Lithium carbonate purchases are typically tied to longer term supply contracts between the lithium producers and customers. There may be as many as ninety different varieties of lithium that producers will market and pricing is not simplified enough to give a generic quote as there are different volumes and purities according to the demands.
As the lithium fund holds a variety of companies that are exposed to multiple revenue streams it might be of interest for investors to note that on a weighted average basis, the implied exposure to lithium from the top 10 holdings is equivalent to only approximately 30 percent of the fund's assets, based on the reported segmented revenue from the latest annual company filings.
The US Department of Energy will be providing a $28.4 million grant to expand the Silver Peak lithium production facility operated by the Chemetall Foote subsidiary of Rockwood Holdings. The funding grant represents 50 percent of the estimated project development upgrading costs.
Although it is widely distributed on earth, lithium does not naturally occur in elemental form due to its high reactivity. Actual and potential sources of lithium are from continental brines, clay mineral hectorite, pegmatites, geothermal brines and oilfield brines.
It was a busy week for lithium investors as 2 of the largest lithium producers in the world reported strong first quarter earnings.
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