In the quest to get an idea of what the global benchmark looks like, the board of Lithium Universe (ASX:LU7) have travelled to China.
There, C-Suiters specifically visited the Jiangsu lithium carbonate (Li-Carb) facility, built by Galaxy, which LU7 reports as the “benchmark in China.”
Lithium Universe wants to reinforce a “construction philosophy of Jiangsu-style” when it seeks to build out its own Li-carb facility in North America.
Multiple refineries were visited as conversations were held with multiple proponents on the lithium price cycle and an overall increase in demand for lithium carbonate specifically, due to changing market preferences for batteries.
“The discussions had with various Chinese converters were essential and extremely valuable to the Company’s understanding of the existing global conversion environment,” LU7 chief Iggy Tan said.
The company also collectively visited sits in Shangdong, Hubei and Sichuan.
Lithium Universe reported many Chinese lithium producers are expanding plants and operations ahead of what Fitch’s BMI expects to be a recovery in lithium prices around 2028.
“The Company has multiple points of difference that were validated on this excursion, including proven technology, demonstrated development experience, focus on lithium carbonate, and access to convert within the North American battery supply chain,” Tan added.
LU7 last traded at 2.7cps.