To supply the raw materials, I imagine it means a longer span of time is required to be approved @Jasox, because the requirements are more stringent. Not particularly mysterious, that line. Referring to the other bullet points in the chart: the supply must be of higher quality (i.e., our 99.95% lithium carbonate and >56.5% lithium hydroxide), the sample size must be larger (thus the need for the capital raise to upgrade our pilot plant), a higher probability for site visit requirements, etc. Not an easy procedure and certainly not a problem, if one is either a long term holder seeing the bigger picture or a trader, concerned with daily fluctations. The following from BMI's blog explains further:
"Typically, manufacturers in the higher tiers follow a more stringent qualification process for sourcing raw materials. This results in higher quality and specification requirements, large sample sizes, and longer qualification times. Our definition of each tier used in Benchmark Minerals’ Lithium ion Battery Megafactory Assessment is as follows:
Tier 1: Qualified to supply multi-national electric vehicle (EV) producers outside of China
Tier 2: Qualified to supply Chinese EV market/non EV applications
Tier 3: Unqualified – limited or no track record of cell production"
I cherry-picked one of your what, imo, are rather rabble rousing questions. I'm well aware you have put your repetitious list to others, however I do look forward to addressing them- outside of market hours, because you very conveniently put into one place concerns many have, concerns I consider unwarranted.
More importantly for now however, looking forward rather than backward, I discovered this morning that the "lovely chart" is nearly 2 years old- a dinosaur in these heady times. Yes @Regent parrot, when I read the line in the chart about site visits, I thought "Ah, BASF 2 years ago." Then "Where is BASF on the chart?"
This lovely chart is from 19 May 2021 when BMI bumped BYD up to Tier 1. They assess battery cell producers every three months. CATL was promoted in March 2020. Tesla is missing...because of their partnership with Panasonic, who remains Tier 1? As is BASF, perhaps because they are just now gearing up to produce batteries from "cradle to gate," so still might be considered Tier 3 by BMI in terms of battery manufacturing?
(20min delay)
