What is the demand picture for battery metals like in Europe?
We negotiate off-take [sales] agreements, not only for European Lithium where we are very shortly to announce something, but also for other companies. (VERY SHORTLY)
What sort of investment opportunities do European investors look for?
In general, I would concentrate on gold and battery metals. That’s what investors in Europe look for.
They like everything around the automotive industry, batteries and tech. 16 million jobs are directly and indirectly related to the automotive industry in Germany.
Companies like European Lithium (ASX:EUR), Jadar Lithium (ASX:JDR) and Euro Manganese (ASX:EMN) [are attractive to European investors].
For European Lithium we raised more than $15 million in the last 12 months.
The Europe and German governments are really concerned about the fact that we are totally dependent on lithium from China.
They are doing everything to implement better production in Europe, including the mines.
Billions and billions of euros will be spent over the next couple of years for better production in Europe.
Europe wants to become independent from China and get the product from somewhere else — from Europe or Australia.
We have a very close connection to the German government, to the Brussels working groups.
We are in touch with almost every industrial firm, not only the original equipment manufacturers, but also huge chemical companies and others that are planning to enter into the battery business.
What is the demand picture for battery metals like in Europe?
We negotiate off-take [sales] agreements, not only for European Lithium where we are very shortly to announce something, but also for other companies.
In the past Volkswagen tried to negotiate an off-take agreement with Glencore and they failed.
The industry realises that size doesn’t matter here, and it doesn’t make sense to go in too heavy or too hard into price negotiations, but it’s really needed to secure the supply.
Demand is rising, and you get the stuff only through off-take agreements. We speak to 10 to 12 global corporates in Europe and all of them are looking for off-take agreements in various metals and none of them has one yet, which means they all come to the market and that gives us a clear idea of the situation.
They simply can’t wait much longer, they can’t wait for seriously low prices in lithium and cobalt. It’s just a situation that was totally under-expected by the industry.
There is huge money that will be delivered to implement the battery industry in Europe, which goes from mining through the whole value chain up to battery production.
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