Neo Lithium Corp NTTHF

RE:NLC/CATL

[tiger6301]

Hi Eric,

I don't think NLC will produce lithium hydroxide in their FS.  The reason is CATL is mainly manufacturing LFP batteries or lithium ion phosphate batteries, which requires lithium carbonate. There is a possibility that CATL buy 50% of 3Q project, and may buy 25% to 100% of NLC's portion of production.  In this case, there is no need to produce lithium hydroxide.

Without help from CATL, NLC have produced the BG lithium carbonate (LC) up to 99.6%, and the final purity may easily get to 99.8% or 99.9% with CATL's help.  With this purity, the LC can get premium price.  Orocobre has been in production for at least 4 to 5 years, most of their products are technical grade, right now they can only get about $5/kg for their blended products (Technical & BG).

For brine producers, it is not benefit very much to produce lithium hydroxide (LH), since they have to use LC to produce LH, the cost from LC to LH is about $1500/ton.  The profit margin for NLC is very similar, but add an additional CAPEX and extra production to get the same profit margin, so it does not make sense for NLC.  For Orocobre it may make sense since they convert their technical grade LC to LH.  These days, LH is mainly produced from lithium spodumene directly, or from low grade LC.

Just the way I see it.

tiger

Eric35 wrote:

 In fact, I think the PFS could change. Which was 20,000t per year for 35 years and with the involvement of CATL they may well change that as they need. DFS could include lithium hydroxide production as Waldo was talking about. in March and increase production after reached 20,000 tons. The investment of 8 million is like an assurance of their seriousness on the part of CATL Can wait for the battery day!!!!  https://www.aviationnepal.com/argentina-domestic-and-international-flights-to-resume-from-october/