This certainly deserves some further consideration. If there is a glut then has it been caused by an over production and supply of Li feedstock or a slower ramp up of converters/battery manufacturers downstream. More likely somewhat a combination of the two (but which one is having a bigger impact?).
If the thematic of an exploding demand for lithium batteries is correct (VW locking up supplies, Audi delaying release of cars due to lack of battery supply, Tesla buying battery manufacturer Maxwell despite having supply agreement with Panasonic that is not yet at full capacity, large values being placed on recent resource acquisitions...), surely the relative slowness in getting batteries produced will move up a few gears soon. Assuming then that that is or will be the case, surely by now mining and financing arrangements for deposits like Manono would have to be in place otherwise regardless of its characteristics re mineral quality it will likely miss the rounds of locking up going on and be left dealing with the second or third movers of battery development. When will we finally hear news of financing, off-take and mine development instead of just more news of how big or how much bigger the deposit is (isn’t this “largest deposit” already sufficiently big enough to get into mining - what’s the real hold up?).
AVZ Price at posting:
4.1¢ Sentiment: Hold Disclosure: Held
