I don't know if RIL is in a better position per se, at the moment you could argue that if/when MB move to 100% EV manufacturing, then NMT would be in the front seat. But when's that going to happen? It could be a decade away or more, who knows. RIL might get off to a better start in the short term with their current feedstock supply, but NMT could move ahead if & I repeat if Stelco & MB both move forward with the construction of a 50tpd plant.
Both companies are operating under two different business models, so both have their advantages & disadvantages.
NMT wants to lean more towards licencing deals & building plants for other entities, so those entities can retain ownership over the battery materials & NMT will collect royalties. Basically, everyone else does the "dirty work" while NMT collects the "dough". Now imagine that scenario on a global scale.
RIL at the moment wants to focus on national battery recycling schemes. It operates in Europe only & wants to own physical plants and then pay a royalty back to NMT. Basically, RIL is doing all the "dirty work" & sends a royalty back to NMT. Now, that could change because if I recall correctly, in the areas under the former Greenhouse licence, RIL can issue a licence to other entities. How the royalty payments to RIL & NMT will work under that scenario, I'm unsure.
There's a lot of flexibility in both business models, so at the moment it's hard to tell who's going to be in a better position over the next few years. RIL has the equivalent of a 30tpd plant now, so if they're built over the next year or two, then RIL would be in front. But for how long? NMT could race ahead with multiple global deals.
RIL might score a gigafactory deal in 5 years while NMT is still waiting on MB.
Who knows mate, your guess is as good as mine.
NMT is global and RIL is regional. NMT wants to sit back fat, dumb & happy collecting royalties while RIL pays royalties & does the dirty work. NMT owns the licence while RIL is using the licence.
Success will depend on the scale & type of clientele that can be secured.
RIL Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
