At least LIT "don't have all their eggs in one basket"!
Diversification is can actually increase the chances of success. It also leaves more options open.
Some people may argue that LIT is changing their strategy on the go. However, it looks straight forward business to me.
The joint ventures are a common strategy in the mining industry to spread risk & increase exposure to greater areas of exploration. The deal with POS also provides infrastructure and scope to expand plant and equipment (eg SiLeach plant) for processing of metals used in lithium battery production. There could speculation about outcomes, but appears to be a "no brainer" if there is the ability to conduct toll processing or sourcing ore material from the surrounding mining tenements.
Moreover, LIT has mentioned several times in the past year that it was looking into Lithium battery recycling. Hence, it was not surprising to see the announcement for VSPC and recycling. The cathode industry is also growing very fast. Several soon to be built battery factories are signing contracts to supply materials and parts, such as raw graphite and cobalt (for anodes) and cathodes etc.
As an investor, I am pleased that LIT was able to get two new sites (POS and VSPC) with existing processing plant infrastructure and with little or no cash outlay. It should result in a lower level of expenditure and much faster planning approvals (little or no new environmental studies, scoping studies or public disputes over site use etc) required to expand operations on the existing sites with prior approvals.
