Trommel, I believe you actually underestimate how cheap the fit out for this 1 Gwh facility actually is.
The deal is structured in such a way that iM3 are receiving the US$30m in funding to refine the production flow sheet and connect the processing line/units over the next 12 months. I expect the US$30m to take iM3 through to commissioning, with the US$22m to be used for working capital (I.e. post-commissioning). Going to be necessary for ironing out any kinks in the processing line and managing working capital requirements.
Given that we are unaware of the customers, capacity to pay and pay on time are always questionable. This could see iM3 having quite a heavy working capital requirement until operations and working capital cycle normalise.
iM3 is set to achieve a 1 Gwh facility for US$35m, which is extraordinary given the development costs of other battery factories around the globe. Average cost per 1 Gwh is sitting at US$90-$130m. That’s with achieving economies of scale from size.
Shaping up to be a great story if they can pull this off.
India and Australia to follow.
I question whether Listrom will be scrapped for a partnership with BMZ in TerraE. Starting to make more sense as opposed to just being a raw material supplier.
MNS Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
(20min delay)
