Battery Metals Update May 2019

TL;DR

The US is taking steps to reduce its reliance on foreign sources of battery metals, while China continues to lead in building a domestic supply chain. Key producers in the cobalt and lithium sectors face challenges and changes in market demand.

Transcript

I'm Priscilla beretta the battery metals reporter with the investing news network welcome back to our monthly video update this time for the month of May let's start by talking about what happened in the cold space the US and its control over the supply chain of cobalt and other battery meadows has been under the spotlight in the past few months in... Read More

Key Insights

• 🥺 China has a significant lead in building a domestic supply chain for battery metals, while the US is aiming to reduce its foreign reliance.
• 💗 Glencore's support for refinery restarts highlights efforts to increase production capacity and meet growing cobalt demand.
• ❓ Wesfarmers' takeover offer for Kidman Resources reflects potential consolidation in the lithium sector.
• 🧑‍🏭 Weaker demand and external factors have impacted top lithium producers' sales and earnings.

Questions & Answers

Q: How is the US addressing its reliance on foreign sources of battery metals?

US Senator Lisa Murkowski has introduced legislation to reduce reliance and streamline mining permits, aiming for greater domestic supply chain security.

Q: What is the latest development in the cobalt sector?

Top producer Glencore is supporting the Ontario refinery restart of First Cobalt, providing feedstock for annual cobalt sulfate production.

Q: How has Kidman Resources been affected in the lithium space?

Wesfarmers' takeover offer, backed by SQM, has greatly increased Kidman Resources' stock value, signaling potential changes in the company's future.

Q: What challenges have top lithium producers faced?

Livent and Avrilas have seen weaker demand and sales due to slower market shifts to higher nickel cathodes batteries and heavy rains affecting production.

Summary & Key Takeaways

• US Senator Lisa Murkowski announces legislation to reduce US reliance on foreign sources of battery metals and streamline mining permits.

• Top cobalt producer Glencore backs Canada's First Cobalt refinery restart, aiming to produce 2,000 to 2,500 tonnes of cobalt sulfate annually.

• Kidman Resources receives a takeover offer from Wesfarmers, backed by joint venture partner SQM, raising stock value by over 45%.

• Top lithium producers, such as Livent and Avrilas, face challenges with weaker demand and sales due to market shifts and external factors.