Technology Metals Research’s Gareth Hatch posted an extensive analysis of Tesla Motors Inc.’s (NASDAQ:TSLA) lithium-ion gigafactory announcement, concluding that Northern Graphite Corp. (TSXV:NGC) and Focus Graphite Inc. (TSXV:FMS) will be able to take advantage of it “if it comes to fruition.”
As quoted in the report:
Based on the above criteria, I believe that both Northern and Focus have the potential to take advantage of the Tesla gigafactory, if it comes to fruition. Given the volumes of material required, it is entirely possible that both could service the supply chain requirements. I believe, however, that Focus may well stand to gain greater benefit from the opportunity that the gigafactory presents. Its lower ROM concentrate operating costs, likely lower battery-grade purification costs and the fact that it has already secured a significant off-take agreement (making it that much easier to finance the eventual construction of the mine) are key factors.