Member Info for jimb2

https://www.nytimes.com/2023/04/21/business/energy-environment/volkswagen-battery-canada.html

Canada Lands Volkswagen Battery Plant With Billions in Subsidies

On Friday, Canada and the province of Ontario said they would give the company a combined 1 billion Canadian dollars — about $750 million in U.S. currency — to construct the factory, which will cost 7 billion Canadian dollars overall.

A separate agreement will provide 8 billion to 10 billion Canadian dollars in subsidies over the next decade to match benefits that Volkswagen would have received under the Inflation Reduction Act if it had put the factory in the United States. That amount is tied to battery production.

I wonder how this resonates with A_L.O considering how he appeared to assume Tesla would be interested in Sonora only to be disappointed the US subsidies were $1.5 per $1 Tesla were investing.

Maybe the Ganfeng $1bn to $3bn investment looks more appealing now?

Apparently the VW factory is set to be one of the biggest globally - and just a reminder either of these could have been a consideration for Sonora before the mining law debacle and if that happened what would we be at now?

I'm not writing Sonora off given the investments in NA and as we know Mexico cannot fund like the US and Canada.

Indeed @Zoom56,

CATL are an impressive company and you have to acknowledge the technological lead they have established and the dilemma this poses automakers - the implications to mass EV and now aviation adoption just blows the mind.

I wonder if Ford are lined up to take the new battery to be produced in the US and could be connected to the 72,500 tonne deal announced earlier this month.

https://www.yicaiglobal.com/news/ford-picks-china-canmax-for-three-years-of-battery-material-supply

Pricing will be based on a formula that the pair has agreed on, Canmax said, without disclosing the formula. But according to the current market prices of lithium hydroxide, the deal could be worth more than CNY27 billion.

The world's biggest battery manufacturer, Contemporary Amperex Technology, holds a nearly 1.4 percent stake in Canmax, according to public data. CATL and Canmax have also established a joint lithium salt production plant in Sichuan's Yibin, and CATL owns a quarter of it.

Air taxis look to be a reality!

I did wonder why CATL can work alongside US manufacturers, seems they have no choice with CATL having a competitive edge that's probably ten years ahead.

CATL is cooperating with partners in the development of electric passenger aircrafts and practicing aviation-level standards and testing in accordance with aviation-grade safety and quality requirements. In addition, we will also launch the automotive-grade version of condensed batteries, which are expected to be put into mass production within this year

They seem to deliver their tech on time and to spec.

https://youtu.be/DmjUZSY7RV0

CATL might just have introduced the biggest breakthrough in decades!

Plenty of news coverage.

Indeed @Zoom56,

Mexico will miss the boat unless they get on board very soon and their best option as far as I can see is to have Ganfeng develop Sonora - now the news releases on the Chemco project seemed scripted so someone wouldn't lose face - my opinion of course.

It must have been gut wrenching when EM declined to invest in Sonora.

Ganfeng net profit 2022 up 290% to $3bn and could be looking at Africa

https://source.benchmarkminerals.com/article/we-believe-africa-will-be-the-next-good-opportunity-for-lithium-qa-with-wang-xiaoshen-of-ganfeng-lithium

You have to wonder who would be the loser in a long drawn out legal battle and just last week Ford's deal for 72,000 tonnes lithium hydroxide from China shows local supply cannot fulfil.

Now will EG1 get back on the ladder tonight with the CXO news 62% increase in Finniss mineral resource:

The Core Lithium share price is soaring 5.14% at the time of writing to trade at 97.25 cents Its gains come on news of a 62% jump in the Finniss Lithium Operation's mineral resource estimate The increase – a result of 2022's drilling campaign – is a 'strong endorsement' of this year's $25 million program, management said

But then again we know there's activity around the processing plant!

Nevertheless, it is expected that Bacanora Lithium, the only private company with permits so far, will begin operations this year. This company and its partner, Ganfeng Lithium, had allocated around US$420 million for a mine in Sonora by March 2022.

Additionally, Advance Lithium announced that it is in talks with the state lithium company, LitioMx, to create a joint venture. The objectives of both companies are aligned as both countries are seeking for Mexico to become a lithium mining country as fast as possible

https://mexicobusiness.news/mining/news/mexican-lithium-production-remains-stagnant-despite-demand

Good to see you still taking an interest @Barksy1,

lithium is certainly taking centre stage of late and just the beginning I believe of a very long run

perhaps EG1 will continue on the up with news due on the surveys.

GL

Good read,

https://www.bnamericas.com/en/analysis/are-mexicos-lithium-concessions-protected-by-the-constitution

Juan Carlos Machorro, lead partner in transactional and financial practice at law firm Santamarina + Steta, told BNamericas that Mexico has a constitutional principle of non-retroactive application of the law, thus guaranteeing the validity of mining concessions granted before last year's reform and ensuring the participation of private sector companies.

The lawyer said this principle still applies, so using the new legislation to try to revoke concessions already awarded would not be legal and would send out a very negative message regarding legal security.

promotion @tomcat-( )

Forbes description:

Who is Bacanora Chemco?
In 2021, Ganfeng International indirectly acquired participation in the capital stock of Bacanora Chemco, SA de CV, Minera Sonora Borax, SA de CV, Mexilit, SA de CV, Minera Megalit, SA de CV, Operadora de Litio Bacanora, SA de CV, Minerales Industriales Tubutama, which were owned by Bacanora Lithium.
On July 9, 2018, Bacanora Chemco was founded to be dedicated to the processing of materials, clays, and minerals for the extraction of lithium carbonate and potassium sulfate.
Under this purpose, the company can build a chemical processing plant, as well as acquire the necessary machinery to carry out the corporate purpose. Therefore, it can own and operate or do business with all kinds of goods related to the industry as and carry out any act or celebrate any agreement or contract directly or indirectly related to it.
The company can engage in the production, transformation, development and marketing of all kinds of chemical products.
Another of the business actions is that you can acquire, transfer, import, export and market all kinds of chemical products and their by-products.
Sonora Lithium LTH is the majority partner of Bacanora Chemco, and with one share is Bacanora Treasy Limited. Mark Ainsworth Hohnen is Chairman of the Bacanora Chemco Board and Janet Hernández Blas Boyce, Company Secretary

@tomcat-15,

a workforce of 51 about 50//50 split direct and indirect.

https://www.forbes.com.mx/asi-sera-la-investigacion-geotecnica-en-las-minas-de-litio-de-sonora/

Yesterday:

And for those who followed IRIS, if EG1 perform similarly that could well account for our mcap in a very short time:

https://stockhead.com.au/resources/resources-top-5-the-asxs-newest-lithium-explorer-is-already-up-76pc/

just a 5 bagger from here will do that and plenty of possible news flow.

Today CORRECTION: 3.5 bagger!

I think we should be blue by close and a few ticks higher?

And for those who followed IRIS, if EG1 perform similarly that could well account for our mcap in a very short time:

https://stockhead.com.au/resources/resources-top-5-the-asxs-newest-lithium-explorer-is-already-up-76pc/

just a 5 bagger from here will do that and plenty of possible news flow.

50.1%

Ford lithium hydroxide supply:

I'm sure NA processing would have been preferred:

Connections

https://www.yicaiglobal.com/news/ford-picks-china-canmax-for-three-years-of-battery-material-supply

(Yicai Global) April 3 -- Canmax Technologies, a Chinese maker of cleanroom products and battery materials **which used to be known as TA&A Ultra Clean Technology, could gain over CNY27 billion (USD3.9 billion) by supplying Ford Motor with raw materials for ternary lithium batteries over three years.

Two southwestern plants of the anti-static product developer will deliver the American carmaker 72,500 tons of lithium hydroxide between January 2025 and December 2027, the Suzhou-based firm said in a statement yesterday, citing a purchase agreement. Ford has the option of extending the supply agreement till December 2029.

Global lithium connection - could the supply be WA Spodumene processed in China?

https://wcsecure.weblink.com.au/pdf/GL1/02495023.pdf

@tomcat-14, @EV_Bull

The wording just seems to avoid anything that might conflict with what might be considered as nationalised aspects:

"It can be determined that said proposed activity is viable to be carried out since it is not a mining activity related to lithium but, rather, it is conferred and classified as a geotechnical exploration, the product of which will not generate information related to the extraction potential of the lithium mineral and it will not generate information that could serve as a basis for a characterization of the deposit of said mineral, nor will it produce information related to its quantification”, he adds.

https://en.wikipedia.org/wiki/Geotechnical_investigation

Geotechnical investigations are performed by geotechnical engineers or engineering geologists to obtain information on the physical properties of soil earthworks and foundations for proposed structures and for repair of distress to earthworks and structures caused by subsurface conditions;

fingers crossed!

@MLQ,

And does that include a processing plant construction?

267 “geotechnical survey” perforations that occupy an area of ??0.55 square meters, which also include gaps for a total of 28,530.74 square meters, in addition to maintaining a total of 5,075 hectares. of existing roads.

Could 550mm square be for steel stanchion or concrete pillars to mount steel - I could be miles off with that as I'm just pondering!

@tomcat-14,

keep your eyes peeled on El Sauz and Fleur 1, you might see some ground work underway!

I'm sure there's a desire to get underway at Sonora to meet the demand for the US plans, my formulae is September 2024 - 18 months or thereabouts - so now would be a good time.

Just pondering!

Indeed @EV_Bull,

This is a surprise, I wonder if it's capacity that perhaps should have been sourced nearer home?

https://www.yicaiglobal.com/news/ford-picks-china-canmax-for-three-years-of-battery-material-supply

(Yicai Global) April 3 -- Canmax Technologies, a Chinese maker of cleanroom products and battery materials which used to be known as TA&A Ultra Clean Technology, could gain over CNY27 billion (USD3.9 billion) by supplying Ford Motor with raw materials for ternary lithium batteries over three years.

Two southwestern plants of the anti-static product developer will deliver the American carmaker 72,500 tons of lithium hydroxide between January 2025 and December 2027, the Suzhou-based firm said in a statement yesterday, citing a purchase agreement. Ford has the option of extending the supply agreement till December 2029.

It will be interesting to see the response from the EPA announcement that could see a flood of investments short term.

EV disruption is now shaping up exponentially it will soon be apparent to the linear thinkers

And this just might add more demand on top of that being driven by the inflation reductions act:

https://www.cnbc.com/2023/04/08/epa-reportedly-planning-to-announce-significant-limits-on-tailpipe-emissions.html

EPA reportedly planning to announce significant limits on tailpipe emissions to boost electric vehicle adoption

The Environmental Protection Agency is preparing to announce significant limits on tailpipe emissions this week that would require as much as 67% of new vehicles sold in the U.S. by 2032 to be all-electric cars, according to a report by The New York Times Saturday.

EPA Administrator Michael Regan is expected to make the announcement in Detroit on Wednesday. The proposed limits would be the U.S.' most aggressive climate regulations to date, and they would create a host of challenges for automakers.

Under the proposed limits, electric cars will represent between 54% and 60% of new cars sold in the U.S. by 2030, and between 64% to 67% of new cars by 2032, the Times report said. These figures are ambitious, as just 5.8% of cars sold in 2022 were electric, up from 3.2% in 2021, according to a report by Cox

Fords plan I'm sure will have to change if the above gets through along with others!

Rock Channel
Lithium Squeeze Box. Q1 Scoreboards.

https://www.youtube.com/watch?v=w_rHCfniQmA&t=260s&ab_channel=RockStockChannel

Ford’s Jim Farley: he has instructed his team to have 100% of battery materials locked down by the end of this year for the 2 million productions in three years from now

https://youtu.be/w_rHCfniQmA?t=266

Rodney: Ford at the forefront of M&A’s this year
https://youtu.be/w_rHCfniQmA?t=1860

Blimey, the demand for NA lithium supply could go off the scale!