General Discussion Topics, page-70709

Well, in order to get this thread out of the ditch lets discuss why KP is in Asia.

IMO a few potential reasons.

1. To negotiate a deal to sell his portion of Sayona Off-take.

This could be what it is, but I am not sure how many would be interested in an 18 to 24 month agreement, that could end sooner. Remembering that when you change spodumene supply source you have to re-configure your plant to the new source at a fairly big expense. However it is possible that someone who has a deal with Lake or Liontown that won't kick in til later might need this as a gap cover and are willing to eat the cutover expense.



2. To negotiate the sale of his 25% interest in SYAQ, which he can then use to finance his LIOH-2 Plant.

Selling PLL's 25% stake in SYAQ would allow PLL to self fund their LIOH-2 Plant which would then make enough funds to build the Carolina Lithium project. In all likelihood if PLL does not take this approach they will be giving up a % of their project to someone else. Running the numbers of a 50/50 JV with someone else and keeping the SYAQ 25% vs. 100% owned and paid PLL seems to indicate that the 100% owned would be more favorable.


3. To work out a deal that pays for his LIOH-2 plant but gives up a portion of PLL in return.

This would mean they are looking for a dance partner, someone who would take a % interest into the project, and potentially fund fund the construction of the LIOH-2 plant. To me this is looking less and less likely because the reason you would want this option is if you saw a potential for retreating prices in the next decade. Clearly KP does not believe this and has even said we wont have enough supply world wide to keep up with demand through 2030.


My thinking is that option 2 is most likely, but maybe other would like to chime in with other theories.