Financial Review Artical, page-155

There is a huge global battle unfolding

China is both hungry for massive amount of domestic lithium plus lithium around the globe to support its battery and carmaking behemoths .

This is why securing lithium is critical across the globe .

The Manono lithium is truly massive and high quality and can be developed into the biggest , cheapest , best quality supply for the next 30 years at least (and don’t forget the tin) .

The non-Tesla brigade need it like oxygen to survive .

It’s actually a geopolitical resource .


*Fyi, To add, I see where,

Japanese Tesla supplier to take on Chinese rivals to tap EV boom

Japan’s Sumitomo Metal Mining Co. wants to start making materials for a cheaper type of electric-vehicle battery — containing no nickel — that’s poised for global popularity after storming the world’s top EV market, China.

Iron-based batteries known as LFP have rapidly expanded their role in China as a lower-cost rival to varieties with nickel, especially in smaller and low-range vehicles.

They could grab more than half of the global battery market this decade, according to Katsuya Tanaka, an executive officer at Sumitomo, which already makes nickel-bearing materials for Tesla Inc. and Toyota Motor Corp. cars.

“Carmakers won’t be able to procure enough batteries if only sticking to nickel-based types,” Tanaka, who heads the firm’s battery materials division, said in recent interview.

“We will expand our line-up to meet customers’ need as we expect the market will be polarized into the two.”

Sumitomo already specializes in certain types of nickel-based battery cathodes. Earlier this year it bought LFP capacity geared for non-auto applications, and is studying how to convert that technology for vehicles.

LFP is shorthand for lithium-iron-phosphate.

The move highlights how EV supply chains are still in their infancy, as the industry grapples with everything from technological changes to geopolitical shifts.

Western nations are trying to reduce their reliance on China, which has a stranglehold over most of production, including LFP cathodes.

Tesla uses LFP for its standard-range Model 3 and Model Y cars produced in China, which are exported globally.

Volkswagen AG and Ford Motor Co. are among auto giants that have pledged to use the formula in future, while BloombergNEF predicts a shortage of LFP capacity in the US a decade from now.

Small vehicles

Tanaka said LFP varieties might be well-suited to Japan’s popular mini-vehicles known locally as “kei”.

The small and affordable kei are especially popular outside major cities, where roads are narrow and public transportation is sparse.

Last year the kei made up more than a third of new passenger-car registrations in Japan.

Drivers of battery-powered kei should get enough power by charging their cars at home — without going to EV charging stations — because they don’t typically use their cars much each day, Takana said.

Tanaka said Sumitomo will talk with one of its battery-manufacturing customers about supplying LFP cathodes.

His firm could build a new plant in Japan or utilize a manufacturing site it has acquired in Vietnam, he said.

Sumitomo plans to triple output of battery materials to 15,000 tons a month by 2030 to tap into growing demand for EVs.

That volume could be bigger if LFP materials will be included, Tanaka said.

(By Masumi Suga)


LG Energy pins hopes on America growth as EV battery sales climb

LG Energy Solution Ltd. raised its 2022 sales outlook by 14% to 25 trillion won ($17.5 billion) after third-quarter operating profit beat analyst estimates, and stressed the importance of North America in its growth plans.

The world’s second-biggest maker of electric-vehicle batteries said operating profit for the three months through September was 522 billion won, in line with preliminary results released earlier this month and well ahead of the average analyst forecast for 372 billion won.

Sales jumped 90% from a year earlier to 7.65 trillion won.

The South Korean company reiterated its target of tripling revenue in North America in five years, with the EV market there forecast to see compound annual growth rate of 33% by 2030, ahead of Europe and China at 26% and 17%, respectively.

“Demand for EV batteries will remain strong, especially in North America,” Chief Finance Officer Chang-Sil Lee said in a post-earnings call.

LG Energy still plans to increase production capacity in Europe too, he said.

Europe is likely to follow the US in enacting clean-energy rules along the lines of the Inflation Reduction Act, Lee said, describing the policy as “a great opportunity.”

The company said it plans to expand its production capacity, customer base and product lineup in North America in response to the changes, as well as strengthen its local supply chain by partnering with major suppliers.

LG Energy said it will “also increase direct sourcing of metals through equity investments and long-term supply agreements.”

LG Energy’s outstanding orders stood at about 370 trillion won at the end of September, almost double a year earlier.

About 70% were for North America, with the rest mostly for Europe.

The company said its customers includes General Motors Co., Ford Motor Co., Honda Motor Co., Volvo AB and Stellantis NV.

“We have increased the shipment of EV batteries thanks to improved demand in EU and North America,” Lee said in Wednesday’s statement.

“Increased sales of energy storage systems for power grids in the North American market, and batteries for newly launched IT devices also contributed to the strong quarterly performance.”

LG Energy said it would stick to a plan to spend 7 trillion won this year.

(By Heejin Kim)













More Food for thought on the Road to Mining Manono

Til next time

Cheers

Frank