We all know what Elon recently Tweeted, something that has massive ramifications for lithium mining as we know it. Some people might think that Elon is over the top. But almost everything he tweets becomes reality. Arguably the Thomas Edison of our time:
Prices are what they are today because Tesla, among other OEM's, was never willing to pay the incentive price to develop new, marginal cost resources. 2019-2020 investments were close to zero.And then the statement of producing Li with table salt did also not contribute much.
Although abundant on earth the challenge is not finding lithium but finding sources that are economical, don’t have high impurities, are in a jurisdiction that welcomes foreign investment, etc.
Chances are he will aim for a USA based non-traditional mining process (DLE, Clay). Unlikely that it would be hard rock, as per the following Tweet.
So what does this mean for Lithium companies? Vertical integration is inevitable for OEM's that wants to avoid fluctuating lithium prices, similar to what Henry Ford did with rubber integration in early 1900s.
Latin America will most likely service the Asian OEM's. This and taking equity majority or buying out mines will become a high priority.
That brings us to LPI. It looks like Morgan Freeman is back:
Mitsui will most likely take a major stake at LPI's Maricunga in the next few weeks, particularly after Elon's comments. When one considers what is coming down the pipeline, there is a very strong chance that the LPI share price will continue to strengthen on the back of:
- Confirmation of a binding large, long-term production off-take agreement with Mitsui
- Confirmation of Maricunga project finance
- The Demerger of the company's WA assets and listing on the ASX - this should provide a generous bonus to LPI investors
- Progress of DLE activities at Maricunga
- Indications from LPI management on project metrics for stage 2 at Maricunga
- Progress on consolidation of the Maricunga project structure - leaving LPI with a significant increase of its percentage ownership of the Maricunga project
- Cementing a productive working relationship with the new Chile Government
- Securing a significant increase in the project's export quota on the back of the increase in the old code resource and processing plant efficiencies
- Confirmation of a final investment decision on the Maricunga project.
❤️ Elon Musk ❤️ & Lithium Mining
-
- There are more pages in this discussion • 28 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)