The ex China supply is just marketing, at least for now ahead of conversion capacity being built out elsewhere which has proven to be a challenge, even moreso now that chemical pricing sits below capital intensity required to justify building an ex china carbonate or hydroxide plant.
Every other Australian producer supplies to China, I don't see how this is any different. Where will KV spodumene be refined into chemicals near-medium term... China, regardless of who the offtaker is.
As far as this short term offtake goes, suspect it is a short run to qualify KV product in the battery market. Typically 6-12months, from there this entity is likely to work with one or more of the long term offtakers to toll treat KV spodumene. It provides an entry into the market and de-risks conversion and access to battery grade carbonate or hydroxide for longer term offtakers.
While some may not like the China connection, what other options does the company have. Absolutely nothing wrong with this approach, to say it is a change in strategy from ex China to pro China is short sighted knowing full well the product was going through China one way or another.
Aimo
LTR Price at posting:
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