General Discussion Topics, page-122037

According to this article, downstream processing in Australia does not stand much chance without government subsidies.

Is Canada in the same boat, or does cheap hydroelectricity and nearness to the US car and ev battery manufacturers, change the narrative?

In a year or two time, we should get an idea as Tesla and Nemaska open lithium hydroxide plants in North America.

I guess the IRA has been created for this contingency.

“Australia’s largest lithium miners have no chance of moving into more profitable parts of the battery supply chain without substantial government subsidies, according to Dale Henderson, the chief executive of $12.3 billion lithium producer Pilbara Minerals.

Speaking at the Citi investment conference on Thursday, Mr Henderson said a West Australian miner like Pilbara Minerals could not compete with China’s low-cost minerals processing capacity at industrial facilities.

“To be frank, it’s hard to make Australia work given the cost base particularly in the Pilbara region – the labour, construction, and energy costs are high,” said Mr Henderson. “So the first principles case makes it very difficult to justify the investment without more government support if Australia wants to deliver on the ambition of onshoring the value-added processing.”

https://www.copyright link/markets/equity-markets/pilbara-minerals-boss-says-it-cannot-compete-with-chinese-refiners-20231012-p5ebph