You just need to look at a lot of products coming of China they...

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Roller62

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17/10/19

12:34

Post #: 40929638
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Originally posted by Deboss: ↑

Excellent write up @Scarpa on blending and short term gains leading to later issues for converters and may I add perhaps battery makers and EV brands in particular?

Even if vertically integrated…………..that is, no longer sourcing from different miners to make a blend……… unless the ore body extracted from does not have sufficient consistency as a feedstock, the conversion cost problems will continue because thin veined pegmatites hosted in same hosting region don’t necessarily have the same geological characteristics………. and even in one pegmatite you’re sooner, or not-much-later, hitting contact zones where impurity counts are high and nigh impossible to occlude in an efficient manner. This is the case with just about every lithium play bar Talisons and AVZ.

I cannot see proof of any current SC6 producer coming close to Greenbushes and that I think is not just technical but the actual endowment in the ground………….. I note today AJM say they have an excellent product without saying what it is.

This is what I don’t get about LTR........... PLL also, even if externals are very good to keep costs down, are you actually going to make a consistent product when the drill hole data says bleedingly no? The answer is, discreetly, lithium hydroxide plant integration.

However it is not clear to me that this integration. will be cost efficient or how effective from month to month as the @PASBOZ quote from Tianqi Lithium suggests there are impacts on end lithium products achievable at a consistently large scale of production and it all starts with the incontrovertible facts in the ground.

The other factor more inchoate but decisive for BG lithium, we need to see more pressure applied with, is China enforcing battery standards if it wants to compete with tier one makers and to reduce EV battery recalls. How much global EV brands will demand Best Quality materials to safeguard their brand reputation as well as against warranty claims is a moot question.

With the above I see the EV industry needing increased certainty on quality of materials in the supply chain and for a long time.

Right now though China is thuggish........

All IMO & DYOR

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You just need to look at a lot of products coming of China they may be cheaper than elsewhere, however you get what you pay for. This seems to be the Chinese mentality cheap cheap cheap but not necessarily quality.

AVZ Price at posting: 4.3¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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