Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
Flights to Australia, S Africa, S America, US and EU all with varying amounts of days.
Meeting with the Australian PM & Minister for Energy, the Management team of Port Hedland , Rio Tinto, BP etc etc
Meetings / investor presentations and meeting with lithium supply clients, plant supply via SembaCorp , site visits for clients, visits to financiers all on the book ?
Marketing & advertising is a cost and it may not be in this country.
How did TVL/ALK get the Port Hedland Australia lithium processing engineers ? Lucky dip in a Walkers crisp box ?
I would like to see some form of presentation across the media though, I think it would help in general for 2023 as a guide but things have obviously slipped in timescale. So has Pilbara Minerals doubling of production in Oz strangely enough ....
Final part of the Woods McKenzie lithium review and conclusion. Is there a need for global lithium hydroxide ... Yes. Interesting Pilbara pops up , teehee
"6. Partnerships will be key to the lithium industry’s future
In 2022, 52% of lithium supply came from just five companies. However, we do not anticipate significant M&A activity in the industry and predict these companies’ share will decline to 36% by 2032 as smaller firms grow and new ventures emerge. But while horizontal integration will not be a big theme going forward, vertical integration certainly will be.
Partnerships between miners and refiners make sense, since they can share both the risk and the huge capital requirement involved in new projects. Working together, upstream and downstream operations can leverage each other’s expertise to improve margins and capture more market share. This sort of alliance is already happening; for example, Pilbara Minerals have partnered with POSCO in South Korea, while SQM and Wesfarmers have joined forces on a project in Western Australia. We expect similar partnerships to become prevalent in the industry in future."
Cont...Woods McKenzie lithium review
"5. The lithium market is still relatively immature
Perhaps the biggest challenge in forecasting the future of the lithium market is that the industry is still essentially in its infancy. There are no globally accepted specifications for the product, and therefore no accepted anchors to ground pricing.
The need for unique and very precise specifications makes lithium products almost comparable to speciality chemicals in terms of pricing complexity. At the same time, the need to keep up with continued demand growth prevents the industry from taking a step back and assessing how to establish a more uniform and consistent approach. Greater standardisation is likely in the future, but it will take time to emerge."
Cont...Wood McKenzie lithium review.
"3. Lithium is not really a single product
Another complicating factor in assessing future lithium supply and demand is that the market actually comprises two different key products. Both lithium carbonate and lithium hydroxide are used in the production of rechargeable batteries for EVs and electronics. However, the use of one or the other is decided by the cathode chemistry used in the batteries.
Lithium carbonate is mainly driven by lithium iron-phosphate (LFP), which has been widely used in batteries in the Chinese market and is now making inroads in other regions. Lithium hydroxide is driven by high nickel cathode chemistries, which are increasingly favoured by the premium EV market due to their higher energy density. This has important implications for the pricing of the two different compounds.
4. Sources of lithium supply in the long term are unclear
Our knowledge of existing, planned and potential projects means we can project the trajectory of lithium supply until the end of the decade with reasonable accuracy. Mapping this against expected demand makes it possible to forecast price trajectories over the medium term with reasonable confidence.
From 2030 visibility becomes much less clear. At this point incentive pricing – the price at which it becomes attractive for companies and investors to commit to new projects – becomes an important factor. Assuming 1.5 million tonnes of supply, the fully allocated cost of lithium (C3), including operating costs, indirect costs and interest charges, would be around US$15,000 per tonne. Market pricing would therefore be somewhere north of this."
Cont...Wood McKenzie lithium review
"2. Quality is an issue as batteries become the dominant market for lithium
While more and more lithium is being deployed to make rechargeable batteries, not all lithium is useable for this purpose. Battery-grade lithium products have to be of the highest quality and purity and are therefore the most complex to produce. New refineries will tend to start by producing lower quality, technical-grade lithium, which is not directly useable in batteries.
As new plant operators gain experience and fine-tune their operations, the purity of the refined product can be improved to the point where it becomes viable for batteries. Only at this point can the qualification process begin, which is something that each cathode maker does individually.
As a result, despite a high overall supply surplus battery-grade lithium products will see a tighter market, at least in the short term."
Wood McKenzie lithium carbonate & lithium hydroxide current review.
"1. Strong growth is creating a ‘bumpy’ lithium market
Lithium strongly demonstrates the characteristics of an immature market, with the supply balance fluctuating between deficit and surplus. A single end use is rapidly coming to dominate the market, with rechargeable batteries now accounting for approximately 85% of global demand. As EV uptake took off through 2021 and 2022, demand surged.
However, infrastructure development in terms of both mines and refineries requires massive investment of both time and money. As a result, supply struggled to keep up.
This imbalance caused prices to soar in 2022, peaking above US$70,000 per tonne. However, demand growth has been slowing down somewhat as EV subsidies are reduced or removed and prices have fallen back in 2023. Going forward, we expect prices to enter a period of controlled decline, settling back to around US$20,000 per tonne by the end of the decade."
https://www.woodmac.com/news/opinion/shaping-lithium-market/
Piedmont rns yesterday. Is there a market for global lithium hydroxide ? As I have said many times if TVL ALK can get going before 2025 thats a big heaf start on the majority of plants for hydroxide opening from 2027 onwards. Yes there are some due to open 2025-27 BUT get that funding over the line now and they'll be quids in.
"Tennessee Lithium: lithium hydroxide production from spodumene concentrate sourced from our international investments – 2026.
Carolina Lithium: integrated spodumene concentrate and lithium hydroxide production – 2027."
https://www.proactiveinvestors.co.uk/companies/news/1016762/piedmont-lithium-to-showcase-development-of-lithium-supply-chains-in-raft-of-june-industry-conferences-1016762.html
Is lithium hydroxide wanted globally ? BMW sign two deals in 24 hours lol. I think its game on.
"This new agreement marks a significant milestone for the company, as the JV aims to convert lithium concentrate into lithium hydroxide, meeting the specifications of a long-term supply agreement with BMW."
Is lithium hydroxide needed globally ? 3rd deal within 24 hours ! I think BMW WANT hydroxide lol twoof the deals.
"This new agreement marks a significant milestone for the company, as the JV aims to convert lithium concentrate into lithium hydroxide, meeting the specifications of a long-term supply agreement with BMW."
Https://www.ft.com/content/89b26197-87e9-4aa6-adde-797131af3d8a
Saudi Arabia is planning a second lithium processing facility, as it steps up efforts to work with western partners to develop its battery supply chain.
The facility, which will use feedstock mined in Austria to produce refined lithium hydroxide for BMW, is a sign of how supply chains to process the metal are slowly developing outside China"
Is there a global lithium hydroxide ? Building conversion plant.
TSX.V RELEASE | May 31, 2023 | TSX.V:FL; FRA:HL2; OTCQX: LITOF
Sudbury, Ontario, – Frontier Lithium ("Frontier" or "the Company") is pleased to release the strong results of a Pre-Feasibility Study (“PFS”) for a proposed mine-to-lithium hydroxide chemical/hydromet plant facility (“Integrated Project”) in the Great Lakes Region of North America.
Is there a global need for lithium hydroxide ? It appears so.
TSX.V RELEASE | May 31, 2023 | TSX.V:FL; FRA:HL2; OTCQX: LITOF
Sudbury, Ontario, – Frontier Lithium ("Frontier" or "the Company") is pleased to release the strong results of a Pre-Feasibility Study (“PFS”) for a proposed mine-to-lithium hydroxide chemical/hydromet plant facility (“Integrated Project”) in the Great Lakes Region of North America.
Steven I think without question it will hold around £1.30-£1.75 until news comes.
The directors I think had a plan which due to the launching of the Ukraine war, scuppered many governments budgets through gas and oil increases globally, increasing manufacturing stresses and supply chains globally and therefore over a period eventually concerning the markets and banking on the future pay back , escilating costs and delays v a sector that cannot fail, has had multiple billions thrown at it including wind, hydrogen, battery tech , water power generation and the biggest cash drag nuclear. Solar I place in a seperate sector of its own. China rules.
My best guess is Electric batteries globally have had so much put in individual countries will have to decide how to directly fund, let go, or generally guide grant support, that they are well advanced that in the next 7-10 years the infrastructures needed to support basic economic and community spread will be in place. Might be a heck of a lot of debt to get there for some, but the big money will hold all the aces and will advance at pace.
The previous lithium rally in the late 2017-19's shows it is tough when costs increase or borrowing at depth is needed. The small guys who dont get the deals get done and ended. It looks like the next period could possibly sort out those who do and those that cant scale.
My interest is very much in fact that Europe has so much capacity made and built for lithium infused batteries it simply cannot be overlooked.
How Alkemy cope with this is anyones guess.
Me I trust my own gut. I went through 2017-19's and learnt alot from Australian mine owners. No BS no money coming in, so my gut tells me Tees Valley or Alkemy start playing games, they know the hard nosed cash for work / goods supplied attitudes of our Ozzie friends will kill any business coming to the uk from Oz.
They will know this and are trying to work with and discuss business with global majors. They dont f about and nor will TVL / ALK imho.
Yes timing is slipping, but global projects are and are finding it tougher as gas / oil supplies migrate to newer platforms to beging to try and bring down costs.
Stubborn economics is causing this imho and not a lot else. Not helped that China has such a hold in our investment sector. Foot fully on our throats, BUT we are not down totally.
The money raise is small beer really which to my eyes is good mangenent to keep things stable and balanced. Treading water but not down.
FREYR building a battery factory in Norway , that lovely nice country, then finding out they are not licenced to sell in to the EU ??? Now that is a missed deadline. Building n the edge of the EU but not certified ??? TVL & ALK raising £1.3m is peanuts to make sure they get that JV deal / investment that they clearly think they have , over the line is fine with me.
Patience is an action. Topping up around £1.30-1.50 seems like an opportunity ?
Tough in the real wo
Https://www.reuters.com/article/pilbara-minerals-fid-pilgangoora-idUSKBN2VV00W
From todays issued RNS.
"Funding
Alkemy continues to consider various funding options for the project including strategic partnerships, private equity, a structured bond and an institutional equity component and will update the market on progress in due course. As it is intended to finance and operate the facility via its operating subsidiary TVL, if this is achieved it is anticipated that there will be no significant dilution to Alkemy's shareholders as part of the proposed financing process. "
Gr33, I note my fingers crossed choice of JV partner and holder in cash pile of ASD$2billion Pilbara Minerals time scales after gaining approval of ASD$375M to develope refining to 1m tonnes per year.
“I think Albemarle’s move to acquire Liontown is a really positive signal for the industry and the outlook that they hold,” Henderson said.
As miners look to move up the value chain and capture more margin for themselves, Pilbara is considering building a pilot plant to produce lithium phosphate salt using renewable energy.
That would bring lithium content to 35%-36%, up from 6%, allowing the miner to get better prices as well as cutting freight costs and carbon emissions.
Pilbara said last month it was likely to make an investment decision on the pilot plant in the June quarter. But, this may now slip into the September quarter, Henderson said.
That would see this small cash top up announced today asa small funding bridge until August September ?
"The net proceeds of the Fundraise will be used to continue to advance the Company's projects and will provide sufficient working capital for the Company over the next twelve months."
Sufficient capital for 12 months ?
JV coming in then or certainly further capital via equity / cash ?
With both Teesside and Port Hedland Australia going forward, surely £1.3m is chip money.
May saw another very busy month of news from the lithium juniors.
It is good to remember the Benchmark Minerals Intelligence forecast that the world will need 78 new lithium mines from 2022 to 2035. Or Trend Investing's forecast that lithium demand will increase 35x from 2020 to 2037. At Tesla 2023 Shareholder Meeting Elon Musk said the world needs to increase battery production by 29X/year from now to reach a 100% renewable energy world.
The next 5 years will be the most fruitful as new tech developes and new lithium mines supplies are still testing up to PFS, DFS , construction so 2027 + for the biggest new volumes.
Until then any new production & supply of product direct to market will have first mover advantages.
The main global market is on TVL & ALK doorstep.
To avoid Jan 1st 2024 problems , decisions , major decisions are being made right now, thus the amount of movement the sector is experiencing and the rumours aplenty of who what why and where.
I think ALK Australian news MUST come soon so positioning can be put inplace for what happens in 2024.
https://www.export.org.uk/news/641442/UK-automotive-exports-rise-again-in-April-as-car-manufacturers-enjoys-third-straight-month-of-growth.htm
Hyundai & LG $4.3 Billion battery factory & car factory
https://www.independent.co.uk/news/georgia-ap-hyundai-atlanta-brian-kemp-b2346199.html