Seeing commonaussies post just reminded me in some unfinished housekeeping after reading the endless posts in regards the PLL - TESLA / PLL - SYA spodumene ' Separate ' off-takes.
So here's my TWO cents worth on the subject again for what its worth.
And I do like this use of the word ' Separate ' in regards to whatever may or may not have been the combined ' Intent ' of hammering out these Off-takes with America and the worlds' LARGEST EV producer in Tesla. And especially so given that Tesla has for all intent and purposes a ' minimal ' existing footprint of required spodumene and then obviously also the desired Lithium Chemicals for their North American local manufacturing profile.
So it got me thinking a bit about the ' sensitivities ' and maybe even the ' commercial in-confidence ' strategies revolving.....and evolving around this for want of a better description this ' Love Triangle ' or sorts between Tesla - Piedmont - and then Piedmont and Sayona Quebec.
So there has been much action, and talk as well as outright conjecture of what Tesla may or may not do as well as what they have also done to date in Ontario and surrounding regions to Quebec and Ontario.
We know he has invested significantly and strategically in Ontario , but we also know from social media innuendo and rumor that he had also been engaging Quebec in talks concerning availability of land packages and claims with highly prospective spodumene endowments.
So then when we put ALL this together with his recent twitter comments of ' Lithium ' investments being or having the same forward earnings multiples of ' Big Tech ' .....we know he can't just be talking about spodumene right ?......
But you can't really have one without the other either right ? .......
So here's what I think then. I think that Elon is clearly NOT silly or stupid man and is and would have been fully aware of Piedmont's 25% interest in Sayona Quebec. And NOT just because this event / acquisition stake occurred less than 6 months later , but because Elon would have already been well aware of where ALL the potential hard rock spodumene assets are in North America.
So Elon in my opinion would be remiss in terminating an off-take abruptly knowing that he would potentially have to go back to the SAME player in Piedmont and its 75% partner with cap in hand to then renegotiate another arrangement which would clearly be on significantly higher commercial ' at Market ' current pricing.
But the fact that he is talking these ' telephone book ' type returns from Lithium mining ...together with the fact that he has hired an ex - RIO Tinto geologist .....together with his talks with Quebec about available lithium CDC claims packages together with the fact that he hasn't stated anything further with respects to the Piedmont off-take arrangement or the readiness of Piedmont to supply him under his original time-frame - All these factors would indicate that the ' Deal ' or some derivative thereof between Tesla - Piedmont and Sayona is indeed still alive and most likely something he is gearing up for on the ' Hugely ' profitable Lithium chemicals conversion end of the spectrum.
But he would definitely NOT want to pizz off Piedmont in the process because Piedmont also has a BIG brother partner who holds 75% of what Tesla needs PLUS a whole lot more when you start to factor in the HUGE potential of Moblan and TANSIM ( which is at least another MOBLAN ) .
So in my opinion there is plenty of scope for BOTH agreements to be renegotiated in the best interests of ALL 3 parties.
And so this is exactly what Elon has eluded to more recently .... that there are tremendous benefits for anyone who is prepared to go down the path and be a first market Lithium Chemical Converter.
And perhaps this is why KP has been flogging this line repeatedly that it is in the Interests of the OEM's to have an ownership stake in the inputs process. No real difference to that of OEM' specialist Engine or Drivetrain plants which ultimately get assembled to the Vehicle chassis at a logistically located purpose built assembly plant.
So when Elan then states that the Market needs to watch this space because of the potential deals which he or perhaps others will be doing in the ensuing months is really something we all ought to stand up and pay more attention to. Because it's obviously getting much closer.
Will it coincide with Sayona's ' Twin Projects ' supercharged DFS . Perhaps. Or will it happen after Moblan re-works the Geological numbers after this drill program which should have an expanded revised JORC in a matter of only weeks from when it's completed. Definitely a better chance if Sayona can virtually increase its resources profile by another 50% on its already burgeoning 110 - 120 MT plus existing profile.
So the back to back spodumene off-take agreements , whilst on the surface looks to be ' Separate ' and from different resource locations as has been stated numerous times - The reasons and delivery timelines look to be the same with the ultimate commerciality of BOTH these agreements looking as though they may well be the ultimate ' quid pro quo ' arrangement for a combined Quebec Lithium Hydroxide conversion facility with Sayona sitting in a very handy if not commanding position with ALL its foot on most of the larger and contiguous available' in situ ' spodumene assets.
So I guess it is only natural to NOT be hearing anything with respects to the off-take of potential production until we do. And because it would appear that it is an ever changing dynamic of investment and the backdrop of investment and investors with respects to the ' Higher Margin ' end of things that Elon seems to be now mentioning more regularly and with much more intent and sense of urgency.......
(20min delay)