Would this be a high concern :
Plant moves into commercial ramp up stage to supply customers with lithium carbonate for final product qualification.
Customer contracts typically detail a volume commitment at an agreed price for a period of 12 months. The final stage of the customer product approval process varies with the time it takes to be completed. Technical grade customers typically need 1 month to grant final approval, while battery grade customers need 3-6 months. As a result of Orocobre continuously providing samples over a number of years from the pilot plant, customer approval processes will take a maximum of 3-6 months, rather than from 3 months to 2 years as would have been the case without pilot plant deliveries.
What if this fail ? 3-6 months really ? What kind of approval is that ? I bet it is really strict one that one need to make decision for 3 months. Basically they are not selling anything until 3 months or approval has been received ?
ORE Price at posting:
$2.51 Sentiment: None Disclosure: Held
