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Discussion in 'News' started by jackbowers, Apr 6, 2014.
Tesla factor: Recharging Nevada's lithium industry
It is a fact that Tesla will need Tons of lithium in the near future.
Maybe my 25K gamble on Western Lithium (WLCDF) might pay off someday.
My several-times repeated skepticism for WLCDF is based, inter alia, on the following:
* Tesla effectively will have monopsony power with its gigafactory appetite for Li2CO3
* As such, what it could do...should do....irresponsible not to do in any negotiations with, e.g., Western Li, would be to tell it "Soquimich can supply us with X tpy Li2CO3 at $Z, cif Gigafactory. If you can match that, you've got a contract".
* And that, in my experience, is going to be a supremely difficult hurdle for any junior company, any company trying to extract Li from hectorite, any company operating in the USofA to be able to meet. If it can, then all power to it. I highly doubt it, though.
Note, however: just because I am a doubting Thomas wrt Western Li being able to meet Tesla's price target does not mean it could not become a viable operation. If global dd for Li2CO3 is X, the high-cost producer still can have a place in meeting that...but at severely constrained profits (read: in good years it might be okay, in bad years it'll be hitting pretty nasty tailwinds).