Ann: Trading Halt, page-259

Expanding on the "what we have already been told theme", bear in mind the following points:

. The spodumene price reduction experienced in the second half of last year was not simply a consequence of increased production coming online ex Australia, but a bottleneck caused by lack of available processing facilities to convert it to hydroxide.

. We have already been told that James Bay is to be built as an integrated downstream operation, ie the mine will be constructed with conversion facilities to produce LiOH.

. We have been told that plans are afoot to convert Mt Cattlin into "not just a mine, but a lithium chemicals producer"

. SDV is also intended to incorporate downstream processing.

By producing lithium chemicals, GXY overcomes processing demand and supply issues. By definition, these chemicals are of less volume and reduced mass, ie lighter and easier and cheaper to ship to battery manufacturers. One of James Bay's advantages is that the planned integrated downstream processing and location allows for direct supply to the American market.

There has, as yet, been no talk of battery manufacturing, and if there were I would be seriously questioning the rationale.
Battery manufacturing is a completely different matter. Manufacturing plants need to be constructed close to end user markets. The batteries are too expensive to ship over any distance, and the margins too thin in a very technical and competitive, relatively mature market. See Tesla's history as a guide.

Any talk of manufacturing batteries in Australia is completely misguided until Australia itself has a significant internal market to justify it's existence. Shipping costs are simply too great.