Yeah they maybe, but I'm thinking POSCO has its sights on diversification for its lithium production (as in it already has "ore" (spodumene) from WA going to SK to produce Hydroxide, South American Brine operation to produce Carbonate) and for that it has chosen Alberta and oil-field brines based on DLE.
Whatever and with whomever, for this partnership to be "startegic" it must address the Hydroxide plant being built and all the earnings calls I listen to a read, the price for lithium units (so hydroxide and carbonate) is below required incentive price for Western Hemisphere companies to commit capital WITHOUT a partner willing to commit to an offtake for the Lithium salt produced.
For me that rules out: 1. Anything China (because its Canada) 2. Any present lithium miner/refiner (so ALB, Arcadium, PLS, ...) 3. PLS specifically as DH was adamant that the Capital intensity and maybe more importantly the Opex in Canada is too high (hence the LRS bid as Brazil ticks those boxes , including Hydro) 4. Any big miner ... so BHP, RIO, etc as Lithium refining is hard (see Kemerton for example)
Leaves: A. POSCO ... but is their focus elsewhere B. Gov't but they are not the consumer and won't do the required OTA C. Auto OEM ... seems obvious as they could do and have done required OTA's with refiners (see GM with LAC, Ford with Arcadium etc) D. CAM ... seems obvious also
Whatever it ends up as, this "countercyclical" moment is the opportunity for the partner to "get 'er done" from mine-2-enduser.
GT1 Price at posting:
6.4¢ Sentiment: Hold Disclosure: Held
