Ann: Yibin Tianyi Withdraw FIRB Application, page-665

Just a matter of time for MANONO not only the world’s greatest hard rock deposit but up there with Greenbushes as having the cleanest product according to my Hong Kong, Shanghai and Berlin taxi drivers.

This article in your post is a little weak on some important factors namely China’s scientific and technological reliance and or cooperation with Western partners.

Do remember CATL for example is nothing without its Western partners. Arguably it works both ways. But Europe isn’t just following Beijing, it has a deep insight into human reality and values. Something I think I’m Australia only happens after checking left and right what’s its anglophone peers are doing especially UK and US. I think there’s truth in that.

My Berlin tax driver has a lot to say.

Volkswagen for example, does not currently rank well as a EV producer, still, but it has plans for production of 70 kinds of EV and 22 million times of them in ten years. https://www.volkswagenag.com/en/news/2019/03/VW_Group_JPK_19.html#

The scale of its operations planned in China in joint ventures as with the SOE vehicle maker, SAIC, and (this is the interesting one for AVZ says my TD), in Europe, a 20% stake in the Battery Guoxuan Hi tech Company limited translates into a question for downstream supply as there are three battery/ev alliance consortia forming in Europe (one formed already), and with Chinese companies developing a joint venture presence in Europe, at some stage with Chinese confidence in DRC well established compared to its Western associates, therefore my HKTD says its only natural that the sustainablly cheapest and cleanest lithium Chemicals will be sought and lithium hydroxide would be produced converted from (AVZ) Manono’s primary lithium sulphate. It’s excellent timing as companies like VW won’t look at the assets of a company until at least a DFS is on the table according to my Berlin TD.

AVZ among prospective explorers and developers is arguably a leading industry candidate for off take and project finance right now with its DFS.

The Germans and its partners must now be running the rule over AVZ DFS metrics.

Among partners, I should also add Northvolt that needs supply of lithium hydroxide to meet its supply demand with VW. https://www.greencarcongress.com/2020/05/20200508-vwnv.html

Obviously to me at least, why AVZ have primary lithium sulphate in its early plans? Is it because prospective client base are demanding it? And are many surprised by this early plan because there is insufficient insight into European plans in the Anglosphere?

Future Demand prospected dictates strategic decisions now.

Take for example the EU Commission, in late 2018 they could already see the writing on the wall on future outlook and a covid-19 reality-check makes it even more stringent an imperative what was said here:

“Building up and strengthening EU activity in battery material supply is imperative to reduce the EU future dependence on imported battery component materials for cell manufacturing.”

(Brussels, 22.11.2018)

Around the same time late 2018 as reported via Reuters, BASF and Nornickel have been busy in a JV and are now set to see that foreward planning realise a cathode plant in Finland late 2020 early 2021. (BASF btw have been segueing into cathode market with takeovers since 2012)

Factor in Northvolt and Guoxuan not least CATL, there are a few EV battery makers in development in the EU. As for BASF as well known by now they have a small supplier for lithium carbonate?¿ in Namibia based on stockpiled material. I haven’t looked into it much but one thing is clear, it’s a Canadian Company in Namibia. BASF corporate profile requires a strict code of ethics to invest. So my HKTD sees DRC as a more vexing jurisdiction for such a Chemicals giant to navigate but since the new presidency in Kinshasa that’s easing according to my BTD. Australian AVZ minerals may well improve the scoping for this giant. However as is not reported so well there is not one EU based consortia but three for the entire supply chain in EV development.

And BASF is in the first one, the second involves 14 countries and 50 odd companies. I can see from this why companies like VW with its numerous partners and scale of economics would need to see a DFS to even look at let alone discuss—there’s a lot of defined due diligence to be covered. The third consortia, is still embryonic, it has no public name as of yet according to BTD.

The future looks bright for demand. And how the weather changes and memory fades accordingly.

What the likes of jazzy tea leaves can’t see and can not hope to control via a smartphone virtually linked to a chat forum is how processing will and is shifting to Europe. Lithium hydroxide will be produced there, and AVZ looks to be saying “we can meet you 90% of the way to lithium hydroxide.”

Considering the future outlook downstream investment needs to happen now for a nearby but still distant tomorrow.