Member Info for MajorOak

Infinity ?

TESLA on its own may well yet have issues in China BUT if it does I'm not sure Musk will sit and cry. Building a processing plant on the South Coast of the US in the Florida - Texas bay area gives import possibilities directly from S America - Brazil a the 000's of millions of tons available and NOT owned by China.
Tesla and its European bases - one more to come ...uk ? Will have lithium from Eromat, Vulcan, Cornish & British Lithium to most probably supply Tees Valley Lithium with enough DLE by 2025/26, so 3 years away NOT 7-10 years.
https://batteriesnews.com/sigma-lithium-achieves-outstanding-project-expansion-financing-milestones-increases-mineral-reserves-63-triples-npv-us-15-3-billion-and-secures-us-100-million-debt-financing/
Tesla in bed with Piedmont have just extended the agreement to purchase lithium/ lithium hydroxide from Piedmont. Piedmont part own Canadian Sayona Metals who go in to FULL production within 8-10 weeks at the NAL PLANT in Canada. Piedmiont also have 50% of production from Atlantic Lithium.
Looking at the location of ALL mine in Ghana shipping to the US Eastern seaboard , TESLA DIRECT on the US South Coast and OBVIOUSLY to Tees Valley and the internal ties that ALK have with Piedmont in my very honest opinion look blindingly obvious should see production of feedstock supply by 2024/25. Again 36 months not 5-7 years.

I posted about Tesla & BritishVolt a couple of weeks ago. With JLR & FREYR in the mix Musk knows this is a serious point regarding easy expansion in the UK and a feeding tube for Europe along with his German Berlin plant. Lithium from Piedmont, Atlantic Lith and S America....tick !
https://www.atlanticlithium.com.au/projects-ghana

https://www.express.co.uk/news/science/1723018/tesla-jlr-northvolt-britishvolt-ev-gigafactory-blyth-northumberland

Collard is up against a dozen potential bidders for the site, which include Jaguar Land Rover owner Tata Motors and DeaLab, a London-based financial group with close links to Indonesia.
https://www.ft.com/content/48b29ff1-6cf7-4dce-a8db-b3d65af90f9d

Could be great news for ALK & Port Hedland with ...

"Australian battery company signals plan to bid for Britishvolt".

5 further suitors for the BritishVolt site.

Collapsed battery-maker Britishvolt triggers bidding war
Firesale of failed ‘gigafactory’ company attracts interest from Norwegian suitor

By
Matthew Field
27 January 2023 • 5:12pm
A Norwegian battery company is circling the collapsed UK start-up Britishvolt amid a bidding war that has attracted five potential suitors....

Spread @ 11.25 am now back to average 20p

With ONLY 7M shares in issue they can easily create a 30p split between buy and sell.

Obviously there are mid prices being bought and sold. However thats 2.25p as an average. Not a sign of a seller and more interesting on how anyone can buy with such such little availability to buy.
Any rise up is a stressed buyer having to pay more to get in.

Again, if they will buy the pressure up and its a bit of a rush to get in , does it equate to a timed news flow coming in within a week or two ?

That could well we the offtake I expect

If it was a seller this would be sub £1.90.

Yesterday the spread was at most times 30p per share.

20p is about average.

10p when buying is taking place.

Having just had positive news out , my guess is a buyer.

I would be guessing here but last weeks very public failure of BritishVolt funding was possibly down also to this review where by Tees Valley Lithium HAVE passed through the first phase !

Onwards and a small % more derisked. Fracrional I know put none the less , passes first phase assessment. Tick

Lithium Hydroxide Offtakes for TVL & ALK get the price up THEN fo the share issue at discount to the higher base share price.

It should be done this way as offtakes tick one of the risk factors and then put it square on the table for the money men to see the QUALITY of supply being offered for money to construct the plants in BOTH UK & AUSTRALIA !!!

Alkemy and TVL Director Sam Quinn commented:



"We welcome the first phase approval of our project proposal by the Automotive Transformation Fund and look forward to working with the UK Government on the development of our transformative lithium hydroxide project in Teesside, which will be central to the transition to electric vehicles in the UK and an important step on the journey to our Net Zero future."

Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) and its wholly-owned subsidiary Tees Valley Lithium Limited ("TVL") are pleased to report that TVL's lithium hydroxide refinery at Teesside, UK has received first phase approval from the UK Government's £1 billion Automotive Transformation Fund ("ATF") which seeks to support the national transition to Electric Vehicles.



HIGHLIGHTS



· TVL has received approval of its expression of interest from the UK Automotive Transport Fund.



· The UK Automotive Transformation Fund is a funding programme created to support large-scale industrialisation and will invest up to £1 billion to develop a high-value end-to-end electrified automotive supply chain in the UK.





The ATF is a long-term programme designed to enable the UK to build the world's most comprehensive and compelling electrified vehicle supply chain, supporting over 160,000 jobs and creating export opportunities. It is an iniative of the Advanced Propulsion Centre UK, which provides funding, support and insight to help the nation's automotive industry transition towards a Net Zero future.



TVL's world-class zero waste lithium hydroxide refinery will form a significant component of the UK's transition to Electric Vehicles and is expected to produce enough lithium hydroxide to supply 100% of the forecasted automotive demand in the UK by 2030.



The project has been granted full planning permission from Redcar & Cleveland Borough council and is now shovel ready with production forecast to commence in 2025, generating over 1,000 local jobs.



By sourcing low carbon feedstock and powering an electrochemical refining process with offshore wind and green hydrogen supplied by energy multinational bp's HyGreen Teesside project, TVL aims to supply its UK and European customers with the world's lowest-carbon lithium hydroxide.

Tees Valley Lithium receives approval of its expression of interest from the UK's Automotive Transformation Fund.

A very well planned, private funded project actually with land, structured progression plan.

Next 2 steps :-

1 - Offtake agreements in UK AND AUSTRALIA

thus pushing the share price up ... then

2 - Funding - being raised highly likely with share issue. Many investors hate the dilution factor BUT raise the price , THEN factor in a 20% discount to the 10 day share price at the time and thats your share issue - FUNDING TOTAL - in place and totally ready to start the next phase of commissioning orders with long supply lead times ready for actual construction next year and a free cheque book ...

The plan is 100% on track with fantastic BoD and Managers in place.

Alkemy Capital are to commision a lithium processing plant in Boodari. There seems to me to be only 2 - 3 spodumeme producers that it can really be?
MAJORS all 3.

The only other possibility is over production in supply by one or all of these 3 where by the extra tonnage generated goes via Alkemy in Boodari ,then on to Port Hedland to be shipped to the UK for final processing.

2 of the 3 already supply and ship feedstock direct to China for processing which is currently more cistly although the process of shipping raw spodumene is being totally overhauled to reduce waste, increase costs and time to market.

Unless lithium us shipped most liket by train from S W Australia it will be one of 3 and as I say they are MAJORS.

Should make for very interesting PR in the fast coming days/weeks.

Actual MoU for Rock Tech is Merc-Benz for 10,000 of the 24,000.
https://group.mercedes-benz.com/company/news/mercedes-benz-rocktech-lithium.html
October 2022.
"This significant amount of lithium sourced directly from Rock Tech will help Mercedes-Benz to advance localisation of European production of state-of-the-art battery cells. Together with additional sourcing partnerships in the future, the on average 10,000 tonnes of lithium per annum will play a key role in securing the lithium supply for our battery production in Europe, to help achieve our ambitious electrification goals.

Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, responsible for Research & Development and Procurement

Lithium hydroxide from Rock Tech offers Mercedes-Benz the opportunity to support two strategic goals: localized and reliable sourcing as well as production under high sustainability standards. We are very pleased to have found a partner that will take important steps with us towards a more resilient lithium supply chain and demonstrates trust in us to deliver an important part of their strategy and of the e-mobility transformation.

Markus Bruegmann, Chief Executive Officer of Rock Tech Lithium".

This is kind of my point. Rock Tech can only process 'x' amount per year during the first few years.
We know Tesla GigaBerlin needs 24,000tpa, so for Tesla in Europe Germany they have a lithium hydroxide processing plant only 90 ish miles away.
They have already lost out on 10,000tpa of the available 2024/25 production for Europe as Rock Techs plant will be the only plant within the EU.

So, put yourself in Musks shoes.

Ok, I need 24,000tpa to hit market expectations on full manufacture from my Berlin Tesla factory @ 500,000 cars per year. Hmmm. 10,000 tpa just gone to Merc Benz. What do I do ? Wait for VW to go to German based Rock Tech who would be atleast matching Merc Benz offer , atleast. So maybe I get 5,000tpa from down the road, build my own processing plant like I am doing in America or make the batteries in the US and ship them over or buy from CATL, PANASONIC, LG ?

The global chain of battery manufacturers must be rubbing their hands at the thought of Tesla needing lithium hydroxide or built batteries. Times that up by the major global car manufacturers.

Any which way you look at it , lithium demand and requirement has been and is being built in to the manufacturing chain.

Lithium carbonate or hydroxide the raw feedstock needs to be processed.

No matter who can mine the lithium, these 32 gigafactories in Europe will need processed lithium.

Lets say the average battery plant needs 20,000 tpa and by 2026 all 32 will be up and running that equates to 640,000tpa.

Tees Valley Lithium plant and Rock Tech are looking at a combined 55,000 approx give or take.

In 3 years time there needs to be 10 times more lithium processing plants.

Lets say that again. In 3 years 8 m

Lithium Hydroxide news for Europe.
"At the moment, there are no other lithium-refining plants in Europe, although a total of 35 lithium-ion production projects had been announced on the continent as of March 2022. Last year, researchers from KU Leuven University in Belgium estimated that Europe will require 35 times more lithium in order to meet the EU’s Green Deal goal of climate neutrality by 2050. "

And Tees Valley Lithium Hydroxide plant will be ignored .... Yeah I dont think so !

In July, the UK government announced its plans to build the second-large magnet refinery outside of China, as part of a new ‘Critical Minerals Strategy’, which aims to “bolster the resilience of supply chains” and “seize on the economic opportunities of growing industries.”

Tees Valley Lithium Hydroxide plant WILL have multiple global companies wanting to buy this early 2024/25 supply AND although I bet a £1 to a penny it could be sold to ONE MEGA customer, Tees Valley Lithium & ALK here will need to ensure the first full production is not reliant upon just ONE contract.

Imho 3 customers will be being lined up for 10 year supply contracts, if not certainly 5 year contracts.

Keep the tonnage feedstock grade as high as possible and this will almost lock in lithium supply costs even with a maturing market where supply will come by 2030 and prices will drop back to a more sensible level as I totally expect. Make a killing in the first 5 years before the main supply kicks in and ALK will have a bonza honeymoon period.

The BritishVolt land will not stay empty for long, I am so so positive as the hydroxide plant makes it a total no brainer ???!

Tesla will take ALL Europes Lithium Hydroxide in 2024/25 from RockTech lithium Hydroxide plant.

What about VW, MERC BENZ, SKODA (VW OWNED) VOLVO, RENAULT, CITROEN, FORD, TOYOTA, HONDA, KIA etc etc....?

ALL the European hydroxide is going to be used in 2024/25 by TESLA !!!