RE:RE:RE:RE:RE:Nemaska - The plot thickens!
That's what I was thinking Montreal, it would make sense actually as CRE/Outotec have proved the sulfate free process works...and according to TSLA the sulfate free process is the direction they want to go!
QLG (Quebec Lithium Group), this is the official new name for Pallinghurst/Livent/Invest Quebec/Nemaska 2.0) I'm sure QLG review will be looking at traditional process very closely espcially given what Paul says about the OPEX concerns regarding the Nemaska process running at commercial production levels.
NMX spent about 140 million at the mine site, I'm sure not all construction/engineering work is going to be thrown out, I'd expect the review/optimization process to be slow and messy especially if they feel the need to change things around which would add delays for getting up and running. They now have deep pockets and Lithium experience but how long this takes who knows.
QLG may want to get the mine and concentrator up and running to name plate capacity first, (taking a page out of CRE's playbook) produce BQ spodumene feedstock then ship to TSLA's Hydroxide plant as a first step (Livent already have a supply agreement with TSLA), could do something similar to Piedmonts agreement.
For CRE, if all the PERMIT ducks and financing/partner stars are lined up favourably SOON it may be possible to begin production before either Piedmont or QLG come online.
AND it's GONE! (Any South Park fans!)
With the NMX bankruptcy 35,000 tonnes of hydroxide supply went up in smoke and left a hole in a few customers supply chains. NMX was to begin shipping concentrate commercially in Dec of 2019 and LCE and Hydroxide in second half of 2020...
These are some of NMX heartbroken customers
Livent for 8,000 tonne/year of LCE
Johnson Matthey a 10 year 6,000 tonne / year hydroxide
NorthVolt had a 5 year 5,000 tonne /year hydroxide
LG Chem had a 7 year 7,000 tonne /year hydroxide
Hanwa Co agent for General Lithium in Japan had a spodumene concentrate agreement
- These customers Who by the way felt the need to get supply from North America (not South America/Australia or China) and that was BEFORE the Pandemic/China/localize supply chain issue reared its ugly head.
Livent says QLG gives them resource diversification, says quite a lot about what is potentially uncomfortable issues going on in South America like-
- SQM In the name of sustainability we can reduce the amount of brine we extract by 20% without a reduction in production volume's and even expand our productions, Ummm sure you can!
- Will Argentina default on it's debt yet again?
These NMX customers had sigend these agreements back in 2017-2018 before the North American EV market push really got started and now there is also a Gorilla in the room.
Anyone noticing TSLA appears to be positioning where they can lock up most North American spodumene based lithium productions that will be coming on line over the next 2-4 years with Piedmont and existing agreement with Livent. Paul Graves on Q&A said "ongoing longer term supply discussions with TSLA" so yes, I think TSLA and Livent had previously discuss this move into Quebec.
Seems like TSLA the gorilla is actually behaving more like the fox in the hen house and quietly gathering up all the chickens .