I would be stunned if LTR - who have a history of looking at what others have been doing - decide to venture downstream at KV or anywhere in Australia. It would be a crazy decision. It is very much a throwback to 5 years ago when it sounded like a very good idea on paper but in practice the Aus downstream endeavours have been catastrophic failures.
If LTR want to go downstream, they would be far better off looking at Indonesia, South Korea or even Dubai (yes Dubai is apparently very keen on Li Conversion given the very low cost of energy). Basically anywhere but Australia. Our costs - energy and labour - have proven us to be uncompetitive. Can also build a much larger plant at a fraction of the cost elsewhere. Find an experienced chemicals titan and let them do the heavy lifting.
Or if LTR are that confident they can produce chems, why not offer cents on the dollar for plants at Kemerton or Kwinana? Just cut the process short with Li Sulphate salts and save a bunch on Capex. I'm sure LTR would be greeted with open arms if they offered to take a built Australian downstream facility.
I think anyone telling you that a midstream plant at KV is an economically viable and attractive option is selling you distractive hopium.
LTR Price at posting:
63.8¢ Sentiment: None Disclosure: Held
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