Yes, that's right. The current contracts are for technical grade... but for other reasons other than 'They did not expect to get grade up as quickly'. Fact is.. the product (As of June 2012) met 99.5% before even undergoing the purification process.
Back in June of 2012, Anthony Tse mentioned at the Hong Kong conference that all the offtake of Battery Grade Lithium from Jiangsu was spoken for.
5000 tons is headed to Mitsubishi & the remaining 12,000 is heading to the 13 leading cathode producers in China.
The reason why we're seeing technical grade product being sold is because... During the ramp-up, Lithium product from Jiangsu has to undergo purity inspections based on specifications demand by battery cathode manufacturing customers. This happens on both ends and is the reason it's a lengthy process. As the cathode producers conclude that the product meets specifications, then orders of product will then be shipped at Battery grade spot prices.
GXY Price at posting:
13.6¢ Sentiment: LT Buy Disclosure: Held
