Foreign Automakers around the world are going through a seismic shakeup. As governments move away from fossil fuelled vehicles to more eco friendly and efficient Electric Vehicles (EV).
Lithium, Cobalt, Nickel and Graphite have quickly become the key components of the new energy world.
China is leading the charge by committing unprecedented sums of capital into producing Lithium-Ion battery technology, with a commitment of introducing 207 different electric vehicle models to the market by 2022 and a staggering 25% of the automotive market to be EV by 2025.
The consensus among auto makers is “Lithium supply security” continues to be a concern. Battery producers are targeting “Grade, Infrastructure, Government”
Because WA has it all. Close to infrastructure, stable government, roads, power, gas, water, port facilities and excellent Lithium grades.
More than 95% of the worlds lithium supply occurs in in the form of Hard rock and brines. Everyone wants spodumene found in LCT deposits. Greenbushes is the world’s largest hard rock mine and is easily converted from spodumene to lithium concentrates for EV batteries. Greenbushes represents low cost mining that is quick to market.
And there is plenty of demand.
Tesla’s new GigaFactory in Nevada needs an estimated 24,000tpa just to keep up with production. Out of a global market of only 50,000tpa available.
Tianqi’s new Lithium Hydroxide plant in Kwinana, Western Australia due for completion in 2018, will produce 24,000tpa LiOH from Stage1 and a further 24,000tpa in Stage2 (2019).