Member Info for jimb2

The Inflation reduction act was voted on yesterday just awaiting the sign off ceremony, this now puts Mexican battery manufacturing at the forefront of the North American EV industry.

I won't be at all surprised to see announcements in coming next week, has CATL been holding out or will Tesla now favour Mexico over Canada. There's a couple of Tesla's that need around $2,000 price reduction to qualify for the $7,500 tax credit. This act really does look good for Mexican jobs and locally sourced lithium.

Qualifying period ends 2032

Nice timing as well @observer842, @EV_Bull,

https://www.deseret.com/2022/8/11/23301541/eu-electric-vehicle-tax-credit-inflation-reduction-act-discriminatory

The vote today on the Inflation Reduction Act which should fly through and the implications for Sonora - mind blowing!

maybe I'm being too cautious,

Seems the concessions are good to go, looks like the USMCA and the likelihood it would cost tens of $billions in tariffs together with threat to the auto industry was enough for him to see sense.

Let's hope its enough to satisfy Ganfeng - game on!

As usual a mixed message that needs deciphering - but this does seem positive "no longer sees the need to dispute the concessions already granted"

https://www.tribuna.com.mx/sonora/2022/8/12/el-gobierno-enreda-explotacion-del-litio-en-sonora-hay-poca-claridad-en-proyecto-de-amlo-304635.html

Despite the rigidity that the nationalization of the deposits occurs yes or yes, López Obrador, after analyzing the international legal scope that it would entail, no longer sees the need to dispute the concessions already granted, which lightens the pressure of the market. "If the concessions speak of lithium, because if they are not concessions granted for the exploitation of lithium, they cannot be recognized. Those that were granted for that purpose, are recognized," he accepted.

GLA

What's at stake!

https://www.bloomberg.com/news/articles/2022-08-04/amlo-s-cabinet-big-hitters-lead-bid-to-avoid-trade-arbitration

Of course we now have USMCA plus the inflation reduction act -just three days after the above and a great deal has happened since the July 12th meeting with Joe Biden.

https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/07/12/remarks-by-president-biden-and-president-lopez-obrador-of-mexico-before-bilateral-meeting-2/

A_L.O:

It’s also important to mention that, two months ago, we took the sovereign decision of nationalizing lithium in Mexico. This is a fundamental mineral, a fundamental input to advance in our purpose not to depend on fossil fuels. And this will be available for the technological modernization of the automotive industry among our great countries — the countries of the USMCA

' you've got to be in it to win it'

(cringe)

indeed @tomcat-14, the state lithium company being named, as far as the the buying of existing additional rights goes that was another link that should be treated with a little caution until further clarification as below:

August 11th

https://www.bnamericas.com/en/news/mexico-energy-minister-reveals-name-of-lithium-state-company

China’s Gangfeng has the rights to the country’s sole active lithium project, in Sonora state, with investors hoping it may become profitable in the next decade.

Mexico looks to buy out existing additional rights held by UK exploration giant Bacanora

@observer842 did mention this on the first post in the current thread.

Hopefully something will appear to back this up, it would make sense for Mexico to secure the concessions in this way as the USMCA is not going to favour them, it could jeopardise the entire NA Mexican car industry trading with Canada and the US.

fingers crossed for out of trading hours news!

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Thanks @EV_Bull,

BYD blade batteries are rolling off the production line in Berlin next month in the model Y - just amazing progress in 2022 for EV's - clearly the second stage of disruption is upon us with the battery tech development racing ahead.

GLA

On the newsfeed yesterday, not that we didn't already know but this is the place to make the market aware.

https://www.asianmetal.com/news/1841282/Ganfeng-Lithium's-subsidiary-completes-acquisition-of-an-overseas-lithium-resources-project-/1

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Now are we into hours or days for news (official) to land?

Tidying up the paperwork for the agreements who owns what, that Ganfeng news you posted @observer842 although not unexpected might just have been on the back of any talks with the Mexican gov.

GLA

At the very least if this article is accurate with Mexico wanting to buy rights then this implies the concessions have the rights to exploit lithium and that was the conditions under review!

looking extremely positive if this is the case, obviously worth waiting for further clarity - but if it is.........................

Odd?

August 11th

https://www.bnamericas.com/en/news/mexico-energy-minister-reveals-name-of-lithium-state-company

China’s Gangfeng has the rights to the country’s sole active lithium project, in Sonora state, with investors hoping it may become profitable in the next decade.

Mexico looks to buy out existing additional rights held by UK exploration giant Bacanora

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I'll take this s my notion of news, blimey could we be in the spotlight?

Still another article that doesn't mention the concessions reviews!

Seems we have the national lithium company name.

Lithium for Mexico

From this twitter post and considering who's account it is The head of the Ministry of Energy seems to have omitted the negative references to 'reviews'

https://energiaadebate.com/revela-nahle-nombre-de-empresa-mexicana-del-litio/?utm_source=rss&utm_medium=rss&utm_campaign=revela-nahle-nombre-de-empresa-mexicana-del-litio

As part of the reform to the Mining Law, the government headed by President Andrés Manuel López Obrador reserved the exploration and extraction of lithium as an exclusive activity of the Mexican State , with the exception of the concessions that were already granted to the private sector.

Among the current concessions , 10 stand out that were granted to the Bacanora Lithium company, in association with Gangfeng, which have an area of ??more than 100 thousand hectares in Sonora.

Preliminary information indicates that there are 8.8 million tons of equivalent lithium carbonate in this mine .

The initiative, which was approved on April 20 , also included a 90-day period for the creation of a national company dedicated exclusively to the exploitation of the mineral. This term expires on August 24.

incredible considering our lithium assets and the unstoppable growth:

Tesla Semi launching this year, can't be sure this will qualify for the tax credits?

https://insideevs.com/news/603515/tesla-semi-deliveries-later-this-year/

interesting numbers and EV's are most definitely shifting to battery

https://insideevs.com/news/603297/china-plugin-car-sales-forecast-2022/

Thanks @Zoom56 for the AGM coverage.

yes, after the AGM but only just, but before Friday's House vote for the Inflation reduction act - A_L.O likes to steal the limelight,

Hope so @Barksy1, many years have passed and no regrets with the way things are shaping up with EV's and Storage, now the climate crisis is getting factored in as I always hoped it would be, although things were already heading northwards with the likes of Tesla and BYD along with the incumbent ICE manufacturers VW, Ford, Stellantis, GM and so on having no choice but to adopt to EV's.

Hope all is well with you and FrankieH if she still has an interest here!

GLA

A_L.O time, he has to take some credit @Bannor - he likes his daily emperors address to the nation.

I just have a notion Ganfeng will release something on Sonora tomorrow, wishful thinking maybe but it just seems the timing is right,

Now, I'm expecting a flood of placing predictions to follow in response?

Thanks @Bannor, @EV_Bull

https://mexicobusiness.news/automotive/news/vehicle-production-priority-mexicos-lithium-supply-chain

Collaboration between the public and private sector is critical in this sense, to ensure Mexico becomes attractive for the automotive industry. “This (lithium) company can interact or have commercial relations with the automotive industry in the country. It will be an attractive asset to strengthen our industry or the automotive plants installed in Mexico. We will make lithium available to the automotive industry that is manufacturing vehicles and auto parts in Mexico.”

A question for our legal scholars,

Did Sonora fall under the USMCA agreement prior to todays announcement?

USMCA does have clout as can be seen from the article yesterday on Mexican union membership and workers rights:

https://finance.yahoo.com/news/exclusive-stellantis-mexico-unit-okays-120501118.html

Just wondering if this would have been a deal blocker with any interested parties not that it wasn't going to happen anyway but maybe Ganfeng felt that maintaining the Bacanora connection offered a little more security up until now?

Now I'm sure those going to the AGM would have an interesting day out on the back of an RNS.

Months of silence, thanks @observer842, very interesting timing?

https://motonewstoday.com/tesla-reveals-efforts-to-lobby-for-new-plant-in-canada/40666/

Could put a little pressure on A_L.O!

we should see a steady newsflow as the US awakens, my mistake I thought $7,500 was the EV credit, did anyone mention battery?

• Tax credit of $3,750 for clean vehicles that satisfy a "critical minerals" requirement. To satisfy the "critical minerals"5 requirement, a certain percentage of the value of the critical minerals contained in the vehicle's battery must be: (1) "extracted or processed in any country with which the United States has a free trade agreement in effect;"6 or (2) "recycled in North America." The required percentage would start at 40 percent and increase gradually to 80 percent by 2027.
• Tax credit of $3,750 for clean vehicles that satisfy a "battery components" requirement. To satisfy the "battery components" requirement, a certain percentage of the value of the components contained in the vehicle's battery must be "manufactured or assembled in North" America." The percentage would start at 50 percent and increase gradually to 100 percent by 2029.

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I'm sure there's a few urgent top level meetings scheduled in at short notice!