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January 30, 2024
Atlantic Lithium takes major stride towards production with grant of historic Mining Lease in respect of the Ewoyaa Lithium Project
The Board of Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, is pleased to present its Quarterly Activities and Cash Flow Report for the period ended 31 December 2023.
Highlights from the Reporting Period:
Project Development:
- Historic Mining Lease, the first for a lithium project in Ghana, granted in respect of the Company’s flagship Ewoyaa Lithium Project (“Ewoyaa” or the “Project”).
- Grant of the Mining Lease represents a major endorsement from the Government of Ghana and serves as a significant de-risking milestone for the advancement of the Project towards production.
- The agreed terms of the Mining Lease position Ewoyaa as one of the lowest capital and operating cost hard rock lithium projects globally and indicate the Project’s strong commercial viability and exceptional profitability for a 2.7Mtpa steady state operation, producing a total of 3.6Mt of spodumene concentrate (approximately 350,000tpa) over a 12-year mine life1:
- Ewoyaa to become one of the top 10 largest spodumene concentrate producers1;
- Payback period of main processing plant of 9.5 months;
- C1 cash operating costs of US$377/t of concentrate Free-On-Board (“FOB”) Ghana Port, after by- product credits, All in Sustaining Cost (“AISC”) of US$675/t;
- Development cost estimate of US$185m; to be substantially funded by Piedmont Lithium Inc. (“Piedmont”) and planned investment by Ghana’s sovereign wealth fund, the Minerals Income Investment Fund (“MIIF”);
- Post-tax NPV8 of US$1.3bn, with free cash flow of US$2.1bn from Life of Mine (“LOM”) revenues of US$6.6bn, considering a US$1,410/t long-term concentrate price, FOB Ghana.
- Completion of the Flotation Scoping Study which confirms the viability of the inclusion of a flotation circuit downstream and running independently from the DMS-only processing plant at Ewoyaa for future value addition.
- Environmental Protection Agency authorisation granted to divert two transmission lines that currently traverse planned mining areas of the Mankessim licence, which contains the Ewoyaa Mining Lease area.
- Awarded Bulk Customer Permit in respect of the electricity requirements of the Project, expected to deliver a 30- 50% overall power cost reduction for the Project.
Exploration:
- Maiden JORC (2012) compliant 15.7Mt at 40.2% Feldspar Mineral Resource Estimate (MRE) reported for the Project, including 13.7Mt (87%) in the Measured and Indicated categories, based on approximately the first five years of planned production from the Project, as detailed in the Ewoyaa DFS for the Project.
- Feldspar MRE enables the potential inclusion of feldspar by-product credits in future revisions of the Ewoyaa feasibility studies, believed to drive down operating costs and further enhance the value of the Project.
- Indicates the possibility for Ewoyaa to become a major producer of domestic feldspar in Ghana, which the Company intends to supply into the local Ghanaian ceramics market.
- Multiple broad intervals of visible spodumene and 106m continuous pegmatite interval, the longest continuous pegmatite interval reported in the 2023 drilling programme to date, observed from drilling outside of the current Mineral Resource Estimate1 (MRE).
- Ongoing 2023 drilling programme increased from a planned 18,500m to 26,500m.
- Further assay results received for 2,362m of resource and metallurgical reverse circulation (“RC”) and diamond core (“DD”) drilling completed at Ewoyaa as part of the enhanced 2023 programme.
- Post-period end, increased the planned programme by an additional 3,000m of site sterilisation drilling, taking the total planned programme to 29,500m, intended to support mine construction.
- Grant of highly prospective, undrilled Bewadze and Senya Beraku prospecting licences in the eastern portion of the Company’s Cape Coast Lithium Portfolio in Ghana.
- Grant of the licences indicates the Government’s support of the Company’s efforts to grow its lithium resources in Ghana.
Corporate:
- Successful Equity Placing raising A$8m, enabling the completion of the activities agreed under the grant of the Mining Lease for the Project, key items of early works and permitting-related Project expenditure, further extensional drilling, and for working capital purposes.
- Rejection of two conditional and non-binding offers from the Company’s largest shareholder Assore International Holdings Limited (“Assore”) to acquire all the shares in the Company that it does not already own at an offer price of £0.33 per share (A$0.63); offers rejected on the basis that they undervalued the Company and that they were not in the best interests of shareholders.
- Appointment of four General Managers as the Company looks to strengthen its leadership team as it transitions towards mine construction and operation.
- Appointment of highly regarded mining executive Jonathan Henry to the Company’s Board of Directors as Independent Non-Executive Director.
- Cash on hand at end of quarter was A$9.8m.
Click here for the full ASX Release
This article includes content from Atlantic Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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26 June 2024
Atlantic Lithium
Overview
Atlantic Lithium Limited (AIM: ALL, ASX: A11,GSE: ALLGH, OTCQX:ALLIF) is an African-focused lithium exploration and development company advancing its flagship Ewoyaa Lithium project through to production as Ghana’s first lithium mine. Despite its long mining history, favourable regulatory climate and stable political backdrop, Ghana remains largely overlooked as an investment jurisdiction for battery metals. Situated on the West African coast, the country boasts a strong strategic location, between Europe, the Americas and Asia, to serve the global battery metals market. Ghana is also home to an abundance of mineral wealth, with c. 180,000 tonnes of estimated lithium resources.
Atlantic Lithium intends to produce spodumene concentrate capable of conversion to lithium hydroxide and carbonate for use in electric vehicle batteries, helping drive the transition to decarbonisation.
A definitive feasibility study (DFS) released in June 2023 shows Ewoyaa has demonstrable economic viability, low capital intensity and excellent profitability. After drilling at the new Dog-Leg target, with high-grade assay results, the JORC mineral resource estimate at Ewoyaa now stands at 36.8 million tons (Mt) at 1.24 percent lithium oxide, 81 of which is now in the higher confidence measured and indicated categories (3.7 Mt at 1.37 percent in the measured category, 26.1 Mt at 1.24 percent in the indicated category, and 7 Mt @ 1.15 percent in the Inferred category).
Through simple open-pit mining, three-stage crushing and conventional Dense Media Separation (DMS) processing, the DFS (also considering the fiscal terms agreed upon the grant of the Mining Lease for the project in October 2023) outlines the production of 3.6 Mt of spodumene concentrate over a 12-year mine life, delivering US$6.6 billion life-of-mine revenues, a post-tax NPV8 of US$1.3 billion and an internal rate of return of 94 percent.
The project is expected to deliver nameplate production from its plant as early as 2026.
As of October 2024, Atlantic Lithium has secured all the regulatory approvals to take the company closer to mine construction at the Ewoyaa project, including a granted mining lease, the Environmental Protection Agency permit, introduction and commencement of trading on the Main Market of the Ghana Stock Exchange, and finally, the receipt of the mine operating permit.
The mining lease for the Ewoyaa project has been submitted to the Ghana parliament to undergo a ratification process.
Project Funding
The development of the project is co-funded under an agreement with NASDAQ and ASX-listed Piedmont Lithium (ASX:PLL), with Piedmont expected to fund c. 70 percent of the US$185 million total development expenditure indicated by the DFS.
In accordance with the agreement, Piedmont has completed funding of US$25 million towards studies and exploration, and will sole fund an initial US$70 million, plus 50 percent of costs thereafter (shared 50:50 between Atlantic Lithium and Piedmont), towards the total development expenditure for the project, as indicated by the DFS.
In return, Piedmont will receive 50 percent of the spodumene concentrate produced at Ewoyaa, providing a route to consumers through several major battery manufacturers, including Tesla.
The Minerals Income Investment Fund (MIIF), Ghana’s minerals sovereign wealth fund, has also agreed to invest a total of US$32.9 million in the company and at the project-level to expedite the development of the project.
Representing the first part of the Strategic Investment, MIIF completed a Subscription for US$5 million Atlantic Lithium shares in January 2024, to become a major strategic shareholder in the company.
Representing the second part of the Strategic Investment, MIIF has agreed to invest, subject to the company reaching a binding agreement with MIIF, US$27.9 million in the company's Ghanaian subsidiaries to acquire a 6 percent contributing interest in the project. The US$27.9 million project-level investment and the contributing interest are expected to take the form of funding for development, exploration and studies expenditure to support the advancement of the project.
In addition, Atlantic Lithium is in the final stages of a competitive offtake partnering process to secure funding for a portion of the remaining 50 percent available feedstock from Ewoyaa.
The objective of the process is to attract funding offers to sufficiently cover the Company's allocation of development expenditure for the Project, to expedite and de-risk the development of the Project, realise attractive terms for any offtake contracted and secure a well-credentialled partner that will support the company's and Ghana's objectives of supplying lithium into the global electric vehicle market.
The company has indicated its preferred terms of up to 500,000 tons of spodumene concentrate to be contracted over a 3- to 5-year period, using a favourable market-based pricing mechanism, for a consideration of up to US$100 million in the form of a pre-payment arrangement, which is expected to sufficiently cover the company’s allocation of development expenditure.
Ghana
Ghana is a well-established mining region with access to reliable, existing infrastructure and a significant mining workforce. There are currently 16 operating mines in the country.
Already the largest taxpayer and employer in Ghana’s Central Region, Atlantic Lithium is expected to provide direct employment to over 800 personnel at Ewoyaa and, through its community development fund, whereby 1 percent of profits will be allocated to local initiatives, will deliver long-lasting benefits to the region and Ghana.
Through its proven lithium discovery, exploration and evaluation methodologies, Atlantic Lithium has the potential to capitalise on its extensive exploration portfolio and deliver upon its objectives of becoming a leading producer of lithium in West Africa.
Company Highlights
- A lithium exploration and development company operating in West Africa, Atlantic Lithium is set to deliver its flagship Ewoyaa lithium project as Ghana’s first lithium-producing mine.
- The June 2023 definitive feasibility study for the project indicates the production of 3.6 Mt of spodumene concentrate over a 12-year mine life (steady state production of 365,000 tonnes per annum), making it one of the largest mines by production capacity globally.
- The Ewoyaa project has an updated mineral resource estimate of 36.8 Mt at 1.24 percent lithium oxide.
- The DFS confirms Ewoyaa as one of the lowest capital and operating cost hard rock lithium projects globally, with strong commercial viability and exceptional profitability potential.
- The Ewoyaa lithium project was awarded a mining lease in October 2023, an EPA permit in September 2024, and a mine operating permit in October 2024. The project is co-funded under an agreement with Piedmont Lithium. The Ghana Environmental Protection Agency granted the EPA permit
- Atlantic Lithium holds a portfolio of lithium projects within 509 sq km and 774 sq km of granted and under-application tenure across Ghana and Côte d'Ivoire respectively.
Key Assets
Ewoyaa
Atlantic Lithium's flagship Ewoyaa lithium project is situated within 110 kilometres of Takoradi Port and 100 kilometres of Accra, with access to excellent infrastructure and a skilled local workforce.
Atlantic Lithium has been granted a mining lease, an EPA permit and a mine operating permit in respect of the project in October 2023, September 2024 and October 2024, respectively. The company is currently advancing the project towards production.
Highlights:
- Promising DFS Results: Atlantic Lithium's DFS reaffirmed Ewoyaa as an industry-leading asset with low capital intensity and excellent profitability. Highlights include:
- Estimated 12-year life of mine, producing 3.6 Mt spodumene concentrate.
- 365 ktpa steady state production
- Average LOM EBITDA of US$316 million per annum
- NPV of US$1.3 billion
- Life-of-mine revenues of US$6.6 billion
- Modest $185 million development expenditure
- Robust US$675/t All in sustaining cost and US$377 C1 cash cost.
- Favourable Location: The project's starter pits are positioned within one kilometre of its processing plant. Additionally, Ewoyaa has access to reliable existing infrastructure, located within 800 metres from the N1 highway and adjacent to grid power.
- Promising Reserves: Ewoyaa's current mineral resource estimate (as of July 2024) at is 36.8 Mt at 1.24 percent lithium oxide, of which 81 percent is now in the higher confidence measured and indicated categories (3.7 Mt at 1.37 percent lithium oxide in the measured category, and 26.1 Mt at 1.24 percent lithium oxide in the indicated category, and 7 Mt @ 1.15 percent lithium in the inferred category).
- Potential for Further Exploration: There remains significant exploration potential, with only 1 percent of Atlantic Lithium's total tenure having been drilled to date.
- Strong Partnerships: Atlantic Lithium has a 50-percent offtake deal with Piedmont Lithium, which itself has offtake agreements with both Tesla and LG Chem, and has an agreed with Ghana’s Minerals Income Investment Fund to expedite the development of the Project.
- Positive Presence: Atlantic Lithium will generate significant economic benefits for the region. Once operational, the project is expected to employ over 800 personnel and deliver approximately US$4.9 billion in value to Ghana, including through taxes, royalties, employment and local procurement.
Côte d'Ivoire
Atlantic Lithium currently has two applications pending for an area of roughly 774 square kilometres in the West African country of Côte d'Ivoire. The underexplored yet highly prospective region is known to be underlain by prolific birimian greenstone belts, characterised by fractionated granitic intrusive centres with lithium and colombite-tantalum occurrences and outcropping pegmatites. The area is also incredibly well-served, with extensive road infrastructure, well-established cellular network and high-voltage transmission line within 100 kilometres of the country's economic capital, Abidjan.
Management Team
Neil Herbert - Executive Chairman
Neil Herbert is a fellow of the Association of Chartered Certified Accountants and has over 30 years of experience in finance. He has been involved in growing mining and oil and gas companies, both as an executive and as an investor, for over 25 years.
Until May 2013, he was co-chairman and managing director of AIM-quoted Polo Resources, a natural resources investment company. Prior to this, Herbert was a director of resource investment company Galahad Gold, after which he became finance director of its most successful investment, the start-up uranium company UraMin, from 2005 to 2007. During this period, he worked to float the company on AIM and the Toronto Stock Exchange in 2006, raise US$400 million in equity financing and negotiate the sale of the group for US$2.5 billion.
Herbert has held board positions at a number of resource companies where he has been involved in managing numerous acquisitions, disposals, stock market listings and fundraisings. He holds a joint honours degree in economics and economic history from the University of Leicester.
Keith Muller - Chief Executive Officer
Keith Muller is a mining engineer with over 20 years of operational and leadership experience across domestic and international mining, including in the lithium sector. He has a strong operational background in hard rock lithium mining and processing, particularly in DMS spodumene processing.
Before joining Atlantic Lithium, he held roles as both a business leader and general manager at Allkem, where he worked on the Mt Cattlin lithium mine in Western Australia and, prior to that, Muller served as operations manager and senior mining engineer at Simec.
Muller holds a Master of Mining Engineering from the University of New South Wales and a Bachelor of Engineering from the University of Pretoria. He is also a member of the Australian Institute of Mining and Metallurgy, the Board of Professional Engineers of Queensland, and the Engineering Council of South Africa.
Amanda Harsas - Finance Director and Company Secretary
Amanda Harsas is a senior finance executive with a demonstrable track record and over 25 years’ experience in strategic finance, business transformation, commercial finance, customer and supplier negotiations and capital management. Prior to joining Atlantic Lithium, she worked in several sectors, including healthcare, insurance, retail and professional services, across Asia, Europe and the U.S. Harsas holds a Bachelor of Business from the University of Technology, Sydney and is a member of Chartered Accountants Australia and New Zealand and the Australian Institute of Company Directors.
Kieran Daly - Non-executive Director
Kieran Daly is the executive of Growth and Strategic Development at Assore. He holds a BSc Mining Engineering from Camborne School of Mines (1991) and an MBA from Wits Business School (2001) and worked in investment banking/equity research for more than 10 years at UBS, Macquarie and Investec, prior to joining Assore in 2018.
Daly spent the first 15 years of his mining career at Anglo American’s coal division (Anglo Coal) in a number of international roles including operations, sales and marketing, strategy and business development. Among his key roles were leading and developing Anglo Coal's marketing efforts in Asia and to steel industry customers globally. He was also the Global Head of Strategy for Anglo Coal immediately prior to leaving Anglo in 2007.
Christelle Van Der Merwe - Non-executive Director
Christelle Van Der Merwe is a mining geologist responsible for the mining-related geology and resources of Assore’s subsidiary companies (comprising the pyrophyllite and chromite mines) and is also concerned with the company's iron and manganese mines. She has been the Assore group geologist since 2013 and is involved with the strategic and resource investment decisions of the company. Van Der Merwe is a member of SACNASP and the GSSA.
Edward Nana Yaw Koranteng - Non-executive Director
Edward Koranteng is a lawyer and an experienced corporate and investment banker with over 23 years of experience. He has served as the chief executive officer of the Minerals Income Investment Fund (MIIF), Ghana’s sovereign minerals wealth fund, since 2021.
Prior to joining MIIF, Koranteng held the role of Business Head for East, Central and Southern Africa for Ghana International Bank plc ("GHIB"), where he was responsible for GHIB's energy and mining portfolio. He also worked with the Chase Bank Group (Kenya), now SBM Bank of Mauritius, as group head for energy, oil, gas and mining. Koranteng currently sits on the boards of Asante Gold Corporation, MIIF and Glico General Insurance Ltd.
Koranteng holds a BA (Hons) from the University of Ghana, a Master of Laws in International Banking and Finance from the University of Leeds in the UK, a Postgraduate Diploma from BPP Law School in the UK and the Ghana School of Law. He has practiced as a barrister in both the UK and Ghana and holds various executive and postgraduate certifications, including in oil, gas and mining from the Blavatnik School of Government, University of Oxford in the UK.
Jonathan Henry - Independent Non-executive Director
Jonathan Henry is an experienced Non-Executive Director, having held various leadership and board roles for nearly two decades. Henry has significant expertise working across capital markets, business development, project financing, key stakeholder engagement, and the reporting and implementation of ESG-focused initiatives. Henry has a wealth of experience projects towards production and commercialisation to deliver shareholder value.
Henry also serves as non-executive chair of Toronto Venture Exchange-listed (TSX-V) Giyani Metals Corporation, a battery development company advancing its portfolio of manganese oxide projects in Botswana, having previously held the role of executive chair. His previous roles include as executive chair and non-executive director at Ormonde Mining plc, non-executive director at Ashanti Gold Corporation, president, director and chief executive officer at Gabriel Resources Limited and various roles, including chief executive officer and managing director, at Avocet Mining PLC. He holds a BA (Hons) in Natural Sciences from Trinity College, Dublin.
Michael Bourguignon – Head of Capital Projects
Michael Bourguignon is a distinguished project management professional with a rich history of leading significant initiatives in the mining and energy sectors. Most recently, he served as the COO at Evolution Energy Minerals in Tanzania, where he managed the optimisation and update of the Definitive Feasibility Study, managed the Front-End Engineering Design package, and oversaw the completion of the Relocation Action Plan and other community-related works.
Prior to this, Bourguignon worked with Rio Tinto in Australia as a consulting construction manager, as well as Glencore’s Mopani Copper Mines in Zambia, where he was the project director for the Mopani Synclinorium Concentrator, and Syrah’s Balama Graphite Mine in Mozambique, where he was project director. He has also previously worked in Ghana and Cote d’Ivoire with Perseus Mining.
Bourguignon holds an MBA from Murdoch University and is a member of the Australian Institute of Project Management.
Andrew Henry – General Manager, Commercial and Finance
Andrew Henry is an accomplished General Manager with over a decade’s experience in the operational mining sector, specialising in strategy, planning and analysis, contracts, large-scale project development and site operations.
Before joining Atlantic Lithium, Henry held the role of commercial manager at global lithium chemicals company Allkem and, prior to that, he spent over four years with major gold mining company Newcrest Mining.
Henry holds a Bachelor of Commerce from the University of South Australia and is a member of CPA Australia.
Ahmed-Salim Adam – General Manager, Operations
Ahmed-Salim Adam is an experienced mining general manager with over 15 years of experience leading various large-scale projects in Ghana across all stages of mine development, production, and closure, with a focus on safety and sustainability.
Adam has previously held a number of leadership roles, including as senior consultant of Metallurgy at GEOMAN Consult Ltd, as a director for FGR Bogoso Prestea Ltd’s Refractory Project and as general manager at Golden Star Resources Ltd.
He holds a MPhil Minerals Engineering and a Bachelor of Science (Hons) in Mineral Engineering, both from the University of Mines and Technology, Ghana. He is also a member of The Institute of Materials, Minerals and Mining (IOM3) in the United Kingdom and the Australasian Institute of Mining and Metallurgy (AusIMM) in Australia.
Simone Horsfall - General Manager, People
Simone Horsfall joins Atlantic Lithium as General Manager, People with over 25 years of experience working across a broad range of industries, with a focus on the mining sector. Previously, Horsfall spent over a decade at AngloGold Ashanti Australia as human resources manager and, more recently, at 29Metals as group manager of human resources.
Horsfall holds a diploma in Human Resource Management, a university certificate in Psychology from Edith Cowan University, Sydney, and a post-graduate diploma in Human Resources from Deakin University.
Belinda Gethin – General Manager, Corporate Finance and Company Secretary
Belinda assumed the role of general manager, corporate - finance and company secretary in January 2024, having initially joined the company as financial reporting manager in June 2023. To her role at Atlantic Lithium, Gethin brings a wealth of experience in all aspects of statutory, financial and corporate reporting, including the preparation of financial statements and accounting for complex transactions. Before joining Atlantic Lithium, Gethin worked as the chief financial officer for Lumus Imaging and, prior to that, as the group reporting manager at Healius. Gethin is a chartered accountant and holds a Bachelor of Commerce from UNSW in Sydney, Australia.
Iwan Williams – General Manager, Exploration
Iwan Williams is an exploration geologist with over 20 years' experience across a broad range of commodities, principally iron ore, manganese, gold, copper (porphyry and sed. hosted), PGE's, nickel and other base metals, as well as chromitite, phosphates, coal and diamond.
Williams has extensive southern and west African experience and has worked in Central and South America. His experience includes all aspects of exploration management, project generation, opportunity reviews, due diligence and mine geology. He has extensive studies experience having participated in the delivery of multiple project studies including resource, mine design criteria, baseline environmental and social studies and metallurgical test-work programmes. He is very familiar with working in Africa having spent 23 years of his 28-year geological career in Africa. Williams is a graduate of the University of Liverpool.
Abdul Razak – Exploration Manager, Ghana
Abdul Razak has extensive exploration, resource evaluation and project management experience throughout West Africa with a strong focus on data-rich environments. He has extensive gold experience having worked throughout Ghana with AngloGold Ashanti, Goldfields Ghana, Perseus and Golden Star, as well as international exploration and resource evaluation experience in Burkina Faso, Liberia, Ivory Coast, Republic of Congo, Nigeria and Guinea.
Razak is an integral member of the team, managing all site activities including drilling, laboratory, local teams, geotech and hydro, community consultations and stakeholder engagements and was instrumental in establishment of the current development team and defining Ghana’s maiden lithium resource estimate.
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Building Ghana’s first lithium mine
30 January
Quarterly Activities/Appendix 5B Cash Flow Report
13h
CEOL Application Process Update
CleanTech Lithium PLC (AIM: CTL), a lithium exploration and development company operating in Chile, further to its announcement on 15 January 2025 ("Application RNS"), provides an update regarding the Special Lithium Operating Contract ("CEOL") application process for the Laguna Verde project.
As outlined in the Application RNS, the Company expected the simplified procedure for the CEOL Award Mechanism to be as follows: Submission of applications closed on 31 January 2025 following which the Ministry IT and legal departments had 5 business days to register and organise the submittal. The Ministry´s Lithium and Salar Unit then has 45 business days to review and analyse the request. Once this analysis is completed and the Lithium and Salar Unit verifies that all the information and documents needed to enter the simplified procedure have been submitted then an administrative act to accept the application will be made.
This timetable indicated that an update from the Government was expected at the beginning of April confirming which applicants will enter direct negotiation on the CEOL with the Ministry. So far, no such update has been made and following recent discussions between CleanTech Lithium and the Ministry, the Company understands that the administration process is still progressing for all applicants. The Company will inform the market as soon as official communication is received.
Steve Kesler, Executive Chairman and Interim CEO, CleanTech Lithium said:
"Clearly, the process is taking a little longer than we had initially anticipated but we look forward to the response when the Ministry has completed its review process."
For further information contact: | |
CleanTech Lithium PLC | |
Steve Kesler/Gordon Stein/Nick Baxter | Jersey office: +44 (0) 1534 668 321 Chile office: +562-32239222 |
Beaumont Cornish Limited (Nominated Adviser) Roland Cornish/Asia Szusciak | +44 (0) 20 7628 3396 |
Fox-Davies Capital Limited (Joint Broker) Daniel Fox-Davies | +44 (0) 20 3884 8450 |
Canaccord Genuity (Joint Broker) James Asensio | +44 (0) 20 7523 4680 |
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
Notes
CleanTech Lithium (AIM:CTL) is an exploration and development company advancing lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium's mission is to scale battery grade lithium at its flagship project, Laguna Verde, using Direct Lithium Extraction technology powered by renewable energy.
CleanTech Lithium is committed to utilising Direct Lithium Extraction ("DLE") with reinjection of spent brine resulting in no aquifer depletion. Direct Lithium Extraction is a transformative technology which removes lithium from brine with higher recoveries, short development lead times and no extensive evaporation pond construction. For more information, please visit: www.ctlithium.com
Click here for the full release
This article includes content from Cleantech Lithium PLC, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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04 April
Galan Declines AU$240M Bid for Argentina Projects
Galan Lithium (ASX:GLN) has rejected a US$150 million (AU$240 million) cash bid from China’s Zhejiang Huayou Cobalt Co and France’s Renault Group to acquire its Hombre Muerto West and Candelas lithium brine projects in Argentina, The West Australian reports.
Described as unsolicited, conditional, and non-binding, the offer from battery materials giant Zhejiang Huayou and EV manufacturer Renault was deemed “opportunistic” and “undervalued,” the report noted.
Galan and its advisors refused the offer, asserting confidence in the long-term value of its flagship Hombre Muerto West project, which is nearing production of 5,400 tonnes per annum (tpa) of lithium carbonate equivalent. They believe the project holds greater potential to deliver superior returns for shareholders.
Click here to connect with Galan Lithium (ASX:GLN) for an Investor Presentation
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03 April
Top 7 Global Lithium Stocks in 2025
The lithium market faced continued pressure in Q1 2025 as oversupply and weaker-than-expected demand pushed prices to a four-year low, with the lithium carbonate CIF North Asia price dipping below US$9,550 per metric ton.
The broad market decline led many analysts to speculate that the market had bottomed and a rebound was imminent. This was further supported by production cuts in China and Australia aimed at stabilizing supply.
Despite near-term challenges, long-term prospects remain strong, highlighted by Rio Tinto’s (ASX:RIO,NYSE:RIO,LSE:RIO) AU$6.7 billion acquisition of Arcadium Lithium, the company formed by the merger of Allkem and Livent.
The major is also reportedly in talks to develop the Roche Dure lithium deposit in the Democratic Republic of Congo.
Long term electric vehicle (EV) market growth and a projected draw down in excess supply has prompted Benchmark Intelligence researchers to forecast a 12 percent compound annual growth rate for the lithium market over the next 10 years.
Even against this tumultuous backdrop, some lithium stocks listed in Canada, Australia and the United States performed strongly. Below the Investing News Network has gathered the top gaining lithium companies year-to-date using TradingView’s stock screener.
All lithium stocks listed had market caps above $20 million in their respective currencies when data was gathered. Data for Canadian stocks was collected on March 25, 2025, data for Australian stocks was gathered on March 27, 2025, and data for US stocks was gathered on March 31, 2025.
1. Power Metals (TSXV:PWM)
Year-to-date gain: 163.04 percent
Market cap: C$196.57 million
Share price: C$1.21
Exploration company Power Metals holds a portfolio of diversified assets in Ontario and Québec, Canada. The company’s flagship Case Lake project in Ontario hosts spodumene-bearing lithium-cesium-tantalum pegmatites.
In November 2024, Power Metals identified a new pegmatite zone at Case Lake through soil sampling. The samples from the zone, located north-northwest of its West Joe prospect, revealed anomalous levels of cesium, tantalum, lithium and rubidium, which the company said "affirmed prospective drill targets" for its winter exploration program.
On February 10, Power Metals announced the beginning of work associated with the maiden mineral resource estimate and preliminary economic assessment for Case Lake, which it expected to release in Q1 and Q2 of 2025 respectively.
Days later, on February 14, the company followed that announcement by releasing the final assays from its Phase 3 drilling at Case Lake, including “exceptional cesium oxide and tantalum intercepts” from the West Joe prospect. Power Metals stated it planned to begin its 2025 Phase 1 drilling sometime after early March.
The company's share price rose in the weeks following the pair of announcements to reach a Q1 high of C$1.46 on February 25.
2. NOA Lithium Brines (TSXV:NOAL)
Year-to-date gain: 41.18 percent
Market cap: C$46.99 million
Share price: C$0.36
NOA is a lithium exploration and development company with three projects in Argentina’s Lithium Triangle region. The company’s flagship Rio Grande project and prospective Arizaro and Salinas Grandes land packages total more than 140,000 hectares.
In late January, NOA reported its completion of 28 vertical electrical sounding geophysics tests at the Rio Grande project as part of its 2025 exploration program.
The recent testing expands on past studies and will aid NOA's water exploration program, refining one of three identified potential water sources.
In a subsequent corporate update on February 7, NOA outlined its plans for Q1 2025, which largely focused on the advancement of the Rio Grande project through geophysical evaluation and water exploration drilling. The company also plans to review engineering proposals for preliminary economic assessment work.
The company's share price began climbing in early February and reached a Q1 high of C$0.37 on March 13.
The high came days after a Simply Wall Street report highlighted insider buying at the company, a signal of strong internal confidence.
According to the report, NOA insiders invested C$862,600 over the prior six months, with C$358,000 of that coming in a single transaction by CEO and Director Gabriel Rubacha. Additionally, they had not sold any shares in the prior 12 months.
3. Frontier Lithium (TSXV:FL)
Year-to-date gain: 35.56 percent
Market cap: C$141.38 million
Share price: C$0.61
Pre-production mining company Frontier Lithium aims to be a strategic and integrated supplier of premium spodumene concentrates as well as battery-grade lithium salts in North America.
The Company's flagship PAK lithium project, which is a joint venture with Mitsubishi (TSE:8058), holds the “largest land position and resource” in a premium lithium mineral district located in the Great Lakes region of Ontario, Canada. Frontier also owns the Spark deposit, located northwest of the PAK project.
Shares of Frontier Lithium reached a Q1 high of C$0.79 on March 4. After already trending upwards through February, its share price peaked alongside news that the Government of Canada and the Ontario Government supported the company's plans to build a critical minerals refinery in Northern Ontario.
Once complete the proposed lithium conversion facility will process lithium from PAK into around 20,000 metric tons (MT) of lithium salts per year. “This expected capacity would support the production of batteries for approximately 500,000 electric vehicles per year,” Frontier's statement reads.
1. Tyranna Resources (ASX:TYX)
Year-to-date gain: 40 percent
Market cap: AU$23.02 million
Share price: AU$0.007
Africa-focused explorer Tyranna Resources is currently focused on its flagship Muvero lithium project in Angola.
In a January 30 update, Tyranna reported it completed a drill program totalling 11 diamond drill holes spanning 817 meters. Initial results from drilling at the Muvero and Loop prospects confirmed visible spodumene-bearing pegmatite. Additionally, core from the Muvero prospect will be used for metallurgical testing and structural data.
The company is also pursuing and evaluating additional projects that align with its strategy of focusing on in-demand metals, and had applied for one licence at that time.
Shares of Tyranna reached a quarterly high of AU$0.007 several times over the three month period.
2. Liontown Resources (LTR:AU)
Year-to-date gain: 24.53 percent
Market cap: AU$1.58 billion
Share price: AU$0.66
Liontown Resources has two assets in Western Australia, including the producing Kathleen Valley mine, which entered production during the second half of 2024 and transitioned to commercial production in January 2025.
The company's Buldania project in the Eastern Goldfields Province of Western Australia has an initial mineral resource of 15 million MT at 1.0 percent lithium oxide.
In its fiscal H1 2025 financial update, Liontown reported that over 100,000 wet metric tons of spodumene concentrate had been shipped from Kathleen Valley between July and the end of December.
Liontown’s shares rose to a Q1 high of AU$0.735 on March 19, 2025, shortly after the release of the half year results.
3. Delta Lithium (ASX:DLI)
Year-to-date gain: 9.09 percent
Market cap: AU$125.39 million
Share price: AU$0.18
Delta Lithium is a diversified exploration and development company focused on discovering high quality, lithium bearing pegmatite deposits in Western Australia.
Currently, Delta is developing the Mount Ida gold and lithium project, which reportedly has a JORC-compliant resource of 14.6 million MT grading 1.2 percent. Additionally, the company is exploring its Yinnetharra lithium project, including the Malinda deposit, in the Upper Gascoyne Region.
Company shares registered a Q1 high of AU$0.20 on January 14.
On January 21, Delta released an exploration update for Yinnetharra that highlighted drilling and metallurgical results from the M1 pegmatite at the Malinda deposit.
“The program has realised highly positive metallurgical results, with pilot plant spodumene recoveries exceeding our Internal financial modelling and proving the whole-of-ore flotation flowsheet as suitable for the M1 mineralogy,” Managing Director James Croser said.
In a subsequent financial statement, Delta noted the submission of the mining lease application for the Malinda mining area and the commencement of Native Title negotiations. The company is also advancing its environmental permitting process at Malinda.
Top US Lithium Stocks
1. SQM (NYSE:SQM)
Year-to-date gain: 9.29 percent
Market cap: AU$11.36 billion
Share price: US$40.23
SQM is one of the world’s largest lithium producers with projects in South America and China, outputting both lithium carbonate and hydroxide.
In 2024, SQM produced approximately 210,000 MT of lithium, with about 180,000 MT sourced from its chemical plant in northern Chile and an additional 30,000 MT processed in China.
The lithium major also saw lithium sales increase 21 percent year-over-year to nearly 205,000 MT of lithium carbonate equivalent (LCE).
“However, the increase in volume was not enough to offset the continuous decline in prices, a trend we have been observing since early 2023,” the 2024 earnings report noted. “As a result, our average realized price dropped by more than 64 percent, from US$30,467 per ton in 2023 to US$10,936 per ton in 2024.”
Shares of SQM reached a Q1 high of US$45.61 on March 17, 2025.
In late February, SQM’s US$7 million investment in Andrada Mining’s (LSE:ATM,OTCQB:ATMTF)Lithium Ridge project received final approval from the Namibian government. The deal will see SQM obtain a 30 percent stake in the project with an option to increase to 50 percent.
FAQs for investing in lithium
How much lithium is on Earth?
While we don't know how much total lithium is on Earth, the US Geological Survey estimates that global reserves of lithium stand at 22 billion metric tons. Of that, 9.2 billion MT are located in Chile, and 5.7 billion MT are in Australia.
Where is lithium mined?
Lithium is mined throughout the world, but the two countries that produce the most are Australia and Chile. Australia's lithium comes from primarily hard-rock deposits, while Chile's comes from lithium brines. Chile is part of the Lithium Triangle alongside Argentina and Bolivia, although those two countries have a lower annual output.
Rounding out the top five lithium-producing countries behind Australia and Chile are China, Argentina and Brazil.
What is lithium used for?
Lithium has many uses, including the lithium-ion batteries that power electric vehicles, smartphones and other tech, as well as pharmaceuticals, ceramics, grease, lubricants and heat-resistant glass. Still, it is largely the electric vehicle industry that is boosting demand.
How to invest in lithium?
Those looking to get into the lithium market have many options when it comes to how to invest in lithium.
Lithium stocks like those mentioned above could be a good option for investors interested in the space. If you’re looking to diversify instead of focusing on one stock, there is the Global X Lithium & Battery Tech ETF (NYSE:LIT), an exchange-traded fund (ETF) focused on the metal. Experienced investors can also look at lithium futures.
Unlike many commodities, investors cannot physically hold lithium due to its dangerous properties.
How to buy lithium stocks?
Through the use of a broker or an investing service such as an app, investors can purchase lithium stocks and ETFs that match their investing outlook.
Before buying a lithium stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it's critical to complete due diligence before making any investment decisions.
It's also important for investors to keep their goals in mind when choosing their investing method. There are many factors to consider when choosing a broker, as well as when looking at investing apps — a few of these include the broker or app's reputation, their fee structure and investment style.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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03 April
Livium to Advance Battery Recycling with AU$850,000 Government Grant
Livium (ASX:LIT) subsidiary Envirostream Australia said on Wednesday (April 2) that it has executed an AU$850,000 grant funding agreement with the Western Australian government.
The grant will partially fund the development of Envirostream’s battery-recycling facility in Western Australia.
The money is being provided via an electronic waste (e-waste) infrastructure grants program, an initiative designed to support a statewide ban on sending e-waste to landfills that began on July 1, 2024.
Livium first announced the grant in November 2024, saying that the recycling facility will collect, sort, discharge and store batteries to establish integrated end-of-life battery processing domestically.
The facility forms part of Envirostream’s efforts to build a nationwide solution for e-waste management.
“This funding agreement with the WA Government represents another significant step forward in our mission to establish a sustainable national battery recycling ecosystem,” said Livium Managing Director and CEO Simon Linge.
“The company’s long-term recycling strategy also involves the development of battery processing capabilities in WA and other states once minimum collection volumes are met," he added.
According to Livium, the grant is part of a recently announced additional AU$5.4 million in support for e-waste recycling initiatives in Western Australia. This amount is on top of AU$10 million in government grants to date.
Envirostream was launched in 2017 and is the first onshore company to offer lithium and mixed battery recycling in Australia. Its goal is to provide solutions for lithium-ion battery recycling.
Livium has been strengthening its position in the battery-recycling industry over the years.
On March 24, the company signed an exclusive recycling agreement with leading power tool manufacturer Hilti. Livium will exclusively recycle Hilti Fleet Management batteries over an initial period of three years.
The deal officially commenced on Tuesday (April 1).
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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01 April
4 Best-performing ASX Lithium Stocks of 2025
Global demand for lithium presents a significant opportunity for Australia, which is home to many ASX lithium mining stocks as the world's top lithium producer.
Australia’s abundant lithium reserves and strong mining sector, position the country as a key player in the battery value chain into the 2030s. However, rapid electric vehicle (EV) market growth projections drove increased lithium mining rates, leading to a global surplus.
Against that backdrop, Australia’s lithium sector faced headwinds in Q1 2025 due to falling global lithium prices and continued market oversupply.
As profit margins across the sector tightened, mining companies implemented production cuts, shuttered projects and cancelled expansion plans. Additionally, some refining operations were put on hold amid the unfavourable economic conditions.
The challenges that have plagued the lithium market over the past year have prompted speculation that the market has bottomed and prices will begin to recover by year’s end.
Despite the current downturn the lithium market long term outlook remains bright. The closing of Rio Tinto’s (ASX:RIO,NYSE:RIO,LSE:RIO)AU$6.7 billion acquisition of Arcadium Lithium underscores the long-term potential that major miners see in the lithium sector. Rio Tinto also made headlines in late March with reports that it was engaged in preliminary talks with the Democratic Republic of Congo about developing the massive Roche Dure lithium deposit.
Below the Investing News Network looks at the top four ASX-listed lithium companies by year-to-date gains.
The list below was generated using TradingView’s stock screener on March 27, 2025, and Australian lithium companies with market caps above AU$10 million at that time were considered for inclusion.
1. Tyranna Resources (ASX:TYX)
Year-to-date gain: 40 percent
Market cap: AU$23.02 million
Share price: AU$0.007
Africa-focused explorer Tyranna Resources is currently focused on its flagship Muvero lithium project in Angola.
In a January 30 update, Tyranna reported it completed a drill program totalling 11 diamond drill holes spanning 817 meters. Initial results from drilling at the Muvero and Loop prospects confirmed visible spodumene-bearing pegmatite. Additionally, core from the Muvero prospect will be used for metallurgical testing and structural data.
The company is also pursuing and evaluating additional projects that align with its strategy of focusing on in-demand metals, and had applied for one licence at that time.
Shares of Tyranna reached a quarterly high of AU$0.007 several times over the three month period.
2. Liontown Resources (ASX:LTR)
Year-to-date gain: 24.53 percent
Market cap: AU$1.58 billion
Share price: AU$0.66
Liontown Resources has two assets in Western Australia, including the producing Kathleen Valley mine, which entered production during the second half of 2024 and transitioned to commercial production in January 2025.
The company's Buldania project in the Eastern Goldfields Province of Western Australia has an initial mineral resource of 15 million tonnes at 1.0 percent lithium oxide.
In its fiscal H1 2025 financial update, Liontown reported that over 100,000 wet metric tons of spodumene concentrate had been shipped from Kathleen Valley between July and the end of December.
Liontown’s shares rose to a Q1 high of AU$0.735 on March 19, 2025, shortly after the release of the half year results.
3. Delta Lithium (ASX:DLI)
Year-to-date gain: 9.09 percent
Market cap: AU$125.39 million
Share price: AU$0.18
Delta Lithium is a diversified exploration and development company focused on discovering high quality, lithium bearing pegmatite deposits in Western Australia.
Currently, Delta is developing the Mount Ida gold and lithium project, which reportedly has a JORC-compliant resource of 14.6 million tonnes grading 1.2 percent. Additionally, the company is exploring its Yinnetharra lithium project, including the Malinda deposit, in the Upper Gascoyne Region.
Company shares registered a Q1 high of AU$0.20 on January 14.
On January 21, Delta released an exploration update for Yinnetharra that highlighted drilling and metallurgical results from the M1 pegmatite at the Malinda deposit.
“The program has realised highly positive metallurgical results, with pilot plant spodumene recoveries exceeding our Internal financial modelling and proving the whole-of-ore flotation flowsheet as suitable for the M1 mineralogy,” Managing Director James Croser said.
In a subsequent financial statement, Delta noted the submission of the mining lease application for the Malinda mining area and the commencement of Native Title negotiations. The company is also advancing its environmental permitting process at Malinda.
4. Future Battery Minerals (ASX:FBM)
Year-to-date gain: 5.56 percent
Market cap: AU$12.64 million
Share price: AU$0.019
Explorer and developer Future Battery Minerals (FBM) is advancing its flagship Coolgardie lithium project in Western Australia’s Eastern Goldfields region.
The project includes FBM's wholly owned Kangaroo Hills lithium project and the 85 percent-owned Miriam lithium project.
Shares of FBM marked a Q1 high of AU$0.028 on January 9, 2025.
On January 22, FBM announced the expansion of the Coolgardie project footprint through the application for new tenements near the asset.
In its report for the quarter ended in December 2024, released in late January, FBM outlined near-term plans for the Coolgardie project, including completing its ground gravity survey. The company also reported that initial drilling of high-priority lithium targets at the Miriam project remains on track for H1 2025, while the mining lease application for Kangaroo Hills is advancing.
4. Future Battery Minerals (ASX:FBM)
Year-to-date gain: 5.56 percent
Market cap: AU$12.64 million
Share price: AU$0.019
Explorer and developer Future Battery Minerals (FBM) is advancing its flagship Coolgardie lithium project in Western Australia’s Eastern Goldfields region.
The project includes FBM's wholly owned Kangaroo Hills lithium project and the 85 percent-owned Miriam lithium project.
Shares of FBM marked a Q1 high of AU$0.028 on January 9, 2025.
On January 22, FBM announced the expansion of the Coolgardie project footprint through the application for new tenements near the asset.
In its report for the quarter ended in December 2024, released in late January, FBM outlined near-term plans for the Coolgardie project, including completing its ground gravity survey. The company also reported that initial drilling of high-priority lithium targets at the Miriam project remains on track for H1 2025, while the mining lease application for Kangaroo Hills is advancing.
FAQs for investing in lithium
What is lithium?
Lithium is the lightest metal on the periodic table, and it is used in a wide variety of applications, including lithium-ion batteries, pharmaceuticals and industrial applications like glass and steel.
How do lithium-ion batteries work?
Rechargeable lithium-ion batteries work by using the flow of lithium ions in the battery's cell to power a device.
A lithium-ion battery has one or more cells, depending on the amount of energy storage it is capable of, and each cell has a positive electrode and negative electrode with an electrolyte separating them. When the battery is in use, lithium ions flow from the negative electrode to the positive electrode, running out of power once all have transferred. When the battery is charging, ions flow the opposite way.
Where is lithium mined?
Lithium is mined from two types of deposits, hard rock and evaporated brines. Most of the world's lithium production comes out of Australia, which hosts the Greenbushes hard-rock lithium mine. The next-largest producing country is Chile, which like Argentina and Bolivia is located in South America's Lithium Triangle.
Lithium in this famed area comes from evaporated brines, including the Salar de Atacama. Lithium can also be found in sedimentary deposits, but currently none are producing.
Where is lithium found in Australia?
Australia is the world’s top producer of lithium, and its lithium mines are all located in Western Australia except for one, which is Core Lithium’s (ASX:CXO,OTC Pink:CXOXF) Finniss mine in the Northern Territory. Western Australia accounts for around half of global lithium production, and the state is looking to become a hub for critical elements.
Who owns lithium mines in Australia?
Several companies own lithium mines in Australia, including some of the biggest ASX lithium stocks. In addition to the entities discussed above, others include: Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) with its Pilgangoora operations; Jiangxi Ganfeng Lithium (HKEX:0358), which owns the Mount Marion mine alongside Mineral Resources (ASX:MIN,OTC Pink:MALRF); and Tianqi Lithium (SZSE:002466), which is a partial owner of Greenbushes via its stake in operator Talison Lithium.
Who is Australia’s largest lithium producer?
Australia’s largest lithium producer is Albemarle (NYSE:ALB), which has interests in both the Greenbushes and Wodgina hard-rock lithium mines. Greenbushes is the world’s largest lithium mine, and Albemarle holds 49 percent ownership of operator Talison Lithium’s parent company.
Albermarle also has 60 percent ownership of Mineral Resources’ Wodgina mine, and owns the Kemerton lithium production facility as part of a 60/40 joint venture with Mineral Resources.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Georgia Williams, currently hold no direct investment interest in any company mentioned in this article.
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28 March
California Touts US$540 Billion Salton Sea Lithium Discovery
Scientists have discovered an estimated US$540 billion worth of lithium beneath California’s Salton Sea, a finding that could reshape the global energy market and reduce US reliance on foreign lithium supply.
The Salton Sea, located in Southern California’s Imperial County, has long been considered an environmental concern due to its receding shoreline and rising air pollution.
Now, researchers funded by the US Department of Energy have confirmed the area holds approximately 18 million metric tons of lithium — far more than previous estimates of 4 million metric tons.
“This is one of the largest lithium brine deposits in the world. This could make the United States completely self-sufficient in lithium and stop importing it through China,” the Daily Galaxy quotes Michael McKibben, a geochemistry professor at the University of California, Riverside, as saying in a Monday (March 24) article.
With global demand for lithium surging due to the rise of electric vehicles and renewable energy storage, California officials are viewing the discovery as a potential economic windfall.
Governor Gavin Newsom has dubbed the Salton Sea region the “Saudi Arabia of lithium,” underscoring its potential to dominate the supply chain for battery production. Local officials have also branded the area as “Lithium Valley,” hoping to generate new revenue streams and job opportunities for Imperial County, one of California’s poorest regions.
Currently, talk is circulating about plans to allocate 80 percent of the revenue from lithium extraction to local development, which could significantly improve infrastructure and public services.
Despite the economic promise, extracting lithium from the Salton Sea’s geothermal brine presents challenges.
The process involves pumping lithium-rich brine from deep underground, separating the lithium and re-injecting the liquid back into the earth. While this technique is considered more environmentally friendly than traditional open-pit mining, it still raises concerns over water consumption, air quality and potential harm to Indigenous lands.
The Colorado River, a critical water source for California, is already facing shortages, and large-scale lithium extraction could further strain the region’s limited water resources.
Additionally, the Salton Sea’s receding lakebed has led to increased levels of toxic dust in the air, which has been linked to rising asthma rates among local residents. Mining operations could exacerbate these public health risks, making environmental safeguards a critical component of any development plans.
Adding to the complexity of lithium extraction is an evolving geopolitical landscape. China, the world’s largest lithium producer, has recently taken steps to tighten control over its battery technology exports.
Jiangsu Jiuwu Hi-Tech (SZSE:30063), a Chinese firm, announced in February that it would halt exports of a key lithium-processing component known as a sorbent. Sorbents are crucial in lithium extraction from brine, and export restrictions could disrupt supply chains for US and European companies looking to develop alternative lithium sources.
The US, the European Union and allied countries have accelerated initiatives such as the Minerals Security Partnership, launched in 2022, to secure alternative sources of lithium and other essential materials.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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