Lithium is also used as a mood stabiliser and industrial lubricant.
With the current prices i bet it's flying over the counter, i sure could use some.
But more importantly:
Year over year, quarter over quarter, EV sales are growing at an exponential rate, Energy storage systems even more so.
The world has become heavily dependent on lithium based batteries, used in everything from our cars to our mobile phones, as well as for storing energy. Even the military usage all over the world, from drones to submarines and satellites must use their fair share also. I know China has upgraded their subs with newer generation Li based batteries.
And at the current adoption rate it would be (imo) impossible to keep up the narrative of a surplus much longer, using "dark pools" of lithium from state subsidized lepidolite mines and unofficial African sources. But they will still try as long as they can.
While those who has reached production and profitability are trying to increase output to feed the market, we also see some (quite a few) projected future producers doing the opposite and scaling down, if not giving up entirely due to the artificial low prices from China.
I'm very convinced that if the bankers/analysts took a big red pen and ran through their estimated future suppliers they would have writer's cramp at the end. And maybe also an eye opening experience. Turns out reaching production of Lithium Concentrate and Lithium Chemicals is also hard and often more expensive than projected.
Some of the projects are not blessed with infrastructure from start, and permitting and construction can be a long and expensive journey.
Lithium chemicals such as Hydroxide is very hygroscopic (taking up and retaining moisture) and shelf life is app. 6 months. That alone makes storing and transporting the chemical from the other side of the world a possible costly endeavor.
I can't for the life of me buy a sodium based storage battery yet, and at LFP prices it would be silly to try. US$87/kWh for Sodium Ion (Na-ion) vs The LFP battery price in China which is currently $70 per kWh, projected to be less than $56 per kWh within months.
Longevity is also improving rapidly, funny thing is that doping the cell with more Li during first charge is one of the tricks that does it.
More Li is also needed in the solid state (semi solid) batteries. and the lithium metal batteries.
Can be difficult to block out all the daily headlines and clickbait, and focus on what is possible and when/if it will be possible and profitable.
Also difficult to sort through what is a real breakthrough irl, or what is a song and a dance for a grant or funding of your project.
We are mining battery grade spodumene in real life, sending it through a real existing actual concentrator and loading it on a real choo choo train, shipping it to a real customer on ships and trains, getting real money for it. And this is more that any other project in north america (except the single small chinese owned one) are doing. And possible more that they will be able to do for years. Sure half a decade from now some will come online, not the submerged one with high grades in the middle of the massive lake if you ask me, but some will.
And if we are lucky and skilled enough to get our opex down a bit, and i believe we are and we can, we will be not only generating cashflow but also income/revenue.
Next two quarters will be crucial imo. and i'm looking very much forward to see what Mr Sylvain and Mr Brown has been doing behind the closed doors.
I really think they are able to make us profitable. But also very aware that a Business savvy CEO is needed to bring us to the next chapter. No way the current bunch will ever land a deal we all can accept, and we deserve that.
So even if i am cheering for Brown and Co. to hit production goals, i also hope they realise their shortcomings when it comes to running the business part.
Just the massive blunder when it comes to communication with the owners (shareholders) is enough of a mistake to make my blood boil.
We were promised at the AGM that communications would improve, and i do not forget or forgive broken promises !
Looking forwards to see this quarters numbers, and to hear what's been going on behind the closed doors and windows during the IR lock-down !
Our portfolio of options are still so very attractive, perfect actually. Nothing wrong with them at all.
/J
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