Member Info for jimb2

Shame it's not looking like a ruling before year end as was expected back in September with the wording change in the update from end of the year to * in coming months, although the mid November update states ** all arguments have been heard by the supreme court,

https://silvervalleymetals.com/2022/09/28/silver-valley-metals-announces-500000-unit-financing%ef%bf%bc/

To maintain its lithium – sulphate of potash (Li-SOP) project / deposit(s) in Mexico. This includes financing the legal dispute regarding the lithium aspect of its deposits which the Company anticipates being resolved* before the end of the year. The expectation has been given from the Supreme Court of Mexico that they will provide an answer to the validity of the Company’s deposit(s) considering the amendment to the mining law that was undertaken by the Government this past April. **The Company’s challenge is that the amendment is not supported by the Mexican Constitution nor the international trade agreements between Canada and Mexico.
https://silvervalleymetals.com/2022/11/15/silver-valley-metals-files-for-approval-of-oversubscribed-non-brokered-private-placement-financing/

https://silvervalleymetals.com/2022/11/15/silver-valley-metals-files-for-approval-of-oversubscribed-non-brokered-private-placement-financing/

To maintain its lithium – sulphate of potash (Li-SOP) project / deposit(s) in Mexico. This includes financing the legal dispute regarding the lithium aspect of its deposits which the Company anticipates being resolved* in the coming months. The expectation has been given from the Supreme Court of Mexico that they will provide an answer to the validity of the Company’s deposit(s) considering the amendment to the mining law that was undertaken by the Government this past April in a timely manner. **All arguments in the Supreme Court have been heard. The Company’s challenge is that the amendment to the mining law is not supported by the Mexican Constitution nor the international trade agreements between Canada and Mexico.

https://www.business-standard.com/article/international/mexico-plans-to-ask-us-prez-biden-for-up-to-48-bn-for-solar-projects-122122100314_1.html

The US and Canada accuse President Andrs Manuel Lpez Obrador of trying to favor Mexico's state-owned utility over power plants built by foreign and private investors, something that is forbidden under the US-Mexico Canada free trade pact.

On Tuesday, Lpez Obrador also ended speculation about whether a Chinese company might be able to mine lithium deposits in Sonora.

The Chinese firm already had approvals for such a mine when Lpez Obrador declared earlier this year that lithium was a strategically important mineral that could only be mined by the Mexican government.

Lpez Obrador had promised to respect any existing permits, but on Tuesday he said none were viable.

Fortunately, there were no private concessions, Lpez Obrador said. They are claiming there was a concession, but it was at the project stage. Now, any lithium mining will involve a state-owned Mexican company.

Getting interesting with the different accounts of what he said yesterday, cringeworthy that $48bn carrot!

I'm not sure anyone would sign of $bn's with the Mex gov cherry picking what's legal and covered in trade agreements, I wonder when Ganfeng will respond?

yes @Bannor,

that's true but I do wonder if the US would finance the buyout for many reasons including the obvious supply chains but also to have some agreement with the US Mexican border mass immigration that's plagued the Dems and will probably be a big influence on voting in the 2024 US presidential elections - what's the price tag for Ganfeng considering they had planned $1bn - $3bn investment.

But I'm feeling relieved the fact that it's now been stated that Ganfeng could hinder progress as opposed to mining rights under review etc.

Best indication this year that as Ganfeng stated they comply with all the Mexican laws.

Now how important is a resolution to be reached by January 12th with $48bn in the pot.

https://www.elimparcial.com/mexico/Mexico-aun-busca-alternativa-para-resolver-concesion-de-explotacion-de-litio-de-empresa-china-en-Sonora-AMLO-20221220-0066.html

MEXICO CITY (GH).- Mexico is still on the way to reaching an agreement on the concession of the Chinese company Ganfeng Lithium to exploit lithium in Sonora , since companies from countries that belong to the Treaty between Mexico are prioritized , United States and Canada (T-MEC), said President Andrés Manuel López Obrador .

He's getting along with them. What we are prioritizing is that we do not want the participation of a country that does not belong to the treaty to hinder the possibility of integration and the agreement to walk together, but all this treating it with great respect, with diplomacy looking for options, alternatives " , said.

Good, the question is getting coverage:

Mexico is still looking for an alternative to resolve the lithium exploitation concession of a Chinese company in Sonora: AMLO

https://www.elimparcial.com/mexico/Mexico-aun-busca-alternativa-para-resolver-concesion-de-explotacion-de-litio-de-empresa-china-en-Sonora-AMLO-20221220-0066.html

@Observer842, remember the bnamericas article!

Let's not forget the mining law revision is still being challenged.

News galore on the January meeting appearing.

https://www.reporteindigo.com/reporte/amlo-anuncia-que-plan-sonora-solo-admitira-a-empresas-de-los-paises-miembros-del-t-mec/

The Sonora Plan for renewable energy and lithium exploitation will not admit the participation of private companies that do not belong to the member countries of the Mexico-United States-Canada Treaty (T-MEC) of free trade. This was announced by President Andrés Manuel López Obrador ( AMLO ) prior to the X Summit of North American Leaders on January 10

Interesting to see if there's a response!

https://noro.mx/mexico-busca-inversion-extranjera-para-baterias-de-litio/

At the beginning of November, Governor Durazo Montaño explained that the Sonora Plan seeks to develop renewable energies, such as solar energy in the northwest region of Mexico, and to begin to develop productive chains around the enormous lithium clay reserve in Bacadehuachi, specifically to be used in lithium batteries for electric vehicles, through one or several public-private companies that could be operated through LitioMx, the Ministry of Energy, or the Federal Electricity Commission.

López Obrador expects the Biden administration to commit up to 5 billion dollars in investments at the beginning of 2023 to promote the Sonora Plan, of which he is aware through the United States ambassador to Mexico, Ken Salazar, and his presidential envoy for Change. Climate, John Kerry, who visited Hermosillo to talk with López Obrador and Durazo on October 28.

Still adamant that the lithium produced in Sonora goes into EV's produced in Sonora, so adamant you have to wonder if there's a degree of certainty.

Of course that would place Ford as the most likely - IMHO with most of their lithium supply deals being MOU's

Ford triples EV sales in the US, led by F-150 Lightning

https://thedriven.io/2022/10/06/ford-triples-ev-sales-in-the-us-led-by-f-150-lightning/

But it could be any of the others, I would imagine building powertrains for NA or Europe would meet the demands.

Perhaps we get some hints over the next week or so, perhaps when markets are closed?

Tesla are on the verge of having two lithium refinery plants signed off one in Texas and Canada, they also have a target of 50,000 Tesla semi's in 2024, I make that around 35,000 tonnes.

It's been made clear that lithium mined in Sonora will be used in production in Sonora - or at least that's what's been published to date:

https://fronterasdesk.org/content/1805824/sonoran-governor-says-private-companies-can-work-litiomx-under-one-condition

He also said that private companies will be able to work with Litio para Mexico “on one condition” — that they set up their industrial operations in Sonora.

As an example, he said that an electric car manufacturer that wanted to use lithium produced by the new company would need to produce those cars in Sonora.

I suppose the question is what goes into the Tesla refinery and where it's sourced. Is it possible that the concentrate from clay prior to local processing could be shipped to Tesla, is the quality from trommelling and magnetic separation as good as if not better than spodumene or perhaps it's not as important with the high prices today?

Will Ganfeng be allowed to export lithium carbonate or hydroxide?
Will they be able to supply Hanwa?

Well we might be days away from finding out or at the outside mid January.

Alfonso Durazo presented the progress made on the subject and requested that various federal procedures be speeded up to finalize projects that are still in process

https://www.elsoldehermosillo.com.mx/local/alfonso-durazo-presenta-plan-de-energias-renovables-amlo-refrenda-su-apoyo-9297949.html

Likewise, he indicated that Pablo Taddei joined as head of the company LitlioMx , for which it was agreed that the next meeting will be on January 12, one day after the visit of the President of the United States , Joe Biden, in Mexico .

"We are going to have that follow-up meeting and there the first vision of the LitioMx operation will be presented and the way in which the lithium that our state has will begin to be used, particularly in the areas of Bacadéhuachi," he commented.

Iron ore for those battery storage containers:

http://www.ganfenglithium.com/product44_en.html

Don't forget storage is expected to outgrow EV for battery materials, and that must include the box they come in?

A shipping container is reusable over and over, a battery storage container will probably be static for perhaps 20 years so that steel is out of circulation.

big and small:

KDL announced that it and Automotive Cells Company SE (ACC) of France signed an agreement based on the
cooperation intention of both parties. The two parties agreed that ACC is expected to purchase about 200 million sets of
square lithium battery shells and covers from KDL in bulk from 2024 to 2030.

So we have a firm date that should give an indication on where we stand:

I'm not sure if the this has been posted from 7th December, but it appears more meetings have been scheduled since as posted by @EV_Bull on Monday 12th:

December 7th:

Alfonso Durazo presented the progress made on the subject and requested that various federal procedures be speeded up to finalize projects that are still in process

https://www.elsoldehermosillo.com.mx/local/alfonso-durazo-presenta-plan-de-energias-renovables-amlo-refrenda-su-apoyo-9297949.html

Likewise, he indicated that Pablo Taddei joined as head of the company LitlioMx , for which it was agreed that the next meeting will be on January 12, one day after the visit of the President of the United States , Joe Biden, in Mexico .

"We are going to have that follow-up meeting and there the first vision of the LitioMx operation will be presented and the way in which the lithium that our state has will begin to be used, particularly in the areas of Bacadéhuachi," he commented.

From Monday 12th @EV_Bull's post

LitioMX: its structure and action plan will be approved next week
The board of directors of the state company will have its second session the following week, where the route to be followed by the company will be defined.

In the decree of its creation, it was defined that the company would be in charge of all the activities related to the mineral: from the elaboration and planning of the projects for the exploration, exploitation and elaboration of lithium, to generating geological information.

The text also mentions that the state company will manage and control all activities related to lithium and the probability that it can be associated with other public and private institutions, but does not define the scope. These points could become clearer with the next approval that the board of directors would make.
The board of directors of the new state-owned company, made up of five secretaries and secretaries of the presidential cabinet, will have its second meeting in the coming days, where the approval of the organic statute and the course of action for the company to start operations are on the agenda. .

Any chance Lithium Americas might be invited to take a stake in Sonora alongside Ganfeng in turn for Ganfeng to have an even bigger stake in Cauchari-Olaroz?

https://thedeepdive.ca/federal-judges-comments-increase-skepticism-that-lithium-americas-nevada-lithium-project-will-get-off-the-ground/

While this Thacker Pass news cannot be considered a positive, Lithium Americas’ valuation is much more tied to its key asset — the flagship Cauchari-Olaroz lithium brine project in Argentina. Lithium Americas expects early-stage Cauchari production will begin later this month.

Lithium Americas owns 49% of Cauchari and China’s largest lithium company, Ganfeng Lithium, owns the balance, or 51%. Lithium Americas will operate the mine. Offtake agreements at market prices (which are very attractive) are in place for over 80% of Cauchari’s planned Stage 1 production.

When Cauchari commences production, Lithium America’s portion of the cash flow could be quite substantial. According to a Feasibility Study and Mineral Reserve Estimate with an effective date of September 30, 2020, the project could produce 40,000 tonnes of battery-grade lithium carbonate for 40 years.

Just mulling over different scenarios ESG considerations and trade agreements LA being Canadian registered.

Plenty of other possibilities.

@EV_Bull,

I would have thought some indication of a deal being imminent would be evident with activity around Bacadehuachi, I do agree though that some production should be expected in coming months as has been mentioned in news of the Hermosillo battery plant with Carbonate being mentioned.

Is it possible they will use the pilot plant if I recall that could produce a tonne a day (needs checking) that would produce circa 14,000 100Ah batteries per day if Luna are indeed producing those as their website suggests.

That would be around 200 7KWh Powerwall type storage units - useful for that solar farm infrastructure.

According to Villa, the factory will require an investment of over US$80 million, to be ready in 2H23. The factory will be managed by a Mexican company called Luna. It is also touted to bring dynamism to the state’s economy and boost the lithium battery value chain. Villa added that at its first stage, the factory will create over 250 direct jobs and another 500 additional jobs from its potential suppliers.

It does appear that the Hermosillo plant will be US backed:

https://mexicobusiness.news/mining/news/mexico-starts-lithium-battery-production-2023-ebrard-says

The Mexican Minister of Foreign Affairs, Marcelo Ebrard, announced that Mexico would start the production of lithium batteries in 4Q23, made possible by investment from the country's trade partners and Mexico's recently announced Sonora Plan.

During the IX Pacific Alliance Business Summit, Ebrard announced that Mexico is prepared to receive lithium-related investments. To date, the country has agreed on funding coming from South Korea, China and the US, the latter as part of an agreement to produce lithium batteries in Sonora.

Ebrard did not discuss the exact amount of the coming investments, arguing that this is confidential information from private companies. However, he elaborated that those investments will materialize between 3Q23 and 4Q23.

Fingers crossed though that we have a clearer picture soon - Biden signed off $2.5bn for GM and LG for three US factories today.

looks positive @EV_Bull for possible news soon, but I do wonder how comfortable Ganfeng are with who they are dealing with and if they have the authority to strike deals that will stand the test of time or offer the conditions that suits Ganfeng?

https://expansion.mx/empresas/2022/12/12/litiomx-estructura-plan-accion-aprobara-semana-proxima

But so far, the company has given no sign of being up and running. And the last budget presented by the Ministry of Finance does not include a budget for the company.

From September

https://trasfondo.com.mx/nacional/litiomx-a-la-defensa-del-futuro-energetico-de-mexico-p54488?utm_source=rss&utm_medium=rss&utm_campaign=litiomx-a-la-defensa-del-futuro-energetico-de-mexico

The ascription of LitioMx (Lithium for Mexico) to the Ministry of Energy, chaired by Rocío Nahle , and not to the Ministry of Economy, whose head is Tatiana Clouthier, is another piece of news that energy experts greet with optimism. A way to shield energy companies so that they are strategic.

Excuse me if I appear to be a little cautious, I hold more now than I did this time last year:

Fingers crossed Ganfeng get whatever assurance they might require for a decision, still A_L.O has strong support so that's a plus:

https://www.as-coa.org/articles/approval-tracker-mexicos-president-amlo

And the big question on my minds is will Ganfeng make an offer for our JV areas while there still 'appears' to be some possible doubt.

@EV_Bull, I'm not so sure the founder of De Luna is behind Ganfeng mining and processing lithium:

ABOUT US
Luna Lithium Battery is a 100% Mexican Company , which through years of effort and studies managed to develop a solid and innovative factory, being the first and only one in Mexico with multiple international ties, dedicated to achieving the best battery . of lithium with world-wide quality standards and combined with conversions from combustion vehicles to electric ones, generating the entire chain to achieve an urgent change in the war against pollution. Likewise, its great capacity and vision in the assembly lines managed to be the largest and fastest transformation line from a gasoline car to a lithium battery vehicle.

The company is less than two years old!

Giovanni de Luna, who founded Luna Lithium Battery a year and a half ago, said he hoped Mexico can mobilize its reserves quickly amid soaring prices.

@Claudiashein

de Luna Lithium Battery is the first 100% Mexican company to manufacture lithium batteries, in addition to asking for 2 years and supporting the modification of the mining law so that lithium would remain in Mexico for the people.

I 'm not so sure they are really at the stage to produce batteries (maybe under license)
The intro page images:
https://www.delunalithiumbattery.com/

Repeated images:
https://corporate.enelx.com/en/stories/2019/11/battery-energy-storage-system-benefits
https://www.esi-group.com/blog/a-smarter-battery-management-system

The images of what you might expect to be their production line:
https://www.geebattery.com/battery/144v-100ah-lifepo4-car-batteries-pack

More like the want the know how from Ganfeng?

https://www.excelsior.com.mx/opinion/opinion-del-experto-nacional/litio-para-mexico/1536509

For De Luna , who works under the advice of the two most outstanding laboratories of the national academy, such as those of the BUAP and the UAM, the provisions on lithium promoted by the President represent the ideal scenario for the national industry, which can grow by having access to lithium carbonate, once lithium has been extracted and transformed by a public company that maintains it at competitive prices to boost national production.

Likewise, we must take into account that the phases of exploration, exploitation and processing of lithium will generate the development of scientific knowledge and technological progress both in industry and in research centers, it is an opportunity to develop a strategic sector from scratch. It is not an impossible task, nor one that we have not faced before; in the 20th century and in view of the international refusal to collaborate with Mexico after the oil expropriation carried out by General Lázaro CárdenasWe even had to develop a school, the National Polytechnic Institute, to forge the engineers and technicians who would give shape and order to the company that was the lever of national development

Tesla becoming a miner, I'm not sure they will continue with that plan it's all money of refining in Texas:

https://www.teslarati.com/tesla-battery-lithium-refining-facility-nueces/

I'm not sure how much credit you can give this company and their claims to be shipping ore to Texas for refining next year, I posted last week with no comments:

https://cuitzeomine.com/?gclid=Cj0KCQiA1ZGcBhCoARIsAGQ0kkqjQM6vogi9RjPP7tQpmh4hnoLJ6FjrOJUUdVJtz9oUnndn3T7FwV4aAsbkEALw_wcB

Cuitzeo Project
The Cuitzeo Mining Project (Cuitzeo) comprises 106,835 hectares of highly prospective mineral tenements located in the northern end of the State of Michoacán, Mexico. The location of Cuitzeo is considered to be highly strategic and prospective for containing commercial quantities and concentrations of mineral-rich brines, clay, and more.

Extraction and refining will begin in Q3 of 2023. We are accepting orders for all minerals in bulk quantities. **All minerals will be refined in Texas and available for immediate delivery**. Request an info packet for more information.

https://cuitzeo.notion.site/Cuitzeo-Mining-Project-Sampling-and-Diamond-Drilling-31f7a6dfb2ca4e548c4a9d877d902a49

Hmmm?

Lithium for the people being shipped to Texas - if this is so!!

Check out the documents and company name:
LED LUMINA LEASING SA DE CV SOFOM ENR

Thank you @Bannor

that's the critical element, it would really help if that was communicated as the implications are potentially in $bn's.

Yes, @EV_Bull I've seen that article, how does this stand with what the Canadian Gov has done:

https://www.theguardian.com/world/2022/nov/03/canada-china-mining-companies-divest

And from your link:
Although the plan is still in the making, López Obrador said the idea is to include the state’s northern neighbors – who are partners in the US-Mexico-Canada trade agreement (USMCA) – and that only companies from the three nations will be allowed to participate

Sonora will be home to state lithium company LitioMx, which was created by decree in October under legislation nationalizing the soft metal. According to the document, the company will have control over every aspect of the supply chain, but it did leave the door ajar for the state firm to work with private sector companies.

As a positive there's plenty of Chinese battery companies signing deals for production in NA.

@EV_Bull, is it Joe Biden and Justin Trudeau you are referring to?

Well I'm lowering my expectations of Sonora news anytime soon, there's very little to give me confidence that Ganfeng will commit to developing the mine and processing plant as things stand and could potentially be even less attractive:

https://www.bnamericas.com/en/interviews/why-the-leader-of-mexicos-mine-workers-union-is-looking-to-limit-concession-terms

I doubt Ganfeng are under any pressure considering the margins from sales from resource already producing elsewhere.

Pity, I've always considered Sonora as the one that would make KDNC but still it's possible Ganfeng will negotiate terms that suit.

Battery grade Carbonate and hydroxide from clays 2023 and brines 2024

https://cuitzeomine.com/?gclid=Cj0KCQiA1ZGcBhCoARIsAGQ0kkqjQM6vogi9RjPP7tQpmh4hnoLJ6FjrOJUUdVJtz9oUnndn3T7FwV4aAsbkEALw_wcB

Cuitzeo Project
The Cuitzeo Mining Project (Cuitzeo) comprises 106,835 hectares of highly prospective mineral tenements located in the northern end of the State of Michoacán, Mexico. The location of Cuitzeo is considered to be highly strategic and prospective for containing commercial quantities and concentrations of mineral-rich brines, clay, and more.

Extraction and refining will begin in Q3 of 2023. We are accepting orders for all minerals in bulk quantities. All minerals will be refined in Texas and available for immediate delivery. Request an info packet for more information.

https://cuitzeo.notion.site/Cuitzeo-Mining-Project-Sampling-and-Diamond-Drilling-31f7a6dfb2ca4e548c4a9d877d902a49

Hmmm?

Lithium for the people being shipped to Texas - if this is so!!

Check out the documents and company name:
LED LUMINA LEASING SA DE CV SOFOM ENR