JP Morgan: Perpetual Supply Deficit - $5,000 Li Spodumene Amid record high Lithium Carbonate spot price at ~ $US36 a pound or ~ $US80,000 per tonne (growing Lithium deficit), key take-away on increasing valuation of Lithium Spodumene concentrate as JP Morgan anticipates $US5,000 per tonne in 2023 (see highlights below.....Lithium Surge on "perpetual" Supply Deficit).
In addition to supplying Lithium for the EV battery market & given Frontier's rare & extraordinary high quality Lithium product for the glass industry, I believe it was mentioned on this forum there could almost be another company formed to produce high quality Lithium product to the glass & ceramics industry considering the Lithium glass, ceramics and lubricant end users are likely to be shut out of Lithium product supply chain due to record high Lithium prices, whereby, the EV battery industry will be high priority for supply (especially given the absolute world security urgency to get EV's in the hands of drivers in Europe, more specifically Germany, and significantly reduce or ban the Russian oil exports to Europe).
Essentially, spinning out Frontier Lithium into a Lithium Battery company and a Lithium glass company to those Frontier shareholders as of some specific date of share ownership on record.
April 5th, 2022
(afr.com)
Financial Review
(Peter Kerr and Richard Henderson)
Lithium exports to surge on ‘perpetual’ supply deficit
Prices for the spodumene concentrate that Australian lithium miners produce were as low as $US400 per tonne in August 2020, but soared to about $2400 per tonne earlier this year as strong sales of electric vehicles drove demand for the battery mineral. Some miners have reported selling small volumes on daily spot markets for about $US3200 per tonne in recent months.
JP Morgan declared on Monday that the price boom had much further to run, predicting spodumene concentrate prices would average $US4,491 per tonne in 2022 and $US5,000 per tonne in 2023 before easing to $US3463 per tonne in 2024.
“Our supply and demand modelling reveals a perpetual deficit market where low grade mine supply will need to be induced,” said JP Morgan in a note.
[Hence, with High Grade, High Purity, Low cost mining Lithium deposits, it's highly likely JP Morgan to view Frontier Lithium a top tier premier Lithium miner]