RNU is now riskless!
It has first-mover advantage and all the leveraging (downstreaming/anodes/etc) that may occur as a consequence of it. And international regulations are structured in a way that is pointing directly to us.
There really is bugger-all Tier1 shovel-ready projects for the multi-nationals to choose from.The purpose of these new international regulations is to decouple from the Chinese-dominated supply chain. Not to separate completely and it has to start somewhere in a safe location. Even if we disagree on some issues with China, in the end, we will all need to get along in order to coexist.
What is reassuring is that the governments in the West are currently taking the additional necessary steps to make it so by de-risking Tier1 projects. The purpose of the USA's two-year respite is only to guarantee that any funds and investments for Binding Offtake Agreements (BOA) that will need to be made in the coming weeks or months will go as smoothly as possible during the long lead times. Because of this, investments need to be made now as it will take two-three years before they can see a return. Taking out the risks associated is what has been the concern for multinationals.
To paraphase Simon Moores, graphite should be the starting point for the supply chain decoupling. Fortunately, all this de-risking is for the benefit of shovel-ready Tier1 assets located in a secure, sovereign-trusted jurisdiction.
ALL IMO, DYOR, GLTA(Patient)H
Add to My Watchlist
What is My Watchlist?
