LITHIUM Stocks fertile ground

[Norwest]

There are two main ways Lithium is produced, Hardrock mining of spodumene or via brine pools. Clay is currently a bit of a pie in the sky in my opinion.

The value add is in downstream processing converting Spodumene to Hydroxide compared to direct shipped ore which is currently processed in China.

Lithium Hydroxide is what EV battery manufacturers want, the easiest way to get Lithium Hydroxide is via Spodumene not via Brine which needs to be converted to Lithium Carbonate first.

The world leaders in Lithium are Gangfeng (China) and Albermale (NYSE), as well as SQM (NYSE).

My picks as follows, I'm not currently buying more of these after they have run, but I will happily continue to buy on any pull backs.

PLS.ASX:
Owner of Pilgangora Mine in the Pilbara, WA. Recently acquired AJM's asset next door after AJM went bust, doubling its hard rock deposit. Has a sizeable debt recently refinanced at lower rate. Not cashflow positive but close.

MIN.ASX:
Diversified Miner, high cash balance, Iron ore/mining services business generates lots of cash. Has two major hardrock resources in Mt Marion in Kalgoorlie 50% JV with Gangfeng, and Wodgina in the Pilbara 40% JV with ALB (currently on C&M). Has Hydroxide plant being built under the 40% JV with ALB.NYSE in Kemerton. Owns 6% of PLS.

AVZ.ASX:
Exploration/Potential Miner in the Congo. This is a gamble on a stock in the DRC, a dangerous and corrupt country, but it is the biggest hardrock resource in the world, also has sizeable tin deposit. Just signed OT with Gangfeng, waiting on financing.

FYI: The lowest cost mine I believe is greenbushes (Talison JV) which is owned jointly by ALB, IGO.ASX (recently bought into the JV) and Tinaqi (China).

I hope this helps someone.