After my initial shock at the strategy change, my second thought was, I hope LG Energy Solution have given this deal their blessing.
But they buy from China themselves and it shouldn’t affect our supply agreement with them too much, so I’m guessing that’s the case. T.O. surely wouldn’t be stupid enough to put their noses out of joint at this stage.
As it’s short term and as others have said, mostly going to be the first output material (probably a lot of variable grade coming out until the plant is fine tuned), I’m coming round to the idea.
Plus it sends out a message that the oversupply narrative is nonsense. It’s smart from the Chinese in some ways, stocking up again at lows, from anyone and everyone they can. That will only temporarily delay the inevitable, whereby Li prices rise to a fair value.
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