Scott Tozier: Yes. They’ll definitely be stronger. It will be on the basis of the production out of Chile, but also the ramping up of lodging and the conversion there. And then the additional volume that Eric just talked about with Talison. Of course, prices are up, but we’re assuming prices flat throughout the year based off of how we exited 2022. And then you have got to layer on the cost impacts that I talked about on the call. So you’ve got the spodumene inventory lag that corrects itself this year. You’ve got as Wodgina ramps up, you have a margin rate impact there that just due to the fact that we report a 100% of the revenue and only half of the EBITDA.
Jeff Zekauskas: Okay. Great. Thank you so much.
Operator: Thank you, Jeff. With our next question comes from Stephen Richardson from Evercore ISI. Stephen, your line is now open.
Stephen Richardson: Hi. Good morning. I was wondering if you could dig in a little bit on the European strategy. It seems clearly, in China, you’ve acquired and built conversion capacity. And in the US, it looks like things are really centered at Kings Mountain. Could you talk a little bit about Europe in terms of how you’re thinking about how this evolves? I know it’s early, but — is this an area where we would see you bring material from either Chile or Western Australia? And then do you envision yourself partnering or doing more of a greenfield as it comes to supplying on the continent?
Kent Masters: So I’ll start with that. Eric can fill in a little bit. So I think you’re — I mean, you answered part of the question. So — we’re moving from China. North America. We’ve got — we have resource strategy and a program for North America, we’re investing there and we’ll be a similar program in Europe. We don’t have the resource base in Europe that we have in North America. So we’d like it to be a combination of some local resource, which we don’t have at the moment, and then bringing some — bringing resource in, in some form. And that’s most likely going to be from Chile and Western Australia, because it’s where the big resource bases are at the moment. And we just got to work out the strategy of how we bring that in the most economically and the most sustainable way that we can, and that’s going to be about the strategy with the assets that we put on the ground in Australia. Eric, can talk about partnering.
Eric Norris: Yes. So Stephen, it would be a greenfield site as there really are no brownfield sites for such capacity in Europe today. And we’ve gone through a site selection process and looked at numerous countries and haven’t drawn that down close enough yet to make an announcement or to say anything publicly further about it. But that being said, it would be a plant that would be modeled very intentionally after what we’ve done here in North America or we want to do in North America, I should say — around a plant that is able to process a variety of different feedstocks. I can’t mention Chile. That would be a carbonate feed or spodumene or derivative of spodumene coming from Australia into Europe and also having the ability to have recycling.
We very much view that kind of strategy being one that has an opportunity for a partner, whether that be an OEM or other producers in the battery supply chain in the region. And we don’t have anything further we can say about that, but that’s an effort that remains underway in terms of how we might partner to bring about that closed loop process in addition to the sort of the virgin lithium production we intend to put on the continent.
