Perspective from a relatively unsophisticated US investor:
A couple years back, the way that America lost the war for access to DRC copper resources was major news here. After the fact and in retrospect, the US government realized that it had allowed China to box the US out of the DRC’s copper resource through strategic acquisitions and corruption. While China assured its position, the US did virtually nothing.
Things have changed now - hopefully a lot -and the US appears determined not to repeat its mistakes in DRC insofar as lithium is concerned. The US Dept of State has an entire division devoted to energy security and associated diplomacy. The head of the unit - Amos Hochstein - understands the dangers here and China’s intent to capture the vertical lithium industry, just as it did with cobalt. My belief here is that the US is leaning very heavily on the DRC not to capitulate to China in the lithium sector through both the carrot and the stick.
Who knows what this looks like on the ground? I’m guessing that somehow a Middle Eastern partner with deep pockets and green energy ambitions is found to acquire/shore up AVZ and proceed to development.
AVZ Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
