Here is an extract from AFR today:
Lithium piles up at IGO’s WA refinery as demand slows
IGO is struggling to find customers for its lithium hydroxide, as dismal prices cause the battery material to pile up at its Western Australia processing plant.
The lithium and nickel miner on Monday warned that sales from the refinery were so slow that it did not expect to receive a dividend from the Kwinana plant’s owner, Tianqi Lithium Energy Australia, in 2025.
TLEA is owned jointly by its parent Tianqi of China and ASX-listed IGO.
The inability to sell enough lithium from the Kwinana refinery is the latest setback for the local downstream processing industry, which has been severely affected by the lithium rout.
Sluggish demand for the battery material was expected to continue for some time, IGO warned, adding that it was continuing to market its product to existing and prospective customers.
The mismatch between supply and demand has seen prices for the lithium-rich spodumene produced at IGO’s Greenbushes joint venture fall to less than $US800 ($1279) per tonne this year – down from a peak of more than $US8000 a tonne two years ago.
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BUT, then we have the opposite: I have no shares in VUL.
Vulcan Energy is an Aus coy operating in Germany. It has developed a process to extract Lithium from brine from deep underground. Obviously that Lithium is coveted by Euro partners and used in EV, mobiles, defence etc.
It is strategic and a secure supply.
It is Zero carbon production of Lithium.
It has agreements with the very big European car makers like Renault, Stellantis, BASF, Euro 100m from German Federal Ministry, Gina Hancock investor , CIMIC, Euro Invest Bank in for Euro500m etc etc.
About Vulcan Energy Vulcan Energy (ASX: VUL, FSE: VUL) is building the world’s first carbon neutral, integrated lithium and renewable energy business to decarbonise battery production. Vulcan’s Phase One Project, located in the Upper Rhine Valley Brine Field bordering Germany and France, is the largest lithium resource in Europe2 and a tier-one lithium project globally. Harnessing natural heat to produce lithium from sub-surface brines and to power conversion to battery grade material and using its in-house industry-leading technology VULSORB®, Vulcan is building a local, low-cost source of sustainable lithium for European electric vehicle batteries.
ASX ; .... "Vulcan Energy (Vulcan, ASX: VUL, FSE: VUL, the Company) is pleased to announce the signing of a €879m conditional debt commitment letter with Export Finance Australia and a group of seven commercial banks for the financing of Vulcan's Phase One Lionheart Project (the Project).
and this:
Vulcan successfully completes €100m (A$164m)1 Placement to commence execution of its Phase One Lionheart Project Vulcan Energy (Vulcan, ASX: VUL, FSE: VUL, the Company) is pleased to announce the successful completion of a fully underwritten institutional placement and concurrent strategic placement (Placement).
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so my point here is why is one a story of low international prices and glut of lithium causing such big problems for IGO, yet Vulcan in the same lithium product, and is powering along, and getting huge financial support from European Govt agencies, and industry participants???
The ANSWER has got to be the issue of SECURITY !!!!
- security of pricing - Offtake partners willing to agree on VUL-based pricing because of "security" reasons,
- Offtakers not held hostage by China controlled mkt
- security of home-grown production
- security of supply
- transparency of supply chain
- it's Green lithium - ....( isn't IXR recycling "green"? can keep recycling magnets). Oxides not produced from mined operations)
- the Vulcan operations are "home grown".
- etc, etc.
POINT IS it just shows how important these security issues are, and will be, in the potential and growth of IXR's Belfast tech, both in Recycling and Refinery operations.
The issue of "security" will also be a huge issue when it comes to IXR Tech expanding globally.
Merry Xmas everyone, and I am sure 2025 will be a story of growth for IXR, and rewarding for all IXR shareholders.
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