“The challenge of the existing metal production is ... coming out of the ground, there can be a form of lithium chloride. They usually then convert it to lithium carbonate and then convert it back to lithium chloride to make metal. What occurs then is you have, for every ton of metal, five tons of chlorine gas created in your production and also, that lithium chloride they're producing doesn't really have too many other applications.
It's also a supply chain constrained in the sense that if you want to scale metal production for what is needed down the road for these next-generation batteries, you'd have to scale chloride production as well. So there's an economic benefit to being able to use existing supply chains that are being scaled around lithium carbonate as well for our process. ”
Overcoming some of the problems above will go a long way to cleaning up the industry.
Sayona is in a position to take some preemptive actions now that may save them time and money in the future.
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