Another Proactive OEM Another OEM takes a stake in a battery metals Junior…
From CEO.CA:
Mikeymike426 Great post I found on LinkedIn
Carmaker Stellantis to take 8% stake in lithium supplier Vulcan
This is a really significant deal, marking what may be the first time that a major Western World OEM has invested money directly into a battery materials developer (not just via an offtake deal) in this cycle. This is the buy in that the battery materials industry has been needing.
Over the past few years, battery materials developers have raised c.60% of their funding from the equity market. With the equity markets this volatile at the moment, that's proven difficult this year. Some governments have stepped up to the plate and now we see an auto maker doing so as well.
We need to see more OEMs making funding available for junior battery materials developers. YTD May only US$3.7bn has been raised for battery materials, down 40% y/y. Less than US$1bn has been raised for lithium, well short of what needs to be. Benchmark Mineral Intelligence suggest that the lithium industry needs to be raising US$7bn per annum; I think it's more. This is an important move, but we need to see more OEMs getting their cheque books out.
https://www.reuters.com/markets/deals/fiat-owner-stellantis-invest-52-mln-vulcan-energy-8-stake-2022-06-24/