E25 element 25 limited

9.80%

28.0¢

The Dawn of EV, page-1605

First 1605 Last

Share
Profile

Follow
srood

2,874 Posts.

1039

29/03/23

15:08

Post #: 67023864
Share

Originally posted by WhatsTheTip: ↑

The big wild-card is the IRA interpretations. Unless American consumer preferences change, the NCM batteries are key to the American market. I've seen a couple of references that the IRA regulations are due by the end of March 2023.

The country of concern conditions are a key wild-card for E25. Its a certainty that the US treasury will have received submissions looking to soften the US country of concern condition. Will the US soften to something like at least 80% of the battery must avoid country of concern materials. Will the US come down with a hard line in the regulations to be issued by the end of the quarter and say having any or almost any material processed in countries of concern (China) would make the battery ineligible for the retail price credits? This hard-line position would mean every NCM battery would be ineligible unless new supply lines are created and built quickly. My understanding is 100% of HPMSM comes from China. Every battery OEM/Battery maker wanting to make a product that is eligible for the retail credits would need an alternative source of Manganese supply for their NCM batteries. Only a company in the advanced stages of feasibility would have a chance of being in production by 2025. The few hundred million HPMSM capital cost would be largely irrelevant because if a company had even potentially even 1m of EV sales, the $7,500/EV credit* (*it could be half the credit. Need to double check), would be $7.5b of value to the consumer and if lost, $7.5b of pricing pressure from competitors with eligible product.

A hard-line interpretation would also put pressure on the limited Lithium Hydroxide supply from non-Chinese sources needed for NCM. This country of concern issue will be less problematic for LFP batteries because they use Lithium Carbonate which can be sourced from South American Brine and avoid Cobalt/Nickel. Both LFP and NCM battery types would need to address the limited Non-Chinese supply of spherical Graphite. The multiple logistical issues may have the US soften their position.

The second problem is the progressively increasing battery content rules that reach 80% in a few years. I presume that a NCM battery with Congo cobalt and Indonesian Nickel will fail this 80% test. The price of Cobalt alone may mean most NCM batteries struggle unless Australian/alternative acceptable sources come online. If you need to allocate your 20% to Nickel, Graphite and Cobalt you don't have a chance, so you need to source from new locations. One of the easiest alternative options is to go LMFP because you avoid Cobalt and Nickel (for price and supply chain reasons). You do however need an acceptable source of Iron Phosphate, Lithium carbonate and HPMSM. The combination of pricing, logistics and retaining access to American EV consumer credits may well result in significant LMFP uptake.

My guess is that E25 has pending contracts if the IRA interpretations take a hard line around their country of concern provisions.

Expand

Good point and very much why they're keeping Malaysia in there plans as a potential location I'm sure.

Off-takes are due now in order to get the Financing side wrapped up.

Great research again WTT...

E25 Price at posting: 65.0¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

FTL

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

Most investors will get this earnings season wrong. Will you?

RNU

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

SGQ

St George banks $5M from placement to ramp up Araxá Rare Earths Project

ASE

Astute delivers high-grade lithium hits at Red Mountain

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

First 1605 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last 28.0¢		Change 0.025(9.80%)		Mkt cap ! $64.01M

Open	High	Low	Value	Volume
26.5¢	29.0¢	25.5¢	$143.4K	521.9K

Buyers (Bids)

No.	Vol.	Price($)
2	30000	27.0¢

Sellers (Offers)

Price($)	Vol.	No.
28.0¢	14649	1

View Market Depth

No.	Vol.	Price($)
1	20000	0.270
7	92032	0.250
1	50000	0.245
2	4666	0.240
1	525	0.235

Price($)	Vol.	No.
0.280	14649	1
0.290	85307	2
0.295	50501	1
0.300	15875	3
0.305	32786	1

Last trade - 16.11pm 25/07/2025 (20 minute delay)

E25 (ASX) Chart

The Dawn of EV, page-1605

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

Most investors will get this earnings season wrong. Will you?

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

St George banks $5M from placement to ramp up Araxá Rare Earths Project

Astute delivers high-grade lithium hits at Red Mountain

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

The Dawn of EV, page-1605

Top Stories

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

Most investors will get this earnings season wrong. Will you?

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

St George banks $5M from placement to ramp up Araxá Rare Earths Project

Astute delivers high-grade lithium hits at Red Mountain

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News