https://www.pm.gc.ca/en/news/news-releases/2024/04/25/honda-build-canadas-first-comprehensive-electric-vehicle-supply-chain
"And the world is taking notice.
The Prime Minister, Justin Trudeau, and the Premier of Ontario, Doug Ford, today welcomed Honda Canada’s milestone investment of approximately $15 billion to create Canada’s first comprehensive electric vehicle supply chain, located in Ontario.
This large-scale project will see four new manufacturing plants in Ontario. Honda will build an innovative and world-class electric vehicle assembly plant – the first of its kind for Honda Motor Co., Ltd. – as well as a new stand-alone battery manufacturing plant at Honda’s facilities in Alliston, Ontario. To complete the supply chain, Honda will also build a cathode active material and precursor (CAM/pCAM) processing plant through a joint venture partnership with POSCO Future M Co., Ltd. and a separator plant through a joint venture partnership with Asahi Kasei Corporation. Once fully operational in 2028, the new assembly plant will produce up to 240,000 vehicles per year."
This is simply huge investment. Anyone who believes that the EV revolution is dead or that there will not be significant demand growth for lithium is very much mistaken imo. Sayona is front and centre in Canada, we are the only producer currently and have the largest proven resources (Patriot is years away with billions needed to get there). Moblan has a completed DFS and is ready to go with the right willing and able partner, and NAL will chug into being a highly profitable and leaner meaner machine by the second half of this year as the only source of hard rock lithium raw material currently in Canada.
Our current valuation is simply crazy and as this North American supply chain gradually becomes reality Sayona's strategic importance will be impossible to ignore. China will no longer be able to control the price rhetoric when there are refineries and processing plants in North America and elsewhere. The importance of local, clean green lithium that is IRS compliant and does not require thousands of miles of shipping will be critical and in very high demand.
Exciting times. In time, with news like this and gradually increasing prices, sentiment will shift once again after the freefall of this last year.
As a parting thought, just remember, if prices were to reach say US$2000/t for SC6 again which is entirely realistic imo as a long term price, and NAL's production is around US$800/t currently, then we're looking at US$1000/t pre tax profit per tonne of SC5.4. So on just the none offtake 113,000tpa (which is sounding like it could actually increase beyond nameplate) that's a NAL PROFIT of A$173,700,000 per year.
That's half the current Sayona market cap lol.
(20min delay)
