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Lithium toll process lithium tolling and advantages in a low price market.
"In the so-called tolling arrangement, Pilbara Minerals will receive the lithium hydroxide price for the product sold less an agreed amount for conversion and other costs, it said.
The agreement comes as prices for battery chemicals and the underlying lithium ore have begun to turn down, after China ended a more than decade-long national subsidy for electric vehicle purchases at the beginning of this year.
Prices of lithium carbonate hit the weakest in a year while those for spodumene have touched the lowest since October.
Reuters reported that China’s CATL, the world’s largest battery maker, has offered discounts to some Chinese automakers it supplies, weighing on prices of Australian lithium miners on Monday.
Shares in Pilbara Minerals fell as much as 7.7% to A$4.10 before trimming losses to $4.18, still down 5.9%.
Australian critical minerals producers are seeking to move up the electric vehicle battery value chain by refining their minerals and in some cases converting them into products more easily used by battery chemicals makers."
https://www.mining.com/web/pilbara-minerals-sells-spodumene-cargo-linked-to-lithium-hydroxide-prices/
Pwlx i get about the issue price being fixed. Totally get it.
If you were VW seeing 49% of shares being held at sub £1.40p and that holding of bulk shares then saying the price you get for buying in is £30.00 a share. Would VW invest ? No.
Any JV or major cash investor fund or other would want comparative issue approx £1.50 give or take.
If its tge whole chunk they may want to put in £300m @ £1.00. The market would drag it down in a second due to dilution.
So I get their issue was always written in at £1.40.
Now they have their cheap shares in hand let the JV happen and they can then get extra options at £5.00 plus they have kept the investors/s of £50-300m happy ?
Thats my point. Not our Bod but the big money will not pay way over the odds to what the main Bod hold imho
Https://www.ft.com/content/0e0bca44-6d4c-449c-aa2b-d67b45cc2b71
Would be a perfect partner for long term global supply and growth enabling direct access to the US EU & UK markets for gigafactory supply needs.
"Allkem Headquartered in Buenos Aires, Argentina our unique portfolio includes lithium brine operations in Argentina, a hard-rock lithium operation in Australia and a lithium hydroxide conversion facility in Japan."
Not against shipping lithium to Japan from South America so the UK should also be straight forward ?
South American lithium & partner of Pilbara Minerals Australia.
"Allkem Projects Overview - Lithium Chemicals. Our diverse and unique lithium asset portfolio produces and delivers sustainable lithium chemicals across the global supply chain. Diversity in product specification, project location and across the development spectrum enhances global reach, product flexibility and scale."
No, @ £30 you'd never get the JV or long term major buying in. ? The sp has to offer any JV value.
£1.50 to £5.00 is the big pay day so again imho if I was 'say' VW i'd want in early on based on 100% proven supply. Ozzie / S America supply has transit costs so again £30 a shares no good to them. They will want big discount to costs
Pwlx , so you have in 20 years had a company issue options to the Bod and never seen news flow to pump that issue price up within a month ?
I've had it happen several times within a week.
Look at CUSN last year ! Was 23-25p issue at 18p drops to 17p. Then in the issue info options triggered at 27p. Now you'd think that was a stretch ?
Monday to Friday that one week it hit from 17p to 27p on the nose , options issued and back to 22-24p.
Made a killing on that !!!
So it can and always will be that some people like making quick easy money.
Can ALK hit £5.00 for 10 straight days to trigger those selling options ? You bet it can.
How ? = JV or MAJOR OEM news.
Extremely happy at the way its playing out and adding. No way this share will not get a deal before christmas now.
Australia shuts down for summer early Dec just like our sell in May go away. Imho a deal will be announced before the start of first full week of December 2023.
That is my hunch NOT INVESTMENT ADVICE. YOU COULD LOOSE THE LOT. Do your own research !
I know emh cinovec was seriously looked at by VW as a direct investment venture.
No reason to think getting a premium grade cathode for extended range would not be in their interests.
Carbonate for cheaper mass production.
Also the storage industry with Sembcorp in Wilton should make senseif they are pushing Wilton facility to 35MW production of batteries.
As I said, once our CEO's got their share options through to be listed on the 5th, new will flow.
Its already started and will build from here and imho quickly.
Vis - "to toll treatment of lithium raw materials acquired or to be acquired by the OEMs."
Traxys not mentioned ... yet and the fact ALK TVL have a deal with Traxys to provide feedstock.
Mica !!! Know anyone who might have mica to process
https://www.mining-journal.com/energy-minerals-news/news/1423598/traxys-signs-up-for-lepidicos-lithium
UK Sembcorp show targeted work ethic in Asia. Once they get involved projects do get done. Expansive company.
"Commissioned in six months1, the facility started operations in December 2022 and is the fastest in the world of its size to be deployed."
UK Lithium Battery Storage about to expand ?
"Fast response batteries to maintain grid reliability
The Sembcorp ESS is an integrated system comprising more than 800 large-scale battery units. It uses lithium iron phosphate batteries with high energy density, fast response time and high round-trip efficiency to maximise energy storage, making them suitable for maintaining grid stability. A central control system manages the batteries’ charge and discharge cycles according to the grid’s supply and demand. The integrated system also includes the liquid cooling systems or built-in air conditioning systems to maintain optimal operating temperatures. Live monitoring through extensive use of intelligent sensors, security cameras and dashboards tracks the key performance indicators to ensure safe, reliable and optimal performance. Please refer to Annex A for details on technological features built into the ESS and Annex B for photos of the Sembcorp ESS."
"Sembcorp already operates one of the largest fleets of ESS in the UK. This 285MWh ESS is the largest in Southeast Asia. At 709MWh, Sembcorp is now one of Asia’s largest and fastest-growing ESS operators with strong technical capabilities.”
Get ready. The Alkemy / TVL boys have their shares in pocket now as of 5th Oct.
Let the news flow begin.
Options can be paid out at £5.00 over a 10 day period !!! With such a small amount in issue ALK could easily take out £5.00 on take off news or JOINT VENTURE .... ???
UK lithium battery storage capacity to increase to 350MW AT WILTON by Sembcorp UK.
https://www.solarpowerportal.co.uk/andy_koss_to_head_up_sembcorp_uk_as_it_looks_to_accelerate_growth/
UK Lithium Battery Storage , Sembacorp appoint new UK CEO to oversee progress...
"Battery Energy Storage
Batteries have the power to store energy generated from renewables and hold it for use at times when electricity demand increases or when renewable sources aren’t able to deliver. The National Grid Electricity System Operator (NG ESO) needs battery storage to dynamically manage the UK’s energy system in real-time. Functioning like the cruise control in a car, our batteries automatically increase or decrease their output to ensure that the system frequency remains consistently within safe limits, reducing the risk of power cuts.
Our current operational portfolio is 120MW and we plan to further add to this with a 360MW battery at our site at Wilton International on Teesside."
https://www.sembcorpenergy.co.uk/what-we-do/