This has always puzzled me. In the history of manufacturing, there has never been as much speculation and hysteria as there has been with battery production in the 21st Century.
Let's change the nouns.
Cellphone production is climbing at an alarming rate.
The current 2017 production levels of charging cords is not enough to service the demand. Copper, one of the most expensive components of these cords, can fluctuate wildly:
Cellphone prices will be held hostage by the lack of charging cord production and copper prices.
Do you see how silly that sounds? Investors are like lemmings. If one decides jumping off a cliff is clever idea, thousands follow and deem it logical and 'what the market needs'. They will write hundreds of articles and white papers why jumping off cliffs is completely justified mathematically. Of course they will ignore that whole acceleration of gravity and height of cliff since it interferes with their reasoning.
Lithium battery prices will determine how many factories make them, and how much materials for them will be mined/produced, not the other way around. If demand drops, prices will drop briefly, then climb as factories go BK and mines are shut down, and capital markets dry up in the sector.
There should be a requirement that anybody buying shares of stock in a company have at least 1 semester of managerial acct'g. Think about it. A part owner of a corporation with no idea how a business works? How silly that idea? Or more importantly, how dangerous is that idea?