Eye on Lithium: Tesla eyes Texas as the location for its first lithium hydroxide refinery
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All your ASX lithium news for Friday, September 9
Word on the street is that EV giant Tesla is looking at Texas for a lithium refinery and we’re not really surprised, after all just a few months ago he said lithium refining is basically a licence to print money.
Late night scoop with @shellykhagan: Tesla is evaluating building a lithium refinery on the Gulf Coast of Texas — with a site in Louisiana as an alternative if TX tax breaks don’t come through.https://t.co/RXSEf7xXJR$TSLA
— Sean O’Kane (@sokane1) September 9, 2022
The facility would process raw ore material into a usable state for battery production which would be packaged and shipped by truck and rail to various Tesla battery manufacturing sites “supporting the necessary supply chain for large-scale and electric vehicle batteries,” the company said.
The car-maker has filed for tax breaks with Texas Comptroller’s Officer – which is like the States’ chief tax collector and treasurer.
But in case that falls through, apparently Louisiana is also an option.
A solid 65 stocks were in the green, 38 were flat and 28 were red.
MinRes was up nearly 12% to a record of over $70 a share after the AFR reported JP Morgan was pricing up a proposed New York listing for its lithium business.
MinRes’ lithium assets — stakes in the Wodgina and Mt Marion mines in WA as well as minority interests in downstream processing — generated $585m in EBITDA alone in FY22, nine times MIN’s iron ore business.
According to the Fin, brokers say the company is keen to chase higher multiples producers like its US JV partner Albemarle is getting as a pure play lithium producer and realise billions in value from the canny investment it has made in the battery metal.
Ellison has also stated his desire to sign up a major battery producer to build a battery plant in WA as a long term growth target.
MinRes put out a statement addressing the report today. It didn’t deny it was looking at a potential demerger, but that “any previously undisclosed potential strategic initiatives being considered by MinRes are not sufficiently advanced or certain to warrant disclosure.”
LPI has raised $25 million via a placement at $0.60 per share to progress and accelerate development of its Maricunga brine project in Chile.
Specifically, funds will be applied to the operational and pre-construction costs for the project and the increased operational compliance costs associated with the acquisition of the ownership of the Chilean and Canadian joint venture partners in Maricunga project.
CEO and MD Cristobal Garcia-Huidobro said the cap raise is an “outstanding endorsement of Lithium Power’s ambition to rapidly advance the significant Maricunga lithium asset and capitalise on the rapid global shift towards the electrification of transport and infrastructure.”
“Investing in green technologies is essential to ensuring the battery revolution and the delivery of clean, green energy that the world is eagerly awaiting.”
ASKARI METALS (ASX:AS2)
The company has wrapped up field mapping and sampling at its Barrow Creek project in the NT, which targeted an area in the south-central part of the project.
The area has lithologies analogous to those LCT-type pegmatites already mapped and sampled in the northeast and southwest area of the project, and it looks it could provide some exploration upside to the project, with a large pegmatite field identified and 139 samples pending assay.
“The pegmatites are the most continuous and extensive we’ve uncovered so far and so warrants the enthusiasm we feel for the project,” VP exploration and geology Johan Lambrechts said.
“The company has long since commenced the process of acquiring the documentation and permissions required for drilling and await their approval.”