Member Info for jimb2

Questions being asked on Sonora:

https://www.tribuna.com.mx/sonora/2024/1/22/amlo-casi-un-ano-de-su-nacionalizacion-el-litio-sigue-sin-ser-extraido-358290.html

I would be very surprised if the likes of Hyundai were not pressuring the Mex gov for a local supply of battery materials, Hyundai do seem to have a decent offering and potential to see rapid growth in NA.

With the EV manufacturing ramping up in Mexico from Asian companies the potential supply demand could be multiples of the planned 35,000 tonnes from Sonora - I'm still hopeful on a resolution before September for Ganfeng to get the go ahead.

Ganfeng recently increased their investments in JV's and near doubling an off-take with Pilbara. Maybe if we get the announcement of the international arbitration lodged that might be the catalyst that leads to an agreement.

Yes, and CORE shot themselves in the foot!

https://www.greencarcongress.com/2024/01/20240121-pilbara.html

Worth watching, the Electric Viking on BYD and Mexico.

https://youtu.be/ZRx85zf1e5M?si=jvni75jnzNjDVm9n

Https://www.cnn.com/2024/01/19/cars/byd-hungary-mexico-global-domination-intl-hnk/index.html

I don't know what the market response would be if Ganfeng resolve the problems with the Mex gov, the only company I know of who could be producing at volume on under two years.

Hyundai four year lithium supply deal with Ganfeng,

Hyundai Kia building factories in Europe, US, and Mexico being supplied with motor cores by POCO who will manufacture in Europe and Mexico.

A big investment in the US to produce batteries:

https://www.bnnbloomberg.ca/hyundai-motor-lg-plan-4-3-billion-ev-battery-plant-in-us-1.1925134

(Yicai) Jan. 19 -- China’s Ganfeng Lithium has become the battery material supplier of South Korean carmaker Hyundai Motor in a bid to realize a win-win partnership.

https://www.yicaiglobal.com/news/chinas-ganfeng-lithium-becomes-hyundais-battery-material-supplier

2018:

South Korean battery firm LG Chem has agreed a deal to acquire a “massive volume” of a key material from China’s largest lithium compounds producer, to spur production of batteries for electric vehicles.

LG Chem said it had signed a contract with Ganfeng Lithium for the supply of a total 48,000 tons of lithium hydroxide, “enough to manufacture about one million batteries”.

A perfect opportunity for Ganfeng to supply from Sonora if good sense prevails, the news of the deal with Hyundai looks positive to me with the good relationship with the US and South Korea and the factory capacity for lae volumes of battery materials.

Throw Toyota into the mix:

https://pressroom.toyota.com/lg-energy-solution-and-toyota-sign-long-term-battery-supply-agreement-to-power-electric-vehicles-in-the-u-s/

Piedmont do have a deal to supply LG in the US but perhaps a second source from an existing established supplier is prudent.

Mexico’s cheapest EV will now be built in North America in SEV’s new plant in Durango

https://cleantechnica.com/2024/01/19/another-chinese-ev-manufacturer-lands-in-mexico-sev-will-build-its-affordable-evs-in-durango/

I would imagine there's real potential for Ganfeng to keep all the Sonora output in NA.

Alfonso Durazo highlights in Davos the strategic role of lithium in the Sonora Sustainable Energy Plan

The governor seeks to guarantee the energy transition and attract foreign investment to Sonora with the use of this important element

Taken from: The Debate

Publication date: 2024-01-18

During his participation in the World Economic Forum in Davos, the governor of Sonora, Alfonso Durazo Montaño, highlighted the strategic importance of the use of lithium as an integral part of the Sonora Sustainable Energy Plan. This approach will not only position the entity at the forefront of the energy transition, but will also act as a magnet for foreign investment.

Lithium, identified as one of the critical elements in the transition towards cleaner energies, becomes a key attraction for large industries worldwide. Durazo highlighted how the interaction with high-level panelists at the forum generated growing interest from managers of companies related to battery manufacturing, recycling and financing for the exploration and technological development of critical materials.

I can't see anyone taking up exploration on the concessions with Ganfeng about to go to international arbitration, a company that is ready to begin construction with $1bn on offer to develop with a proven process and pilot plant production under their belt over several years -

Still, plenty of coverage on the significance of Sonora lithium with Durazo doing the rounds, Davos this week.

https://www.elsoldehermosillo.com.mx/local/litio-potenciaria-la-transicion-energetica-mediante-el-plan-sonora-de-energia-sostenible-11304235.html

And for anyone following Ganfeng on recent news, it looks like they are entering a period of rapid growth with battery research JV's, lithium supply deals, increasing off-takes, increasing investment in existing projects all announced over the last week.

I do agree with there being a possibility Ganfeng are behind our litigation financing, KM has changed his stance on KDNC being the junior without clout in the shadow of Ganfeng.

Now when someone answers "to the best of my knowledge in their defence" it usually means - I know the truth but don't want to say it!

https://www.dossierpolitico.com/vernoticias.php?artid=292563&relacion=&tipo=Principal&categoria=1

LOL

All the excuses we've had span two years all being reviewed and IMO Mex gov realised they didn't stand a chance.

Anything you see published that's under review is churned news, well that's my view. I also expect a conclusion before A_L.O retires.

They need a lithium industry now not 2035,

Yes @Dallasdaz I see what you are saying, this is the BIT I believe KDNC are possibly disputing from 2006:

https://assets.publishing.service.gov.uk/media/5a74ba5ae5274a3cb2866b4c/6860.pdf

Still all seems to be stacking up in our favour, just the investment challenge that seems to be a weak excuse.

An observation that just might be significant.

Cadence Minerals (AIM/Aquis: KDNC) advises that the Company and its subsidiary REM Mexico Limited ("REMML") have issued a Request for Consultations and Negotiations ("Request") to the Government of Mexico under the

* United Kingdom-Mexico Bilateral Investment Treaty ("BIT")*

From the article posted by @Dallasdaz:

Another group of investors, said another source, are also evaluating filing arbitration under the rules of the trade agreement between Mexico and the United Kingdom, **which is a continuation of the Free Trade Agreement between Mexico and the European Union (TLCUEM)**

Just food for thought, would that prevent European investment in Sonora on the concessions while they are in dispute?

September AMLO is out - this could be the legacy he is dreading on top of Pemex, pile it on Bacanora, KDNC and others (TRR maybe) The mining law reforms are falling apart and LitioMX just might be scrambling to get a mug company onboard to give AMLO a claim that he is the one who developed the Mexican lithium industry .

Good news than @Dallasdaz, things are progressing!

Now, months after the concessions were canceled, the company has decided to begin the arbitration process, said three people related to the process who spoke on condition of anonymity. The company would be evaluating starting the process under the protection granted by the Trans-Pacific Partnership Treaty through the investment chapter. Another group of investors, said another source, are also evaluating filing arbitration under the rules of the trade agreement between Mexico and the United Kingdom, which is a continuation of the Free Trade Agreement between Mexico and the European Union (TLCUEM).

The Ministry of Economy – which canceled the concessions – was consulted, but did not respond to a request for comment. Ganfeng Lithium declined to comment. The state-owned LitioMX, which was left with exclusivity in the lithium market after a reform carried out a few months ago, was also consulted, but failed to respond.

Exploration Set to Recommence

With legal uncertainties resolved, Silver Valley is poised to recommence exploration activities at the Mexi-Can Project. Silver Valley remains committed to delivering updates on these activities in due course.

Link to Website: http://www.silvervalleymetals.com

Now who are LitioMX working with elswhere??

Could it be Ganfeng who I would expect have an upper hand now, one to consider is:

https://advancelithiumcorp.com/

https://mexicobusiness.news/mining/news/new-government-heralds-promising-mining-future

One thing is certain Mexico are lagging behind.

Further development!

11 Jan 2024 08:30

@jimb2...Do you know if any of the favourable amparo results were for companies planning to mine lithium?

@Ðallasdaz

All seems to falling in line and looking positive on the mining law reforms going against the gov

("Silver Valley" or the "Company"), a brownfield exploration company, is delighted to announce a favorable resolution of issues relating to its Mexi-Can Sulphate of Potash and Lithium Project

https://www.newsfilecorp.com/release/194366/Silver-Valley-Metals-Announces-Positive-Resolution-of-Issues-Relating-to-its-MexiCan-Sulphate-of-Potash-and-Lithium-Project-Exploration-to-Recommence

The Mining Law Decree, clarified that existing concessions, including those held by Silver Valley Mexico, remain unaffected until their full expiration. The Company's concessions, with validity until 2059 and 2060, are legally protected, ensuring continuity.

Now this is very interesting are they going ahead without partnering LitioMX?

Despite a positive outcome from the recent Amparo decisions, coupled with the later enacted May 8, 2023 mining reform further supporting the Company's ownership, Silver Valley continued to actively consider a joint venture partnership with LitioMx. Silver Valley considered a partnership beneficial to all stakeholders', with the right deal in mind. However, after careful consideration, LitioMx recently decided to prioritize other Mexican projects. This decision aligns with Silver Valley's appreciation for LitioMx's focus on lithium-specific ventures, considering the Mexi-Can Project's significant sulphate of potash ("SOP") component.

Silver Valley appreciates LitioMx's support and remains open to future collaboration opportunities as the lithium landscape evolves. LitioMx shared the same sentiments with Silver Valley.

With the news of LitioMx voluntarily deciding to not participate in the development of the Mexi-Can Project and the positive news received from the Supreme Court of Mexico, Silver Valley is once again ready to move this exciting project forward.

Https://www.topspeed.com/byd-sodium-ion-batteries/

BYD Further Solidifies Its EV Dominance With The Development Of Sodium-ion Batteries

BYD eyes lithium giant takeover as it expands its EV battery business

https://www.just-auto.com/news/byd-eyes-brazil-lithium/?cf-view

BYD met Sigma chief executive Ana Cabral Gardner in Sao Paulo last month with BYD’s Brazilian chair, Alexandre Baldy.

Baldy told the FT the discussions concerned a possible supply agreement, joint venture or acquisition. Further details were not disclosed, with Sigma citing a confidentiality agreement.

Https://youtu.be/l5N937V8ZOw?si=pypSu3ut4xS62z42&t=17

Looks like Sigma have nailed it!

The only Global producer of Triple Zero Green Lithium: zero carbon, zero tailings, zero hazardous chemicals

https://sigmalithiumresources.com/

And Brazil!

BYD's First Car Carrier Sets Sail, 7 More Fleets Launching in Next Two Years

https://www.youtube.com/watch?v=xfGfgVez0G8

Seems like they are on the ball with their growth plans, how do you compete with them owning their own lithium mines and producing their own battery packs plus produce their own semiconductors?

It's quite daunting when you think not only do they supply their own batteries for EV's and storage but also other EV manufacturers who are direct competitors.

BYD in talks with Brazilian lithium producer over supply deal, joint venture or acquisition:

https://cnevpost.com/2024/01/15/byd-in-talks-brazilian-sigma-lithium-supply-deal/

Of course they are eying up Mexico.

No, @Dallasdaz, the law haven't published names

but the legal challenge was to the process that voted the mining law reforms in as outline in the first case favourable ruling November 2023:

https://ecrubio.com/first-favorable-ruling-in-constitutional-actions-amparo-lawsuits-filed-by-ec-rubio-against-the-recent-amendments-to-the-mining-law-and-other-related-provisions/?lang=en

In connection with the constitutional actions (amparo lawsuits) filed against the amendments to the “Mining Law, National Water Law, General Law on Ecological Balance and Environmental Protection, and the General Law for the Prevention and Integral Management of Waste in mining and water concessions matters”, published in the Federal Official Gazette on May 8, 2023,

As arguments, we asserted a series of violations arisen in the legislative process that led to the contested amendments; the court ruled that such violations resulted in the unconstitutionality and therefore, inapplicability of the amendments. This outcome establishes a precedent that we believe may be replicated in the remaining lawsuits filed against the amendments and currently being processed before the Federal Courts.

@EV_Bull,

yes, it's starting to make sense, there's ruling after ruling against the mining law reforms that were done illegally or unconstitutionally - a Janitor voted plus an unknown person with the opposition locked out and outside an official chamber, this was done under an emergency law that was intended for use during Covid lockdown.

Those are the cases being flipped by the Mexican law firm.

So Ganfeng seems to be going for a two prong defence - as A_L.O changed like the wind on why he was disputing the concessions and given the mining law reforms are failing he/they had to go for the 'lack of investment ' and hence that's an amparo in itself.

Now Ganfeng have both arguments covered for international arbitration if they are a client of the law firm, but that shouldn't matter as the rulings will probably become a precedent negating the mining reform laws.

Well that how I see it?