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16/03/18
13:59
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Originally posted by race
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I’m with you on those last two points.
Not the lithium centre of the world if only one country is interested in it (China).
Cannot control supply, since supply is locked up in one country (possibly in 1-3 separate offtake agreements).
In other words, cannot make a dent on the spot lithium price because lithium mined at Monono will presumably be locked up in private offtake agreements.
I think AVZ’s market dominance will actually hurt South American brines more than anything. Hard rock can still be economical to mine if it is close to surface, close to infrastructure and close to other parts of the supply chain (carbonate/hydroxide production, battery manufacturing plants, automotive manufacturers etc).
Opinion only, dyor etc
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Proof that controlling one massive asset does not necessarily translate into control over pricing / the entire supply chain:
GEM & Glencore’s massive cobalt deal just announced: pricing withheld
“Pricing for the deal with GEM was not disclosed.”
https://www.ft.com/content/86dc1306-27a4-11e8-b27e-cc62a39d57a0
Also, since the cobalt is coming from DRC and some major Western companies appear to have reservations about sourcing cobalt from DRC (eg. Apple, Tesla), this particular deal, as massive as it is, will not have that big a dent on the cobalt market or pricing.
Opinion only, dyor etc
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