Martin Steinbild of Savannah Resources discusses the lithium price, the future of the supply chain and the hydroxide/carbonate question.
Martin Steinbild, director of lithium development at Savannah Resources (LSE:SAV), says that given Europe’s position as the world’s second largest market for electric vehicles (EVs), it is important that a lithium supply chain be established there.
“What we can see at the moment in Europe is that the car manufacturers are preparing themselves for bringing new products and models into the market … What’s important is that we’ll see the complete lithium value chain established in Europe,” he said at the Lithium Supply & Markets Conference.
“That’s absolutely important for sustainable, long-lasting business.”
Steinbild said that Europe could account for between 15 and 20 percent of market share in EVs, meaning there is plenty of room for producers and manufacturers to operate.
“The basic challenge is to feed that demand.”
Talking prices, he said that Savannah expects the price floor to remain for the next one to two years before it starts to recover.
Savannah operates the Mina do Barroso lithium prospect in Portugal, which it describes as the largest spodumene resource in Europe. On Thursday (June 21), the company increased its stake in the asset to 100 percent by acquiring the 25 percent it did not already own from minority shareholders.
“We have very good lithium oxide grade, and we want to produce spodumene concentrate. That’s our strategy because we want to encourage specialized companies with experience in the lithium field to invest in Europe, and we are there to support these companies to become a sustainable player.”
Watch the full interview above for more detailed thoughts from Steinbild on the lithium space, including his thoughts on the hydroxide/carbonate divide. You can also click here to watch our full Lithium Supply & Markets Conference playlist on YouTube.
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.
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