Ann: 2020 Annual Financial Report Announcement, page-91

Herr Fuelling suggests 1m cars averaging 55kWh batteries, would require 46ktpa LCE. At Stage 3, we could produce 175ktpa LCE.

That's 3.8m EVs. I'd hope we'd use the funds to merge with AJM and up that to 5m EVs pa.

For the Koreans, that's 5m EVs on the low side of the costs curve for Stage 1. Quite an advantage for any OEM.

Some 80m new vehicles are sold each year, so there has to be a lot of supply coming from elsewhere. I'd guess that DLE is the missing link ... but at what cost? DLE requires considerable technological improvements to become cost competitive, on a mass production scale.

I imagine an Oz Spod sourced precursor to be good cost advantage for any OEM. Then Brine and then reprocessed other, and then DLE.


Our only "binding" offtake agreements still valid (apart from POSCO) would be Great Wall's 20ktpa and Yibin Tanyi's 75ktpa.

Our advantage is that we own 100% of the Pilgangoora Project. We can do what we want (only AJM and LTR are the others, independent of Lithium major Spod resource). The critical minerals legislation signed last Nov19, precludes CATL from increasing equity/asset position (unfairly IMHO). I don't see the Koreans facing the same obstruction.

International law is backed by the post WW2 Bretton Woods Agreement and the Sino-US trade war has diminished that.


There has to be a supply of Lithium coming from somewhere, because Musk's trucks will require 1,000kWh batteries. Then there's ESS, which as you noted is an advancement for CATL recently.

Rodney Hooper speculates (again) in a recent broadcast, "where is the Lithium going to come from?" (from 3.45):

https://www.youtube.com/watch?v=KvC3x6y5L14

PLS may be difficult to value on a "discounting of future cash flows" basis, without a ridiculous capitalisation factor ... but its asset value is "off the chart" and the share price does not reflect this, IMHO.

Tesla's share price currently is based on a P/E of 1,139. Hello.