We know the story. Battery metals are on the nose and Toilet Paper commands more of a premium than Lithium Spodumene (at least here in Victoria.)
The rise of potential solid-state batteries, with solid electrodes and electrolytes instead of the liquid or polymer gel electrolytes found in lithium-ion or lithium polymer batteries, has spooked many, shutdown nation building mines and is being keenly watched by a government who like want the royalty payments.
Along with Lithium and Nickel we have seen Rare Earths Elements (REE) mixed into the discussion. This is a little unfair as I have read a number of scientific journals that suggest rare-earth elements are still required in all solid-state batteries. Beyond the hype, we are not here to argue the benefits and possible application of solid vs liquid batteries (both have their positives and negatives….pardon the pun.)
So assuming demand for REE's will not disappear overnight, the question we should be asking ourselves is whether there are any opportunities that warrant another look at? This is nigh on impossible to do from a momentum perspective as every stock from A - Z in the space is down. So we can only look to their current operations, and notwithstanding the challenges the sector is facing, there is clearly one stock on the move operationally. The good news is we don’t have to look too much further than its largest constituent Lynas Rare Earths (ASX:LYC)
Lynas has a convoluted operational profile that requires its own article. But at its simplest, Lynas is underpinned by its world class Mt Weld project in WA, recognised as the largest rare earths deposits outside China. Its largest customer is Japan, and it is prized for its independence and transparency.
As at the end of last year, the company has two processing facilities. Lynas Malaysia is the more established and recognised site (the largest outside China), whereas the recently commissioned Kalgoorlie site will take Naturally Occurring Radioactive material (NORM) produced in Kalgoorlie to be further processed at Lynas Malaysia more advanced facility. In time it will also send material to the proposed Rare Earths separation facility in the United States funded in large part by the US Department of Defense.
Lynas 101
So starting with Rare Earths 101…
