Let's cut the bulls*t about the Stage 1 Pilot Plant. AGY explicitly stated their intention to use their Stage 1 Pilot Plant for small-scale lithium carbonate production (up to 500tpa) and expressed their goal of securing an off-take agreement for the pilot plant production. However, JZ failed to secure an offtake agreement, and the downturn in lithium prices in 2019/2020 made operating the pilot plant without an off-take agreement unprofitable. As a result, AGY "limited" (or more accurately, mothballed) pilot plant production. After mothballing the pilot plant, they incorrectly assumed that the 2 ktpa would be up and running much sooner than they anticipated, which was an obvious miscalculation.
It really is that simple.
AGY Price at posting:
12.8¢ Sentiment: None Disclosure: Not Held
