SDV holds a million tonnes of LCE... probably more considering Posco’s significant upgrades to the north.
50ktpa will probably cost circa $1b to build and commission and ramp up, and production over 20 years might cost circa $5b in total.
For someone like Tesla, buying LCE at 50ktpa for 20 years will cost them about $10b, give or take... could easily be $15b when a broader supply shortfall causes supply and pricing pressures...
So, there are billions in potential savings to be had, even if some big fish (Tesla or otherwise) was to pay over $1b for a resource like ours.
It’s all about the business case - risk, timing and $$.
I’m sure they have plenty of smart cookies looking at things like this; in fact I recall that Vivas Kumar guy (ex Tesla) mentioning some similar concepts, illustrating that they are indeed recognising these future needs/ possibilities/ opportunities.
Anyway, fwiw I hope we press on ourselves, perhaps with a JV to expedite expansion and sell at good margins for decades ahead...
Imo
DYOR
GXY Price at posting:
$1.45 Sentiment: Buy Disclosure: Held
