It's worthwhile commenting on this recent announcement to put some light on the bigger picture. LFP has been around for 20 years thereabouts and was invented and developed in North America. A company known as Phostech, based in Montreal, built a plant with limited output and because LFP was not attractive to the battery makers at the time it failed. The business was acquired by Johnson Matthey in 2015 and put up for sale in 2021 (remember Griffins play on the Johnson Matthey subject linking it to a move by LIT ??). Thing is there are many well advanced LFP plays in the market and these are so far down the road it makes this VSPC venture look like a billy cart without a hill. For example - Israels ICL Group building a fatory in USA / Freyr (Norway) and American Battery Factory building a plant in USA / Chinese Gotion plan production in the USA with a USD2.4 Billion plant subsidised by grants and tax incentives / China Dynanonic already produce 265,000 tonnes of LFP and are seeking to move across the globe. Then there's NANO ONE who own the old Phostech plant and have new tech that will produce LFP with less energy and less waste. Then there's the other little sleeper that comes into the equation - Core patents around LFP have expired removing barriers to Chinese producers in many markets. Keep in mind the Chinese were not charged licensing fees so long as they only sold LFP in the domestic market. So given all that, where does VSPC fit in the big picture, and what do you think it would take investment wise to bring on stream a world class production facility that could competitively play in this game ? I'm thinking it ain't gonna happen and I'm also thinking the ship has long sailed.
LIT Price at posting:
3.9¢ Sentiment: Sell Disclosure: Not Held
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