RE:LG to invest US 5.2B in battery materials through 2025 Maybe I need to explain why this LG article is so exciting, IMO.
Battery materials: a market growth from 34B to 87B in 4 years is absolutely insane! An additional 1.5 times the current total production capacity will have to come online over the next 4 years!
We know that it takes 5-10+ years to build a new mine. That's no option here. Where's that enourmous additional capacity going to come from?
Huge investments are required here, that's for sure. The low hanging fruits will be consumed very quickly - the 'more save and straight forward' investment opportunities will dry up quickly and therefore won't create the total additional capacity needed. New, more innovative options will need to be evaluated too. And that's where SCY comes into the picture.
LG is one of the largest manufacturers of batteries and battery materials. They have identified this opportunity and are ready to invest US 5.2 billion. And so will all their competitors in order to keep their market share. If they don't some competitor will over take them.
There's something called competior analysis. They all watch each other closely. It also means: don't reinvent the wheel. They are all copying eachother.
So when I read that LG is actively pursueing cooperation with companies possessing mining, smelting and refining technologies to strengthen its metal sourcing competitiveness, you can be sure that all others - their competitors - will be doing the same. The same argument holds for sustainability, or ESG.
Again it's easy to see why SCY could be on the radar of one of these battery (materials) companies. I'm absolutely confident that SCY will soon find the right partner that will fund CMR and HPA, all the way from development to production.
AllDutch1234567 wrote: Very relevant article, 14 July 2021. South Korea’s LG Chem has earmarked
$5.2 billion over the next four years to build out its battery materials business. The investment comes as automakers and state regulators set targets to transition away from internal combustion engine vehicles, in a shift that will likely be the most transformative to the mobility industry since the invention of the car.
https://techcrunch.com/2021/07/14/lg-chem-will-invest-5-2b-in-battery-materials-through-2025/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAEkYi1SELx_RHaywKcwHBRLAG2eYi0TtIcWrD2m7kXR13-9GDPqYEWnTqS3tQ1DXfGmQybzhAZe3N-eywT-G2B6j_LIm27x3iRgwlzADk4FRvTbpxZ0rkcm2srmggLDG0yWPQkwSX6IurIoRnqqo9koVZyyrWWsWR7MkWbeVFc57 Market size and growth LG Chem is already one of the largest manufacturers of batteries and battery materials, with customers including Volkswagen, General Motors and Tesla. And the company only sees the
global battery materials market expanding — from $34 billion in 2021 to $87 billion by 2026. Backward integration with a mining company! On the supply chain front, LG said it’s preparing a joint venture with a mining company for the supply of metals and other raw materials for battery components.
The company will “actively pursue cooperation in various ways with companies possessing mining, smelting and refining technologies to strengthen its metal sourcing competitiveness,” it said in a statement.
ESG CEO Hak Cheol Shin said the company is examining even more opportunities to
shift toward a sustainable business portfolio. “This will be the most revolutionary change since the establishment of the company that will upgrade the value and sustainability of LG Chem, and tangible achievements will become available from the second half of this year,” he said.
GP, (maybe) you should give Hak Cheoi Shin a call