I want to address two articles. The first relates to the acquisition of US lithium assets by an Australian junior (first link). Not a big deal, per se, but it is indicative of the kind of M&A frenzy of which we’re just at the leading edge. I believe that we’re at an unprecedented consolidation phase for the lithium industry, and in the end there probably won’t be more than 5-10 big producers in the world, with few new meaningful resources left to develop. I assess that LAC’s management team is on the path to become one of the top 3-6 producers in the world when it all shakes out. I can’t say enough about how impressed I am with their aggressiveness in seeking out new acquisitions even before they are producing. They refuse to be a passive little fish waiting to be swallowed. 

The second article is one of the best reads I’ve had in a while relating to LAC, even though it relates to them through their recent outside investments as opposed to them directly, and it is sponsored by Arena. It provides lots of information regarding Arena that is new to me, particularly the history of their management team, and we all know how important quality management is. Even with its bias, it contains facts that make you understand why Ganfeng and LAC have become involved. They suggest that AN plans to concentrate their lithium to 6% on site, ready to ship “anywhere in the world” for further processing. I’m guessing it’s not a stretch to say that it won’t be shipped any further than C-O. The article also goes on to describe ML as an excellent company in the same salar, although it’s a bit dated because they still refer to CATL being the buyer, not LAC. This article also has one of the best lines I’ve seen in a while, and it nicely sums up the lithium space as I see it too – “I think a monkey throwing darts at lithium stocks might do very well in the coming years.” 

Here’s to us monkeys!

Aussie junior acquires US projects

Resource Junior Could Be the Next Big Lithium Play