PLS 2.13% $3.83 pilbara minerals limited

Call me crazy, but …. General Lithium is planning to build an...

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    Call me crazy, but ….

    General Lithium is planning to build an additional 60ktpa conversion facility (according to the presentation, Benchmark, and media reports). General Lithium has “15 years of operational and technical know how”, but …
    - They have not secured the additional 480ktpa of SC6.0 offtake that would be required; and
    - They may not have sufficient capital to fund the construction (I am speculating here!).

    Great Wall, through their SVOLT spin off, is planning on developing 100GwH of battery manufacturing capacity by 2025 (according to their own presentations). At 60% plant utilisation, that would require (you guessed it!) 60ktpa LCE.  Great Wall is described as “establishing a fully integrated mine to EV supply chain”.  But …
    - They don’t have chemical conversion expertise (despite being labelled by PLS on page 9 of today’s presentation as a chemical converter);
    - They have secured only 170ktpa of SC6.0 offtake, rather than the 480ktpa they would need; and
    - They do have a large balance sheet (Market Cap A$28bn) and access to capital.

    Pilbara Minerals can supply all of the SC6.0 required, but
    - Needs capital to fund Stages 2 and 3; and
    - Is offering an ownership interest in the project in exchange for an interest in a downstream conversion facility.

    Now if you put them all together, they have everything they need - sufficient SC6.0 offtake, chemical conversion expertise, access to capital, upstream/downstream integration and an end customer.


    Hey don’t shoot me … it’s fun to speculate.
 
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