There is a confusion about lithium producers. No one in...

There is a confusion about lithium producers. No one in australia produce lithium. Australia hard rock mines produce lithium minerals (spodumene), brine miners produce lithium chemicals. Converters produce carbonate and hydroxide.
From the yahua website, there are 7 levels of chemicals.
1. High purity carbonate.
2. Industrial carbonate.
3. Batterry grade carbonate.

4. clean level hydroxide.
5. High purity hydroxide.
6. Industrial grade hydroxide.
7. Battery grade hydroxide.
They are of different prices.

Not all spodumene can be converted to battery grade LCE, for the same cost. It all depends on other minerals/ chemicals within the deposits. The assumption that all spodumene from Australia to become bg LCE is false. Less than half of all LCE produced in the world is battery grade.

The projection for EVs alone is more than the total world supply in the next two years of all LCE. Remember that only half is battery grade. The banks and journalists try to confuse people with the word LCE. Battery grade LCE currently stand at less than half of what is needed.

Spodumene miners are currently getting margins less than 300/t after costs. Many are making a loss. Brine producers are making 5000/t after cost. Spodumene miners don't produce LCE, the converters do, they also keep the profit margin.

Spodumene must be converted to a carbonate before hydroxide. BG carbonate and hydroxide require another step. A converter can produce hydroxide from spodumene only if they produce carbonate product first within the same facility.


We can assume the SP of all lithium miners are being manipulated. The SP fall when the chinese price fall but doesn't rise when the chinese price rise. Talk of oversupply and yet WES, RIO,BHP etc want in, Odd? The chinese are buying all over the world but also claim they have the most. What a load of rubbish. Chinese technology is totally dependent on imports. They also reverse engineer goods on market from other countries.

The tariff should have been raised 25% 20years ago. Jobs and technology would have remained intead of going overseas.
World minerals have been going to China for less than what locals are charged. China get LPG for 20c, Australian pay 60c. High quality farm produce go to china and in return, receive imports from china backyard farms. China no longer produce enough food for its population, they must import.

The A40 investment is trategic, in that it protect A40 from a cheap TO. A40 need the money. They are running on empty. It also keep a premium price for both companies. They can direct products to the higher converter. The investment also lock Ganfeng out. Gxy and A40 can direct their final product to non chinese battery makers, tier 1 battery makers.
Chinese markets are for local. Non chinese are export. There is a big difference.
Shell and BP are in the EV space, caltex are losing margin on refinery cost and are looking to enter electric.  The US and Europe will protect their car and technology industries. Labor cost has moved from china to other countries and soon companies and their tehnologies.