Dalvin B’s Post

Lower Royalty Rates Give Lithium Producers a Lifeline. Read more on this unexpected turn of events >> https://lnkd.in/g4ruGTmh The decline in lithium prices since the beginning of 2023 has been significant, with battery-grade lithium carbonate prices dropping by over 80% by April 2023. Lower royalty payments would directly reduce miners' cost of sales. #lithium #carboncredits #carbonmarkets #carbonnews #carbonprices #climatechange #cleanenergy #decarbonization #energytransition #esg #netzero 

Lithium Miners Revolutionize Pricing with Auctions  Read how slumping prices are affecting margins as producers turn to spot auctions >> https://lnkd.in/gqGJeMjz A surge in demand has led to the introduction of public trading platforms. This means companies can secure higher prices than those assessed by price reporting agencies (PRAs) as demand for the battery metal increases amid the energy transition. #lithium #carbonpricing #carbonscapture #carbonoffsets #carboncredits #carbonmarkets #carbonnews #carbonprices #climatechange #cleanenergy #decarbonization #energytransition #esg #greenhydrogen #netzero

Lithium Priced at Over $20,000 Per Ton Signals Market Optimism. Read more on encouraging signs in the lithium market indicating positive market trends >> https://lnkd.in/dsSmkRxC Analysts remain optimistic, foreseeing a positive trajectory for both lithium companies amidst evolving market conditions. #lithium #carbonscapture #carbonoffsets #carboncredits #carbonmarkets #carbonnews #carbonprices #climatechange #cleanenergy #decarbonization #energytransition #esg #greenhydrogen #netzero 

Glencore's U-Turn on Coal: Profits Over ESG? 😳 In a surprising move, Glencore, the global mining giant, has decided against spinning off its coal business, raising eyebrows across the industry. Despite the rising pressures of ESG standards, Glencore has chosen to prioritize profits over sustainability. With coal still being a lucrative asset, the company seems unwilling to part ways with a business that continues to generate substantial revenue. This decision comes after months of speculation, during which Glencore had hinted at the possibility of divesting its coal operations to align with the growing demand for cleaner energy sources. However, it appears the allure of profit margins has outweighed the pressures of the green transition. Here’s what they’re saying: 💬 Critics argue that this move underscores the challenges companies face in balancing profitability with environmental responsibility. 💰 Supporters claim that as long as there is global demand for coal, Glencore is right to stay the course. But here's the kicker. Glencore isn't just holding onto coal; they're doubling down with the acquisition of Elk Valley Resources, with plans to maximize the profitability of this division before any potential phase-out. It’s a bold strategy, especially in an era where many are turning their backs on fossil fuels and banks are cutting back on financing. Are we witnessing a company clinging to the past, or a shrewd business maneuver in the face of economic reality? 🤔 ------------- For more insights into the evolving landscape of business and M&A, don't miss out on 🔔 Cracking the Vault (https://lnkd.in/efTXPY46) 🔔 your go-to newsletter for everything at the intersection of finance and deal-making. For investors, advisors, and leaders.

Lithium Priced at Over $20,000 Per Ton Signals Market Optimism. Read more on encouraging signs in the lithium market indicating positive market trends >> https://lnkd.in/d_mcNQck Analysts remain optimistic, foreseeing a positive trajectory for both lithium companies amidst evolving market conditions. #lithium #carbonscapture #carbonoffsets #carboncredits #carbonmarkets #carbonnews #carbonprices #climatechange #cleanenergy #decarbonization #energytransition #esg #greenhydrogen #netzero 

🇨🇱 Chile aims to double lithium output to mitigate battery substitution risks For the global lithium industry, currently grappling with excess supply across the battery supply chain, Chile, the world's second-largest producer, argues that the greater long-term risk lies in producing too little of the metal rather than too much. More about? https://lnkd.in/dBW5hDJQ

Global Lithium Reserves and Resources Surge 52% in Q1 2024. And experts suggest a prevailing upward trajectory in lithium demand and prices >> https://lnkd.in/gezcYxcm Argentina emerges as the global leader in lithium reserves and resources, contributing 29.6% in the Q1 of 2024. The United States comes second at 24%. #lithium #carbonoffsets #carboncredits #carbonmarkets #carbonnews #carbonprices #climatechange #cleanenergy #decarbonization #energytransition #esg #greenhydrogen #netzero 

Consolidation to take place in the coal industry, to cut losses from a decline in coal volumes. Consol and ARCH propose an all stock deal valued at $5.2B, for their upcoming merger, the new entity will be named Core Natural Resources. The deal comes at a time when Powder River Basin volumes for ARCH are down 57% compared to 2014. Demand for Met-Coal is soaring as worldwide steel production ramps up, using the traditional method via a Basic Oxygen Furnace (BOF). While we have transitioned roughly 70% of steel production to Electric Arc Furnace (EAF). There are few things to note. BOF’s still produce the highest purity steel. EAF’s tend to be energy hungry, however they can be built on a smaller footprint closer to consumers. Which lowers total cost from production to manufacture, etc. Another item to note, is that we have a fairly large scrap iron market compared to the rest of the world. As this provides cheap inputs to the process, EAF’s thrive in such conditions utilizing some Direct Reduced Iron (DRI) charged with various levels of scrap. To close out my post. Don’t bet against a demise of Steam-Coal. Coal can be used in what’s called a Direct Carbon Fuel Cell. This is a much more efficient form of coal energy extraction, that significantly reduces water use, or even to zero. Which means plants can be built much closer to mining areas.

Global Lithium Carbonate Supply Report 2024   Abstract   Lithium Carbonate Supply: The mid-to-long-term surplus on the supply side is relatively clear. Based on the production plans of overseas mines and salt lakes, the next two years will see a significant increase in global mine and salt lake output. It is estimated that global lithium carbonate supply will reach 1.416 million tons next year, an increase of 36.3% compared to this year. Against the backdrop of oversupply, there may gradually emerge a downward pressure on prices, forcing high-cost production capacity to exit. We should focus on the implementation of mine production plans and the response strategies of lithium salt plants.   Lithium Carbonate Demand: There will be some pressure on demand next year. The sales pressure in the new energy vehicle industry is significant, with a risk of declining growth. The consumer electronics industry is showing signs of improvement, industrial demand remains stable, and energy storage growth is slowing down. The penetration rate of the new energy vehicle industry has exceeded 30% and entered a mature stage. Maintaining the same growth rate next year will be quite difficult given the 2023 high base. In terms of pace, demand in the second half of the year is better than in the first half. Additionally, we need to observe changes in national and local policies on new energy vehicles. The price center of lithium carbonate will gradually shift downward, and price fluctuations will be significantly smaller than 2023. Costs will provide some support for the price of lithium carbonate, and the peak demand season's stocking may temporarily drive up the price. It is expected that the price center of lithium carbonate for the whole year will move down to 120,000 yuan/ton, with a fluctuation range of 80,000-170,000 yuan/ton. The fundamentals of lithium carbonate will still be weak next year, and any rebound during the year will depend on the extent of supply reduction and the boost from peak demand. https://lnkd.in/gv-yirNM

Our analysis also suggests that existing Australian lithium hydroxide refiners could achieve internal rates of return (IRRs) of about 29 to 36 percent