Big Picture Western companies (and countries) are becoming increasingly uncomfortable with reliance on supply chains running through China as the result of disruptions associated with COVID and political tensions and uncertainties that have come to relations with China. There currently is considerable impetus toward shortening battery supply chains and localizing sources of supply and processing within North America and Europe. This necessarily is also disruptive to battery supply chains.
Interestingly most of the metal to metal sulphate conversion and lithium carbonate to lithium hydroxide conversion takes place in China. Not only does the Nano One process provide a 'way around' the Chinese sulphate & hydroxide processors, it also provides economic justification for establishing a new and different cathode feedstock supply chain because it reduces cost precisely because these process steps are eliminated. The company's process looks like an ideal solution / roadmap for establishing North America and Europe cathode material supply chains. And, the Nano One process is 'ready to go' having been developed, proven, piloted and partnered.
If a significant part of North America and Europe cathode supply chains are developed around the Nano One process then that process will necessarily end up supplying cathode material at large scale. If perhaps a third of the worlds batteries end up being made in North America and Europe, the Nano One process may well end up supplying cathode for most of those batteries.
There are at least three kinds of 'deal' we might see announced, and perhaps others:
- A company, perhaps one of Nano One's existing partners commits to build a cathode plant under license or as a JV.
- A government entity / industry consortium commits to a demonstration cathode plant and 'team' to validate the supply chain from mines to batteries / vehicles running through the Nano One process.
- A third party offers to acquire Nano One.