Interesting written interview about the lithium markets: http://www.investorideas.com/news/2011/mining/10262.asp
Couple of points I would pick out:
"TER: As far as you are aware, is anyone developing any competing technology?
JL: No. When you look at where lithium is on the periodic table, it's on the top left, so it's the cathode of choice because of its energy density."
"JL: Recently, demand has been strong and the majors are expanding. But we believe there will be space for companies to enter the market because the four majors will, at some point, max out on capacity. We think there is space for some of the juniors. In the short or medium term, you may see companies that have strategic investors who may pay up for the security of having that supply in an offtake agreement. If one of those strategic investors makes a more substantial equity investment in the near future, we think that shows that the customers are more worried about the security of supply rather than price. And that could bode well for some of these juniors."
"JL: I think the lithium business is strong. I'm seeing strong growth in the near term. With the consumption of lithium in consumer batteries, you'll see substantial growth, especially with the implementation of transportation vehicles. Companies are committing hundreds of millions of dollars in capital to build these plants. We think that's a leading indicator of where demand is heading."
GXY Price at posting:
22.0¢ Sentiment: ST Buy Disclosure: Not Held
