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Lithium Americas: An Update On The Court Case For Thacker Pass
Feb. 17, 2022 1:55 PM ET Lithium Americas Corp. (LAC)
Austin Craig
Summary
We cover timeline updates to the legal case at Thacker Pass. This might be useful for options traders to know.
General market fears are explored to include inflation.
Big picture lithium demand is covered. This demand will push projects via funding. If you build it they will come.
I've noted confusion on various forums concerning dates for Lithium Americas (NYSE:LAC) Thacker Pass project and the associated lawsuit. The purpose of this article is to give the reader updates on the timelines the court is looking at, some general musings on inflation, and corresponding updates to big picture lithium demand by major players. Consider this article a minor update.
Recent Developments & Court Dates
Reading in the forums you will encounter conjecture concerning court dates, which range from the Thacker Pass lawsuit will be wrapped up in February to April. First, we must realize that the court case has morphed into two actions: We can see the case and then an appeal for the injunction by looking at Pacer Legal.
Lithium Americas Thacker Pass Lawsuit
Thacker Pass Lawsuit
Source: pacer.uscourts.gov
Checking on the older of the cases (3:21-cv-00080-MMD-CLB Bartell Ranch LLC et al v. McCullough, et al) which most investors are watching, we see an Event filed date of 1/26/2022 and a Due/Set date of 3/04/2022.
174 Motions Deadline 01/26/2022 03/04/2022
(Source: Pacer Legal)
This tells us no court conclusion till sometime after this (at the earliest) and you still have legal delays and possibly additional appeals to be dealt with. A good guess would be April-May onwards for case #1. It also appears a hail Mary appeal has been filed for the preliminary injunction (Per Case 3:21-cv-00080-MMD-CLB). The odds of this appeal being successful are very low in my opinion, but it is worth noting for general situational awareness.
01/18/2022 4 Filed clerk order (Deputy Clerk: LCC): A review of the record reflects that this appeal, filed January 6, 2022, is a preliminary injunction appeal. Accordingly, Ninth Circuit Rule 3-3 shall apply.
(Source: Pacer Legal, Case 3:21-cv-00080-MMD-CLB)
We can also see a bit of a civil war within the Plaintiff ranks as multiple lawyers leave the case.
Lawyers leave the case (Pacer legal system)
(Source: Pacer Legal, Case 3:21-cv-00080-MMD-CLB)
In the main case, Obama appointee, Judge Du, did mention that she wants to wrap up the case by construction season. Per the December 27th Pacer court document #155 - Page 6 we see:
Lithium Americas - court timeline aspirations
Court Timeline Aspirations (Pacer Legal)
(Source: Pacer Legal - Highlights are the authors)
Typically, the construction season would be after the weather in northern Nevada turns favorable in April for construction. Hence we see the intent of the court to try to get this resolved somewhere near this time frame give or take due to delays.
A Realistic View of Market Risk
While I'm going to get to the big picture view of lithium, one cannot ignore the overall market trend. We are in a strange period where the government has really backed itself into a corner. Interest rates are abnormally low. Supply chains are disrupted and continue to be challenged. The labor market is a really strange one with "Help Wanted" signs everywhere and very good wages for unskilled labor, yet, somehow these jobs go unfilled. I find that most perplexing.
I've noticed prices for food have skyrocketed. Some of my personal observations are: Canned black olives are up 104%. Canned mushrooms are about the same. A frozen pizza which was $5.75 or low $6's is now $8. Of course, fuel is up as well. Housing has gone loco and rent is up 71% for some listings. The used car supply is tight, forcing consumers towards new cars. Meanwhile, new cars are being impacted by a semiconductor shortage. Frankly, it is rough times for anyone economically challenged. Something must give and the Fed is terrified of doing anything meaningful before midterms.
The Fed realizes that if they do what is necessary, they will send the nation into a recession. Remember Federal Reserve Chairman Volcker from the 1980's? He was not afraid to do what had to be done. Recessions are normal: they are part of the business cycle. During prosperity, weaker businesses can survive but eventually the party ends. These businesses fold or merge into stronger companies and the cycle continues. Chairman Volcker indeed shook the tree (perhaps to the point of insanity), but I see some parallels to modern times. Per the article.
"Many economists still argued that the Fed could reduce inflation gently, without causing a recession, by raising interest rates just enough to slow economic activity. But Mr. Volcker said inflation had become a self-fulfilling prophecy. People had come to expect prices and wages to rise, so they borrowed and spent more and demanded larger pay increases, and prices and wages rose.
The Fed had been promising to crack down on inflation for more than a decade, but it had repeatedly caved into intense political pressure so as to avoid a recession. Mr. Volcker decided a dramatic gesture was necessary to convince the public that this time would be different."
My best guess is they continue to hint at small raises; then we start seeing them as the quarters roll by, but frankly little 1/4-point or even 1/2-point raises are just a drop in the bucket to fight inflation. Some economists even say (and I concur) that the Fed is backed into a corner.
On the flip side, I have come across some discussions where people think that easing supply chains and productivity increases might result in lower inflation. I suppose time will tell. Keep some powder dry just in case.
Lithium Demand
Moving back on topic, let's look at some big picture lithium demand. It is this demand that will push project funding and acquisitions. The cream of the crop is being picked over by bigger fish. Millennial Lithium was acquired by Lithium Americas. The Chinese bought Neo Lithium and CATL is still on the prowl. Let's look at demand and lithium news. When you are reading over this, realize a sea change is coming. One day you will be able to tell your kids that you grew up when electric cars were not the dominant form of travel:
Unconfirmed reports place Ford at investing $40-50 billion in EV.
A Porsche Taycan goes coast to coast on 2.5 hours of charging.
Firestone offers charging stations.
LG Energy to spend $1.7 billion on battery factory in the US.
Glencore & Britishvolt to build lithium / cobalt recycling plant in the U.K.
US Gov to put $5 billion into EV chargers nationwide over five years. An additional $2.5 billion will be released later on. (Total $7.5 billion)
EV models will double by 2024.
EV Models to Double by 2024 (Visualcapitalist.com)
(Source: Visualcapitalist)
Conclusion
The above court timelines for the case could be useful for options traders to know concerning what time frames they might trade around.
The real catalyst for Lithium Americas is going to be the ruling on the legal case concerning Thacker Pass in Nevada. If the BLM decision of approval is upheld via a successful court case outcome, I think the stock will react in a violently positive fashion. The inverse is also true. Yet, one must wonder what happens to lithium investments in America if the court happens to side with the prosecution? Given that many mines can take 10 years to obtain permits, fully fund and build out, a negative ruling might have a very negative impact on aspiring lithium miners across the United States. Hence (with the support of the Biden administration and an Obama appointed Judge Du) I view the odds favorable that the court will uphold the BLM approval for Lithium Americas.
This article was written by
Austin Craig
Disclosure: I/we have a beneficial long position in the shares of LAC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: We also own long calls.
We have sold covered calls as well.
The Thacker Pass lithium mine project north of Winnemucca came closer to becoming a reality Friday when the Nevada Division of Environmental Protection issued three permits for the project: the Water Pollution Control Permit, Mine Reclamation Permit and Class II Air Quality Operating Permit.
Lithium Americas Corp. said in a press release that these are “the final key state-level permits for the Thacker Pass lithium project.”
The comment periods on these three permits closed in November and December. With some permit requests, NDEP may issue a decision on the permits within a couple weeks of the close of the comment period, but the Thacker Pass project inspired a lot of comments, and NDEP added a couple extra weeks to allow for additional public input and spent some extra time doing their review.
“NDEP conducted extensive reviews of the mine site plan, verified the air models and calculations for the Class II Air Quality Operating Permit, assessed required bonding for land disturbance and reclamation as part of the Mining Reclamation Permit, and authorized mine operations and ore processing for the Water Pollution Control Permit, including setting monitoring and reporting requirements,” the Lithium Americas press release said.
The deadline to request appeals to the permits is March 7.
There continues to be ongoing litigation over the Thacker Pass project.
The Bureau of Land Management issued a Record of Decision on Jan. 15, 2021. In February 2021, claims were filed against the BLM. In the third quarter of 2021, injunction requests over Lithium Americas’ plan to begin cultural assessment and pre-construction work were denied, and a motion to reconsider was also denied in late 2021.
Recently, the federal court partially approved a request for the inclusion of additional documents from the BLM. As a result of the additional documentation requests, the ROD appeal process is expected to be complete in the third quarter of 2022, according to Lithium Americas.
Tim Crowley, Lithium Nevada Corp. vice president of government and community relations, said the company still needs a ruling from the state water engineer on water rights, and an incidental eagle take permit from the U.S. Fish and Wildlife Service. These are both expected fairly soon.
Crowley said they hope to begin cultural treatment work at the site this spring, and they are on track to begin pre-construction work at the end of this year.
“With the final key state environmental permits in hand, Lithium Americas can begin to advance Thacker Pass towards construction,” said Jonathan Evans, Lithium Americas president and CEO. “Thacker Pass provides an opportunity to enable a U.S.-based battery supply chain for the growing electric vehicle market. Our commitment to developing Thacker Pass in the most environmentally responsible way is demonstrated from over a decade of conducting the necessary planning, design and engagement.”
Thacker Pass is the largest known lithium deposit in the United States, and it is expected to have about 300 full-time employees and produce about 60,000 tons of lithium a year when it reaches full production.
https://elkodaily.com/mining/permits-approved-for-thacker-pass-lithium-mine
Absence makes the mkt grow stronger - All week long
Don't be fooled by slightly negative Futures.....
Frankfurt 16,000
https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Index&symb=DX%3ADAX&x=29&y=12&time=18&startdate=2%2F4%2F1985&enddate=9%2F21%2F2022&freq=9&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&style=320&size=3&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9
Gold busts hard above 18 https://www.kitco.com/charts/livegold.html
Risk On City Week https://investorshub.advfn.com/boards/read_msg.aspx?message_id=167707492
Korea and Hongkong also closed !
Short term down gap closed yesterday like on many stocks who created same with recent market drops everywhere. Point now is, will they continue upward, or the selling continue down to new support levels from here??
Today is Chinese New Year as well so do not expect any Asian impotiss to help support US markets for next few days...
Pretty awesome
Now "official"
LAC scooped up Millenial
At I guess 4.50
Their chart currently looks quite good
https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=ca%3Aml&x=47&y=14&time=100&startdate=2%2F4%2F2019&enddate=2%2F21%2F2022&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&style=320&size=3&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9
Meanwhile
January 25, 2022 - Vancouver, Canada: Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ("Lithium Americas" or the "Company") and Millennial Lithium Corp. (“Millennial”) are pleased to announce the completion of the previously announced plan of arrangement (the “Arrangement”) whereby Lithium Americas has acquired all of the issued and outstanding shares of Millennial. Millennial owns 100% of the Pastos Grandes lithium brine project (“Pastos Grandes” or “Project”) in Salta, Argentina.
https://www.lithiumamericas.com/news/lithium-americas-completes-acquisition-of-millennial-lithium
Lithium Americas Corp.
8,080 followers
4h • 4 hours ago
Lithium Americas completes acquisition of Millennial Lithium, and its Pastos Grandes brine project in Salta Province, ~100km from Cauchari-Olaroz $LAC #lithium #Argentina https://lnkd.in/dQza4GZ6
https://www.linkedin.com/feed/update/urn:li:activity:6891775237281968129/
LAC should acquire TINO that would help bigtime
Cowen Upgrades Lithium Americas to Outperform From Market Perform, Raises PT to CA$50.15 From CA$37.81
2022-01-12 08:33:26 AM ET (MT Newswires)
08:33 AM EST, 01/12/2022 (MT Newswires) -- (MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe.
Millennial Obtains Final Order of the Court Approving Arrangement with Lithium Americas Corp.
2022-01-11 09:32:40 PM ET (Newsfile Corp)
Vancouver, British Columbia--(Newsfile Corp. - January 11, 2022) - Millennial Lithium Corp. (TSXV: ML) (FSE: A3N2) (OTCQB: MLNLF) ("Millennial" or the "Company") is pleased to announce that it has obtained a final order from the Supreme Court of British Columbia approving the previously announced plan of arrangement under the Business Corporations Act (British Columbia), pursuant to which Lithium Americas Corp.(TSX: LAC) (NYSE: LAC) ("LAC") is to acquire all of the issued and outstanding shares of Millennial at a price of C$4.70 per common share payable in cash and shares of LAC (the "Arrangement").
All of the conditions to the completion of the Arrangement have now been satisfied, excluding certain conditions that are intended to be satisfied or waived on or about the effective date of the Arrangement. Completion of the Arrangement is expected to occur on or about January 25, 2022.
Additional details on the te rms and conditions of the Arrangement may be found in the Company's news release of November 17, 2021 available on www.sedar.com.
About Millennial
To find out more about Millennial Lithium Corp. please contact Investor Relations at (604) 662-8184 or email info@millenniallithium.com.
About LAC
Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada, United States. Lithium Americas trades on both the Toronto Stock Exchange and on the New York Stock Exchange, under the ticker symbol "LAC".
Thank you for the updates. I have been busy and was not aware of the reason for today’s rise in SP. I continue to be mostly long with occasional minor swing trades, and I look forward to production this year.
Awesome jbsliverer! Hold some shares for investments and trade some shares along the way. EVs and their relative supply chains are in a secular run.
Just made another 6+% on day trade LAC. Paid me to put a few more into long account.
https://seekingalpha.com/news/3787154-lithium-americas-grabs-two-analyst-upgrades-on-coming-catalysts-valuation
Lithium Americas grabs two analyst upgrades on coming catalysts, valuation
Jan. 11, 2022 10:43 AM ETLithium Americas Corp. (LAC), LITALB, SQMBy: Carl Surran, SA
Lithium Americas (LAC +6.1%) pops in early trading after winning two upgrades: Piper Sandler upgrades shares to Overweight from Neutral with a $41 price target, and Deutsche Bank hikes the stock to Buy from Hold with a $34 PT.
Piper analyst Greg Tuttle says Lithium Americas "holds the keys to a multitude of game changing catalysts" related to the Thacker Pass mine in Nevada, which could receive court permits later in the current quarter.
Tuttle sees management's willingness to deploy capital for road work development on the heels of provisionary permits for Thacker Pass as a positive signal.
Also, Tuttle notes the Cauchari project in Argentina likely will come online in H2 2022, as the joint venture already is priming its facilities to prepare for a slow ramp process.
Deutsche Bank's Corinne Blanchard raises shares primarily on valuation following a 28% drop since late November.
Blanchard taps Lithium Americas, Albemarle (ALB +1.5%) and SQM (SQM +3.2%) as her top picks in the space, seeing the trio as well positioned to benefit from tight supply and rising electric vehicle demand leading to a growing deficit.
ETF : LIT
Millennial Lithium shareholders recently approved Lithium Americas' ~$400M offer to buy the company.
A couple of upgrades this morning for LAC. About 7.5% profit just made for my buys yesterday in less than 24hrs. Not too bad for a hard market. Lets see what the day brings.
January 11, 2022 04:44 AM ET (BZ Newswire) -- News
Deutsche Bank analyst Corinne Blanchard upgrades Lithium Americas (NYSE:LAC) from Hold to Buy and announces $34 price target.
Copyright © 2022 Benzinga (BZ Newswire, www.benzinga.com/licensing). Benzinga does not provide investmentadvice. All rights reserved. Write to editorial@benzinga.com with any questions about this content. Subscribe to Benzinga Pro (http://pro.benzinga.com).
January 11, 2022 06:41 AM ET (BZ Newswire) -- News
Piper Sandler analyst Greg Tuttle upgrades Lithium Americas (NYSE:LAC) from Neutral to Overweight and raises the price target from $32 to $41.
Copyright © 2022 Benzinga (BZ Newswire, http://www.benzinga.com/licensing). Benzinga does not provide investmentadvice. All rights reserved. Write to editorial@benzinga.com with any questions about this content. Subscribe to Benzinga Pro (http://pro.benzinga.com).
3 or 4 years ago: $2.80s--> now hit $30s. Wow.
Been a pretty good success in short term account even after tax bite in and out of dips and surges (sometimes intraday, sometimes a day or two, sometimes longer), in long term account looks like 20 day on a weekly is acting like support for the moment, it might retrace enough to fill the gap at about 25. All depends on the general market (it's in a downtrend with that near term) and I think the market is going to be a bit volatile near term at least and just have to keep on the toes for any enters or exits trading. Long term lithium and LAC is in pretty good shape fundamentally and can see that continuing barring any annihilations from some virus, wars, or meteor landings. Analysts are still giving a moderate buy rating with $23-24 for low end, but even at that low LAC is still way up percentage wise for my long anyways. Some people don't give any heed to analysts (varies with who the analysts are), but more do so it does affect sentiment overall and in turn effects the sp. Last year they were exuberant, but this year I see them toning it down a bit and being more conservative generally with most securities, but one never really knows.
Looks like I did not sell "too soon" at $36 on the way to over 40.
Where do you think support is?
Bear trap: Again more early enticing to bring in new retail $$$ for liquidity purposes, and then will shortsell against that as previously been doing... Driving this closer to new 52 week lows IMHO...
Ganfeng / LAC / SQM / The Sector As A Whole ?
https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=cn%3A002460&x=46&y=9&time=100&startdate=2%2F4%2F2020&enddate=2%2F21%2F2022&freq=1&compidx=aaaaa%3A0&comptemptext=lac+sqm&comp=lac+sqm&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&style=320&size=3&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=13
What Ganfeng does this Fiday Monday could reveal a lot
30.60 +1.29 (+4.40%)
After hours: 5:53PM EST
https://finance.yahoo.com/quote/LAC?p=LAC
The Zacks Analyst Blog Highlights: Albemarle Corp, Lithium Americas, Livent Corp and Piedmont Lithium
https://www.linkedin.com/feed/update/urn:li:activity:6884132787700408321/
Thanks jbsliverer for sharing the article (and sending your message too). A good read.
This article was from last month and the author really does presume a lot, but not entirely out of the realm for LAC, but a couple of yrs in the future IMO. I didn't think too much about it when I read and saved it, but recently there was other statements from a news sources on my EV watch list which includes F(own), GM and TM which is stating how TM had their stock of chips already procured before the chip shortage allowing them to overtake sales above GM for first time. The other auto makers are now forming their own supply lines away from foreign supply including their own lithium battery supply. These continued efforts are giving support for a LAC battery production that this article talks about.
Lithium Americas: Electric Battery Ambitions
Dec. 20, 2021 5:47 PM ET
https://seekingalpha.com/article/4476115-lithium-americas-electric-battery-ambitions
Summary
We summarize why the market has dropped & if this presents an opportunity for the long-term lithium investor.
The Biden Administration's EV support is covered along with a battery push.
Lithium Americas battery plant ambitions are revisited.
Batteries and electric vehicles on a blackboard
Yagi Studio/DigitalVision via Getty Images
Before we get into this article let's look at why the market is a mess. Then we can speculate on Lithium Americas and why I think they will build a battery plant in Nevada.
Messy Market = Opportunity
Emotions often dictate short-term investing and how we respond. If I were to say that Stock X is up 100% from where you bought it, you would respond with joy. If I were to say it is down 25%, you would not be thrilled. If the company is progressing forward and the sector is progressing forward then we need to look past short-term jitters of emotional investors. We need to focus on the long-term situational logic.
I've got a friend who texts me often when the market shows any jitters. It reminds me of the character "Tweak" from "South Park". The truth is the market is going to shake; it will pop up and down; it will get messy. Messy creates opportunities (usually). Take, for example, the decimation of Standard Lithium (SLI) last month over a fake short seller report. This created opportunity. The recent lithium sector downtrend creates additional opportunity.
Looking at Lithium Americas (LAC), Standard Lithium, and Cypress Development (OTCQB:CYDVF), I can't help but nibble and add to my position at what looks like discount pricing. Could things continue to go south? In the short term, absolutely. Long term though, lithium demand continues to grow on the commercial side and on the government side.
In this article we will explore what has pushed lithium down in the short term. Then we will explore the long-term demand by auto makers and the government. Lithium Americas battery plant ambitions will also be revisited.
Short-Term Market Jitters
We are having a Blue Light Special on lithium on aisle #2. The market has been selling off a few names: Cypress Development, Standard Lithium, Lithium Americas and other lithium stocks are in the red and have been on a down trend. The reasons for this are:
1. Momentum traders selling off to move elsewhere. After a massive run north in price, the trend has stopped and the momentum traders exit to lock in profits.
2. End of year window dressing to lock in profits and bonuses.
3. Locking in tax losses to offset profits for some people. This is most likely the largest contributor to the drop. Frankly, people are looking at what they own and selling off things at a loss to lock in tax credits. I know because I have sold off another stock to do just this and so are my friends.
4. A fake short seller report against SLI bled into Cypress, as both use related DLE technology to extract lithium. At the same time, Lithium Americas announced new financing. This put a damper on lithium.
5. Warrants were executed against Cypress Development and then some were most likely sold into the market. This puts downward pressure on the stock in the short term.
6. The Omicron nothing burger surfaced and went nowhere.
7. Federal Reserve Corporation Powell spread fear via inflation talk and tapering.
With all of the above, I have gazed into my blue crystal ball and it hints that January will be better after the tax loss selling is over. The story for lithium has not changed for the worse. In fact, it has improved via government cogs that are spinning and private industry plans via Volkswagen (OTCPK:VWAGY).
The Government Wants Lithium
Looking past the trendy word crafting, we can see the Biden administration is behind lithium much like the Trump administration was. Looking at the December 13th, 2021 statement we see the following highlights:
1. "The Department of Energy (DOE) and Department of Transportation (DOT) will establish a Joint Office of Energy and Transportation focused on deploying EV infrastructure."
2. $5 billion in funding for a national charging network.
3. $2.5 billion in additional charger funding.
4. Target of 50% EV penetration by 2030.
5. DOT will publish standards for EV chargers.
6. "Increase domestic manufacturing of EV batteries and components and advance environmentally responsible domestic sourcing and recycling of critical minerals."
7. "$17 billion in loan authority in the Advanced Technology Vehicles Manufacturing Loan Program (ATVM) to support the domestic battery supply chain. LPO will leverage full statutory authority to finance key strategic areas of development and fill deficits in the domestic supply chain capacity. This will include the ATVM program making loans to manufacturers of advanced technology vehicle battery cells and packs for re-equipping, expanding or establishing such manufacturing facilities in the United States."
8. "Leverage $13 million in FEMP's Assisting Federal Facilities with Energy Conservation Technologies grants to unlock an estimated $260 million or more in project investments, including battery storage projects."
9. "Funded two dozen teams to expand sourcing of lithium from geothermal brines and approved a permit for the Nevada-based Thacker Pass lithium mine."
10. "Automakers are also signing contracts that leverage domestic supply, including Ford sourcing lithium from recycled content through Redwood Materials, GM sourcing lithium from geothermal brines in the Salton Sea with Controlled Thermal Resources, and Tesla sourcing lithium from a Piedmont project in North Carolina."
11. "$7 billion in funding to accelerate innovations and facilities across the battery supply chain from battery materials refining, processing and manufacturing to battery manufacturing, including components, to battery recycling and reuse. These investments will support the development of a North American battery supply chain, help expand manufacturing and recycling facilities in the United States and substantially advance the battery recycling through research, development and demonstration projects in collaboration with retailers as well as state and local governments."
12. Last, we can see quite a bit of additional funding for batteries via:
Infrastructure bill batteries funding
(Source: December 13, 2021 White House Statement)
Author's Assessment Of Government Lithium Support
Point number 9 is one of the more interesting points. Lithium Americas Thacker Pass was approved during the final days of the Trump administration. While the Biden administration is trying to take credit for approving the mine --- this attempt at ownership does show the intent of the Biden administration. Frankly, if Thacker Pass in Nevada were to not be approved, the impact upon United States lithium would be rather stark. It would send a clear message to the industry to avoid investments in United States based lithium. Nevada is one of the most friendly locations for mining in the U.S., throwing a 10+ year project under the bus would hinder future lithium exploration and battery ambitions in the United States.
The Biden administration trying to take credit for Thacker Pass sends a clear message to the U.S. government and state entities that the administration is supporting lithium and is giving its papal blessings to Thacker Pass. In addition, the government is supporting United States battery production, but more on this in a moment. Let's look at Thacker Pass.
Approval Of Thacker Pass
Thacker Pass is the linchpin of American lithium projects. Will the BLM approval be upheld? Having read many of the legal documents via Pacer, I would say it will be upheld. Frankly, the prosecution is throwing many Hail Mary plays but nothing is sticking. Also, if we look at Judge Du's background we can see how she has ruled in the past. A key Hail Mary argument is that Thacker Pass will impact Sage Grouse. We can see that (Obama appointed) Judge Du was not buying such speculation in the past, per a December 2015 case involving Sage Grouse.
December 2015 case involving Sage Grouse
(Source: Apnnews.com, highlight from author)
One of the key points of the prosecution is things that -might- happen. Sage Grouse might be impacted. Rare snails might be impacted. Plants might be impacted, but we cannot prove they will be impacted. Given the footprint and the geographic isolation (One rancher lives within a few miles of the project), the overall takeaway from the above judge's ruling is I would not personally bet on her going with hypothetical scenarios, especially after the Biden administration is signaling its intent towards lithium.
Lithium Americas Battery Ambitions
Disclaimer: Before we get into the battery section do note that you should consider this entire section speculative in nature. This part involves some analysis and guess work. Consider it a "what if" scenario.
Different companies have a different feel. Some are content to simply focus on a lithium project. Others want to be a lithium powerhouse. Either approach is kosher if the management team can take on the associated duties and has the capital and experience to pull it off. Cypress Development is laser focused on Clayton Valley, and being only one of three companies in the valley that have water rights they are progressing quite nicely. Standard Lithium is obsessed with Arkansas with its California project mothballed and that is fine. One day they will get back to that project. Lithium Americas, however, is not content to simply work on one project or even two projects. They are engaged on many lithium fronts, but they are not content to simply be a lithium miner or even a large lithium miner. No indeed. Lithium Americas wants to vertically integrate and become a battery producer.
BLM Documents And Batteries
The battery factory has since been removed from Thacker Pass to my knowledge (as it would require extra permitting), but read below and then ponder what happens if LAC simply moves the battery plant to other property it owns? Reading the old proposal for the Nevada mine at the Bureau of Land Management website, I could not help but notice that Lithium Americas has laid out its plans to build a lithium battery factory. You can read the entire proposal here, but the bulk is located in document "DEIS Chapters 1-6." On page 1-3 we are greeted with:
"Construction and operation of a battery production facility" and "Battery production complex" on pages 2-8.
Now did they at one time want to create this battery complex? Per LAC from Appendix B:
"Due to rapidly rising demand by the uptake in electric vehicles and energy storage, securing lithium supply has become a top priority for battery producers and vehicle manufacturers. Lithium is contained on a list of 35 critical minerals defined by the United State Department of the Interior (83 Federal Register [FR] 23295) pursuant to Executive Order 13817 of December 20, 2017, A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals. The executive order includes a policy clause for "streamlining leasing and permitting processes to expedite exploration, production, processing, reprocessing, recycling, and domestic refining of critical minerals."
Looking at Figure 13, we can see the below picture of the former proposed battery facility. The former proposed battery plant appears to be approx. 160,000 square feet by my calculations.
Proposed battery plant
(Source: DEIS - Note the former battery production complex circled in blue)
A close-up view of the battery production complex
(Source: DEIS - A close-up view of the battery production complex)
And we can read additional details of what LAC wanted to put on the property in the past via:
DEIS Document Section 2.2.5.9
(DEIS Document Section 2.2.5.9, highlights from author)
Biden And Batteries
So we know that at one time Lithium Americas wanted a battery factory at Thacker Pass. We also know Biden and crew want to bring battery production to the United States via point #6 above. Additionally, money is available via the government for this purpose via:
Infrastructure bill batteries funding
(Source: December 13, 2021 White House Statement, highlights from author)
At this point the question would be: Where to locate it? While they might put it on the Thacker Pass location, this would come with its own set of headaches. They might also locate it elsewhere to avoid unnecessary legal shenanigans.
Lithium Nevada has two properties that are near Thacker Pass.
Lithium Nevada properties near Thacker Pass
(Source: Arcgis & Type In "Lithium Nevada")
Property #1 is to the east of Thacker Pass and weighs in at 160 acres. Property #2 is comprised of two parts: The north part in green at 215 acres; the south side at 105 acres.
Both properties are zoned as M-3, which falls under mining and commercial use per Humboldt counties codes. I would venture that property #2 is more likely a location to place the plant, but that is just idle speculation. In the end the thing to remember is we can see the intent of the company and the Biden administration concerning EV batteries. It will be interesting to see how LAC and batteries play out. I doubt we have seen the last of this subject.
Commercial Demand
Before we wrap this up, we need to look at news on the commercial side of things. Now I could wow you with a rather long list of demand that is coming, or I could just drop this on you: Volkswagen is set to invest $100 billion into lithium in the next five years. I really do not need to explain why that is significant.
Conclusion
Massive government support combined with cyclopean amounts of capital being invested by commercial endeavors bodes well for the future of EV and lithium. With this, our largest holding is Cypress Development followed by Nano One and then Lithium Americas. Even though inflation fears abound, my personal theory is lithium will reward long-term investors. However, keep some powder dry for when waters become choppy. Remember chaos and rough seas can offer up opportunity.
This article was written by
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Austin Craig
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"Never let formal education get in the way of your learning". - Mark Twain,,,You are here for one reason. You want "actionable Intelligence". If you wanted a history lesson on a company then Google is your friend. My aim is to provide intelligence that you can read, ponder, and then execute upon to make a profit or avoid a loss. A price of a stock is almost irrelevant. It is the last thing to consider when buying a stock. If you don't pay attention to management, financials (go back 3 years), the sector, global macros, your portfolio mix, along with risk/reward for capital used and the company news, you are ignoring all of the things that come before price. Price is mostly real-time sentiment. It is hardly ever a good indicator of value.People who only look at price will fail as investors, because price is a result of fundamentals, news, and sentiment. You have to learn to "take" from the market, if at all possible, make it give you what you want.Use targets, set limits, protect your capital with stops and if something changes fundamentally, review, review, review.You can't read too much. If it was easy everyone would be doing it. Now you have no reason to not get Alpha.
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Disclosure: I/we have a beneficial long position in the shares of LAC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: We also own Standard Lithium, Cypress Development.
We own LAC long calls as well.
Millennial Provides Update Regarding Lithium Americas Arrangement
2022-01-05 04:31:15 PM ET (Newsfile Corp)
Vancouver, British Columbia--(Newsfile Corp. - January 5, 2022) - Millennial Lithium Corp. (TSXV: ML) (FSE: A3N2) (OTCQB: MLNLF) ("Millennial" or the "Company") is pleased to announce that at the Company's special meeting of shareholders (the "Shareholders") and warrantholders (the "Warrantholders", and, together with the Shareholders, the "Voting Securityholders") held earlier today (the "Meeting") the Voting Securityholders voted in favour of the special resolution (the "Arrangement Resolution") approving the previously announced plan of arrangement under Section 288 of the Business Corporations Act (British Columbia) pursuant to which Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) is to acquire all of the issued and outstanding common shares of the Company (the "Arrangement").
The Arrangement Resolution was approved by: (i) 98.60% of votes cast by Shareholders; (ii) 98.61% of votes cast by Voti ng Securityholders voting together as a single class; and (iii) 98.31% of the votes cast by Shareholders excluding for this purpose the votes cast by any persons that are required to be excluded under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. Voting Securityholders holding securities carrying an aggregate of 22,037,250 votes, representing approximately 21.57% of votes entitled to be cast at the Meeting, were represented in person or by proxy at the Meeting.
Additionally, on December 30, 2021, the Commissioner of Competition issued a "no-action" letter, which satisfies the Competition Act approval condition in the Arrangement Agreement.
The Arrangement remains subject to customary closing conditions, including the approval of the Supreme Court of British Columbia. The Arrangement is currently expected to be completed on or about January 25, 2022, provided that the conditions to the Arrangement are s atisfied or waived.
About Millennial
To find out more about Millennial Lithium Corp. please contact Investor Relations at (604) 662-8184 or email info@millenniallithium.com.
About LAC
Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada, United States. Lithium Americas trades on both the Toronto Stock Exchange and on the New York Stock Exchange, under the ticker symbol "LAC".
Happy new year to you too Tiko. This year will be great for $LAC and lithium in general. $LAC long
Happy 2022 Ks and all here!
?? Looks to be going down to 27.00 level soon. Markets all broken as I said for a long time.
Maybe we should wish for it. PLL gapped up this morning now up $.72 at the moment. Up about %100 for the year. LOL
Oh my that sounds awful. Do you think it wiil ?
Better hope this does not happen to LAC now in lieu of all the recent landgrabs their BOD made which ONLY serves them- Not retail mom & pop investors...
Lifshitz Law Firm, P.C. announces that a class action complaint has been filed against Piedmont Lithium alleging that Defendants, throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) Piedmont has not, and would not, follow its stated steps or timeline to secure all proper and necessary permits; (2) Piedmont failed to inform relevant people and governmental authorities of its actual plans; (3) Piedmont failed to file proper applications with relevant governmental authorities (including state and local authorities); (4) Piedmont and its lithium business does not have "strong local government support"; and (5) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.
If you are a Piedmont investor, and would like additional information about our investigation, please complete the Information Request Form or contact Joshua Lifshitz, Esq. by telephone at (516)493-9780 or e-mail at info@jlclasslaw.com.
A rush to mine lithium in Nevada is pitting climate advocates and environmental groups against each other
By Ella Nilsen and Rene Marsh, CNN
Updated 3:39 PM ET, Fri December 17, 2021
https://www.cnn.com/2021/12/17/politics/lithium-mining-energy-climate/index.html
In an ancient and now extinct supervolcano sitting in northern Nevada lies a treasure that its seekers call "white gold."
This metal isn't to trade or to make jewelry out of -- it's lithium, and its value lies in its role in potentially slashing the world's carbon emissions.
President Joe Biden's plan to transform the US to clean, low-carbon economy energy depends on switching to electric vehicles, and that means replacing gas with batteries, which are made from critical minerals like lithium.
But in the US, doing so is not without controversy.
Lithium is a key ingredient for the big, rechargeable batteries that power electric vehicles and store energy generated by solar panels and wind turbines -- keeping that energy in use even when the sun isn't shining and the wind isn't blowing.
Obtaining these minerals, which some call the new "white gold," is part of the latest worldwide rush to produce clean energy. Earlier this year, the Biden administration released a strategic plan from several federal agencies detailing how it planned to improve the entire supply chain for critical minerals like lithium -- from extracting it from US mines to putting it in batteries, to recycling and reusing these batteries.
"America has a clear opportunity to build back our domestic supply chain and manufacturing sectors, so we can capture the full benefits of an emerging $23 trillion global clean energy economy," US Energy Secretary Jennifer Granholm said in June.
In the US, the major lithium prospect is a large deposit in Thacker Pass, Nevada, and another lithium deposit sits in North Carolina. The Thacker Pass lithium deposit is one of the world's largest, sitting in an ancient, and now-extinct, supervolcano.
A proposal to start mining lithium by Lithium Nevada Corporation -- a subsidiary of Lithium Americas Corp. -- was approved by the US Bureau of Land Management in January.
"It's the largest-known lithium deposit in North America, so given where we're going globally and as a country, it's a unique opportunity," Jonathan Evans, president and CEO at Lithium Americas Corp., told CNN.
Evans told CNN that currently, the bulk of lithium chemicals used in the US are imported from other countries. Lithium-rich countries including Chile and Bolivia are heavy exporters. Evans said that with lithium deposits in the US and Canada, "it's not lost on state governments and the federal that everyone wants to play in that and we have the resources to do it."
Lithium and cobalt mining for electric cars has been controversial globally for years, in part because of its environmental destruction, the short lifespan of batteries and in some countries, because child labor has been used in the process.
And as a "white gold" rush comes to the US, not everyone is thrilled about the rush to mine it.
Not everyone is on board
Lithium Americas hopes to break ground on its mining project in early 2022. CNN traveled to Nevada and found the rush to procure critical minerals in the United States has pitted environmental advocates against each other.
Some climate advocates say the rush to mine lithium is critical for a larger transition away from fossil fuels like coal, oil and gas. Other local environmental groups and tribal nations oppose the project, concerned about disturbing sacred tribal burial grounds as well as potential environmental impacts. Three tribal groups tried to stop it through lawsuits -- which were dismissed by a judge in September.
"A lot of us understand blowing up a mountain for coal mining is wrong; I think blowing up a mountain for lithium mining is just as wrong," said Max Wilbert, an environmental organizer who is camping out at Thacker Pass to protest the mine's development.
Wilbert cited several reasons he is against the lithium mine: environmental impacts to sage grouse and antelope, potential water pollution for surrounding communities and cultural issues for the local indigenous community, which considers the land on and around Thacker Pass sacred burial grounds.
Wilbert is currently camping out in frigid Nevada desert winter conditions in a tribal ceremonial camp, and he and other advocates say they're willing to stand in front of mining machinery to try to stop the project from going forward.
"Our laws haven't caught up to the reality of what's happening to our planet, and so people might have to break the law in order to change what's happening," he said. "Electric cars won't actually reduce greenhouse gas emissions that much; they will reduce emissions but not by a sizable amount."
Driving gas-powered vehicles in the US comes at a cost to the climate. Greenhouse gas emissions from transportation account for nearly 30% of total US emissions; more than any other sector, according to the Environmental Protection Agency.
Glenn Miller, a retired professor of environmental science at the University of Nevada Reno, disagreed -- telling CNN the Thacker Pass project is a "relatively benign mine for its size."
Miller said he thinks the clean energy benefits of mining lithium in Nevada outweigh environmental concerns -- especially when it comes to reducing the greenhouse gas emissions worsening global climate change.
"Those who say it isn't going to make any difference, they're simply wrong," Miller said. "Radical environmentalists are going to argue that the only way to solve the climate change problem is to drive a whole lot less and to not burn gasoline or coal. Well, that's not going to happen -- the demands of society are set so we're going to have to have an active transportation industry."
Miller told CNN that lithium is the key ingredient that will power the transition to electric vehicles.
"There's no other metal that can work as well as lithium," Miller said. "We're going to need a lot of batteries to run the cars that we're going to have on the road. It's going to be a very positive contribution to mitigating climate change."
Evans told CNN his company is engaging community stakeholders, and local and state governments about the mine's plans.
"It's very important that this transition is done as sustainable as possible," Evans said, stressing his company is committed to mitigating the environmental impacts of mining as much as it can, by conserving water use and trying to lessen carbon emissions as it extracts the mineral.
"It's not the cheapest, but it's essential as we move to this phase to ensure we do things as responsibly as possible."
Looks like a good day to buy some!
jb I feel same as I was CEO of a project development consultancy years ago in Asheville, NC and we always felt same. Until docs are signed, and money in bank, no deal is done. Anything can happen right up to 11th hour. Especially if there are any 3rd party brokers or Intermediaries involved (esp lawyer types)..
I don't have to good of opinion on MOUs and don't give too much validity to them, at least until something more substantial works out, but I think this one is showing that the intent and focus is there anyways.
This is the latest notice out DOE;
DOE and DOT Launch Joint Effort to Build Out Nationwide Electric Vehicle Charging Network
DECEMBER 14, 2021
https://www.energy.gov/articles/doe-and-dot-launch-joint-effort-build-out-nationwide-electric-vehicle-charging-network
Two Cabinet Secretaries to Establish Joint Office to Support National Network of 500,000 Electric Vehicle Chargers
WASHINGTON, D.C. – U.S. Secretary of Energy Jennifer M. Granholm and U.S. Secretary of Transportation Pete Buttigieg today signed a memorandum of understanding to create a Joint Office of Energy and Transportation to support the deployment of $7.5 billion from the President's Bipartisan Infrastructure Law to build out a national electric vehicle charging network that can build public confidence, with a focus on filling gaps in rural, disadvantaged, and hard-to-reach locations. This is a critical component of the President’s plan to accelerate the adoption of electric vehicles, address the climate crisis and support domestic manufacturing jobs. President Biden’s Bipartisan Infrastructure Law directs both agencies to collaborate on new programs and initiatives, including the new joint office, that will support the transition of the nation's transportation systems, which currently accounts for 29% of all U.S. carbon pollution, to electric vehicles and other zero-carbon technologies.
“We are embarking on a transformative path to modernize the way we get to around in this country, making sure all Americans have the option to choose electric vehicles and spend less at the pump while making our air healthier,” said Secretary Granholm. “Our two agencies will work together to deliver on President Biden's historic investments in the Bipartisan Infrastructure Law, starting today with a joint project to build hundreds of thousands of electric vehicle charging stations, to tackle the climate crisis and create manufacturing and construction jobs at the same time.”
“Transportation is responsible for the most greenhouse gas emissions of any sector in our economy - so it can and must be a big part of the solution to the climate crisis,” said Secretary Buttigieg. “With this announcement by DOT and DOE, we are taking a big step forward on climate by helping make the benefits of EVs more accessible for all Americans.”
The Joint Office will help to accelerate effective deployment of a convenient, reliable, affordable, and equitable national network of charging stations. The Office will provide technical assistant to States and localities so that they can strategically build electric vehicle charging stations and other infrastructure. This assistance will include helping states develop comprehensive plans for charging station networks to guide the implementation of the $7.5 billion program.
Both agencies are tasked with implementing investments in zero-emission vehicle passenger, transit and heavy-duty vehicles that create cleaner and more affordable transportation options for all Americans. These investments support President Biden’s executive order in August setting a national goal of half of all new vehicles sold in the United States being electric by 2030.
The early work of the Joint Office of Energy and Transportation will be largely centered on EV charging provisions of the Bipartisan Infrastructure Law, including:
Supporting the development of guidance and standards for the Bipartisan Infrastructure Law’s electric vehicle charging programs.
Providing technical assistance to State and localities to strategically deploy EV charging infrastructure and provide the data and tools needed to help develop State EV charging plans. Providing technical expertise and assistance to other transportation electrification programs.
In response to the lack of electric vehicle charging infrastructure in traditionally underserved communities, the Joint Office will provide technical assistance and analytical support to states as they develop electric vehicle charging plans to ensure this investment contributes to the Administration’s Justice40 Initiative, which requires delivering at least 40% of the benefits from Federal climate and clean energy investments to underserved communities. To grow the clean transportation workforce and accelerate the construction of charging stations across the country, the Office will support career training and certification programs to strengthen career pathways for Americans and create good-paying jobs that will lead the transition to cleaner, more sustainable future.
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https://dialogochino.net/en/extractive-industries/argentina-future-of-lithium-sector/
Argentina at crossroads over the future of the lithium sector
The Fernández government wants to boost the state's role in lithium extraction and electromobility, but conflicts remain with local communities
Javier Lewkowicz October 1, 2021
Argentina is facing a dilemma over the future of its lithium. President Alberto Fernández and his government want to boost the sector’s development, and for the state to play a prominent role in both the extraction of the mineral and the development of batteries for electric vehicles (EVs). However, social and environmental tensions over such ambitions remain.
The government’s desire for expansion has an international dimension. Globally, the transportation sector is estimated to be responsible for nearly a quarter of CO2 emissions, and moving away from combustion engines in favour of EVs is seen as a prerequisite for the energy transition. This is where lithium plays a central role as a key mineral – and one that Argentina has an abundance of.
The salt flats of Argentina, Bolivia and Chile account for almost 60% of global lithium resources. Argentina is home to 9% of the world’s total reserves – resources whose exploitation has been proven to be viable in technical and economic terms – and these are the third-largest behind Chile and Australia.
Lithium in Argentina
There are currently two projects producing lithium for export in Argentina. On the Salar del Hombre Muerto salt flat in the northwestern province of Catamarca, the US company Livent, now associated with BMW, has a production capacity of 20,000 tonnes of lithium equivalent per year, and plans to double this with an investment of US$640 million. The second project is Sales de Jujuy in the Salar de Olaroz flats of Jujuy province, with a capacity of 17,500 tonnes of lithium per year. It is managed by Australia’s Orocobre, in partnership with Japan’s Toyota Tsusho and the provincial company Jujuy Energía y Minería Sociedad del Estado (JEMSE). Sales de Jujuy sells lithium to Toyota in Japan and to other battery manufacturers in Korea and China.
Argentina lithium future 2
The only project currently in the pipeline is Caucharí-Olaroz, also in Jujuy province, operated by Minera Exar and co-owned by the Canadian company Lithium Americas and China’s Ganfeng Lithium, with JEMSE holding a minority stake. Production is due to start next year and, once construction is complete, it will have a capacity of 25,000 tonnes of lithium carbonate per year. Caucharí-Olaroz has contracts with Tesla, Volkswagen and BMW.
According to official figures from the Mining secretariat, last year 31,500 tonnes of lithium carbonate were exported from Argentina for US$134 million, down from US$184 million in 2019. With full production from Caucharí-Olaroz, the country’s total capacity would increase from the current 37,500 tonnes per year to 85,000 tonnes.
Elsewhere, the French company Eramet has seen its project at the Salar de Centenario-Ratones flats in Salta province stalled by the pandemic and Argentina’s broader economic uncertainty. Working in the same vein are the South Korean firm Posco, which plans to build a lithium carbonate and hydroxide plant in Salta, and the Australian companies Galaxy and Orocobre’s investment in Catamarca.
31,500
Tonnes of lithium carbonate exported from Argentina in 2020
Practically all the concessions to salt flats in Argentina are in the hands of between 50 and 60 firms. Martín Obaya, a researcher at the National University of General San Martín, argues that the regulatory framework for mining activity favours speculation on such projects, with companies buying a concession but then selling it to obtain income.
Argentina’s mining investment law and its mining code, which regulate lithium activity, allow for duty-free imports of equipment, include tax breaks and fiscal stability, and establishes royalties of just 3% for exports. It does not establish mechanisms for dialogue with communities, nor does it include tools to advance value addition.
The situation is different in Chile and Bolivia, where lithium is considered a strategic resource. In Chile, private companies operate under contracts with the state, with flexible royalties of between 6% and 40% paid, and resources are earmarked to finance research centres. Meanwhile in Bolivia, the system is public and pilot projects have been developed but are not yet at the industrial phase.
Environmental conflicts
In a contested field, one area in which conflicts can arise is over water. “Lithium mining competes for a critical resource such as water, as these [salt flats] are areas of extreme aridity,” explains María Laura Castillo Díaz of the Fundación Ambiente y Recursos Naturales (FARN). “The little fresh water that is available is underground and is a basic resource for communities and biodiversity.”
To extract the mineral from the ground, the companies drill a well between 200 to 400 metres deep to extract water along with minerals. The liquid is then left to stand for one to two years in huge pools, from which the water evaporates due to solar energy. The resulting compound thus requires large quantities of fresh water in order to form lithium carbonate.
In the Olaroz salt flat and in Catamarca, the lithium sector is advancing, despite some tension with surrounding communities. This is not the case, however, in Salinas Grandes, a basin straddling Salta and Jujuy provinces, and in which 33 different communities live. Several exploratory projects have been halted here due to conflicts, and as a result there is practically no active business presence at this moment in time.
Alicia Chalabe, a lawyer for these communities of Salinas Grandes, describes how they are “organised” and that “conflict will continue to exist as long as indigenous rights are not recognised.” She adds that “provincial legislation does not contemplate the right to prior consultation. The communities are not properly informed, nor are they asked for their consent in cases where biodiversity conditions are affected.”
Conflict will continue as long as indigenous rights are not recognised
The communities’ claim is based on the International Labour Organization’s (ILO) Convention 169, which concerns the protection of indigenous and tribal peoples’ lands, and which has been ratified by Argentine law. The Escazú Agreement, the first environmental treaty in Latin America and the Caribbean, is also in force, and establishes regional standards for environmental access rights.
However, with demand for lithium expected to soar, legal conflict over these lands and resources may intensify – particularly given inefficiencies in the lithium extraction process. As Ernesto Calvo, director of the Instituto de Química Física de los Materiales, Medio Ambiente y Energía (INQUIMAE) at the University of Buenos Aires, explains: “The current method of lithium extraction is not sustainable because of the volume of water it requires and the waste it generates. It is also very inefficient in economic terms, which means that it will not be able to meet the 35-fold increase in demand that is expected in a scenario where electric vehicles become widespread.”
Calvo himself and his team have developed a new extraction method that is competing with projects from companies and governments around the world to reach an industrial scale. “Sooner or later there will be a technological change in favour of a more efficient, cost-effective and environmentally friendly direct extraction method,” he told Diálogo Chino.
Plans for lithium in Argentina
Alberto Fernández’s government is studying a bill that aims to consolidate a public company for lithium production, along with a self-sufficient and comprehensive commission that would function across scientific, technical, commercial and industrial levels. The commission would invite the participation of the national and provincial governments, indigenous communities and universities. It would also facilitate a new agency aimed at stimulating scientific development in lithium. Sources among pro-government deputies argue that this new public entity should resemble YPF, the national oil company, but highlight that the concessions of salt flats represent a problem in this regard.
Argentina lithium future 3
Workers handle lithium carbonate after processing at the Rincon Mining plant in Salta, Argentina (Image: Agustin Marcarian / Alamy)
Federico Nacif, a lithium specialist at the National Scientific and Technical Research Council (CONICET), says that “the first thing that should be regulated are the projects that are currently underway. In any case, the plans to produce lithium with a state-owned company could take effect in eight years’ time.”
Nacif and other specialists argue that lithium should be removed from the scope of Argentina’s mining investment law and declared a strategic resource. But as a federalised country, in which provinces have control over their resources, moving in that direction would entail considerable political conflict.
Electromobility in Argentina
In the short term, the government is expected to send a bill to Congress to promote electromobility. The details are not yet known, but it would seek to encourage the industrialisation of lithium, as well as the manufacture of EVs with domestically made components, and expanding the market for sales of these new models.
To this end, the province of Jujuy and the national government signed a memorandum of understanding (MOU) with Ganfeng Lithium to study the installation of a lithium battery factory, while the national government agreed a further MOU with another Chinese company, Jiangsu Jiankang Automobile, to produce urban EVs and batteries in Argentina.
The promotion of electromobility is a bone of contention with car manufacturers, who warn that the possibility of mass production of EVs in the country is remote, as Brazil, the main buyer, does not seem to be transitioning towards electric cars but hybrids, in order to take advantage of their large resources of ethanol as a fuel. In addition, carmakers argue that the Argentine industry specialises in the manufacture of utility vehicles, which do not adapt well to current electric technology given their power and range requirements. They are therefore pushing for the first step to be support for hybrids that combine petrol or gas with electric.
In the short term, the market for EVs could open up in public transport and by importing certain vehicles for urban use. Chinese companies appear to be the only actors capable of setting up factories, but questions arise as to the degree that these will link with and benefit local industry.
Of course there is debate over which administration is at fault for all of the pain that we are creating for ourselves, but again that's better discussed on a just politics or policy board due to it would get in way too much off topic for the LAC board.
There is so much talk about North American gov policies (US policy and gov especially), but I would argue that South American gov policies (especially Argentina) would have as much as and even more direct effect on LAC and should be heavily considered and analyzed with LAC and not so much with US policy or admin. Along with that fact, is that this move to a more sustainable environment is a world involvement and it is argued that the US isn't even the leader in market share, but nevertheless is only part of the whole.
A couple of articles to that effect (there are many) follows.
https://www.jdsupra.com/legalnews/the-interprovincial-treaty-concerning-2198404/
The Interprovincial Treaty Concerning the Regional Development of the Lithium Sector
On October 5, 2021, the leading provinces of the lithium industry in Argentina, Salta, Jujuy, and Catamarca, signed the interprovincial treaty (the “Treaty”) which creates the Lithium Mining Region to promote the economic and social development resulting from the extraction, production, industrialization and commercialization of the mineral, its products, and derivatives.
The interprovincial treaties are provided in article 125 of the National Constitution as an instrument that enables the provinces to create regions for the economic and social development and establish the competent bodies to fulfill their purposes.
In this context, the Regional Lithium Committee (Mesa Regional del Litio) was created as a result of prior efforts to establish a forum to outline uniform strategies, encourage regional competitiveness and investments, and develop the supply chain of lithium. It will serve as a common space for the academic, institutional, and corporate sectors to discuss the applicable regulations and standards as well as the lithium’s price evolution in the local and foreign markets. The federal government has endorsed the initiative and integrates the Regional Lithium Committee.
Thus, the joint efforts of the three neighboring provinces that have a prominent role in the lithium sector will create the appropriate conditions to promote investments across the Lithium Mining Region by setting clear rules and stable regulations.
Argentina is the fourth world lithium producer and could become the main world’s producer due to its large existing reserves and a favorable legislation which provides a limited intervention of the State. Moreover, there is an increased demand for lithium due to the global need for electric transportation and renewable energies, among others, in accordance with the international agreements. Hence, the Treaty can increase Argentina's potential to become the first global lithium provider.
Finally, the Treaty will enter into force after being ratified by the legislatures of the signatory provinces and approved by the National Congress. It should be noted that on November 16, 2021, the Chamber of Deputies of the Province of Salta passed the law approving the Treaty.
I don't believe it. You just noted a positive outlook for LAC!
There were some top players in the dot.com era and all the little players were either bought up or overcome and bankrupt. Now look at where the top players are now and how much they are worth. Of course that's true with many of the things that are "hot" in the market.
Fads change and the big players take out the small players. EVs will overtake the CEs, just not as fast as the ones creating the "fad" want or expect, but still will happen just like the internet and dot.com took over our way of life today. Just evolution of humanity.
LAC is one of the top players in lithium and will be part of the ever changing evolution away from CE's and into more sustainable environments while the smaller players disappear. EV's will not disappear just like the internet didn't and only grew and advanced exponentially and is continuing to. EV's will be the same.
Also right now, there are many overrated, overpriced, and fad play stocks. Eliminating many of those factors is what they call a correction and a bear market which you have the start of going on right now. The market will use any excuse to get to those means, but the underlining cause is the irrational exuberance over basic stock analysis.
Thanks for the positive outlook for LAC.
Cramer on CNBC with David right now saying entire EV field is overburdened- too many players in it, many will go the way of dot.coms late 90's... anything EV related is basically a fad here, regardless of news of Toyota here in NC building battery plant.
Hear hear!!! Lets keep it about our favorite lithium ticker $LAC, there are plenty of great things coming our way! There isn't a world leader anywhere that can change the fact that major companies are investing BILLIONS of dollars into EV, solar, wind, and energy storage. Lithium is required for all of the above. Everything gets choppy in the winter, its tax time peeps. $LAC long and strong
Not when it pertains to the entire US corporate structure today, where Insiders sell shares to enrich themselves which is what I am now seeing going on here as well...
Nothing to do with supporting invested shareholders or the like as it once used to be decades ago...
Deutsche Bank on Key Takeaways from Lithium and Battery Materials Annual Conference
2021-12-13 09:30:14 AM ET (MT Newswires)
09:30 AM EST, 12/13/2021 (MT Newswires) -- Deutsche Bank said Monday that lithium pricing expectations into 2022 was overly bullish across all participants at its 2021 Lithium and Battery Materials Annual conference last week, with no signs of demand or pricing slowdown in the near-to-medium term.
During the conference, the largest and most relevant companies in the lithium space discussed pricing expectations as well as challenges around new supply and geopolitical risks.
Looking back over the last five years, while the industry has experienced a couple of bearish and bullish cycles, this time it seems different with the market potentially turning into a supercycle, according to Deutsche Bank.
I know I was ready to get ready by the end of last year when I realized what the previous administration was creating, causing, and starting. It was obvious to me what was going to transpire with inflation (it was already started). Not sure about everybody else. But again, what policies and actions certain political factions caused and how they continue to focus on degrading the people's financial abilities are for another board. Suggest going to a just politics board maybe or other place to discuss inflationary subjects.
But inflation, Covid Wars, different countries government policies, etc effect every stock for the most part. This is a LAC board, how SPECIFICALY will it effect LAC other than general fact that ALL companies are effected in an overall way.
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