To understand what is happening here, one needs to understand Robert Friedland. RF scours the corners of the globe to find the very best resources on planet Earth. https://vimeo.com/152383224
And... if you want the best you need to pay for the best.
At the moment, we are in a colossal tug of war with Tesla over the deal conditions and price. Tesla have signalled at times to CLQ that they are going with alternatives to get a better deal. Meanwhile, CLQ have done the reverse (open letter). The tug of war continues, but it is only a matter of time before the deal is closed because in Tesla and CLQ we have a match. CLQ's innovative technology matches Tesla's continuous drive for innovation. In Elon and RF, they have met their equal.
Media reports last month also allege electric vehicle company Tesla is in talks to buy cobalt from Glencore for its new factory in Shanghai.According to Bloomberg, unnamed sources said executives from both companies negotiated terms of a long-term contract before an official ceremony to mark the first sales from the Shanghai plant in early January.No final agreement has been announced as yet.
Was this a leak by Tesla to Bloomberg to convince CLQ to accept a low-ball offer, or else risk losing Tesla to Glencore?? To this day, there is still no news of a final agreement with Glencore - why would they be holding off if it was fair dinkum? Why did Tesla only sign a short two year ("tie-over") agreement with their other suppliers (CATL), knowing that Sunrise could come online in 2 years time?
"Contemporary Amperex Technology Co. Ltd. won a two-year contract to supply batteries toTesla Inc., a boon for the Chinese giant competing against rivals such as Panasonic Corp. in the electric-vehicle market. CATLdisclosed the contract that runs from July 1, 2020, until June 30, 2022, in a statement Monday. CATL said the so-called production pricing agreement is still non-binding, and there is no certainty for the quantity that Tesla will purchase."
The puzzle pieces are falling into place. We have picked a winner. We have picked the best technology in the world. We have picked the best team in the world. We have picked the best Co/Ni/Sc resource in the world.
Now we wait. Because waiting moves the pendulum towards CLQ.
(20min delay)