LTHM

Summary


 * Livent has gone all-in on lithium hydroxide in a market that heavily favors lithium carbonate, though a strong shift is coming.
 * Hydroxide is expected to experience a period of rapid growth, benefitting heavily from lithium's growth as a whole, as EV batteries switch over to new chemistries in the near future.
 * With a partial acquisition of troubled Nemaska Lithium, Livent has added to its lithium hydroxide portfolio as the bankrupt company held the seventh-largest lithium mine in the world.
 * The partial acquisition of Nemaska coupled with its own expansion plans has Livent poised for a period of strong growth.


 * Livent operates just one mine, located in Fenix, Argentina, that is currently capable of producing 25,000 metric tons of lithium hydroxide each year. This output is enough to secure them 6.1% of the global lithium market and secure the fifth position from the top.
 * Currently a supplier of lithium hydroxide for Tesla, Livent hopes that it will be able to expand its partnership past 2021. Tesla is one of the few automakers utilizing lithium hydroxide based battery chemistry, so Livent's ability to secure a supply deal with the firm is a notable accomplishment.
 * Livent harvests its lithium through a popular process known as brine mining. When applied to lithium, this method is a low-cost way to produce lithium carbonate. However, Livent doesn't produce lithium carbonate. Instead, the company takes its lithium carbonate and then converts it into lithium hydroxide to then be sold off to its customers. The conversion to hydroxide is estimated to add another $2,000 per tonne to the manufacturing process but, unless the resource is mined from spodumene, this is the most effective method of obtaining the metal.
 * Nemaska owns a spodumene project in Eeyou Istchee James Bay Territory. The Whabouchi Mine is expected to produce around 37,000 tonnes of lithium hydroxide each year. Livent owns 25% of New Nemaska Lithium.
 * unlike solid-state batteries, NMC and NCA cathodes are not a distant future. In fact, Tesla already uses NCA cathodes in its batteries in order to achieve its strong results. Though, NMC cathodes are also beginning to see their fair share of excitement. As a result, lithium hydroxide is expected to represent 55% of the global lithium demand by 2025 and only keep growing from there. For reference, the metal accounted for less than 20% of the market's total lithium demand over the past year. This means capturing an additional 35% of the total lithium market in just four years - all while the greater lithium market grows three-fold.

Source: https://seekingalpha.com/article/4405689-livent-more-than-tesla-supplier-lithium-hydroxide?mail_subject=lthm-livent-more-than-just-tesla-s-supplier&utm_campaign=rta-stock-article&utm_content=link-0&utm_medium=email&utm_source=seeking_alpha