A key reason for this is having SQM as its joint venture partner. Listed on the New York Stock Exchange with a US$15bn market cap, SQM is a globally dominant producer of battery grade lithium carbonate. It has been producing lithium carbonate for over 20 years and has 300-400 lithium customers around the world. As the Mt Holland project develops, SQM will be able to provide technical expertise, access much cheaper debt for the JV, and more importantly will be able to act as the marketing agent for Kidman’s 50% share. This means it is unnecessary for Kidman to be focusing on signing offtake agreements like many of its competitors. The deal also means that KDR should now be fully funded through to the completion of the mine development.
