Someone here was asking what is going on that this hard rock , spodemine lithium is not moving faster in price. This is my take. Lithium comes out of the ground in two forms.
Company can Either mine for hard rock , spodemine ore ( as in Canada, with Sayona’s success, on their land package) or mine for one known as brine solution ore( as has been done for years in S. America. The end products are very different calibres of lithium, and mines cannot produce both forms).
There is new technology for processing hard rock, spodemine lithium ore , far superior to the months and years long evaporation of the brine solution. The hard rock , spodemine ore( far superior outcome) of Canadian location, Sayona is shipped to second company, Piedmont Lithium, a company with a mill , located in N. Carolina, that will process the spodemine ore and sell it, by the recent agreement with Tesla, such that it can be used in Tesla’s batteries.
So Piedmont became partners with Sayona because they have the technically better supply. Tesla is buying the spodemine, hard rock lithium end product , of Piedmont, because their batteries are longer life, less heat producing, safer, or more power as storage... the goal being to get enough hard rock end product, and other battery metals to be the best, and most competitive, across the board.
As of now they cannot move forward wit their green transport line of semi trucks for a lacking in batteries and this is a real issue. They could use the brine solution lithium end product, but have determined that inferior. But there are still battery manufacturers creating the brine-batteries . For lack of a better term, I M O, the evaporation technology and brine- batteries are not keeping up .
The factories that manufacture brine- batteries are obligated to use that single lithium type because it is very expensive to upgrade a factory’s mechanics and technology to the hard rock , spodemine ore , end product lithium. This does not mean Tesla, Gm, Ford and others will be obliged to use the brine- batteries available. They will simply need to wait, as with the semis , until their intentional choice metals come out of the ground, are milled/ processed, and fulfill battery requirements.
So with the Feds pushing green and eventual reductions in gas powered vehicles, in the USA and Canada, it is already showing that the prices are going to be driven up for the proper and superior metals. Spodemine is considered the top, and there will be more and more a requirement for it. Whether or not brine goes up temporarily, is of little interest to me personally.
My goal is to lock in on the companies displaying the ability to find the Spod ore, showing highest quality geol. study, best/ safest jurisdiction, proven success, found pounds in the ground, with off- take agreements already in place. And this ( Sayona) company is in very recent partnership with a recognized highest quality processor ( Piedmont which buys and possesses for the years long supply agreement with Tesla. )
Tesla is depending on Piedmont, and Piedmont has already secured a contractual supply line with Sayona. The continuing exploration projects of Sayona( an Australian based comp.) are being funded using proceeds from the Piedmont/ Sayona deal, and these explorations are being done at an advanced tech level, by Sayona’s geologic team, ion land held by Sayona , in both Aus. and Canada. The tenements in Aus are lith/ gold and Canada, litheum.
Supply agreements with major vehicle manufacturers are SCARCE, and do drive prices up. Off-take agreements with advanced and proven technology suppliers and production companies are SCARCE. One either gets that or one does not. Everything I have said id my own DD and IMO. Its for the education if it might answer the questions recently posed. I appreciate corrections .
Sayona is a rather small and unheard of entity, but that is what I am after. Australia appears to have moved ahead in their appreciation of Sayona . For sure they understand an up and coming, proven pounds in the ground as significantly beyond a shell corporation.
And so does Tesla, which is WHOLLY DEPENDENT, long and short term on metals supply. Forgive anything confusing here. There was a lot to share. :)
