making a _real_ dent in the
               | underlying problem
               | 
               | If you'll pardon the mixed metaphors: When it comes to
               | environmental stuff, a _lot_ of the time, the low-hanging
               | fruit isn 't worth picking because the high-hanging fruit
               | is the thing that's the immediate wildfire hazard.
        
               | rhaway84773 wrote:
               | Setting aside the validity of your claim that it's just a
               | "few Pennie's on a thousand dollar expenditure (which I
               | strongly disagree with...banning natural gas hookups
               | would be worth it even if climate change wasn't a
               | problem).
               | 
               | Your argument basically boils down to "I'm in debt and
               | need to start spending thousands of dollars less. Cutting
               | out this completely unnecessary expenditure will only
               | save me a few dollars so I shouldn't cut out this
               | completely unnecessary expense because it won't save me
               | all the thousands I need to save".
        
               | Scalestein wrote:
               | I'd say a more accurate metaphor would be "I'm in debt
               | and decided to ignore my biggest high interest loan in
               | order to fully pay off my smallest low interest loan so I
               | feel good about something"
               | 
               | Sure it's good you have less debt but while you were
               | resolving the small loan you were racking up massive
               | interest on the big one
        
               | BeFlatXIII wrote:
               | If I ordered the non-avocado toast at my weekly brunch,
               | I'd be able to afford a house.
        
               | cma wrote:
               | > and it's a very potent greenhouse gas.
               | 
               | It is still good to fix if it contributes to a
               | significant amount of warming, but it isn't cumulative
               | like CO2: it eventually degrades in the atmosphere.
        
               | margalabargala wrote:
               | > it eventually degrades in the atmosphere.
               | 
               | ...into CO2
        
               | jwilk wrote:
               | It degrades to CO2.
        
               | cma wrote:
               | A much less potent greenhouse gas, same thing as if it
               | had been burned and not leaked.
        
               | vostok wrote:
               | I don't have any statistics on this, but I feel like I
               | see far fewer plastic bags littering the streets these
               | days. That alone is a win for me personally.
        
               | bluefirebrand wrote:
               | Give it time and you'll be seeing plenty of the reusable
               | bags littering instead
               | 
               | In theory they are supposed to be reusable but in
               | practice I think they are going to wind up being single-
               | use for most people. Maybe we'll start using them as
               | garbage bags as they accumulate around the house.
        
               | carlhjerpe wrote:
               | Not what I see in Stockholm where this has been a thing
               | for quite awhile already. We just don't throw that much
               | stuff on the ground at all anymore.
        
               | kbelder wrote:
               | Yeah, my bag use hasn't changed at all, except instead of
               | getting 3 to 6 lightweight plastic bags on each trip, I
               | spend an extra quarter, and get 3-6 heavy plastic bags on
               | each trip. Very much a net loss, as they have to use at
               | least five times the material.
               | 
               | (When paper bags aren't available. I've always preferred
               | paper.)
               | 
               | Product packaging probably generates 1-2 orders of
               | magnitude more waste than the bags holding the product.
        
               | pfdietz wrote:
               | I live in an area that's banned plastic bags. Given
               | enough experience, grabbing a reusable bag out of the car
               | before going into the store became an unconscious
               | programmed action.
        
               | bluefirebrand wrote:
               | Unless you empty your groceries in your car to leave the
               | bags there, at some point bags need to make it from your
               | house to your car, so that you have some to take into the
               | store.
               | 
               | That's the part I struggle with.
               | 
               | Also, if you order groceries for delivery, they bring
               | your order in reusable bags. Which you then keep.
               | 
               | My point is these re-usable bags have a tendency to
               | accumulate over time. Maybe not at the same rate as
               | plastic bags would otherwise, but once you have dozens of
               | these bags at home it starts to be tempting to just use
               | them as bin liners and toss them, just like we did with
               | plastic bags
               | 
               | Which sort of defeats the whole purpose, right? The ideal
               | is people would buy as many as they need and use them for
               | years.
               | 
               | But that isn't going to happen any time soon imo. If
               | ever.
        
               | rhaway84773 wrote:
               | There will be no "real dent". You have to make small
               | changes along with big changes.
               | 
               | And banning natural gas piped infrastructure is an easy
               | win.
               | 
               | 1. No one is banning natural gas stoves. You can still
               | use a natural gas stove. You just need to bring your own
               | cylinder like most of the world and half the food
               | YouTubers already do.
               | 
               | 2. Natural gas stoves have significant indoor pollution
               | impact. It's a huge benefit even outside the climate
               | change side.
               | 
               | 3. Natural gas infrastructure is expensive, dangerous and
               | unnecessary. Cities will benefit from the removal of all
               | those pipes from under their streets even if climate
               | change wasn't a thing.
               | 
               | Banning gas hookups is such an obvious win (again, for
               | those who want, gas stoves are still available with a
               | cylinder), it's remarkable to see the level of status quo
               | bias that exists.
        
               | oceanplexian wrote:
               | > Natural gas infrastructure is expensive, dangerous and
               | unnecessary.
               | 
               | It's been used and operated safely for hundreds of years
               | in cities on the East Coast. The idea that it's dangerous
               | is simply FUD to scare people into spending $1000 on a
               | future piece of e-waste to cook their food.
        
               | oblio wrote:
               | Do you mean induction stoves are e-waste? Why? They
               | should be perfectly durable, no moving parts, simple
               | operating principle. They aren't even super expensive and
               | their price is going down.
        
               | theK wrote:
               | That would be a good way to actually make a difference
               | because it not only makes using gas for cooking less
               | attractive but it also makes gas heating and gas powered
               | industry significantly more inconvenient!
               | 
               | EDIT: would probably be a political nightmare to
               | implement though...
        
               | mistercheph wrote:
               | I don't think anyone that cooks for themselves genuinely
               | thinks this. E-stovetops are literally a joke, designed
               | by and for adult-infants that eat microwaved soup from
               | Trader Joe's, not for real people that make real,
               | delicious food.
        
               | oblio wrote:
               | Are "e-stovetops" induction?
        
               | mistercheph wrote:
               | Induction tops are orders of magnitude superior to coil-
               | based stovetops, and are viable and possibly superior
               | replacements for gas tops despite the cookware
               | limitations and other issues; when their control schemes
               | mature (no capacitive touch) and prices come down to the
               | point of attainability for the unwashed masses they will
               | be welcomed.
               | 
               | But, coil-based electric tops are an embarassment for
               | anyone that sells them, installs them, and "uses" them.
        
             | BeFlatXIII wrote:
             | The gas stove bans are idiotic and petty to defend based on
             | environmentalist principles. The amount of gas burned by
             | those stoves makes roughly zero impact compared with all
             | the other hydrocarbons we burn.
        
               | fiftyfifty wrote:
               | I'm not defending the ban on gas stoves, but a much
               | better reason to ban them is their impact on indoor air
               | quality. Burning natural gas indoors emits all kinds of
               | nasty stuff like carbon monoxide, nitric oxides,
               | formaldehyde...stuff linked to all kinds of diseases from
               | asthma to cancer.
        
               | megaman821 wrote:
               | The ban of gas connections and by extension gas water
               | heaters, gas furnaces and gas stoves is being reframed to
               | be just gas stoves. So yes, if you cherry-pick the lowest
               | impact item out of the list of gas appliances, the impact
               | is low.
        
               | comte7092 wrote:
               | Exactly this. Gas stoves are the flashpoint, because at
               | the end of the day, people generally don't think about
               | what type of energy their heating comes from. The gas
               | stove is the deciding factor that determines whether or
               | not a gas line gets hooked up to a home or not.
        
               | Tagbert wrote:
               | Most people decide on a heating source based on price,
               | not on the stove they want. In the US, in most areas, gas
               | is cheaper to heat a house than electricity is. The may
               | shift as heat pumps become more popular, but historically
               | it has been the case.
        
               | oblio wrote:
               | I think stoves are close to a loss leader to get gas
               | lines for gas furnaces.
        
             | shlant wrote:
             | it seems to have become a personality trait to be really
             | attached to things that people say are bad or you shouldn't
             | do. Rebellious teenagers without a cause.
        
               | api wrote:
               | It's sublimated class resentment. People resent things
               | that are perceived as coming down upon them from a
               | coastal rich Ivy League educated elite that is perceived
               | as holding them in contempt.
               | 
               | It all just sounds like rich people in private jets
               | flying around telling them to use less energy to save the
               | planet.
               | 
               | There is of course too much inequality, but it's not
               | because of EVs or phasing out gas stoves.
        
               | jtbayly wrote:
               | " _perceived_ as holding them in contempt"?
               | 
               | They have been told explicitly in prime time TV that they
               | are held in contempt. It's not an issue of perception on
               | this front.
        
               | rnk wrote:
               | If you want to, you can find coastal elites that dislike
               | anything, even say electric stoves. So what, why do
               | people have all these grievances because of a sense that
               | someone somewhere doesn't like their choices? I'm from
               | the south, I'm positive people there don't like some of
               | my my life choices, I don't go around feeling mad about
               | it. Blaming coastal elites just seems like an excuse to
               | ignore evidence of problematic choices - yet that view
               | also probably doesn't help.
        
               | sangnoir wrote:
               | It's a persecution complex. That's how how get members of
               | a majority religion absurdly claiming they are "being
               | persecuted" when reminded that other religions exist.
        
               | sangnoir wrote:
               | "We can't even say 'Merry Christmas ' anymore" is _not_
               | persecution.
               | 
               | Especially when it's other Christians who popularized
               | "Happy Holidays" as they felt Christmas was being overly
               | commercialized.
        
               | pfdietz wrote:
               | They understand that the contempt is merited. It only
               | makes them more angry.
        
               | jtbayly wrote:
               | Thank you for proving my point.
               | 
               | The contempt is real, not perceived.
        
               | pfdietz wrote:
               | This contempt is the flip side of the freedoms granted by
               | the constitution. The government is not allowed to
               | enforce certain behaviors. That social control is left to
               | the public itself.
               | 
               | The bizarrely irrational behavior from the red states
               | doesn't even make sense in its own terms. If this doesn't
               | merit contempt, nothing does.
        
               | gdy wrote:
               | Civil war any time soon?
        
               | praxulus wrote:
               | Most Americans already have electric stoves, and its
               | disproportionately higher income people who still cook
               | with gas.
               | 
               | I know this is all based more on vibes than facts though.
        
               | Robotbeat wrote:
               | That's ironic because gas stoves are actually only the
               | majority in California and places around New York, ie
               | literally the coastal elite.
        
               | devonkim wrote:
               | Know of someone that paid money to have his seatbelt
               | systems become non-functional basically. Basically yes -
               | they hate being told what to do and will rebel harder. So
               | maybe for these folks we should have a campaign to use
               | even more fossil fuels because there's so many of them
               | and they disproportionately cause social issues to begin
               | with (the man is directly responsible for many, many
               | ruined lives with his toxic personality, including his
               | own children).
        
               | ericmay wrote:
               | I bet some of it also like, ok you're banning gas stoves
               | that I like cooking on but everybody owning a Ford F-850
               | and private jets are still cool (from an environmental
               | perspective)? Seems like a spending a few bucks to save a
               | few pennys kind of scenario.
               | 
               | The health argument is fair but seems like it shouldn't
               | be a mandatory requirement so much as a safety warning
               | (based on my current understanding).
               | 
               | The fact that we are even talking about it I guess served
               | the original goal which was to distract from other,
               | larger problems and discussions.
        
               | enragedcacti wrote:
               | > The fact that we are even talking about it I guess
               | served the original goal which was to distract from
               | other, larger problems and discussions.
               | 
               | The bans that may actually go into effect (e.g. NY) are
               | bans on nat gas in new construction, not gas stoves. Gas
               | stoves may be a drop in the bucket but nat gas heating is
               | not. the reason we are talking about gas _stoves_ is to
               | distract from the actual issue of transforming our
               | residential energy infrastructure.
        
               | wolfram74 wrote:
               | This could be interpreted as saying unless you fix
               | everything at once, any incremental change should be seen
               | as disingenuous and merely a distraction. Would you like
               | to rephrase?
        
               | kortilla wrote:
               | Increments so small they set the expected completion time
               | to 1000 years from now are worthless.
               | 
               | There is only so much time people have to create, debate,
               | modify, and enforce policies. Every time you waste our
               | collective time to change on something so irrelevant, you
               | starve out real topics.
               | 
               | Incremental change is fine, but the increments need to be
               | large enough to actually put us on the needed "increments
               | per year" path to get somewhere.
               | 
               | Something like 6 years ago California banned water being
               | given out by restaurants by default. It did nothing to
               | move the needle on the drought and had people debating
               | water usage in people's day to day lives for months. It
               | was the tiniest increment and California was only saved
               | by a massive winter precipitation event this winter.
               | 
               | We won't have a massive winter to stop climate change.
               | Stop fucking around with incremental shit and tax all
               | hydrocarbons heavily.
        
               | pclmulqdq wrote:
               | I'm not the OP but I share this attitude. The argument is
               | that it is hypocritical to heat your 50-room house using
               | hydrocarbons and fly around in a private jet while
               | telling other people to cut their CO2 usage. If _you_
               | aren 't willing to sacrifice for _your_ cause, why should
               | other people sacrifice anything for it?
        
               | [deleted]
        
               | uoaei wrote:
               | This is actually a well-studied effect in psychology.
               | It's called social loafing: if someone sees another
               | person violating some rule, they are much less likely to
               | feel obligated to follow that same rule. Rules can be
               | unspoken or written down, the effect is basically the
               | same.
        
               | bcrosby95 wrote:
               | Are you saying everyone who thinks we need to sacrifice
               | for climate change owns a 50 room house and flies around
               | in a private jet?
        
               | pclmulqdq wrote:
               | Not at all, but I am saying that a large fraction of the
               | most visible people who are very publicly evangelizing
               | for it do. If the movement can't convince its evangelists
               | to make the significant lifestyle changes they are
               | demanding of everyone, why would you expect others to
               | adopt them first?
               | 
               | I am half convinced that Greta Thunberg was given a lot
               | of media attention because they finally found someone
               | evangelizing for the cause (with enough political
               | connections, etc) who was actually willing to lead by
               | example.
        
               | sroussey wrote:
               | The idealist in me agrees, but the pragmatist in me does
               | not.
               | 
               | The idealist in me believes that everyone do their part
               | and lead by example. I'm not a vegetarian, so I've
               | already failed that test (spouse is though, so I'm
               | reducitarian by default). But I do walk a lot, and have
               | only driven 65k miles in the last 19 years (same car--
               | best environmental thing you can do is not even buy new
               | cars). Pragmatically, my impact is minimal.
               | 
               | Celebrity X hopping around on a private jet speaking for
               | and convincing people to make environmental decisions on
               | a national or planetary scale probably has more impact
               | than me, even if they themselves are worse. And I
               | begrudgingly admit that.
        
               | nuancebydefault wrote:
               | IMHO there is a fault in this way of reasoning, please
               | let me explain.
               | 
               | People who are very visible, tend to:
               | 
               | - Have more impact about what they say, because they
               | reach a big population group and some people identify
               | with their reasoning. (lets call it the elon effect)
               | 
               | - Have a lot more money than average.
               | 
               | Following your reasoning, what these wealthy people say
               | would be almost always be the wrong thing to do, since
               | those people have more money and hence spend more, and
               | hence consume directly or indirectly more energy. Hence
               | they pollute a lot more than average, at least indirectly
               | by buying expensive things that create pollution by their
               | manufacturing.
               | 
               | If those people would say the right thing (e.g. poluting
               | less is better), you wouldn't take them serious. And your
               | conclusion would be polluting less is not better or at
               | least we should not take that advice for granted, because
               | of who said it.
        
               | pclmulqdq wrote:
               | I'm not saying that they lose their right to an opinion
               | because they are not paragons of virtue. I'm saying that
               | these wealthy people _make no attempt at all_ to mitigate
               | their environmental impact while telling you to
               | essentially pay off their carbon bill. Elon Musk is not
               | alone in taking his private jet on 10-30 minute flights
               | for trips that could easily have been done in a car. Bill
               | Gates has a gigantic unmitigated environmental footprint,
               | for example.
               | 
               | Generally, you would expect people with more wealth and
               | status to be focused on preserving that status. Part of
               | that project is (ostensibly) preserving the world. If
               | Bill Gates does not think that mitigating his own carbon
               | footprint is important for the preservation of his
               | fortune (including several seaside mansions, apparently),
               | I doubt it's important for any of us in the preservation
               | of our futures, despite what Bill Gates is saying about
               | it. This is an example of the phenomenon of revealed
               | preference
               | (https://en.wikipedia.org/wiki/Revealed_preference) - you
               | can learn a lot about what Bill Gates _actually_ thinks
               | by looking at what he _does_ rather than what he says.
               | 
               | For the record though, I do think that what these wealthy
               | people say _is_ almost always the wrong thing to do in
               | general. Wealthy people are known for giving bad advice
               | on how to get wealthy, for example. Because some of them
               | run their mouths a lot, they are also generally known for
               | not being smarter than the average person outside of
               | their area of expertise. Because I 'm picking on Bill
               | Gates, go ask anyone at the WHO or the CDC about their
               | opinion of Gates' level of expertise on vaccines and
               | disease prevention - it's not high.
               | 
               | Also, wealth and publicity are kind of correlated, but
               | not that significantly. Bernard Arnault famously rarely
               | says a word in public. Larry Ellison is very private. You
               | probably haven't heard a word from Steve Ballmer, the
               | Bettencourt family, or Larry/Sergei. The people who speak
               | a lot about social causes are the ones who are trying to
               | build a brand around those causes. You get a lot of
               | famous actors worth single-digit millions (thanks to
               | reckless spending habits) speaking about climate change,
               | for example, while also not opting to adopt any green
               | habits themselves. I'm picking on them too.
               | 
               | EDIT: I'm picking on rich people too much. You see the
               | same behavior in politicians, too. They are completely
               | unwilling to risk their political careers to make
               | meaningful carbon impacts, and instead do inane things
               | like banning plastic straws. That suggests to me that
               | their level of concern is about at the level where
               | someone would ban plastic straws: they want to do visible
               | and silly things to placate the activists, but don't
               | really think the issue is serious.
        
               | nuancebydefault wrote:
               | Thanks for clarifying how you see it. I'm thinking about
               | the documentary 'an inconvenient truth' of last century.
               | If people/politicians would have listened and gave it a
               | serious thought and started to act upon that, in stead of
               | saying 'you consume a lot of energy, so don't tell us
               | what to do', I think we would be better off, the greener
               | technology would have taken off say, 30 years earlier.
        
               | ericmay wrote:
               | No, I would not like to rephrase.
               | 
               | This specific incremental change is _at best_ a
               | distraction and at worst very harmful. We can do many
               | things at once, question is why aren't we tackling any of
               | the actual problems?
        
               | nuancebydefault wrote:
               | Changes are incremental in general, because change takes
               | time, at least if you want change with not too many
               | unwanted side effects.
               | 
               | Suppose you would say, from tomorrow on, it is totally
               | forbidden to burn any fuel. Most activities would stall
               | and as a result people would starve.
        
               | ericmay wrote:
               | I'm not sure I was suggesting anywhere that we shouldn't
               | pursue incremental change. Moreso we should pursue
               | incremental change that the public can get behind
               | (private jet emissions charges and such) before pursuing
               | incremental change that the public is hesitant to make
               | when people suggesting the change are the biggest
               | polluters comparatively.
               | 
               | Honestly just think about it. You really think it's
               | fruitful to try to start solving this problem by
               | convincing someone that they need to no longer use a gas
               | stove when "insert billionaire" is flying around on a
               | private jet? It's a non-starter. It reeks of injustice
               | _even if it's the right thing to do_ and the public will
               | instead of cooperate will fight tooth and nail until
               | perceived justice is accomplished.
        
               | nuancebydefault wrote:
               | Sorry i guess i misunderstood. Okay the incrementalness
               | is not the thing. The thing is more, the injustice, the
               | unevenness so to say. Well, I think we should not try to
               | solve the injustice problem and the environmental problem
               | with the same measures.
               | 
               | For every rule, there will be people that break it, does
               | that mean nobody should follow that rule?
               | 
               | Also, for every form or quantity of pollution, there are
               | heavier forms. The jet owner will say that the old-
               | aeroplane-collector or a war in a neighboring country
               | pollutes more.
               | 
               | My point is, following that kind of reasoning, it will be
               | almost impossible to take any action.
        
               | FpUser wrote:
               | When fixing one gives you 0.01% and fixing the other -
               | 99.99% you go for a second one to achieve any sizeable
               | gains. Doing it the other way is only good for fooling
               | people to gain some points in one's political career.
               | 
               | And you do not even have to fix second one completely to
               | see positive results so it is not fixing everything at
               | once.
        
               | ericmay wrote:
               | Too simplistic. You can't do the "99.99%" thing if you
               | violate a population's sense of justice. In fact you will
               | almost surely make the problem even worse.
        
               | FpUser wrote:
               | My sense of justice is violated just by looking what
               | Governments do to their citizens never mind "green area".
               | And it is all across the world save for the degree of
               | shittiness.
        
               | vel0city wrote:
               | What's the one thing that will solve 99.99% of climate
               | change issues?
        
               | tomp wrote:
               | General non-discriminatory carbon tax. Investing heavily
               | in nuclear.
               | 
               | Just 2 obvious ideas that noone is even trying.
        
               | vel0city wrote:
               | Investing heavily in nuclear isn't going to remove 99.99%
               | the sources of greenhouse gasses. Adding some taxes will
               | reduce some of the usage but not 99.99%, unless you price
               | the tax so high nobody can realistically afford jet fuel
               | or diesel or propane or steak or bacon. Increasing the
               | price of concrete might make projects more expensive, but
               | they're probably still going to use concrete.
               | 
               | Neither of these are 99.99%. Probably not even 80%.
        
               | tomp wrote:
               | I disagree.
               | 
               | Most of climate change is caused by fossil fuels. The
               | rest are caused e.g. by factory farming (plant & animal -
               | e.g. pesticide rundown), plastic pollution, etc.
               | 
               | If we had boundless nuclear energy, not only would fossil
               | fuels become price inefficient, we could devote the extra
               | energy we generate into synthetic fossil fuels, carbon
               | capture, reducing pollution, etc. Almost all of these are
               | energy bound right now.
        
               | vel0city wrote:
               | According to the EPA, agriculture accounts for 10% of GHG
               | emissions.
               | 
               | https://www.epa.gov/ghgemissions/sources-greenhouse-gas-
               | emis...
               | 
               | Building a nuclear reactor isn't going to make steak go
               | away. So even if you solved.for transportation and
               | industrial uses and everything else you're still only at
               | 90%, not 99.99%.
               | 
               | > If we had boundless nuclear energy,
               | 
               | More of this "nuclear energy will be too cheap to meter"
               | talk. Nuclear energy is more expensive than other
               | sources, not cheaper. It won't be cheaper to make
               | synthetic fossil fuels, it'll be more expensive.
               | 
               | > Almost all of these are energy bound right now.
               | 
               | They're all _price_ bound right now, because the cost of
               | energy is so high in comparison to alternatives. So high
               | most would probably just avoid using it entirely.
               | Spending trillions building a bunch of reactors isn 't
               | making it cheaper you're just committing to spending more
               | of it up front.
               | 
               | Either way, making the synthetic fuels isn't the same as
               | just building the reactors. We can have synthetic fuels
               | _without_ nuclear, we can have nuclear _without_ the
               | synthetic fuels, they 're independent. So neither one is
               | 99.99% on its own, it's no longer "one thing" like what
               | the person I originally replied to stated. They
               | supposedly have _one_ thing that will solve _99.99%_ of
               | GHG emissions. I 'm not looking for something that will
               | even solve 80% or 90%, why waste time with that when
               | there's _one_ thing to solve it 99.99%.
               | 
               | So once again I ask, what is _one thing_ that will solve
               | _99.99%_ of GHG emissions?
        
               | tomp wrote:
               | Transportation emissions are caused by fossil fuels.
               | 
               | As for agriculture, check the rest of the page. Besides
               | CO2, there's also methane and NO2 emissions, both of
               | which are part of a cycle, so they have no long-term
               | impact. The entirety of long-term impact of agriculture
               | is, again, fossil fuels, which is literally digging
               | _extra_ C from the ground and adding that _extra_ CO2
               | into the atmosphere (technically, TBH, it 's also part of
               | a cycle, but instead of 114 years as with NO2, that cycle
               | is millions of years long).
               | 
               | The point is if we invest much more in nuclear, it will
               | become too cheap to meter (e.g. we start using modular
               | reactors that benefit from economies of scale).
        
               | vel0city wrote:
               | You're right, methane breaks down in the atmosphere. What
               | does it break down into again?
               | 
               | > The point is if we invest much more in nuclear, it will
               | become too cheap to meter
               | 
               | So if we ignore the financial costs (invest today) it'll
               | become too cheap to meter.
               | 
               | If nuclear plants can generate with costs <1C//kWh, why
               | don't they?
               | 
               | If nuclear is cheaper than all other energy sources (too
               | cheap to even meter in costs) why is there any energy
               | kind of energy usage and why would it need massive
               | investment to make it happen? If your costs are
               | practically zero, isn't your profit margin essentially
               | 100%? Shouldn't all nuclear power plants be making money
               | hand over fist competing against expensive nonrenewable
               | resources?
               | 
               | And yet it's often one of the more expensive sources of
               | electricity today.
               | 
               | Don't get me wrong I'm a fan of nuclear and wouldn't mind
               | seeing more of it but not if my electricity bill is
               | 30C//kWh+. That's not moving towards too cheap to meter.
        
               | tomp wrote:
               | Methane breaks down into CO2, which is a part of the
               | Carbon Cycle.
               | 
               | https://en.wikipedia.org/wiki/Carbon_cycle
               | CH4 -> CO2 -> grass -> cow -> CH4
               | |                                \/
               | steak -> human -> CO2
               | 
               | and so on...
               | 
               | > If nuclear plants can generate with costs <1C//kWh, why
               | don't they?
               | 
               | Because they're too expensive to build, because of
               | regulation and lack of economies of scale. Similar to why
               | rockets were expensive, before SpaceX. If we invested
               | more, both in research and in building more of them, in
               | factories, we could build plenty, much more cheaply. The
               | technology for modular reactors obviously exists (e.g.
               | nuclear submarines), it just needs to be commercialized.
               | 
               | > If your costs are practically zero, isn't your profit
               | margin essentially 100%?
               | 
               | You're mixing up or conflating total cost vs marginal
               | cost. The marginal cost of making computer chips is
               | almost 0, but the upfront investment is huge. Same with
               | reactors and nuclear power. If we make more of them,
               | streamline the construction, simplify regulation, etc.
               | the _marginal_ costs will drop massively (as will upfront
               | costs, but they will still be non-zero).
        
               | vel0city wrote:
               | > Methane breaks down into CO2, which is a part of the
               | Carbon Cycle.
               | 
               | So it's pretty disingenuous to act as if methane
               | emissions are unrelated to CO2 emissions, isn't it? That
               | methane released in agriculture eventually _does_ turn in
               | to CO2 emissions. You even drew a graph showing my point.
               | Thanks!
               | 
               | > You're mixing up or conflating total cost vs marginal
               | cost
               | 
               | I'm going by total cost, because ultimately that's what
               | society will pay. We can't just act like building a
               | nuclear power plant costs $0.
        
               | FpUser wrote:
               | >"What's the one thing that will solve 99.99% of climate
               | change issues?"
               | 
               | 99.99% is a figure of speech. The idea is to start with
               | big items. Cooking using gas is far below other
               | "offenders". Go for those first as even if partially it
               | will still be way more effective.
        
               | vel0city wrote:
               | It's an ineffective one, because there isn't any single
               | category that is even 90% or 80% of the issue. Everything
               | is just a small drop in the bucket, it's just that there
               | are lots of drops.
        
               | comte7092 wrote:
               | > everybody owning a Ford F-850 and private jets are
               | still cool (from an environmental perspective)?
               | 
               | Who is saying this? This seems like a straw man.
               | 
               | Faceless "politicians" are an easy scapegoat, but _most_
               | politicians aren't flying on private jets. And the few
               | that do _generally_ are not environmentalists, or if they
               | claim to be, aren't representative of the entire
               | environmental movement.
               | 
               | Those that are banning gas in new construction are
               | universally politicians at the state and local level, who
               | generally earn fairly modest salaries, and at their
               | highest are at the level of the professional class of
               | society.
        
               | [deleted]
        
               | kibwen wrote:
               | If it's a "distraction", it's because reactionaries are
               | making it one. I don't have a private jet _or_ an
               | F-10,000 (I don 't even own a car), and I can see that
               | the pro-gas crowd hasn't considered how good induction
               | cooktops and heat pumps have gotten, and how rapidly
               | they're still improving. The writing is on the wall,
               | there's no future for piping gas to residences, so if
               | you're a government you might as well prepare to stop
               | investing in gas infrastructure now.
        
               | ericmay wrote:
               | The problem here is that you are falling prey to the
               | "it's easier to destroy things than build them"
               | phenomena.
               | 
               | You have to convince voters that they should support
               | banning gas stoves and such. (Build things)
               | 
               | I don't have to convince anyone that while the government
               | is "taking away their stoves" so-called billionaires fly
               | around in private jets and own dozens of cars. (Destroy
               | things)
               | 
               | It's just not effective. I want to see effective
               | solutions, not ideological ones. Especially ideological
               | ones that push people away from stated goals.
        
               | hsjqllzlfkf wrote:
               | [dead]
        
               | [deleted]
        
             | hyperbovine wrote:
             | For serious chefs, gas ranges remain far superior to their
             | electric counterparts. I'll be the first in line to buy an
             | induction cooktop that performs as well as a high end gas
             | range, but we're not there yet.
        
               | kibwen wrote:
               | My serious chef friends (one professional, one amateur)
               | swear by their induction stoves. Their expensive high-end
               | gas ranges are gathering dust.
               | 
               | Once you've tried induction, going back to gas feels
               | absolutely primitive.
        
               | phatfish wrote:
               | Induction is great for instances where you can just leave
               | a flat bottomed pan to do its thing. It is also nice in
               | smaller kitchens where the efficiency keeps the heat
               | going to the pan rather than the air.
               | 
               | But they do not work well (or at all) when a pad is moved
               | around a lot, or it has a rounded bottom like a Wok or
               | Karahi. At least the ones ive used don't. You are also
               | reliant on the designers to give enough heat levels to
               | actually cook properly and to provide a generally usable
               | device that is fit for purpose. None of these things are
               | an issue with even the cheapest gas stoves.
               | 
               | Having a both would be perfect. Just one or two gas
               | burners for frying would be fine.
        
               | bbarn wrote:
               | I've had three in different places I've lived, and while
               | they are fantastic temperature-wise, the software and
               | interface is always what infuriates me. They are almost
               | all touch interfaces to keep the flat glass aesthetic,
               | which is absurd because spills happen on stoves and touch
               | interfaces don't work wet. Additionally, most of them
               | automatically detect pans being removed and turn off. An
               | annoying feature for an experienced cook who tosses food
               | around in a pan with one hand.
        
               | sofixa wrote:
               | > Additionally, most of them automatically detect pans
               | being removed and turn off
               | 
               | Induction only works when the pan is on it by definition.
        
               | nibbleshifter wrote:
               | I've had pretty much all kinds in various apartments in
               | the last while, currently back on "hot plate" resistive
               | electric (renting currently), which sucks and is
               | inefficient.
               | 
               | Induction is amazing for some things, but for some other
               | things I prefer gas.
               | 
               | Given the choice, I'd have some kind of combination of
               | gas and induction. Maybe half and half?
        
               | roamerz wrote:
               | So not a chef by any stretch but i've been cooking on
               | resistive stoves for a long time. I find it works great
               | for me to use good pans. My favorite is one with low
               | thermal mass but a good heat distribution layer - and it
               | seems to be stable as far as keeping the cooking surface
               | nice and flat.
               | 
               | If I had a choice I wouldn't use gas for a few reasons.
               | Air quality, the amount of water that gets released and
               | fire hazard. Seen too many buildings explode on tv lol.
        
               | adgjlsfhk1 wrote:
               | what aspect of performance are they missing?
        
               | wffurr wrote:
               | Two big use cases:
               | 
               | 1) Wok cooking, can't use a round bottomed wok easily or
               | create "wok hei". Though you can also do it with a
               | blowtorch: https://www.seriouseats.com/hei-now-youre-a-
               | wok-star-a-fiery...
               | 
               | 2) Causing childhood asthma. Gotta employ all those
               | healthcare workers somehow...
        
               | Spunkie wrote:
               | Rounded induction cooktops exist for woks anyways so it
               | feels like its basically all FUD in that other thread.
        
               | jjulius wrote:
               | You cited wok hei as an aspect of performance that
               | induction stoves don't have, but it's hardly an argument
               | in favor of gas stoves. The article you link is basically
               | about a tool that makes up for what common home gas
               | stoves can't even provide.
               | 
               | Previous Serious Eats articles about it even cited the
               | lack of performance from gas stoves and recommended
               | modifying one with a Wok Mon, but even then the results
               | weren't perfect.
               | 
               | Edit: For some reason I feel the need to clarify that
               | this isn't a comment in support of, or against, gas
               | stoves. I just like cooking and am aware of how hard it
               | is to achieve quality wok hei at home.
        
               | kibwen wrote:
               | China is the world's largest adopter of induction
               | cooktops. Wok cooking isn't a problem. You can even buy
               | induction cooktops specifically shaped for woks. Can we
               | please retire this silly talking point now?
        
               | traverseda wrote:
               | Their wiring supports more than twice the watts of a
               | standard North American power outlet. Better electric
               | kettles, better induction cookers, etc.
        
               | simondotau wrote:
               | This is true of standard wall outlets which are 110V but
               | not for integrated appliances like ovens and induction
               | cooktops which can pull 200+ volts from your breaker
               | panel. The problem in the USA isn't your power, it's your
               | weird habit of buying combination stove-and-oven units.
               | Stop it.
        
               | bbarn wrote:
               | It really is silly, as wall mounted ovens are so much
               | nicer to use in practice, and moreover occupy real estate
               | nothing else is usually using at that level.
        
               | swexbe wrote:
               | Stoves are often 400v here in Europe at least.
        
               | FuriouslyAdrift wrote:
               | Induction Wok systems do exist...
               | https://www.nuwavenow.com/shop/mosaic
        
               | wffurr wrote:
               | That's pretty cool!
               | 
               | Tabletop induction burners that use standard outlets are
               | way more cost effective than induction ranges, too. That
               | thing is $200, which didn't even pay the electrician bill
               | to put in the 240V 50A outlet and circuit for my range.
        
               | Fnoord wrote:
               | Serious chef is such a condescending fallacy (no true
               | scottsman, argument of authority). Please instead state
               | why induction does not perform according to you.
        
               | [deleted]
        
               | HPsquared wrote:
               | For home use, induction is far superior. More intense
               | heat, less heating the room, no fumes, much easier to
               | clean, etc etc etc
        
               | bliteben wrote:
               | I had a ge one loved it when it worked. The board died
               | twice in 6 months.
               | 
               | The Bosch one probably would have worked fine but for
               | whatever reason it wasn't the look the spouse wanted.
               | 
               | Even though I was fully onboard I could see the specific
               | pan thing annoying some dedicated gas people.
               | 
               | I'm back to gas and no longer have people boiling water
               | so I can boil water.
        
               | theK wrote:
               | Yeah, we are living through that horror as well, turns
               | out roughly half of the people we know that have an
               | induction stove ended up having either multiple
               | replacements or live with the peculiarities of their
               | unit. It's not cheap stuff as well, one couple have a
               | high end Miele one that goes completely haywire if
               | anything drops on its surface and that is after getting
               | one replacement and one "upgrade"...
        
               | rnk wrote:
               | I used an induction stove and it turned me into a Newt.
               | But I got better.
        
               | theK wrote:
               | Sorry to hear that. Any advice for other readers that
               | find themselves in that predicament?
        
               | rnk wrote:
               | I recommend repeated viewing of Monty Python's Quest for
               | the Holy Grail. And avoiding llamas.
        
               | [deleted]
        
               | rhaway84773 wrote:
               | They can continue using gas stoves with cylinders.
               | 
               | Most of the world does that.
               | 
               | Of course, what actually serious chefs find is that once
               | the subsidy for gas is removed (by removing legislation
               | requiring utilities and buildings to provide piped
               | natural gas), not only are induction stoves much more
               | effective, cook faster, etc., they also keep their
               | kitchens incredibly cool and make them much better work
               | environments than having a bunch of gas burners around.
               | 
               | For the restaurants that need woks they can use a gas
               | stove and have a gas cylinder shipped in every morning.
        
           | botanical wrote:
           | > A legacy of the Pinochet era in Chile is the privatisation
           | of minerals and water, which gives companies ownership of
           | those resources in an area. While mining operations squeeze
           | this already dry region even drier, communities lose their
           | access to potable water, leaving them relying on tankers to
           | deliver it.
           | 
           | "We used to have a river before that now doesn't exist. There
           | isn't a drop of water," says Rivera. "And not only here in
           | Copiapo but in all of Chile, there are rivers and lakes that
           | have disappeared--all because a company has a lot more right
           | to water than we do as human beings or citizens of Chile."
           | 
           | https://www.nrdc.org/stories/lithium-mining-leaving-
           | chiles-i...
           | 
           | And this is in Chile, the second largest producer of lithium.
           | Just because it goes against your views it being anti-EV,
           | doesn't make it FUD. People have other types of grievances
           | like the human cost of lithium mining, even for the amazing
           | storage capability of lithium batteries.
        
             | marcusverus wrote:
             | Your article is pretending that the water access issues are
             | caused by lithium mining. This is a specious argument that
             | only makes sense because they omitted the obviously
             | pertinent fact that Chile is in the grip of a decade-long
             | drought.
             | 
             | That's FUD, my dude.
        
               | giantg2 wrote:
               | "That's FUD, my dude."
               | 
               | Only if you explain it the way you just did.
               | 
               | The fact is, instead of restricting water usage related
               | to lithium mining, they'd rather let the river run dry.
               | While the drough is a major factor, so too is how the
               | regulations allow the continued abuse of the limited
               | resource.
        
               | robertlagrant wrote:
               | If lithium mining brings in money to buy water and other
               | things as well, then it's not great, but it's probably
               | the better choice.
        
               | giantg2 wrote:
               | True, but are they actually offsetting the negarive costs
               | by doing things like that, or are the companies
               | protecting their profits?
        
               | robertlagrant wrote:
               | It's speculation at this point. Just depends on whether
               | people think the water cost of lithium mining is more
               | than the sale price of the lithium. Either that or the
               | government isn't doing its job.
        
               | djbusby wrote:
               | Why don't the mining company buy+ship the water then and
               | leave the river alone?
        
               | AmpsterMan wrote:
               | If Chile is undergoing a drought, are there not ethical
               | considerations for prioritizing water for the benefit of
               | the public rather than for manufacturing?
        
             | AzzieElbab wrote:
             | As a former citizen of the USSR, I have to object to
             | linking environmental issues to private property. The
             | Soviets did all kinds of tremendously bad things ranking,
             | from geo-transformation to placing the heavy industry in
             | the middle of cities. From what I read about North Korea,
             | the entire country is ruined by various extraction and
             | industrial projects.
        
               | armenarmen wrote:
               | Tragedy of the commons at scale.
        
               | AmpsterMan wrote:
               | The important part is the "complete ownership of those
               | rights". In the Soviet Union, a community had no rights
               | and little power by ways of representative government to
               | defend themselves. It's little different in the case of
               | Chile. Do the nuances of state/corporate ownership of
               | resources mean anything when they are both large, far off
               | organizations exploiting my land with little of my own
               | say?
        
               | 13of40 wrote:
               | Not saying you're wrong, but I'd like to share my own
               | take, which is that one of the clearest, bluest skies
               | I've ever seen was over North Korea. Because they sucked
               | at doing "industry" compared to the South Koreans. In the
               | 90s in South Korea, the rivers ran black and every corner
               | you turned had its own putrid chemical smell from
               | whatever fly-by-night entrepraneur had found a way to
               | make a buck there. But that's an anecdote and I haven't
               | been back to see what it's like now.
        
               | pixl97 wrote:
               | Right, but in NK you starved to death at the governments
               | whim as they had little to no ability to feed themselves.
               | 
               | These conversations are barely worth having unless you're
               | willing to go into long chains of explaining the
               | complexity behind the situations.
        
               | 13of40 wrote:
               | Sure, but if you stay on topic I'm just saying there
               | isn't a clean 1:1 correlation between political ideology
               | and environmental harm.
        
               | [deleted]
        
               | mensetmanusman wrote:
               | Do blue skies matter when you are blind from
               | malnutrition?
        
               | underbluewaters wrote:
               | Yes. For many folks there is an intrinsic value to
               | protecting the environment.
               | 
               | I find more and more that even within the NGO and
               | environmentalist community people only care about how
               | natural resources impact people in a utilitarian sense. I
               | can respect that philosophical position, but it makes me
               | equal parts angry and sad that it's taken as a given. I
               | don't believe life on earth exists just to serve human
               | needs.
        
               | sacrosancty wrote:
               | [dead]
        
               | specialist wrote:
               | Yes and:
               | 
               | One view is private vs public capitalism. USSR vs USA,
               | respectively. Extreme wealth concentration at the expense
               | of everyone else.
               | 
               | Both are anti-democratic.
        
               | ratboy666 wrote:
               | The USSR did call itself democratic. In a sense, since it
               | was central control for all. The USA did NOT call itself
               | democratic -- the preferred term up to the '70s was
               | "constitutional republic". To avoid the flattening that
               | "democracy" was perceived to produce. The argument is
               | that democracy ALWAYS leads to tyranny and collapse.
               | 
               | To quote "Both are anti-democratic". Which I don't
               | understand. Is your claim that both systems (as practiced
               | in the USSR and USA) led to extreme wealth concentration?
               | Did the economy increase during this concentration? If
               | so, do you still consider this "anti-democratic".
        
               | greedo wrote:
               | Democracy is inherent and implicit in a republic. And I
               | think you're mistaken about "constitutional republic."
               | That term really wasn't used much, though representative
               | democracy and "democratic republic" were terms that were
               | used more frequently.
               | 
               | The entire argument about the US not having a democracy
               | but a republic really stems (in modern times) from the
               | John Birch Society.
        
               | ratboy666 wrote:
               | You could well be right (I am not American). I do recall
               | discussing the GDR with some USA people... a "democratic
               | republic". Was told, back then, that the term had been
               | co-opted. But then, I don't know much about the John
               | Birch Society.
        
               | Natsu wrote:
               | I think the USSR would object to being called capitalist,
               | since they were one of the major Communist revolutions
               | until their economic collapse.
               | 
               | And in this vein, we shouldn't forget Mao's "four pests
               | campaign" in China under Mao which caused mass starvation
               | by killing sparrows which had been eating insects,
               | leaving them with a literal plague of locusts.
               | 
               | Mao would probably have murdered anyone who called him a
               | capitalist:
               | https://en.wikipedia.org/wiki/Capitalist_roader
        
               | mejutoco wrote:
               | It is irrelevant if the object of the calling agrees or
               | not on the name. Otherwise nobody would ever be called
               | anything bad.
        
               | Natsu wrote:
               | That only works if you have some way to justify it to
               | begin with and is rather transphobic to make other people
               | the sole arbiters of one's identity.
        
               | thephyber wrote:
               | Your parent didn't call the USSR "capitalism", they
               | called it "private capitalism". I've never heard that
               | term before so I'm guessing it was ad hoc.
               | 
               | I'm guessing the public capitalism / private capitalism
               | has to do with where the ownership of property,
               | concentration of human capital is, and there the market
               | making prices are found. In that sense, the
               | public/private dichotomy mostly works. Sure, Communists
               | argue there is more virtue to their system than simply
               | market making and state owned property, but those are
               | effectively downstream / derived qualities.
               | 
               | And Mao murdered tons of people (both directly and the
               | way a mob boss would have) for many different reasons. He
               | probably was the kind of person who might murder someone
               | because he woke up on the wrong side of the bed. I don't
               | think that matters much in this discussion and I don't
               | think we should self-censor our thoughts because the
               | ghost of a terrible person might hear us.
        
               | Natsu wrote:
               | That formulation erases any distinction between
               | capitalism and anything else, leaving it as just an empty
               | synonym for badness. I'm calling out the intellectual
               | emptiness of that use as an epithet here.
        
               | SamPatt wrote:
               | Don't forget Chernobyl too.
        
             | theK wrote:
             | I don't want to disagree with you because I agree on
             | principle with what you are saying but this case you
             | describe has nothing to do with EVs and everything to do
             | with neoliberalism.
        
               | theK wrote:
               | Interesting, I never thought that I'd get downvoted for
               | stating a fact here
        
             | vegetablepotpie wrote:
             | Lithium is not the only cause of aquifer depletion in
             | Chile, avocado farms have also been responsible for
             | depleting the wells of residents [1].
             | 
             | These outcomes, as the article alludes to, are due to the
             | privatization of resource rights, which is a consequence of
             | Pinochet government going all in on the policies Milton
             | Friedman promoted [2].
             | 
             | Citizens of Chile are more victims of neoliberalism than
             | they are of any particular industry.
             | 
             | [1] https://www.lifegate.com/avocado-chile-water
             | 
             | [2] https://en.m.wikipedia.org/wiki/Miracle_of_Chile
        
               | rmujica wrote:
               | Lithium mines and avocado plantations are like 1,000 km
               | apart from each other.
        
               | jdkoeck wrote:
               | From wikipedia: << In 2010, Chile was the first nation in
               | South America to win membership in the Organization of
               | Economic Cooperation and Development, an organization
               | restricted to the world's richest countries >>
               | 
               | Victims of neoliberalism you say?
        
               | meristohm wrote:
               | I would say the USA (where I grew up and still live,
               | which doesn't make me a expert, mind- these are mostly
               | just feelings) is also a victim of neoliberalism[0], and
               | that people who revere President Reagan (USA) and Prime
               | Minister Thatcher (UK) are generally selfish and
               | inconsiderate of (what I see as) the importance of other
               | life on earth whether or not we can directly benefit from
               | it.
               | 
               | [0] https://www.wikipedia.org/wiki/Neoliberalism
        
               | comte7092 wrote:
               | Chile has a GDP per capita not all that different from
               | peer South American countries of Argentina and Uruguay
               | [0]. It is a stretch to characterize "winning" membership
               | to the OECD as some sort of objective, non ideological
               | measure of economic progress.
               | 
               | [0] https://en.wikipedia.org/wiki/List_of_countries_by_GD
               | P_(PPP)...
        
               | inglor_cz wrote:
               | GDP per capita is a very narrow indicator that does not
               | come close to telling enough about the economic condition
               | of a country.
               | 
               | Argentina seems to be going bankrupt and drown in
               | enormous inflation every couple of years. That isn't the
               | case with Chile. Based on this factor alone, Chile and
               | Argentina aren't peers.
               | 
               | I don't know enough about Uruguay to judge.
        
               | comte7092 wrote:
               | Those were simply easy examples, there are plenty of non
               | oecd countries that have higher levels of wealth than
               | Chile.
               | 
               | > GDP per capita is a very narrow indicator that does not
               | come close to telling enough about the economic condition
               | of a country.
               | 
               | In what was us GDP per capita deficient, and what
               | criteria would you propose exactly?
        
               | inglor_cz wrote:
               | I won't propose any exact criteria, given that this is HN
               | and I am in no mood for nitpicking games, which usually
               | follow after a demand for something exact.
               | 
               | However, if I were considering investment from my own
               | pocket, political and economic stability would play a
               | much higher role for my decision making than GDP per
               | capita. And Argentina would therefore be a big no-no,
               | while Chile might make the cut.
               | 
               | Would you make a different choice?
        
               | comte7092 wrote:
               | > I won't propose any exact criteria, given that this is
               | HN and I am in no mood for nitpicking games, which
               | usually follow after a demand for something exact.
               | 
               | I understand that, you were the one who dismissed GDP per
               | capita as an objective measurement of economic
               | development.
               | 
               | The point I was making that the OECD exists to espouse a
               | particular model of global economic organization and
               | development, which is politically informed.
               | 
               | As to your question about investment, what might be
               | beneficial to me as an investor isn't necessarily the
               | same as what is beneficial to a citizen of a particular
               | country.
        
               | inglor_cz wrote:
               | Economic situation of a country is a fairly complex
               | picture that cannot be measured by a single scalar value.
               | GDP per capita is not useless, but just one value among
               | many. Same as you wouldn't try to measure an individual's
               | overall health by their BMI alone. It tells you
               | _something_ , especially on the extreme ends of the
               | distribution, but in the middle, not that much.
               | 
               | Yeah, OECD is very political. No disagreement about that.
               | 
               | But I would say that the correlation of "being attractive
               | for FDI" and "having good standards of living among the
               | general population" is rather high and given that FDI
               | tends to predate said growth of standards of living,
               | there actually may be causality.
               | 
               | Excluding resource-rich countries that grew fat on
               | something that comes out of the earth, pretty much every
               | country whose standards of living soared since, say,
               | 1950, attracted a lot of FDI beforehand.
               | 
               | After all, the same things that attract investors
               | (stability, low crime, high educational attainment,
               | reliable electricity supply, rule of law) tend to be good
               | for the citizens as well.
        
               | ZeroGravitas wrote:
               | Quoting a right wing economics friendly source:
               | 
               | "Pinochet's economic policy is vastly overrated"
               | 
               | > Mining a bunch of copper, helping your cronies get
               | rich, and pumping up land prices is not a "miracle".
               | 
               | https://www.noahpinion.blog/p/pinochets-economic-policy-
               | is-v...
               | 
               | > In the U.S., Pinochet is often a talking point in
               | economics debates. He was a brutal dictator, who killed
               | thousands and who tortured, imprisoned, and/or exiled
               | tens of thousands more. It's very understandable that
               | Chileans would want to expunge any portion of his legacy.
               | But in the U.S., it's his economic policy that continues
               | to be debated decades later. Some libertarians believe
               | that despite the brutality of his regime, he implemented
               | economic policies that were wildly successful in raising
               | Chilean living standards.
        
               | xyzzyz wrote:
               | What about drainage of Aral Sea for short term gain, were
               | Soviet citizens also victims of Soviet neoliberalism?
        
               | gdy wrote:
               | It wasn't drained and the gain wasn't short term -- the
               | water from the rivers that used to flow to the Aral See
               | is used for irrigation.
        
               | vegetablepotpie wrote:
               | Environmental destruction doesn't have a single exclusive
               | cause.
               | 
               | There is the horseshoe theory that says that either
               | extremes have more in common with each other then they
               | have with the center [1].
               | 
               | If I we're to connect neoliberalism with Soviet
               | communism, I'd say that both ideologies are examples of
               | _high modernism_ , which is the idea that leaders can
               | optimize on a metric and ignore all other factors that
               | contribute to their countries success. This never has
               | positive outcomes for the people living in those
               | countries.
               | 
               | [1] https://en.m.wikipedia.org/wiki/Horseshoe_theory
        
             | chaostheory wrote:
             | > We used to have a river before that now doesn't exist.
             | There isn't a drop of water," says Rivera. "And not only
             | here in Copiapo but in all of Chile, there are rivers and
             | lakes that have disappeared
             | 
             | It's more likely that climate change was responsible for
             | this problem.
        
             | Robotbeat wrote:
             | And now they're nationalizing it. Happy? Or will the
             | goalposts move to some other totally out of proportion fake
             | scandal?
             | 
             | https://foreignpolicy.com/2023/04/21/chile-lithium-
             | reserves-...
        
             | kranke155 wrote:
             | Chile has just nationalised lithium I believe
        
               | rmujica wrote:
               | Wrong. Lithium in Chile was nationalized in the 1980s by
               | Pinochet. Lithium extraction and processing has been
               | granted to privates in long term contracts that will
               | continue to be valid but will not be renewed, and new
               | mines will be owned directly by the state.
        
               | longemen3000 wrote:
               | "Fun" fact about that, it was nationalized because it is
               | a material for use in atomic bombs, in the 70 and 80
               | there wasn't another use for large scale lithium mining,
               | except for that
        
               | defrost wrote:
               | They've announced _plans_ to do so and those plans have
               | issues and wil take time:
               | 
               | > While Chile's plan to take control of its lithium
               | industry has caused global shockwaves, state-led
               | production of the metal used to make electric vehicle
               | batteries is seen by analysts as likely years away given
               | technical and political challenges.
               | 
               | ~ Reuters
        
             | kortilla wrote:
             | What you just described is a failure of government to setup
             | appropriate water rights. It has nothing to do with mining.
             | The same exact thing happens with agriculture.
        
           | stjohnswarts wrote:
           | What space is that? The only place I see anti EV fud is right
           | wing nut sites like fox news.
        
         | macawfish wrote:
         | Lithium could be considered a conflict metal on a larger scale
         | though, in that it has likely been a large factor in
         | geopolitical decision making over the last decades:
         | https://www.aljazeera.com/news/2021/8/24/as-us-exits-afghani...
        
         | misssocrates wrote:
         | Are people confusing lithium with cobalt? Where 70% of it comes
         | from the Congo.
        
           | marcosdumay wrote:
           | Yes. And I guess some people insist on the confusion on
           | purpose. It doesn't matter how many times people point it
           | out, the confusion keeps happening.
        
             | latency-guy2 wrote:
             | I agree that it's deliberate, and I extend that to any sort
             | of mining - after all it comes from the stance of
             | misinformed "environmentalists" not being able to tell the
             | difference because any of that type of action is bad
        
               | Tagbert wrote:
               | There are certainly people reposting comments that mix up
               | lithium and cobalt and keep asserting that all EV
               | batteries use cobalt and how terrible that is. They are
               | not all environmentalists. A lot of them are just using
               | those talking points as a way to oppose the move to EVs.
               | 
               | They also like to post a photo of an open pit gold mine
               | in Australia and claim that it is a lithium mine while
               | complaining about the massive environmental impact. they
               | never respond when I post a link with proper attribution
               | showing that it is not a lithium mine.
        
               | pas wrote:
               | not to mention that there is no fundamental problem with
               | open pit mining with recultivation.
               | 
               | the problem is the brine. which is cleanable with a lot
               | of energy.
        
             | retinaros wrote:
             | just like people against nuclear. we can see that live in
             | germany
        
           | snek_case wrote:
           | Also worth pointing out that much of EVs and grid storage are
           | shifting to cobalt-free lithium iron phosphate batteries.
           | Many people aren't aware of that.
        
         | whitemary wrote:
         | > _Human rights abuse_
         | 
         | That's a convenient way to dismiss ruthless exploitation of 3rd
         | world populations, nations, and the natural environment.
         | 
         | And if you don't consider the police violence against the
         | indigenous populations of Bolivia following their democratic
         | elections then what are your qualifications exactly? "Lithium
         | mining" is not the problem, of course, but the political
         | interventions of Lithium interests has robbed millions of
         | people of freedom.
        
           | kranke155 wrote:
           | All large scale economic activity in developing countries
           | like this is often accompanied with human rights and
           | democracy violations.
           | 
           | This is a false choice really. It's not lithium that's
           | causing this but the broken political system. I'm half
           | Brazilian and just the other day I heard a mining dam break
           | that led to a mass cancer in surrounding populations. This
           | was Vale one of the largest companies in Brazil.
           | 
           | It doesn't matter what's being used, virtually everything
           | that comes from developing countries causes gigantic crimes
           | that are unimaginable to first world.
           | 
           | You're selecting one specific product but it's not logical to
           | do so. They all cause this. And what's the other option? Not
           | buying products from developing countries?
        
         | throwawaaarrgh wrote:
         | Because we all know international corporations never violate
         | human rights?
        
           | refurb wrote:
           | That's kind of a ridiculous argument.
           | 
           | Sure, international corporations violate human rights, but
           | unless you provide proof these lithium corporations are, then
           | we can just assume they aren't.
        
             | anamexis wrote:
             | Why would that be a reasonable assumption?
        
               | refurb wrote:
               | Wait, you're asking why it's reasonable to assume a
               | corporation is NOT violating human rights in a situation
               | where there is no evidence that they are?
               | 
               | Because it's absurd to think otherwise?
               | 
               | I mean, using OPs logic of "Because we all know
               | international corporations never violate human rights?"
               | you could say that about anything.
               | 
               | If you're a teacher you're probably a child molester
               | because "Because we all know teachers never molest
               | children, right?"
        
               | uoaei wrote:
               | It's absurd to believe either side of that dichotomy,
               | because you have no information on which to base any
               | belief.
        
               | refurb wrote:
               | Thankfully the laws says innocent until proven guilty.
               | 
               | Apparently the law is "absurd"
        
               | uoaei wrote:
               | The legal system doesn't "believe" anything. Unless you
               | are a court of law, you aren't bound by the rules
               | governing one.
        
               | pfdietz wrote:
               | Hitchen's Razor?
        
               | anamexis wrote:
               | There's no specific claim being made here. It's just that
               | assuming a lithium mining company (which, as an industry,
               | has a terrible human rights record) would not commit
               | human rights violation because it is a multinational
               | company is a strange assumption to make.
        
               | throwawaaarrgh wrote:
               | Not only strange but also illogical. Corporations make
               | more profit when they act illegally. From lobbied
               | protectionism to monopoly, exploitation of natural
               | resources to pollution, hiring of ex government officials
               | to bribery and gift giving and favors, and of course from
               | hiring underpaid and abused workers in countries without
               | labor protection, to knowingly using slave labor, and
               | more, they have billions of reasons to break laws and
               | violate human rights. And every time they do it, they pay
               | a small fine that is dwarfed by their profits and nobody
               | goes to jail.
               | 
               | You don't even have to look overseas. PG&E has caused
               | hundreds of billions of dollars in damage due to
               | wildfires caused by cost cutting; they don't want to do
               | the maintenance they're legally required to do. Entire
               | communities are left homeless and people are killed. And
               | the company gets a tiny fine and the executives get
               | bonuses.
               | 
               | It's actually amazing to me that corporations don't do it
               | more often. It pays to be a piece of shit company.
        
               | defrost wrote:
               | Largest companies digging in the dirt creating the vast
               | bulk of the world's lithium concentrates (prior to
               | refining in Chima | Malaysia) are in Chile and Australia
               | and all are listed on the Canadian Toronto TSX exchange.
               | 
               | Minerals and Resources rules for exchange listing are
               | pretty tight with respect filing third party independant
               | reports that assess mineral volumes and estimates,
               | economic feasibility, environmental impact, and human
               | rights etc.
               | 
               | While it's possible that some things _are_ covered up in
               | these relatively modern capital projects (eg: like
               | conditions mining copper in PNG in days of yore leaving
               | substantial impacts today) it 's unlikely due to modern
               | communications and the known fact that everything gets
               | out and doesn't remain hidden - more so today than back
               | when PNG was literally and figuratively _obscured by
               | clouds_.
               | 
               | Austrlia is keeping clean, and you can knock yourself out
               | looking into
               | 
               | https://lithiumchile.ca/
               | 
               | and report anything you find to the TSX.
        
           | bluGill wrote:
           | Generally not the big ones. They are big enough to have a
           | local branch office that can fined if caught. Small and
           | medium sized companies are much harder to fine as they just
           | don't operate in your country.
           | 
           | When the big ones do they are very careful about it, so they
           | can claim to be in a grey area. Tire companies know there is
           | child labor, but they are buying from the parents, and they
           | make sure outside of harvest those kids get a great education
           | (when the kids grow up their either leave, or work the
           | plantation as medical or management staff and not labor). You
           | can still say they are in the wrong, but they have made a
           | place where you can understand the grey
        
         | stjohnswarts wrote:
         | You should support your claim of 85% with a valid link.
        
         | akira2501 wrote:
         | > Over 85% of lithium is produced by just 2 international
         | corporations
         | 
         | If I search google for this string, your post is the only one
         | that comes up. How did you arrive at this figure?
         | 
         | In the history of industry, when has it ever been a positive
         | indication that only two players control the majority of the
         | supply?
         | 
         | Do these companies directly own the mines or are there
         | partnerships and subsidiaries involved? What countries are they
         | operating in? How long is the supply chain from the mine to the
         | product?
         | 
         | How are water rights being managed? Is there correct oversight?
         | Are any governments trading long term environmental damage for
         | short term profits? What happens when the mines are depleted?
        
           | yieldcrv wrote:
           | Having been in some niche commodities sectors myself, Google
           | doesn't always have relevant information and the producers
           | are more interested in their competitive advantages that
           | they'll let people guess their way to completely inaccurate
           | realities even at the expense of the industry.
           | 
           | It wouldn't surprise me if there are no sources that you
           | respect.
        
           | le-mark wrote:
           | Google has noticeably deteriorated in recent weeks. Does
           | anyone have insight into that? Like more or too much gpt? The
           | first link here is an article from 2021:
           | 
           | https://duckduckgo.com/?q=Over+85%25+of+lithium+is+produced+.
           | ..
        
             | varelse wrote:
             | [dead]
        
             | m3drano wrote:
             | I see plenty of results from Google about this string, from
             | multiple sources and multiple types (video, news and
             | classic links). Unclear about that deterioration.
        
       | kristianp wrote:
       | This report talks about Chinese demand, but there is demand
       | coming online from European auto-makers such as VW which is
       | spending billions to electrify its fleet (not to mention US and
       | Japanese car makers).
       | 
       | Copper is another decarbonisation-related element that is
       | predicted to have large shortfalls in supply compared to demand
       | in the future.
        
       | tuatoru wrote:
       | Lithium Triangle[1]. "a region of the Andes that is rich in
       | lithium reserves, encompassed by the borders of Argentina,
       | Bolivia, and Chile.[1] The lithium in the triangle is
       | concentrated in various salt pans that exist along the Atacama
       | Desert and neighboring arid areas, the largest areas including
       | Salar de Uyuni in Bolivia, Salar de Atacama in Chile, and Salar
       | del Hombre Muerto in Argentina.
       | 
       | The area is thought to hold around 54% of the world's lithium
       | reserves."
       | 
       | Well, not any more maybe. A large lithium deposit has been dis-
       | covered in Iran as the internationalbanker article notes. (Unusal
       | hyphenation of discovered intentional: it was uncovered, made
       | more widely known, rather than found for the first time ever.)
       | Now that it's in demand, no doubt there are many more deposits of
       | lithium waiting for the limelight.
       | 
       | Wikipedia continues: "By one estimate Argentina could displace
       | Chile as the second largest lithium producer by 2027.[3]
       | Similarly, there are estimates the posits [sic] Argentina
       | producing 16% of the World's lithium by 2030, instead of 6% as in
       | 2021.[3] Low royalty payments when compared to Chile are cited by
       | The Economist as a particular advantage.[3]"
       | 
       | 1. https://en.wikipedia.org/wiki/Lithium_Triangle
        
         | rapsey wrote:
         | A huge factor is accessibility of reserves. Often new
         | discoveries are so remote and inaccessible that they are
         | completely unrealistic to be producing within the next 10/20
         | years. I think both Iran and Argentina fall into this category.
        
         | odood wrote:
         | And Chile government is making moves towards being more
         | involved in new deals. Not quite nationalization, but...
        
         | euroderf wrote:
         | Purraps a bit like oil ? Reserves depend on prices ?
        
         | rmm wrote:
         | Iran is not a reserve it may well be a resource but a long way
         | from being a Jorc etc reserve.
         | 
         | Also that lithium triangle is still a historic artefact of
         | lithiums previous life as a really good lubricant and anti
         | depressant. Given lithiums importance these days, more and more
         | hard rock deposits will be found.
         | 
         | For the xth time in yth year There is no lithium shortage. Up
         | until a decade ago we weren't even looking for it. Now that
         | there is money to be had we will find it.
        
       | iamacyborg wrote:
       | Nice bit of serendipity there, I'm currently reading a book
       | called Volt Rush that talks about the battery supply chain.
       | 
       | Nice to contextualise some of what that's been talking about with
       | recent events.
        
       | midasuni wrote:
       | Fed printing money leading to Inflation right?
       | 
       | Or does that simplistic answer only apply when prices go up.
        
       | Animats wrote:
       | Much better article in the Economist this week.[1]
       | 
       | [1] https://www.economist.com/business/2023/04/20/why-
       | crashing-l...
        
         | defrost wrote:
         | aka: https://archive.is/k5Hjd
         | 
         | Not a great article (from a minerals and resources
         | perspective).
         | 
         | Two specific factors; recent mine expansion at sites that dig
         | in the dirt and produce _concentrates_ _and_ recent and near
         | future expansion of _processing_ locations that take
         | concentrates and refine to ship usable lithium.
         | 
         | Eg: Minesite in Western Australia currently ships concentrates
         | to Malaysia and will soon ship also Texas.
        
           | Animats wrote:
           | Shipping concentrates is pretty standard in mining low-grade
           | resources. Near the mine, there's usually some kind of plant
           | to extract the good stuff and discard the dirt. Otherwise,
           | there's a huge amount of wasted effort shipping dirt and
           | rocks around, and dumping them someplace.
           | 
           | What's shipped out usually needs more processing. What's left
           | behind is usually the big environmental headache with mining.
        
         | Yeahsureok wrote:
         | Really? It seems quite inferior to the one posted and lacking a
         | lot of substance.
        
           | not_your_vase wrote:
           | Well, at least it doesn't mess with the scrolling, so I have
           | a chance to read it without going completely mad...
        
       | 29athrowaway wrote:
       | You can get lithium from the sea.
        
       | osigurdson wrote:
       | So basically, we can't switch to EVs because people don't have
       | enough money. The crowd that thinks poverty is the solution to
       | climate change proven wrong once again.
        
         | s0rce wrote:
         | We could switch to buses, trains and bicycles though, with even
         | greater impact on reducing emissions.
        
           | osigurdson wrote:
           | Those are all part of the mix, but the car is an essential
           | part of it as well.
        
       | singularity2001 wrote:
       | Fundamentally because it is as ubiquitous as copper and zinc in
       | the earth crust and even more so in sea water.
        
         | tshadley wrote:
         | Earth's crust: not quite the same as Cu/Zn but way more than I
         | expected:
         | 
         | https://periodictable.com/Properties/A/CrustAbundance.an.htm...
         | 
         | Lithium: 0.0017% Copper: 0.0068% Zinc: 0.0078%
         | 
         | Seawater: https://sciencenotes.org/abundance-of-elements-in-
         | earths-oce...
         | 
         | Lithium: 0.18 mg/L
        
       | PinkRidingHood wrote:
       | What's with the scrolling? Maybe they optimized it for phones but
       | its unnatural on a phone too. And it was a design decision!
        
       | Yeahsureok wrote:
       | No mention of CATL releasing sodium based batteries this year?
       | Just their dropping of lithium battery prices?
        
         | fpoling wrote:
         | Sodium batteries will have any effect only in a few years. So
         | this is mostly the case of increased production in anticipation
         | of stronger demand that has not realized.
         | 
         | The latter is not necessary an indication of a less demand for
         | batteries. There were a lot of progress recently in increase of
         | the energy density in mass-produced batteries, and that may
         | contributed to lessening of the demand.
        
       | davidw wrote:
       | "Lithium prices depressed"
        
       | noisy_boy wrote:
       | Maybe with recycling options coming up[0], availability would be
       | less of an issue and the market is responding accordingly?
       | 
       | [0]: https://news.ycombinator.com/item?id=24316056
        
       | s3p wrote:
       | This page hijacks scrolling. Unfortunate
        
       | azubinski wrote:
       | Quite possibly, it's all about simple arithmetic which has always
       | been a bit of a challenge for the brave marketing.
       | 
       | Let's assume the data is correct and only three countries produce
       | 119 thousand tons of lithium per year:
       | 
       | https://en.wikipedia.org/wiki/List_of_countries_by_lithium_p...
       | 
       | Let's assume "from the internet" estimate is at least somewhat
       | correct, and the average EV battery contains 10kg of lithium
       | (this is rounding up the more common 8kg estimate to make it
       | easier to count).
       | 
       | The collapse in lithium prices could mean that the electric car
       | market has been overvalued and that the actual production of
       | electric cars is much lower than 12 million, because lithium
       | batteries are not only used in cars.
       | 
       | Nothing, over time, prices will still begin to rise. Even though
       | the technology and business of recycling lithium from used
       | batteries will somehow develop.
       | 
       | And for sure, this decline will not affect the price of batteries
       | in any way.
        
       | asplake wrote:
       | About the yellow flame, another explanation would be sodium from
       | the salt. My daughter's saline nebuliser does that to our cooker,
       | even from the next room.
        
       | akrymski wrote:
       | But lithium only makes up 11% of EV batteries
       | https://www.statista.com/statistics/1203083/composition-of-l...
        
       | mharig wrote:
       | What the article does not mention: in June a new chinese emission
       | standard for vehicles, that can hardly be met by combustion
       | engines, will hit. That may drive up the Lithium demand.
       | 
       | And in 23Q4 or 24Q1 CATL will sell its 500 Wh/kg batteries.
       | Although I couldn't find much about the chemistry of the new
       | cells, that may cut the Lithium demand in half. But not very
       | fast, I guess.
       | 
       | (All dates/statements IIRC.)
        
         | alex_duf wrote:
         | Assuming the denser batteries have the same amount of lithium
         | per kg, I don't see how we'll see a halving of lithium demand.
         | That would only be possible under the incorrect assumption that
         | battery demand is static.
         | 
         | That's already not true with current technology as EVs are
         | gaining market shares rapidly, but also the new technology will
         | be opening new usages, so it will opening new markets, further
         | driving the demand.
         | 
         | But I also have no idea about its chemistry!
        
           | mharig wrote:
           | Yes, it may cut the Lithium demand in half, if the demand
           | does not change (much), and that is not likely. Sorry for the
           | not so well formulated statement. I meant that that may lower
           | the inclination of the curve of Lithium demand significantly.
        
       | atoav wrote:
       | Wasn't some country planing to nationalize their lithium stock?
        
         | nprateem wrote:
         | Chile
         | 
         | https://www.ft.com/content/ebd48bbc-1390-4679-99fe-682975bbd...
        
           | bohadi wrote:
           | Here's some wild speculation grounded on a wisp of research:
           | 
           | Eurasia based cartel had cornered the market on lithium vital
           | for new energy. US based interests bent the ear of the
           | Chilean government to break this monopoly by nationalizing
           | these privately owned mines and rediverting the supply.
           | Speculators got wrecked. Does anyone know if a Credit Suisse
           | customer had dealings in Chile?
        
             | longemen3000 wrote:
             | tianqi sold all his shares of SQM (one of Chile lithium
             | companies, around 23%) after the announcement. The
             | situation of the lithium in Chile is very particular. in
             | the Pinochet dictatorship, litium was nationalized, because
             | it was a key ingredient of atomic bombs (and not much else
             | at that time), and USA didn't want other countries to
             | access the resource, so all current mines are in a lease
             | contract (Albemarle until 2043, SQM until 2030). the new
             | proposition opens new zones for exploitation, in exchange
             | of the public-private parnership
        
       | lmpdev wrote:
       | Does anyone have any insight into when we're going to see some
       | movements in lithium battery prices per cell?
       | 
       | I've seen them stuck at $1-3/cell for what feels like two years
        
         | jpgvm wrote:
         | Probably not until significantly more capacity is added. Right
         | now all the big battery suppliers (CATL, CALB, EVE, LG Chem,
         | Panasonic) are all at capacity meaning they have no incentive
         | to lower prices.
         | 
         | If new capacity comes online and it's not greeted by increased
         | demand (unlikely) then prices could fall. Wouldn't hold my
         | breath though, the targets China has for EVs is going to
         | provide strong support for demand even if the rest of the world
         | goes into recession.
        
           | tuatoru wrote:
           | In 2022-23 several hundred billion USD of investment in new
           | battery production capacity in the USA and Europe was
           | announced in multiple announcements. (Source: cleantechnica,
           | or batteriesnews, or energy-storage.news, or maybe industry
           | weekly; I'll try to find it again. In the mean time, there's
           | this[1]. Edit: and this: battery-news.de[2].)
           | 
           | Much of that should come online in 2025 - 28, if not canceled
           | first.
           | 
           | Edit 2: there are several steps in the production chain
           | beyond mining and initial refining. There is material
           | production for anodes, cathodes, electrolytes, separators,
           | and lithium; there is cell assembly, there is pack assembly,
           | and there is production of electronics associated with cells
           | and packs (charge controllers, pack management). Each of
           | these has its own issues. It's not as "simple" as refining
           | oil.
           | 
           | 1. Chart 1: Lithium-Ion Battery Capacity Expected to Surge,
           | FRB Dallas:
           | https://www.dallasfed.org/research/economics/2022/1011
           | 
           | 2. https://battery-news.de/index.php/2022/01/21/battery-
           | project...
        
       | binkHN wrote:
       | TL;DR: China stopped subsiding this and more mines are coming
       | online.
        
       | vrglvrglvrgl wrote:
       | [dead]
        
       | fpoling wrote:
       | As Nassim Taleb observed, "Scarity is always followed by glut".
        
         | tuatoru wrote:
         | That was a rephrase of the old saw, "the cure for high prices
         | is high prices".
        
           | euroderf wrote:
           | new saw, for this guy
        
             | tuatoru wrote:
             | Congratulations on being one of today's lucky 10000! [1]
             | 
             | 1. https://xkcd.com/1053/
        
       ___________________________________________________________________
       (page generated 2023-04-30 23:02 UTC)