Our esteemed client, Commodity Trade (ComT), holds a global reputation as a materials trader, proficient in the buying and selling of raw materials. With consistent EBITDA margins in recent years, ComT is now considering a strategic expansion of its target market by venturing into the lucrative Lithium trade, particularly focusing on electric vehicle battery-grade Lithium-ion batteries, driven by the soaring demand for electric cars.
However, the client is determined to uphold a prudent cash policy, seeking to minimize cash spending and enhance the payback period for this market-entry endeavor.
In our role as consultants, our responsibilities encompass calculating the size of the Lithium market and diligently assessing the payback periods for both organic market entry (using their own resources) and the potential acquisition of an established company already operating in the Lithium market.
Our analysis will provide valuable insights into the best market entry strategy that aligns with ComT’s corporate objectives and risk appetite. Moreover, we will present a comprehensive proposal detailing potential opportunities and risks associated with this strategic expansion into the Lithium market.
By collaborating closely with ComT, we aim to develop a robust and informed approach that ensures a successful and financially prudent market entry, paving the way for sustained growth and profitability in this dynamic and promising sector.