Chengdu Chemphys Chemical Industry Co. Ltd
Moin Moin,
I would like to know more about the potential MOU partner. Apart from the sparse website, the alleged family connection to Tianqi and the Li-South commitment, I know very little.
From the website:
Chengdu Chemphys Chemical Industry Co., Ltd., founded in February 1998, is an Australian-Chinese enterprise. The company is both ISO9001 and ISO14001 certified, we manufacture a wide range of products including high-purity and particular-morphology powder chemical products, majority of which are sold to Japan, Korea, America, Canada, Australia, UK, Germany and China mainland.
Chemphys has over 10 years’ experience producing high purity chemicals for the borate flux market. Our proprietary production processes ensure a consistent, high purity product with exceptional physical properties. We now supply a complete range of lithium borate fluxes and chemical products to customers around the world.
Podcast
But I listened with great interest to episode 76 of the GL podcast with Alison Dai. So exactly 4 years ago. At first I thought that after such a long time the content was just cold coffee. The opposite was the case. Interesting and impressive that Alison Dai was very correct in her assessment (uncertain COVID time!) of future developments:
- Oversupply at the time vs. Future deficit(Quote:‘2023’) as weknow it came earlier than expected, but it came
- optimistic for 2021 - shortage prediction!
- ‘fundamentals not really changed fort he next 3-5 years’
- prediction of Growth ratio LFP/NMC
Maybe Joe should invite the lady again?
Summarised with a focus on lithium:- Producer of high-quality lithium chemicals (niche player)- Converter of high-purity lithium- High level of expertise in the lithium market- Diversified customer base (China, Asia, overseas)- Many years of expertise - First mover (first battery carbonate in China) (first supplier for Japan and Korea) (first qualified hydroxide producer in China)- High volume supplier- Family owned company- Founded in February 1998 and grown as a high-tech company- Strong research & development (R&D) capabilities- One of the world's largest manufacturers of high-purity lithium carbonate and lithium hydroxide for the production of cathode material and electrolytes- Approved by the most important battery and cathode manufacturers- Provides processing expertise- Company headquarters is located in Chengdu, Sichuan Province, the ‘Chinese Lithium Mecca’ (Sichuan holds 57 per cent of China's total lithium ore reserves)- Subsidiary Sinolithium Materials - Stratetic partnership Sorcia Minerals(subsidiary of Ensorcia Metals Corporation) and Sinolithium Materials(Feb 2023)
Sorcia Minerals, which recently announced a $350 million investment in the development and construction of battery-grade lithium hydroxide processing facilities in Europe and South America, continues to expand its projects through this important alliance. Sinolithium will provide the chemical technology required for the conversion of lithium hydroxide to ‘battery grade’ in conversion plants in Europe, Chile and Argentina.- Technology partnership with International Battery Metals Ltd (IBAT.CD) Announced in May 2024 the installation of the world's first industrial plant using Direct Lithium Extraction (DLE) technology
I don't know the financial circumstances of this family business any more than I know the financial circumstances of the Galan board.The fact is that both have a high level of expertise and are signalling their willingness to invest significant sums in HMW.
For me, the Mou is a great vote of confidence and recognition for Galan's Hombre Muerto West Li-Chloride project, from an obviously very successful niche player that has real expertise in both production/technological know-how and exceptional market insights. The MOU would be an agreement between two niche players who can complement each other perfectly in the future(DLE in Candelas?).
Chemphys has exceptional market insights. Of course, DJ also has outstanding expertise. But I think the first mover in China in the high-quality segment for battery materials has the best market knowledge. And a far better partner than the commodities dealer who signed a MOU in Nov 23
Have nice weekend
Smith71
(20min delay)