Interesting points made here in this link and the new link below about EUR opting for production of LiOH H2O instead of Li2CO3. In a nut shell, the one is much better than the other because "According to BMI usage of LiOH H2O will grow 2.5 times faster than Li2CO3 consumption".
It would be a given that the "Potential Partners" EUR is talking about require or want the different production type.
Do your own DD and read the linked pages and see for yourself just what is going on here with EUR Management decisions. The more you know about your investment in EUR the better off you will be.
I always note these little important things and mostly never mention them but I am sure some here are not aware of the difference in the two types of Lithium. So at the risk of insults and being insulted by the never EUR posters, I choose to mention this little but important fact about EUR's change of direction. I for one think it is extremely important for the long run.
maxi1981 said:
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Link to fully report:
https://europeanlithium.us9.list-ma...ff82dffbd215a8f035&id=97316f6052&e=09f00a265b
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EUR has opted for production of lithium hydroxide rather than lithium carbonate The valuation of EUR in our March study was based on the scoping study of the Wolfsberg project completed by SRK Consulting in April 2017. The SRK study was in turn based on the current measured/indicated resource and modelled 7.7m tonnes mined (an average of 590,000 tonnes per annum) over a 13 year mine life. The PFS noted that “During the development of the mine plan it became evident that with little extra equipment and improved scheduling the mining rate could be increased to about 720,000 tonnes per annum.” On the basis of the measured and indicated resource, this would result in a reduction of the mine life from 13 years to 11 years.
The other big difference between the PFS and our March study is that our March study was based on production of lithium carbonate (Li2CO3) whereas the PFS assumes production of the more highly valued-added lithium hydroxide monohydrate (LiOH H2O).
LiOH H2O consumption expected to grow 2.5x faster than Li2CO3 consumption The consultant Benchmark Mineral Intelligence (BMI) expects global demand for lithium to increase from 180,000t LCE (lithium carbonate equivalent) in 2016 to 650,000t LCE by 2025 driven primarily by growth in demand for lithium ion batteries in electric vehicles. Worldwide, there are currently 25 lithium battery projects in construction or development with a total
capacity of 338GWh. Four of these projects are in Europe with 78.5 GWh capacity. This translates to demand of over 100,000tpa LCE in Europe by 2025.
EUR has opted for LiOH H2O because the trend in lithium battery manufacture is towards increased use of nickel and reduced use of cobalt. This trend requires the use of LiOH H2O rather than Li2CO3.
According to BMI usage of LiOH H2O will grow 2.5 times faster than Li2CO3 consumption.
(Bad news for the t.sage and his CFE cobalt empire that:
the trend in lithium battery manufacture is towards increased use of nickel and reduced use of cobalt). But good news for European Lithium investors like myself.
LiOH H2O premium to Li2CO3 reflects more capital intensive production The
production of Li2CO3 entails two main stages - the production of spodumene concentrate from run-of-mine material (post-ore sorting) followed by the conversion of the spodumene concentrate into Li2CO3.
https://do not advertise external l...ers-look-for-when-choosing-lithium-suppliers/
Specifically, miners who produce lithium hydroxide are likely to witness increased interest, according to market intelligence firm Roskill.
Lithium hydroxide is mainly used to produce lithium greases, but it is also used as a heat-transfer medium and as a storage-battery electrolyte.
Lithium carbonate, however, has been the more widely produced compound and is usually the first product in the lithium production chain.
- Lithium hydroxide in vogue
That is now changing with lithium hydroxide becoming more popular among electric car battery makers because it can produce cathode material more efficiently.
It is also a key component for the cathodes that go into the nickel-cobalt-aluminium batteries favoured by Tesla and the nickel-cobalt-manganese batteries that are more popular with rival car makers.
The cathode is used to conduct electricity flows out of a battery or device.
“Despite its higher price, lithium hydroxide offers higher performance in lithium-ion batteries, especially given the new regulatory requirements in countries such as China where range and energy density is strictly controlled,”
Roskill said in a new lithium market report released this week.
In 2017, around 30 per cent of the lithium used in automotive lithium-ion batteries was lithium hydroxide and this proportion is expected to increase within the next decade, Roskill noted.
Sentiment* Position* BULLISH and HOLDING for THE LONG TERM
