Neo Lithium Corp NTTHF

CATL News

[tiger2201]

Chinese battery maker CATL to acquire Canada's Millennial Lithium

https://www.reuters.com/article/millennial-lithi-ma-catl-idUSL4N2QU467


This story shows that CATL needs to secure raw lithium material for its batteries, and it is also important to control raw material cost.  The most important thing is CATL needs MORE LITHIUM, including the lithium from NLC.

The following is ML's project:

4.1M tonnes LCE M&I
1.03 Billion NPV
24K yearly
IRR 24%
CAPEX 448M
OPEX 3,388 /tonne
40 yr mine life

tiger

[ddogold]

[tiger2201]

Hi ddogold, Although ML and NLC are Canadian companies, the projects are located in Argetina, so it has nothing to do with our Canadian government. tiger "I wonder how the Canadian Government would react if and when CATL makes an offer on NLC now that ML is being acquired ?"

[RuudinFrance]

Not really nice to see that CATL starts in the mining space. Still, have fun

[tiger2201]

CATL is a manufacturing company (Battery), and they may sell 50% of the project to a miner, who will run the project, and CATL get their lithium.  For CATL, they only cares about the supply and cost of the raw materials. There was an article mentioned about a Chinese miner's name who is interested in CATL's project, also CATL may sell 50% to Ganfeng and let Ganfeng runs the mine

[RuudinFrance]

Very well possible. With a little luck and prior to completion of the deal, they will be able to sell those 50% to some other party (incl, Ganfeng) for the same price they at that moment still have to pay. That's what I would call funny. Have fun. P.S.: Might it be that they took this step as Waldo's team is playing "hard to get"?          Maybe as a

[Dufhaste]

I also asked myself what it means for their strategic nlc invest. So far the market doesn't seem to assess this development as a negative for Neo...let's wait and see. A lot should happen until the end of the year.

[neosceptic]

I am not worried that CATL enter the market. for $377M the buy is the great deal. They may form JV or hire experience mine development management. Tesla demostrated that vertical integration is not as dead as it was believed. For me the deal iteslf is a bit strange. One Chinese company overbidding another (and they do not compete as freely as say VW and BMW) and difference is mere $25M