Lithium miners (NYSEARCA:LIT) rallied in Thursday’s buying and selling, as inventory traders apparently took to coronary heart Elon Musk’s exhortation for entrepreneurs to enter the lithium refining enterprise, calling it “a license to print cash.”
Musk instructed Tesla’s Q2 earnings convention name that constraints on availability of lithium which have pushed costs increased usually are not the results of shortage of uncooked supplies, however due to restricted international capability to ship ultra-high purity battery-grade hydroxide and carbonate chemical substances into battery provide chains.
“I might prefer to as soon as once more urge entrepreneurs to enter the lithium refining enterprise,” Musk stated. “The mining is comparatively straightforward, the refining is way tougher.”
Thursday’s lithium gainers had been led by ioneer (IONR) +6.4%, which introduced a five-year binding settlement to provide Ford Motor (NYSE:F) with 7K tons/12 months of lithium carbonate from ioneer’s Rhyolite Ridge Lithium-Boron operation in Nevada.
Ford (F) introduced a prolonged listing of offers for each lithium and nickel associated to native processing of battery supplies in North America in help of its electrical automobile plans, though solely the ioneer (IONR) settlement was binding.
A non-binding cope with China’s CATL would provide lithium iron phosphate battery packs for Ford’s (F) North American Mustang Mach-E fashions subsequent 12 months and North American F-150 Lightnings in 2024.
Ford (F) signed a memorandum of understanding with Rio Tinto (RIO) for the provide of supplies together with lithium, low-carbon aluminum and copper, and agreed to “discover changing into the muse buyer” for Rio’s Rincon lithium challenge in Argentina.
Compass Minerals (CMP) additionally will “discover ” supplying Ford (F) with a battery-grade lithium product from its lithium brine improvement challenge at its Ogden, Utah, photo voltaic evaporation facility.
Individually, Lithium Americas (LAC) broke floor this week on its Reno, Nevada, lithium course of testing facility.