Here the Investing News Network looks at major events, announcements and developments in the battery metals space in April.
In this video, the Investing News Network looks at the key events, announcements and developments in the battery metals space in April.
Looking at the major updates in the cobalt space, cobalt producer Katanga Mining (TSX:KAT,OTC Pink:KATFF), which is majority owned by Glencore (LSE:GLEN,OTC Pink:GLCNF), has resumed the export of limited quantities of cobalt from its Kamoto mine in the Democratic Republic of Congo.
Last November, the company suspended cobalt exports and sales after finding levels of uranium that exceeded the acceptable amounts for exports through main African ports.
In other cobalt news, the London Metal Exchange (LME) has begun an initiative to ban or delist brands that are not responsibly sourced by 2022. Under the new rules, all LME brands will, by the end of 2020, be assessed based on guidelines set by the Organization for Economic Co-operation and Development.
Looking at news from lithium-focused firms, at the start of the month, shares of Lithium Americas (NYSE:LAC,TSX:LAC) jumped over 10 percent after a US$160 million investment from Chinese company Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460) to develop the Caucharí-Olaroz project in Argentina.
A few days later, the Chinese top lithium producer and German carmaker Volkswagen (OTC Pink:VLKAF,FWB:VOW) announced a memorandum of understanding on long-term lithium supply for battery cells. After the news, lithium experts and analysts took to Twitter to comment on the news, which is seen as a major step in the race to secure raw materials for the electric car revolution.
Another top Chinese lithium producer, Tianqi (SZSE:002466), also made news headlines in April when it announced an agreement over the governance of Chilean miner SQM (NYSE:SQM) with key shareholder Pampa Group, led by Julio Ponce. Last year, Tianqi purchased a minority stake in SQM for US$4.1 billion. The agreement established that board decisions and operations will be independent of both parties.
In addition, Orocobre (ASX:ORE,TSX:ORL,OTC Pink:OROCF) and its partner Toyota Tsusho (OTC Pink:TYHOF,TSE:8015) have approved the development of a lithium hydroxide plant in Japan. Construction is set to start in the first half of 2019 with commissioning expected in the first half of 2021.
Finally, Australian company Galaxy Resources (ASX:GXY,OTC Pink:GALXF) announced it will close the joint venture process for its Sal de Vida asset without a deal. Despite this news, the company said it will continue to progress the development of Sal de Vida.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.