• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 15 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 4 mins How many drilling sites are left in the Permian?
  • 1 day China To Promote Using Wind Energy To Power Heating
  • 16 hours "Undeniable" Shale Slowdown?
  • 1 day Climate Change Protests
  • 1 day Gas Flaring
  • 18 hours Overheating the Earth: High Temperatures Shortened Alaska’s Winter Weather
  • 16 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 7 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 2 days Oil at $40
  • 7 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 14 hours Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
  • 2 days Negative Gas Prices in the Permian
  • 2 days Japan’s Deflation Mindset Could Be Contagious

Breaking News:

Guaido Takes Strides To Topple Maduro

Alt Text

U.S. Energy Consumption Hits All-Time Record

The United States consumed 101.2…

Alt Text

U.S. Doubles Oil Exports In 2018

The United States nearly doubled…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

This Joint Venture Could Stir Up The Lithium Market

Rumors are swirling that the rare metals space is close to an unusual joint venture deal. One that shows how alternative financing arrangements are continuing to become a major story for the beaten-down mining sector.

The deal is all the more interesting because it involves the world’s largest copper miner: Chile’s state-run Codelco. Which local papers said late last week is looking at a joint venture for a completely different commodity.

Lithium.

This of course isn’t a major step out for Codelco. Chile is the largest producer of lithium in the world — and Codelco holds a major land package across the country. Related: North America’s Best Shale Patch

But the rumored partner with Codelco on the lithium investment is more surprising: U.S. electric car manufacturing phenomenon Tesla.

According to the local press, “top executives” from Tesla have met with Chile’s government in recent weeks. With the goal being to “suggest an agreement with Codelco” on lithium.

Few details were given about what a potential Tesla-Codelco deal might look like. But it would presumably involve Codelco contributing exploration or development lands from its portfolio — and Tesla contributing some or all of the capital for identifying and producing lithium deposits. Related: Is OPEC Losing Influence?

If such an arrangement does materialize, it would be an extremely interesting move for Tesla.
The company needs large amounts of lithium for its electric car batteries. And supply for this metal is somewhat unnerving — given that only five countries outside the U.S. produce significant amounts of the metal.

Three of those lithium-producing nations are China, Argentina and Zimbabwe. Which Tesla might be hesitant to rely upon for output. Related: Marathon Abandons $270 Million Ultra-Deepwater Project

The only other major producers are Chile and Australia. A fact Tesla has obviously decided to act on — attempting to secure a direct deal with the closest and most apparently-reliable supply nation.
Such an approach might have got little attention three years ago. But the fact that Codelco is now apparently considering the concept shows how the current downturn has changed big miners’ ideas on funding sources.

Officially, Codelco says it has not made any formal agreement yet. Watch for announcements over the coming weeks — which may show the “age of the end user” rising in mining investment.

Here’s to going to the source

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News