The US has free trade agreements (FTA) with the following countries which may benefit from the IRA for lithium product manufacturing:
Canada and Mexico: As part of the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA, these countries have trade agreements with the U.S.
Chile: Chile is a significant producer of lithium, and the U.S. has a trade agreement with Chile.
Australia: Australia is a major producer of lithium and other minerals used in battery production. The U.S.-Australia Free Trade Agreement facilitates trade between these two countries.
South Korea: South Korea is involved in the production of batteries and electric vehicles, and the U.S.-Korea Free Trade Agreement promotes trade relations.
Now compare this to the leading countries of downstream processing of Li.
China: China is a global leader in the downstream processing of lithium. Chinese companies are heavily involved in battery manufacturing, and the country has a significant share of the global lithium-ion battery market. NO FTA!
South Korea: South Korea, home to companies like LG Chem, Samsung SDI, and SK Innovation, is a major player in the production of lithium-ion batteries. These companies are involved in both upstream and downstream aspects of the battery supply chain. FTA!
Japan: Japanese companies, including Panasonic and Sony, have a strong presence in the production of lithium-ion batteries. Panasonic, in particular, is a major supplier to electric vehicle manufacturers. NO FTA!
United States: The U.S. has seen a growing interest in battery manufacturing, particularly with the expansion of electric vehicle production. Tesla, an American company, is a significant player in the global electric vehicle market.
Germany: Germany, with companies like Volkswagen, BMW, and others investing in electric vehicle production, has a presence in the downstream processing of lithium for batteries. NO FTA!
Sweden: Sweden is home to companies like Northvolt, a battery manufacturer that aims to play a key role in Europe's battery production. NO FTA!
How much is the IRA actually worth for AKE, Livent or NewCo?
AKE Price at posting:
$9.25 Sentiment: Buy Disclosure: Held