High Voltage: Where’s the spodumene coming from?
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Each week our High Voltage column wraps all the news driving ASX battery metals stocks with exposure to lithium, cobalt, graphite, manganese and vanadium.
General Lithium, China’s 4th largest producer, wants to have a new 60,000 tonne-a-year lithium chemical convertor up and running by the end of 2020.
The problem is that General Lithium – which will consume an estimated 135,000 tonnes of spodumene concentrate this year — doesn’t have enough supply to feed this new plant.
“We need more. We are in very frequent contact with all the major guys,” the unnamed official told Reuters.
Scroll down for a table showing the recent performance of 200 ASX battery metal stocks >>
Currently, General Lithium has offtake agreements with producers like Pilbara Minerals (ASX:PLS).
But it’s also playing the long game, recently signing an MOU with aspiring producer Birimian (ASX:BGS).
General Lithium might need Birimian to come online sooner rather than later.
There’s a common myth floating around – EVs are no cleaner than combustion engines if they use electricity generated by traditional sources, like coal.
That’s incorrect, according to new study.
Researchers found that even when electricity is generated from combustion sources, electric vehicles have a net positive impact on air quality and climate change.
“Across scenarios, we found the more cars that transitioned to electric power, the better for summertime ozone levels,” author Jordan Schnell says.
“No matter how the power is generated, the more combustion cars you take off the road, the better the ozone quality.”
So, there you go.
Of the battery metals players on our list, 57 advanced, 50 remained steady and 85 lost ground this past week.
Renascor Resources (ASX: RNU) had a really good week.
The graphite play confirmed that it’s received in-principle project finance support from the Dutch government for its Siviour graphite project in South Australia’s Eyre Peninsula.
The finance contribution could potentially cover around 60 per cent of mine development expenditure.
It’s still very early days but investors loved the news, sending the stock up 33 per cent for the week.
In March, lithium explorer Lepidico (ASX:LPD) said drilling at the Alvarrões mine in Portugal suggested a massive resource upgrade was on the way.
Last week, the explorer unveiled a resource which is 210 per cent bigger, helping boost the stock by 24 per cent for the week.
Lepidico is on a golden run right now, with the share price up over 150 per cent since the start of February.
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And fellow lithium play Piedmont (ASX:PLL) says it remains on track to start construction of its namesake project in North Carolina in early 2020.
“As the only conventional lithium project in the USA, we have attracted considerable strategic interest and have engaged in initial conversations with parties in the lithium, mining, chemicals, battery, automotive, and private equity sectors,” Piedmont CEO Keith Phillips says.
“We plan to appoint financial and legal advisors in the coming weeks to assist in the evaluation of strategic and financial plans as we approach a construction decision.”
The explorer certainly attracted considerable interest from investors last week, who sent the stock up 24 per cent.
Here’s a table of ASX battery metal stocks with exposure to lithium, cobalt, graphite, manganese and vanadium>>>
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop.