appreciate that bannor… 1,2&3 is vat in country (if all this is actually done in country)… 4 is vat in country if the car is sold domestically… 4 can be zero rated vat for exports… but the vat to buy all the materials and components to build the car to the point of export… is already accounted for in 1,2&3… as it’s value is added… by virtue of mexico ensuring that 1,2&3 is done in mexico… they are securing the associated vat associated with this in country lithium supply chain…
bannor… vat is always collected at source… it is deductible downstream… vat liabilities = input vat - output vat (seller deducts vat paid to his suppliers from vat collected from his customers to ascertain his vat liabilities)… as the ore is the source… that’s where vat for it will be accounted when the lithium is sold… additional vat is included along the path to the end product by each manufacturer/supplier as the value is added by them to those oem products/elements within it… but it most certainly can and is/should be included at source… vertically integrated lithium would be different… ;)
i’d be very surprised if they do give them any of the concessions though… so still can’t discount the possibility that ganfeng will give all their bacanora shares in sonora lithium ltd… to litiomx… the fully funded ones… keeping their unfunded ganfeng shares… in exchange for a 100% tax break… sll still looks so well primed for the sonora partnership deal too… and ganfeng did get them on the cheap off bcn’s shareholders after all…
100% of the la ventana production going into the mexican in country lithium supply chain… all the way through to ev’s… mexilit being used to supply ganfeng’s 50%/75% offtake plus the mysterious offtaker yet to be revealed for the other 50%/25%…
in a first stage… a partnership will most likely be necessary… also in the battery manufacturing part… the lithium business will be fundamental for mexico… the treasury estimates that the nationalisation of lithium and the attraction of the value chain in sonora… the state with the largest reserves… has a potential value of $600bn… more than 1/3rd of the gdp in 2022… litiomx’s partnerships with the private sector will be based on stewardship of the mexican state to prevent profits from lithium from going to other countries… he explained… as happened with the exploitation of copper… in addition to guaranteeing technology transfer and the hiring of personnel in the region where there is a lithium project…
i’m not sure ob… i don’t think they actually need to do that if they come to an amicable agreement… i think that they will treat sonora lithium as they do oil and other minerals… as they have stated… mexico owning the mineral rights… but this time with more control and restrictions on export… and on the condition that a significant lithium supply chain is established within mexico… mexico then receiving the usual royalties and taxes from the whole mexican lithium supply chain that will result in significant revenue income into the government purse…
i agree bcn… never gonna happen… the concessions were legally tested as part of the aim listing… and before ganfeng made their move and got involved in sonora… they are solid if you ask me… as acknowledged by litiomx’s ceo… in the original and translation links below…
tesla’s offtake was with the sonora lithium project jv partners for lithium hydroxide… then bcn were tasked with funding the stage 1 pilot plant… which they went away and did and secured the 100% offtake with hanwa for lithium carbonate… when ganfeng came along with their 50%/75% offtake… it did confuse everyone at the time thinking that it conflicted with hanwa’s offtake… but clearly it didn’t/doesn’t… not now anyway… ganfeng are using our scoping study for their 50%/75% offtake from the jv1 concessions… leaving the 50%/25% available for anyone else… and bcn’s feasibility study for hanwa’s 100% offtake… do tesla still have a call on this or did they officially cancel that conditional offtake… that bcn defaulted on… read the t&c’s…