Orbia Q4CY22 concall snippets (on PVDF and LiPF6)
Two of the most significant announcements that we made in this call are on our projects, the PVDF joint venture with Solvay that we are kicking off. And the LiPF6, which is 100% or be own venture that is also being kicked off. These are transformational and very significant, right? And so we are putting up 20,000 tons of PVDF and 10,000 tonnes of LiPF6. But the market potential for these over the course of the next 10 years, you’re looking at a 5 to 10x expansion in these markets in the course of the decade. And in terms of investment, the PVDF investment is an $850 million investment with – of course, we have a 49% stake, so it will be proportional. And the LiPF6 investment is roughly $300 million investment with a $100 million grant from the Department of Energy. Now if you remember, Frank, at the Investor Day, we had shared that most of our growth will come from organic growth projects. 80% or more of a growth is coming from organic growth projects in this 5-year period with investment to EBITDA ratios of 2 to 4x. And what I can say to all of our investors and the analyst community that the economics on these 2 projects are on the more favorable and more attractive side of that range. Which is a huge deal, right? And of course, it’s going to take 3 years to deploy that capital and kick that off and then plan for subsequent expansions. But especially given the near shoring of supply chains and the United States desire to have security of supply for both battery and semiconductor value chains and the fact that we are fully integrated from my end to market from Mexico to the United States. This is a big, big deal, okay? So I just wanted to make sure we get that out there.
And then later on in this year, we’ll start deploying the early phase of the capital for the LiPF6 and the PVDF projects.
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