The "Lithium market balance" chart, accounts for ALL supply and...

The "Lithium market balance" chart, accounts for ALL supply and demand. Much of the world's current Lithium supply falls into the category of industrial grade, especially the Brines.

At RRS, Ken highlighted the rapid growth of the LiOH market in recent times and the usage of Spodumene as the precursor. Also, that POSCO is using PLS SC6 to produce the highest quality LiOH on the market today!

7.18 "In the last 2 years there has been 4 times growth of LiOH exports from China to Japan and Korea ... almost universally delivered via the Spodumene supply chain. That growth equivalent in volume to the size of PLS Stage 1. Its happening and its happening quickly".

"In Korea, Spodumene is stealing market share from the brines for the production of LiOH".

10.55 "Where are we headed in the next 10 years? Well for the amount of Spodumene demand expected, the world will need 25 Pilgangooras. 25!"

"75 Pilgangoora's are required in the next 20 years. Its big, its big, its big".


Shortage timelines will differ between "EV battery quality Lithium" and low grade quality.

Certainly the Lithium majors like SQM (low grade brine), Tianqi and ALB (Greenbushes) have been flooding the market where they can, to impede emerging producers, resulting in low prices generally. SQM have been having trouble producing quality, while Tianqi and ALB have been pumping Greenbushes. At least PLS and Wodgina have acted responsibly.


My point is we're seeing rapid change in adoption of high nickel EV batteries. Further, against a scene where Europe is about to overtake China in terms of monthly sales volumes of EVs ... this year!

If anything, the recent success of BYD's LFP (short range, lower energy density than high nickel) EV batteries is because of EV battery supply shortages, IMHO. Certainly Elon Musk has said many times this is his fear.

Yahua Lithium, Yibin Tianyi, General Lithium, Ganfeng, POSCO and others, all building chemical conversion plants this year or the next and all requiring Spodumene.

Based on all this, I believe the demand for "battery quality" Lithium and precursors will react faster than that chart indicates.


AJM ASX Ann. this morning, further bearing testament to Pilgangoora quality and customer demand. An offtake with "Take or Pay" provision ... indicative?


Only 11 days til the end of this quarter. Interesting to watch the Instagram photos of mining taking place (seemingly) throughout the whole quarter. The official stance is PLS is still in campaign mining and production but you'll note Ken says in the RRS Seminar speech at 2.50, "we have a production run happening, as I speak to you now".

With the recent unheralded shipment, PLS looks to achieve sales guidance for the Jun20 quarter.

Its all coming together. Europe EV sales stimulated and improved. Stimulus from China, to restoke EV sales has been intimated and will be the next good pump, for the entire Lithium sector.

4.20 "We've had every man and their dog on that list complete due diligence".
4.58 "Our expectation is presentation will be made to the POSCO Board during the Sep20 quarter about the downstream JV".
10.00 "This year Europe will overtake China in the consumption of EVs"

https://www.youtube.com/watch?v=FRo8egmTWig