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    A total shot at GXY from Tianqi. They must be afraid of GXY.

    ithium quality hurdle hard to clear: Tianqi boss

    Sean Smith
    Monday, 16 October 2017 5:05PM

    Vivian Wu says customers want lithium producers with reliable supplies.Picture: Sharon Smith
    China’s biggest lithium company believes its hard-earned know-how is a major advantage as it negotiates sales contracts for a new $400 million Kwinana plant ahead of a wave of supply from emerging producers.
    Speaking in Perth yesterday, Tianqi Lithium chief executive Vivian Wu said that with some of those new sources likely to take longer than expected to hit the market, potential customers were mindful of signing up with producers able to provide reliable, quality supplies of lithium.
    “If you want to plan today for the following five years ... you probably want to encourage the newcomers but you want to know your supply comes from existing players who have been specialising in it (lithium) for quite some while,” Ms Wu said.
    “Don’t take us wrong, we don’t want to talk those (new) projects down,” she said.
    “It’s just that Tianqi has been doing this a long time.”
    The Kwinana plant, due for completion at the end of next year, will process lithium concentrate from Tianqi’s 51 per cent-owned Greenbushes mine, south of Perth, into lithium hydroxide for use in batteries.
    The company is examining a potential doubling of production via a $317 million expansion, with a decision due in the next four weeks.
    Demand for lithium is rising sharply as car makers turn out more electric and hybrid vehicles powered by lithium-ion batteries.
    Macquarie Research noted in its global commodities compendium last week that while lithium still represented “an exciting demand story” in the near term, an “avalanche of supply is on its way”.
    The emerging producers include Pilbara Minerals, which is developing the $234 million Pilgangoora lithium and tantalum project, near Port Hedland.
    Ms Wu and Chengdu-based Tianqi believe that some lithium aspirants underestimate the challenge of entering the market and producing the right-quality product demanded for ion batteries. “Customers worry about sustainable, good-quality supply,” she said.
    “It’s no mystery, you can dig lithium out of the ground, especially in WA, but you need to have the know-how to ensure a consistent quality.
    “It’s more difficult than people would expect.”
    Ms Wu said it was “definitely” going to take the emerging producers “longer to get there”.
    “A lot of people have tried and failed ... and are now doing it again having hopefully learned from their past mistakes.” (The shot at GXY)

    Tianqi is one of the backers of today’s inaugural Sino-Australia Economic and Trade Forum at the University of WA.
 
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