I think this is the confirmation that we have been looking for that our customer's upgrade is complete - just as they said it would be in June-July. Yahua takes 50% of our shipments at 100ktpa. I'm not Chinese but I believe the use of the word "lightened" would be more appropriately translated as "extended". A quick google sats they have 4 different words for lighten. This is one of them - 放宽
broaden, widen, lighten
Perhaps a Chinese speaker can correct me?
The amount spent on the upgrade certainly stacks up with an increase in at least 20kt (an earlier article I believe mentioned the figure of $44m USD per 10kt additional conversion capacity).
The news articles says carbonate (hydroxide) which is a bit imprecise. From the link I posted in the converter thread I believe it is carbonate. That reference to this upgrade in the about section of the Yahua website. http://www.scyahua.com/About/overview/ "The existing production capacity of lithium hydroxide 12,000 tons, lithium carbonate 6000 tons, lithium dihydrogen phosphate 2500 tons, lithium manganese oxide 1000 tons, the current construction of 20,000 tons of battery-grade lithium carbonate (lithium hydroxide) production line will be put into production in 2019."
btw: I think we will see a bit more of a general increase in carbonate production in China. Hydroxide has been the rockstar for a while now but the newer energy dense and stable 622 chemistry doesn't need hydroxide for high performance. Carbonate is cheaper and they'll go with that. It will also see demand increase considerably for cobalt if 622 becomes more popular.
Yahua say here that they started the upgrade a year ago, and makes sense that they're finishing it now. Something to bear in mind that other lithium companies may have customers who are only now starting the process.
Yahua's 20kt additional LCE cpacity needs another 160ktpa spodumene. They already have a contract for 100kt per year. That is 50% of our shipments. That is the exact amount missing from Q1-Q2. DYOR.
For the forward years they have said that they are requesting 120ktpa, which also suggests that they are keeping their 50% of supply contract, and that Mt Cattlin will step up to the range of 240ktpa. That is consistent with the higher recovery rates that the plant is edging towards with YOP complete.
but. This isn't what people want to talk about today here.
