Battery Metals Update July 2019 | Summary and Q&A

TL;DR

The cobalt market saw a mine collapse and London Metal Exchange approved brands, while the lithium market is expected to face a price decrease by 2025.

Key Insights

• 😀 The cobalt market faced challenges with a mine collapse in the DRC and concerns over security issues.
• 🤘 London Metal Exchange's approval of cobalt brands signifies its recognition of the metal's importance.
• 🥺 Despite opposition, Jura Mining successfully acquired Cobalt Solution, leading to a significant increase in share price.
• 💮 Cobalt prices hit their lowest levels in years, reflecting pressure and oversupply in the market.
• ❓ The lithium market is expected to experience a significant price decrease by 2025 due to advances in technology and oversupply.
• 👾 Australian miners, including Pilbara Minerals and Alta Mining, continued to strengthen their relationships with Chinese firms in the lithium space.
• 😀 North American company Nemaska Lithium received a potential $600 million investment from Polymers Group, boosting share prices after facing financing challenges.

Transcript

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Questions & Answers

Q: What were the main events in the cobalt space in July?

In July, a mine collapse in the DRC resulted in casualties and raised concerns about artisanal miners' safety. London Metal Exchange approved cobalt brands. Jura Mining acquired Cobalt Solution despite opposition.

Q: What were the top trends in the cobalt sector in the second quarter?

According to I Ihnen's cobalt market update, prices remained under pressure, hitting their lowest levels in years. Analysts suggested that the market faced oversupply.

Q: What are the predictions for lithium prices?

Analysts at Morgan Stanley anticipate a 30% price decrease by 2025 in the lithium market. They attribute this to new technologies reducing production costs and leading to oversupply.

Q: Which Australian miners signed new deals in the lithium space?

Pilbara Minerals signed an offtake deal with Great Wall Motors, and Alta Mining struck an off-take agreement with Jiangdong Lu Feng, a Chinese lithium materials producer.

Summary & Key Takeaways

• In the cobalt space, a mine collapse in the DRC led to discussions on the dangers faced by miners and security issues for companies. London Metal Exchange added cobalt to its approved brands.

• Australian miner Jura Mining acquired Cobalt Solution, despite opposition. Prices for cobalt products hit their lowest levels in years.

• In the lithium market, Morgan Stanley predicts a 30% price decrease by 2025 due to oversupply. Australian miners, such as Pilbara Minerals and Alta Mining, signed new deals with Chinese firms.