American Manganese Inc. ("AMY" or the "Company") (TSX.V:AMY)(OTCQB:AMYZF)(FSE:2A) a pioneer in advanced and environmentally friendly lithium-ion battery cathode recycling-upcycling, is pleased to announce it intends to change its name to RecycLiCo Battery Materials Inc. at its upcoming annual general and special meeting of shareholders (the "Meeting") on July 8, 2022.
"Over the last five years, we have pioneered the development of li-ion battery recycling-upcycling of cathode materials through our RecycLiCoTM patented process. To reflect the work we have achieved, we decided on a name change that better represents the company's focus on our RecycLiCoTM process," said Larry Reaugh, President, and CEO of American Manganese Inc.
The Company will continue to trade under the stock symbol "AMY" despite the name change. Further details about the name change and other Meeting business can be found in the information circular under the Company's profile on www.sedar.com.
The Company's updated corporate presentation can be found on its website, www.recyclico.com.
RecycLiCo Battery Materials Inc. is a critical metals company focused on recycling and upcycling lithium-ion battery waste into high-value battery cathode materials, using its closed-loop RecycLiCo™ process. With minimal processing steps and over 99% extraction of lithium, cobalt, nickel, and manganese, the upcycling process creates valuable lithium-ion battery materials for direct integration into the re-manufacturing of new lithium-ion batteries.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh President and Chief Executive Officer Telephone: 778 574 4444
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.
It’s no secret that lithium-ion batteries power the modern world, and all signs point to them being an absolute necessity for future technology. The global market for lithium-ion batteries is anticipated to register a CAGR of 20.1 percent between 2021-2026, resulting in a market size of US$168 billion in 2026, a substantial increase from US$46.8 billion in 2019. The stationary energy storage market is expected to drive the market growth, with applications reaching across many industries, from telecoms to solar power generation systems. Lithium-ion batteries are so important to the future that US President Biden issued an executive order declaring a list of metals that are critical to the United States, signaling the vital importance of these metals.
Scientists and engineers around the world are racing towards the development of various lithium-ion battery recycling techniques. The projected surge in demand for these batteries creates an accompanying surge in batteries that need to be recycled 5-8 years later. Much of the research into recycling lithium-ion batteries focuses on reclaiming batteries and giving them second-life applications. However, there are other opportunities to create profitable upcycling processes that make use of production scrap and other waste materials. These recycling and upcycling processes focus on extracting valuable materials from lithium-ion batteries that can be directly used in the production of new batteries.
American Manganese Inc. (TSXV:AMY,OTCQB:AMYZF,FSE:2AM) is a technology and critical metals-driven company that is focused on advanced lithium-ion battery upcycling. The company owns two patents (US Patent No. 10,246,343 and US Patent No. 10,308,523) that power its innovative upcycling process. It also owns patents for this process in Japan and Korea. This closed-loop process takes battery manufacturing waste and end-of-life batteries and upcycles them into a high-value cathode precursor material. The company also has three mining projects located in the United States and Canada.
Lithium-ion batteries are a 31 percent active cathode material, which is a combination of lithium, nickel, manganese and cobalt. For example, modern cathodes such as lithium nickel manganese cobalt oxide and lithium nickel cobalt aluminum oxide are used in electric vehicles today. The cost of the active cathode material represents 25 percent of the total costs of lithium-ion batteries. This makes the active cathode material an important aspect of lithium-ion battery manufacturing. American Manganese has pioneered a process, called RecycLiCo, that takes battery cathode production waste and black mass from end-of-life batteries and upcycles it into high value cathode precursor material that can be directly integrated into the battery manufacturing process.
RecycLiCo is the company’s flagship project and a clear indicator of the renewed direction of the company. While American Manganese began as a mining company, they’ve since pivoted to developing and commercializing its patented upcycling process. The process is focused on “black mass” a dark substance that’s created by mechanical size reduction of end-of-life batteries and battery production wastes. Black mass is used in the RecycLiCo process to recover 99 percent of lithium, cobalt, nickel and manganese, which is astounding compared to the alternative which recovers no lithium and only 40-60 percent of nickel and cobalt.
“Generally, you can mechanically break down a battery into its individual components but we differentiate [between recycling and upcycling] by creating a higher-value product. That’s exactly what we’re doing with the production of the cathode precursor. We highlight the importance of reducing the amount of steps and going directly into a higher-value product,” said Zarko Meseldzija, chief technology officer, in a recent interview.
The current roadmap for the RecycLiCo process is to grow the project from a pilot plant and R&D into a demonstration plant. The company has committed $2.7 million towards the construction and testing of its demonstration plant which plans to further de-risk the process scale-up. Assuming the success of a demonstration plant, the next step is to create a commercial plant, which will cost an estimated $15-20 million. At this time, the company will explore licensing and joint development partnerships to further expand. In October 2021, American Manganese closed a $20 million financing with institutional investors to go towards its road to commercialization.
Company Highlights
American Manganese Inc. is an innovative technology and mining company focused on a patented technology that upcycles lithium-ion batteries and scrap material
The company was previously focused on mining, and still holds claims to three properties.
American Manganese owns patents for their upcycling process in the United States, Japan and Korea. The long-term plans for the company include leveraging its intellectual property via licensing with strategic partners.
The patented RecycLiCo process can extract over 99% of the lithium, nickel, manganese, and cobalt found in lithium-ion battery black mass.
American Manganese is currently scaling up its process into a demonstration plant, with plans to create a commercial plant
Key Projects
The RecycLiCo™ Patented Process: Innovative Lithium-ion Battery Recycling
RecycLiCo
RecycLiCo is a patented process for the upcycling of lithium-ion battery black mass and scrap materials. Black mass is created by mechanical size reduction of end-of-life lithium-ion batteries that contains valuable and critical materials such as lithium, nickel, manganese, and cobalt.
The RecycLiCo process extracts over 99% of lithium, cobalt, nickel and manganese from lithium-ion battery cathode materials. It is planned to directly integrate the upcycled materials into the re-manufacturing of lithium-ion batteries in gigafactories located around the world.
The existing alternative to RecycLiCo’s process is smelting. This process generates 2 tonnes of CO2 per tonne of metal, making it environmentally unsound. From a strictly financial perspective, smelting only recovers about 40-60% of the nickel and cobalt in lithium-ion batteries and does not recover any lithium. There are also specific additional steps and further refining that must take place before a usable product is created.
The RecycLiCo process is patented in the United States, Japan and Korea. American Manganese has already proven that their process works in a pilot plant. The next phase of the operation is to build a demonstration plant with a 500 kilogram/day capacity of lithium-ion battery cathode scrap material. Once this demonstration plant has fully illustrated the economic feasibility of the process, the next step is to develop a commercial plant capable of processing 5 tonnes/day.
Wenden Stockpile Material Reclamation and Advanced Material Processing Project
In October 2020, the United States Defense Logistics Agency (DLA) awarded American Manganese a grant to perform lab-scale work on the United States Government’s manganese ore stockpile located near Wenden, Arizona, with the goal of confirming the viability of using the Company’s patented hydrometallurgical process to produce electrolytic manganese metal (EMM) from the stockpile.
Manganese is listed by the U.S. Government as a critical mineral, one of 14 minerals or metals for which the U.S. is 100% import dependent. EMM is on the acquisition list for the U.S. National Defense Stockpile. The global manganese market is greater than 41 billion pounds per year, with manganese the world’s fourth most-traded metal. There is no substitute for manganese in the production of steel.
Management Team
Larry W. Reaugh – Chief Executive Officer
Larry Reaugh has 55+ years’ experience in the mining industry and for the past thirty-seven years he has been the CEO and President of several exploration, development and production companies including 12 years in internet and technology breakthroughs listed on the TSX, TSX Venture and NASDAQ exchanges. Several of his companies have made significant discoveries, three of which (gold/silver) went on to be producing mines. Reaugh founded American Manganese Inc. in 1998 and has served as its President and CEO since that time. Through his career, Mr. Reaugh has raised in excess of $300 million.
Shaheem Ali – Chief Financial Officer
Shaheem Ali is a finance and business management professional with 10 years’ experience in operations management, full cycle accounting, systems development and people management. Proven record of implementing financial and operational processes reducing operations costs and improved internal controls with Alderwoods Group Inc. where his experience includes governance and regulatory fund compliance with various states.
Zarko Meseldzija – Chief Technical Officer
Zarko Meseldzija has a range of industry experience working with one of Canada’s largest energy companies and an innovation-driven process systems company. Meseldzija has deep insight into project management of multi-million-dollar projects and hydrometallurgical process development projects. He is also an owner of an independent consulting firm that focuses on the entire life cycle of the lithium-ion battery supply chain, including the recycling of critical materials. Meseldzija holds a BSc. in Mining Engineering from the University of Alberta and is a registered engineer with the Engineers and Geoscientists of British Columbia. He obtained his Management of Technology MBA from the Beedie School of Business with a focus on sustainability and innovation.
Teresa Piorun – Senior Corporate Officer
Teresa Piorun has been with the Reaugh Group of Companies for thirty years. Piorun is a senior corporate officer with wide-ranging responsibilities, serving as a focal point for communication with the board of directors, senior management and the company’s shareholders, and occupies a key role in the administration of critical corporate matters. She is the confidant and advisor to the CEO and other members of senior management, particularly on corporate governance affairs.
Dr. Paul Hildebrand – Director
Dr. Hildebrand has been a practicing lawyer in British Columbia for over 40 years and has a doctorate in economics in addition to his law degree and Master of Science degree in mathematics. He was previously a director of AMY from 2007 to 2013.
American Manganese Inc ("Company"), (TSXV:AMY)(OTCQB:AMYZF)(FSE:2AM) doing business as RecycLiCo Battery Materials, a pioneer in advanced lithium-ion battery recycling and upcycling, is pleased to announce that it is receiving advisory services and funding from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) to support a feasibility study to target the removal of fluoride from black mass containing high concentrations of fluoride
When a lithium-ion battery reaches its end-of-life, the battery undergoes a mechanical pre-treatment method that produces a black mass material containing lithium, nickel, manganese, cobalt, and unwanted impurities such as fluoride. These impurities can cause significant corrosion and contamination issues in the downstream hydrometallurgical processing steps.
As a result of analyzing and testing multiple third-party black mass samples, the Company identified some black mass containing a high concentration of fluoride. With advisory services and funding support from NRC IRAP, the Company will test the feasibility of available techniques to reduce fluoride contamination to a consistent level that could enable a streamlined integration of black mass feedstock from multiple battery pre-treatment methods into the company's downstream hydrometallurgical process.
"Innovation is at our core, and our goal is to stay ahead of the curve and offer the most advanced lithium-ion battery recycling and upcycling technology. We are thankful to NRC IRAP for its advisory services and funding support that enables our company to optimize our technology further," said Larry Reaugh, President and CEO of American Manganese. "As we continue to collaborate with potential strategic partners in testing black mass materials that are representative of commercial feedstock material, we identify opportunities to build a moat around our core battery recycling technology that strengthens our value proposition."
American Manganese Inc, doing business as RecycLiCo Battery Materials, is a battery materials company focused on recycling and upcycling lithium-ion battery waste. With minimal processing steps and up to 100% extraction of lithium, cobalt, nickel, and manganese, the patented, closed-loop hydrometallurgical process creates valuable lithium-ion battery materials for direct integration into the re-manufacturing of new lithium-ion batteries.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.
LCA was Conducted in Accordance with ISO Standards and Critically Reviewed by Independent Experts
American Manganese Inc (TSXV:AMY)(OTCQB:AMYZF)(FSE:2AM) ("Company"), doing business as RecycLiCo Battery Materials, is pleased to announce the results of a life cycle assessment (LCA) completed by Minviro Ltd. ("Minviro"), a UK-based and globally recognized sustainability and life cycle assessment consultancy, on the Company's lithium-ion battery recycling-upcycling process
An LCA is a standardized, scientific method for quantifying the direct and embodied environmental impacts associated with a particular product or process. By considering all material and energy inputs such as scope 1, 2 and 3 CO2 emissions. The LCA was conducted in accordance with ISO-14040:2006 and ISO-14044:2006 standards and a critical review was conducted on the LCA by independent experts. The LCA was carried out with a combination of data provided by RecycLiCo and public databases.
The report assesses the Company's process against competing hydrometallurgical recycling methods, on the basis of producing one kilogram of NMC precursor material, as follows:
RecycLiCoTM
Process
(A)
Other
Hydrometallurgical
Methods
(B)
Percentage Variation
(B-A)/A
Unit
Global Warming
Potential
7.1
18.8
166%
kg CO2 eq.
Acidification
Potential
0.03
0.6
2117%
Mol H+ eq.
Minerals + Metal
Depletion
6.3E-05
7.30E-04
1058%
kg Sb eq.
Fossil Fuel
Depletion
102
18.2
-82%
MJ
"Global Warming Potential" refers to the potential CO2 equivalent emissions made by a particular recycling method, in producing one kilogram of NMC precursor material. As shown in the table, competing hydrometallurgical recycling methods will likely produce 166% more CO2 equivalent emissions when compared to the RecycLiCo process. To put this into context, such a variance is about the same as 17,000 tons of CO2 per GWh of NMC battery material recycled, which is roughly equivalent to the amount of emissions made by 3,700 vehicles in a year on average.1
Minviro also found that the RecycLiCo process, when compared against the industry average for primary extraction methods (i.e. mining), results in a 35% reduction in CO2 equivalent emissions for NMC precursor production and a 74% reduction for lithium hydroxide production.
"I am pleased to report that the LCA results confirm RecycLiCo's lower environmental impact to produce NMC precursor and lithium hydroxide, when compared to primary raw material extraction methods or competing hydrometallurgical recycling," said Larry Reaugh, the Company's President and CEO. "To collectively achieve true decarbonization as an industry, we must not cut corners at any stage of the lithium-ion battery supply chain and should instead recognize the most efficient and environmentally friendly technologies as an industry benchmark."
Minviro is a London-based and globally recognized consultancy and technology company specializing in carrying out life cycle assessments in the technology metal space. The company provides quantitative environmental and climate impact data for mineral resource projects, battery manufacturers and OEMs to make environmentally informed decisions (www.minviro.com).
American Manganese Inc, doing business as RecycLiCo Battery Materials, is a battery materials company focused on recycling and upcycling lithium-ion battery waste. With minimal processing steps and over 99% extraction of lithium, cobalt, nickel, and manganese, the patented, closed-loop hydrometallurgical process creates valuable lithium-ion battery materials for direct integration into the re-manufacturing of new lithium-ion batteries.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.
1 Calculations are made by the Company and based on statistics found at https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle
NMC-811 cathode precursor delivered to active collaborators in North America, Europe, and Asia
Recycled material to be third-party analyzed and battery performance tested
Internal analysis indicates product specifications are within desired industry ranges
NMC-811 cathode precursor recycled and upcycled from electric vehicle black mass
American Manganese Inc. (TSXV:AMY)(OTCQB:AMYZF)(FSE:2AM) ("AMY" or the "Company"), a pioneer in advanced and environmentally friendly lithium-ion battery cathode recycling-upcycling, is pleased to provide an update on its technology and partnership development strategy
American Manganese has produced and delivered NMC-811 (nickel manganese cobalt oxide) cathode precursor material samples to its active third-party collaborators in North America, Europe, and Asia. The feedstock material for the cathode precursor was black mass originating from waste electric vehicle batteries.
The cathode precursor is a high-value and specifically engineered material that commonly contains nickel, cobalt, and manganese, which turns into a cathode with the addition of lithium. The cathode precursor material will be independently analyzed and built into battery cells to benchmark against cathode precursors from virgin mined materials. AMY's internal analysis indicates that the cathode precursor specifications are within desired industry ranges.
"We are maintaining an active collaboration with players in the growing battery industry with our continuous lab-scale research, while we work in parallel to prepare our demonstration plant for scaled-up and continuous operation," said Larry Reaugh, President and CEO of American Manganese. "We believe our lithium-ion battery recycling and upcycling technology enables a circular solution for the battery supply chain, and we aim to strengthen our relationship with the various collaborators."
NMC-811 Precursor Cathode Active Material from Recycled Battery Waste
American Manganese Inc. is a critical metals company focused on recycling and upcycling lithium-ion battery waste into high-value battery cathode materials, using its closed-loop RecycLiCo™ process. With minimal processing steps and over 99% extraction of lithium, cobalt, nickel, and manganese, the upcycling process creates valuable lithium-ion battery materials for direct integration into the re-manufacturing of new lithium-ion batteries.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.
American Manganese Inc. (TSXV:AMY)(OTCQB:AMYZF)(FSE:2AM) ("AMY" or the "Company") has rescheduled its annual general and special meeting of shareholders (the "Meeting") to July 8, 2022, at 11:00 a.m. Further details on the meeting will be contained in a new Notice of Meeting and the management information circular that will be mailed to shareholders and filed on SEDAR
American Manganese Inc. is a critical metals company focused on recycling and upcycling lithium-ion battery waste into high-value battery cathode materials, using its closed-loop RecycLiCo™ process. With minimal processing steps and over 99% extraction of lithium, cobalt, nickel, and manganese, the upcycling process creates valuable lithium-ion battery materials for direct integration into the re-manufacturing of new lithium-ion batteries.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.
American Manganese Inc. (TSXV:AMY)(OTCQB:AMYZF)(FSE:2AM) ("AMY" or the "Company") is pleased to have been selected as 1 of 15 finalists, among more than 120 companies, to meet with decision-makers of different business lines at Evonik Industries AG ("Evonik"), a leading specialty chemicals company. American Manganese will be presenting its patented lithium-ion battery recycling technology, RecycLiCo, at the upcoming Evonik Battery Solutions Day hosted by the Massachusetts Institute of Technology (MIT
Evonik, in collaboration with Blumorpho, is exploring potential collaboration and investment opportunities with organizations that demonstrate a high level of differentiation and strong value proposition across multiple battery solutions. Evonik is facilitating round table meetings on business discussions that will take place at MIT on May 4th and 5th, 2022.
"We are proud to be selected as 1 of 15 finalists focused on battery solutions, and we are told that American Manganese's application has raised high interest from multiple teams within Evonik," said Larry Reaugh, President and CEO of American Manganese Inc. "We will look to meet and generate high-value synergies between our RecycLiCo technology and Evonik's innovation activities and investment opportunities."
Evonik Industries AG is a chemicals company headquartered in Essen, North Rhine-Westphalia, Germany. It is the second-largest chemicals company in Germany, and one of the largest specialty chemicals companies in the world. Evonik is also a founder member of the Together for Sustainability initiative, which focuses in promoting sustainability practices across the chemical industry's supply chains.
American Manganese Inc. is a critical metals company focused on recycling and upcycling lithium-ion battery waste into high-value battery cathode materials, using its closed-loop RecycLiCo™ process. With minimal processing steps and up to 99% extraction of lithium, cobalt, nickel, and manganese, the upcycling process creates valuable lithium-ion battery materials for direct integration into the re-manufacturing of new lithium-ion batteries.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.
Critical Resources Limited (ASX:CRR) (“Critical Resources” or the “Company”), advises that further to the announcements dated 9 April 2021, 2 August 2021, 10 August 2021 and 26 August 2021 the Company has reached a mutually agreeable outcome with the Ministry of Energy and Minerals, Sultanate of Oman (Minerals Department) regarding license fees for the ongoing exploration of Block 4 and Block 5, Sohar Copper Project in Oman.
The Block 5 resource, for which Critical Resources holds a 65% interest is a high grade, near surface, copper plus silver and gold resource.
About Sohar Copper Project
The Company’s assets are located near Sohar in the Sultanate of Oman.
The Project covers 1,006 km² of the copper-rich Ophiolite belt, proven to host clusters of relatively high grade VHMS copper deposits. Ores within these deposits are metallurgically simple and contain gold and silver credits.
The Company holds a 51% interest in Block 4 (granted Exploration Licence), a 65% interest in Block 5 (granted Exploration Licence and 2 Mining Lease applications) and a 70% interest in two Exploration Licence applications near Block 10 to the West of Blocks 4 and 5.
Measured, Indicated and Inferred Mineral Resources (2012 JORC) of 0.82Mt at 3.4% Cu (including a high-grade zone of approximately 0.5Mt at 4.5% Cu)(gross deposit) is contained in two deposits within Block 5. Contained metal is reported at 28,000 tonnes of Copper, 5,900 ounces of Gold and 220,000 ounces of Silver. Further details can be seen in the Company’s announcement of 1 September 2020.
This article includes content from Critical Resources, 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.
European Lithium Limited (ASX: EUR, FRA: PF8, OTC: EULIF) (EUR or the Company) is pleased to announce it has signed a non-binding memorandum of understanding (MoU) with European auto manufacturer BMW AG (BMW) to secure EUR’s first offtake of battery grade Lithium Hydroxide (LiOH).
Highlights
EUR to provide exclusive rights to supply battery grade lithium hydroxide;
MoU establishes understanding to negotiate final commercial terms, including US$15m prepayment
EUR Chairman, Tony Sage, commented: "Securing our first offtake with BMW AG is another key milestone for the Company. Partnering with BMW AG is an ideal fit for EUR".
Under the MoU, EUR and BMW AG will work together to negotiate suitable commercial terms for BMW AG to purchase the LiOH produced by EUR. EUR grants BMW AG the first right to purchase 100% of the LiOH produced from the identified resources.
In the event both parties agree to a binding contract, BMW AG will make an upfront payment of US$15 million, which will be repaid through equal set offs against LiOH delivered to BMW AG. Proceeds from the prepayment will be used for the development of the Wolfsberg Project including supporting the commencement of the construction phase and further progress towards the successful implementation of the Wolfsberg Project.
Securing its first offtake is a key milestone allowing the Company to focus on the final steps of development and implementation of the Wolfsberg Project while it looks to the future and builds a portfolio of prospective battery metals projects located in Europe.
The parties are currently negotiating binding agreements, and no assurance is given that the any binding agreements will be entered into.
About the BMW Group
With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.
In 2021, the BMW Group sold over 2.5 million passenger vehicles and more than 194,000 motorcycles worldwide. The profit before tax in the financial year 2021 was € 16.1 billion on revenues amounting to € 111.2 billion. As of 31 December 2021, the BMW Group had a workforce of 118,909 employees.
The success of the BMW Group has always been based on long-term thinking and responsible action. The company set the course for the future at an early stage and consistently makes sustainability and efficient resource management central to its strategic direction, from the supply chain through production to the end of the use phase of all products.
This announcement has been authorised for release to the ASX by the Board of the Company.
This article includes content from European Lithium Limited, 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.
Click here to read the previous lithium market update.
After rallying to all-time highs in 2021, lithium prices began to stabilize in the first few months of 2022.
Demand for the battery metal is expected to soar in the coming decades, with questions about supply increasing.
How did lithium perform in the second quarter of 2022, and what’s ahead for the commodity in the near term? The Investing News Network (INN) asked experts about the main news that impacted the lithium market in Q2, plus a look at what investors should watch for during the rest of the year.
Lithium market update: Price performance
Last year saw lithium climb on the back of strong demand from the electric vehicle (EV) industry, and even though prices have started to stabilize, they're up over 123 percent, as per Benchmark Mineral Intelligence data.
On the supply side, availability of material from domestic Chinese brineresources ramped up as expected over late Q2 as warmer weather improved seasonal evaporation rates, analyst Daisy Jennings-Gray told INN.
Meanwhile, on the demand side, COVID-19 lockdowns in China, particularly Shanghai, gave rise to an unexpected hit on demand from the EV sector, with a number of vehicle manufacturing plants shutting down over April.
“Given growing concerns over rising COVID-19 cases in China, combined with reports that Chinese regulators were looking to prevent prices from climbing so rapidly, there were some expectations at the beginning of Q2 that lithium prices might not see the same upward climb experienced in Q1, with this expectation coming to reality,” Jennings-Gray, who works for Benchmark Mineral Intelligence, said.
“What we're seeing is just a pause on the demand side because of the lockdowns in China,” he said. “And I think it's more that consumer demand has been constrained rather than falling back.”
As lockdown measures ease, Adams is expecting lithium prices to move higher.
“I don’t think we’ve seen the peak in prices yet,” he told INN at the event, which was held in Phoenix, Arizona. “We expect to see that towards the end of this year, or maybe the first quarter next year.”
Listen to the interview above for more thoughts on lithium from Fastmarkets' Adams.
For Martin Jackson of CRU Group, prices have remained higher than expected due to renewed demand from China post-lockdowns. “(We) certainly expect them to track lower in Q3 before demand returns again in Q4,” he said.
Lithium market update: Supply and demand
At the end of 2021, most analysts agreed that demand would outpace supply in 2022, and they were forecasting a deficit ahead. Even though a supply response is expected from the market, which could alleviate the current tightness, demand for lithium is still expected to be higher as EV sales continue to increase in key markets.
June figures from the Chinese EV market show that the industry has already seen a significant recovery following lockdowns in Shanghai, with record-breaking production and sales numbers. For 2022, EV sales in the leading Asian country are expected to reach 6.4 million units, more than double 2021 levels, S&P Global predicts.
“Provided there are no further strict lockdowns that could impede production, it seems like demand from the EV sector will continue to accelerate into Q3,” Jennings-Gray said.
The market still looks tight heading into H2, with a limited number of new lithium projects set to come online.
“There are some expansion ambitions in the pipeline that could provide some additional supply-side relief if project timelines are met. However, it seems unlikely that this will balance strong demand from the EV industry,” Jennings-Gray added.
It is probable that demand hindered from the second quarter will be shifted to the second half of the year, “when demand is typically at its highest anyway,” the analyst said.
All in all, Benchmark Mineral Intelligence is still forecasting a lithium market deficit in 2022.
“Investments from Chinese majors into lithium resources in Jiangxi province, alongside improved utilization rates at existing mines in the region, led to a slight increase on the supply side from the Chinese domestic market in the Q2 forecast,” Jennings-Gray said. “However, our expectations over the ability to ramp up this supply further remain conservative, hence we don't expect to see the market balancing on this alone.”
At the same time, demand has remained strong yet stable despite COVID-19 lockdowns in China.
“So we haven't factored in any relief from the demand side, with any stymied demand in Q2 pushed to the latter half of 2022 or early 2023,” Jennings-Gray said.
Lithium market update: Oversupply fears hit, stocks under pressure
During Q2, investment bank Goldman Sachs (NYSE:GS) released a report that increased investors' worries over potential excess lithium supply; the bank also predicted a sharp correction in prices by the end of next year.
However, for Benchmark Mineral Intelligence, the lithium market will remain in structural shortage until 2025.
“The lithium market will balance over the next few years, but it’s unlikely that an unprecedented ramp-up of marginal, unconventional feedstock will fill the deficit. It is also unlikely that demand will weaken significantly,” analysts at the firm said in a note.
Similarly, iLi Markets' Daniel Jimenez doesn’t think supply will be able to catch up with demand at least until 2026 to 2027, mainly because of the difficulty of bringing greenfield projects into production at full capacity.
“Over this period of time, lithium should be the limiting factor in EV sales,” he told INN. “Even with demand growing very strongly, the investments the industry is making today might yield additional capacity in six to 10 years from now that we are not able to see today.”
Speaking with INN in late June, lithium expert Joe Lowry of Global Lithium said the market is in a real structural shortage that is going to last a few years.
“It will be internalized by just about everybody by 2023,” he said. “It's going to be an interesting few years. But I do think that the lithium situation will force adjustments by the OEMs.”
Listen above to learn why lithium expert Lowry thinks lithium's time has come.
With macroeconomic variables hitting the stock market and bearish reports calling for an oversupply situation, lithium stocks have been experiencing downward pressure.
Commenting on the disconnect seen between the stock market and lithium prices, Jon Hykawy of Stormcrow Capital said the electrification of fleets is unstoppable at this point.
“How fast we're going to see that transition, I guess, is the question,” he told INN during an interview at the Fastmarkets lithium conference. “But at this point, optimism is warranted and the stock market eventually will get over whatever it's getting over and it will come back.”
For Chris Berry of House Mountain Partners, when commodities price takes off, it is usually expected to see the equities follow suit. “It's no surprise, in my view, to see the equities kind of take a breather,” he told INN in June.
Berry talked to INN about lithium prices and what's ahead for the market. Listen above to learn more.
When asked about the main challenges faced by lithium miners to bring new supply to the market, CRU’s Jackson pointed to a shortage of technical skills to construct and ramp up new lithium production capacity.
“(Another factor is) attracting investment into mining instead of the middle of the value chain, which has been difficult in the past due to reputational concerns, volatility and environmental, social and governance issues."
For producers, ramping up supply to meet demand will remain a challenge, Jennings-Gray said, with some miners already announcing ambitious expansion projects this year in a bid to keep up with customer requests.
“Further downstream, high feedstock prices will likely be a challenge for refiners, who will continue to see their margins squeezed,” she said.
For newer lithium project developers, sticking to project timelines remains an obstacle.
“(This is) particularly (relevant) if project financing is hinged on offtake agreements that contain deadlines for first delivery, although there are very few new projects set to come online before the end of the year, so this is more of a longer-term target to meet,” Jennings-Gray added.
Commenting on junior mining, Emily Hersh, CEO of Luna Lithium, said entering the lithium market isn't an easy task, and new entrants to the industry face many hurdles.
“There's a lot of noise in terms of what's happening in the market. You really can't control what market conditions are going to be at any given point in time,” Hersh told INN.
Lithium market update: What’s ahead for prices and key catalysts to watch
As the third quarter of the year continues to unfold, there are a few factors that could impact the lithium space.
Typically, additional supply from the Qinghai brine projects across the summer months provides some supply-side relief in China, so this may contribute to continued stabilization across late Q2 and Q3, Jennings-Gray said.
“However, demand remains very high, and EV production and sales statistics rebounded significantly in June following the easing of lockdown restrictions in July, breaking records,” she said. “This could drive some further upside potential for lithium pricing, with demand for carbonate within the Chinese domestic market particularly robust under the resurgence of lithium-iron-phosphate cathode production.”
Outside of China, it is expected that contracted prices will continue to catch up with the Chinese domestic market over Q3, as they did in Q2.
“Although some of the stability in the Chinese market will be translated through to the international market, so price increases may not be quite as significant,” Jennings-Gray said.
The global economic picture will also play into lithium market dynamics in Q3.
“Recession risks, debt levels in China (and) surging inflation cutting into real income in North America and Europe” are all factors that could impact the space, CRU’s Jackson said.
Additionally, the Russia-Ukraine conflict will remain a focus in the European and North American markets.
"The hydroxide market remains very tight given restrictions on the purchasing and transportation of Russian material, which previously acted as a notable source of hydroxide supply for the European market," Jennings-Gray said. “Concerns over hydroxide supply are likely to extend across the rest of the year.”
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Top lithium producer Albemarle (NYSE:ALB) saw its lithium sales increase 178 percent year-on-year in the second quarter on the back of firm demand and higher lithium prices.
Lithium net sales reached US$891.5 million, an increase of US$571.2 million from the previous year, as the company renegotiated contracts and as prices for the battery metal stayed at high levels.
"We delivered another strong quarter throughout the current turbulent market environment, thanks to strong demand and pricing trends, particularly for lithium and bromine,” CEO Kent Masters said. “Over the past year, we have shifted our lithium contracting strategy to realize greater benefits from these strong market dynamics."
Looking ahead, Albemarle is expecting average realized pricing to be up 225 to 250 percent year-over-year due to the renegotiated contracts and increased market pricing. The company anticipates that adjusted profits from its lithium business will jump by 500 percent.
“There is potential upside if market pricing remains near current levels, if contract renegotiations result in additional price improvements, or with additional tolled volumes,” the company said in a statement. “There is potential downside in the event of a material correction in lithium market pricing or potential volume shortfalls, such as delays in acquisitions or expansion projects.”
Albemarle owns lithium brine operations in Clayton Valley near Silver Peak in the US, as well as in the Salar de Atacama in Chile. It also owns a 49 percent stake in Talison Lithium, which runs the massive hard-rock Greenbushes mine, as well as a 60 percent stake in the Wodgina hard-rock lithium mine in Western Australia.
The North Carolina-based company’s Kemerton I conversion plant in Australia achieved first production in July, while initial production of spodumene concentrate from the first and second trains at the MARBL lithium Wodgina mine happened in May and July, respectively.
In Q2, Albemarle posted net income of US$406.8 million compared to a profit of US$424.6 million in the same quarter a year ago. Meanwhile, adjusted EBITDA reached US$610 million, an increase of 214 percent.
On Tuesday (August 2), Albemarle’s rival Livent (NYSE:LTHM) also posted its Q2 results, reporting a profit jump and raising its guidance for 2022 on support from higher lithium prices.
As of 9:00 a.m. EST on Thursday (August 4), shares of Albemarle were trading at US$248.12, up more than 3 percent from the previous day's closing price.
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Securities Disclosure: I, Priscila Barrera, currently hold no direct investment interest in any company mentioned in this article.
Click here to read the previous electric vehicle market update.
The electric vehicle (EV) revolution has been top of mind for battery metals investors for quite some time now, with demand for EVs increasing significantly in 2021.
But in 2022, China’s fresh COVID-19 lockdown measures, the Russia-Ukraine war, cost increases and other constraints hit the market, and carmakers are under pressure to keep production levels up.
Given the importance of the EV narrative for battery metals and all the commodities associated with the EV supply chain, the Investing News Network (INN) reached out to analysts and experts in the space to ask for their thoughts on what's happened so far this year and what’s on the horizon.
EV market update: What happened in H1 2022?
In 2021, sales of EVs doubled from the previous year to reach a new record of 6.6 million units, with nearly 10 percent of global car sales being electric.
Growing regions like Europe saw continued consumer interest, while in leading country China 3.3 million EVs were sold in 2021 — that's more than were sold in the entire world in 2020, as per the International Energy Agency.
But 2022 has brought EV supply chain issues, with carmakers struggling with higher costs and production goals.
Speaking about the main trends seen in H1, Felipe Munoz of JATO Dynamics said there’s been a slowdown in demand for battery electric vehicles (BEVs) in growth markets such as Europe — the second largest after China.
“We saw the biggest monthly drop in Europe in June for BEV registrations since April 2020, at about an 8 percent decrease, which is still better than the overall market,” he told INN. “But it's worrying in the case of Europe because EVs have been the drivers of growth over the last months.”
Tesla (NASDAQ:TSLA), Volkswagen (OTC Pink:VLKAF,ETR:VOW), Renault (EPA:RNO), Audi, Skoda and Ford (NYSE:F) were the most affected by the fall in demand, according to JATO.
Tesla was hurt by a production halt at its plant in China, failing to increase vehicle deliveries quarter-on-quarter for the first time in two years. Meanwhile, Volkswagen felt the pressure to stop producing a number of models due to supply issues related to the Russia-Ukraine war.
Last year, there were over 450 electric car models available globally, an increase of more than 15 percent compared to 2020 and more than twice the number of models available in 2018. In 2022, despite challenges, automakers have continued to roll out new models, expanding segment and price point availability for EVs.
“The increase in model availability was expected, will continue and is critical to increasing EV adoption,” Stephanie Brinley of IHS Markit told INN.
“In terms of sales performance, we continue to see production holding back sales,” she said. “While tightening monetary policy, inflation and recession concerns could have an impact on underlying demand in the second half of 2022, production capacity is still determining sales volumes.”
At the end of 2021, BEVs accounted for 3.5 percent of US light-vehicle registrations. From January through the end of May, this grew to 4.5 percent, according to IHS Markit data.
“The semiconductor and other shortages have meant that OEMs have not been able to build as many EVs as they had planned and have slowed some production ramp-up ability, but EV availability and inventory is higher than it was in 2021 and there are more models available,” Brinley said.
A key catalyst impacting sales was China's fresh COVID-19 containment measures early on in 2022.
“Lockdowns in China, in addition to the uncertainty regarding the economy and the war in Ukraine and its impact on supply chains, is finally affecting EVs as well,” Munoz explained to INN. “They used to be the only drivers of growth, but now we are also seeing the demand for these cars falling not because the people don't want them, but because there are no cars available.”
EV market update: Supply chain issues and availability
Supply chain shortages have become the main issue for the auto industry as a whole, affecting EV production and development, as well as traditional vehicle production.
“Vehicle production costs have increased on raw materials and commodities pricing increases,” Brinley said. “In addition, the Russian invasion of Ukraine and the COVID-19 lockdowns in China earlier in 2022 caused further supply chain and logistics issues, again affecting the industry as a whole inclusive of EV plans.”
Last year, the chip shortage seemed to be affecting only internal combustion engine vehicles, but this year the situation is evolving to impact EVs as well.
“In 2021, there were not enough chips in the industry, so the very few they had were used to produce cars that could sell easily, which are the SUVs or EVs,” Munoz commented to INN. “However, the crisis is still happening and it's already affecting EVs.”
As a result of production constraints across the light-vehicle industry, automakers have not been able to produce to available capacity or plans.
“While the situation continues to slowly improve, production will be lower than capacity or demand for the rest of 2022 and into 2023,” Brinley said.
For the expert, the mismatch between production and demand is an entry barrier in the short term, but will not be in the medium term. “It is a barrier for consumers who want traditional vehicles right now, not just EVs,” she said. “It is not slowing the underlying interest in EVs, and consumers are adapting to having to wait.”
For Munoz, if recession fears continue, and they become a reality, the discussion will not be only around production constraints, but could turn into a demand issue.
“The problem with a recession is that in addition to the production, we will have demand issues as people will stop buying or will delay their purchase,” Munoz said.
This might not be the case for every market, the expert added, as Chinese carmakers, for example, are not as exposed as the European or American markets, because they do not export as many of their vehicles.
“They depend mostly on local demand, and the Chinese market still has potential for growth,” he said. “India is another positive case — the demand there seems to react positively to the government's incentives and has a better perspective.”
EV market update: What’s ahead
Looking ahead, by the end of 2022, global plug-in sales, which include BEVs, plug-in hybrids and range-extended BEVs, are on pace to exceed 10 million vehicles. This is more than the combined totals of 2019 (at 3.1 million) and 2021 (at 3.1 million), S&P Global Commodity Insights data shows.
“China will remain the largest market by total sales, already clearing 3 million year-to-date and projected to account for 6.5 million plug in sales by the end of this year, subject to some downside risk related to periodic localized lockdowns in response to the emergence of coronavirus variants,” Mark Mozur, manager of future energy outlook at S&P Global Commodity Insights, said.
The European Union will be the only other market to exceed the 1 million vehicle threshold, and is expected to register 2 million in sales by the end of the year.
“The US will close the year at just under 0.8 million vehicles sold, a 30 percent year-on-year growth,” Mozur said. “In terms of market share, Norway will remain the global leader, on pace to have EVs capture 85 to 90 percent of total new passenger car sales.”
For the second half, Brinley said the market should continue to see improvement in inventory, though the semiconductor issue will hold the industry back versus plans and capacity into 2023.
“Some improvement in inventory will be a result of already planned production cadence, and some will be a result of the normal production ramp-up,” she said. “In addition, Tesla’s Texas and Germany factories are ramping up, which will mean Tesla availability continues to sharply increase.”
For Munoz, the key factor to keep an eye on is availability of new cars and how to keep interest in EVs going.
“Governments are still helping, there are still very good deals and very good incentives in many markets, with consumers until now reacting positively to this way of buying electric cars,” he said. “So for me, the key will be to keep this interest by bringing the cars on time, because if the cars are not there and at the same time there are fears about the economy everywhere, then we will lose the opportunity that we have had so far.”
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
The lithium market is booming. Rechargeable lithium-ion batteries were already critical to devices such as smartphones and laptops, but as the push towards decarbonization and electric vehicles continues to gain ground, demand for the critical battery metal has gone through the roof.
The market simply cannot keep up. Estimates have historically varied as to precisely when demand will outstrip supply, but many experts believe that day will come sooner rather than later. Some have even gone so far as to suggest that, with the current strong outlook of electric vehicles, this could even happen in 2022.
With that said, it's undeniable that the push for greener energy and decarbonization is currently a core driver of increasing demand.
"We're moving towards decarbonization, moving the economies away from carbon, coal, gas, and oil," explained Killian Charles, president of Brunswick Exploration (TSXV:BRW). "A decade ago, this shift would have been unthinkable. But it's inevitable now, and lithium — along with a few other commodities such as copper — will be in very high demand as a result."
The question, then, is why haven’t mining companies effectively scaled their production to keep pace with this demand? Electrification and green energy are not new concepts, nor is the global pursuit of sustainability a recent development. What is it that's holding us back here, and what can be done to address the issue?
The answer, according to Charles, can be summed up with a few simple words — a lack of greenfield exploration.
A matter of focus
Particularly in the context of an industry as old as mining, lithium development and production is still very much in its infancy. While many of the world's largest, most extensively developed lithium deposits have been known to us for decades, exploration for new lithium assets was sporadic, at best.
"Quite truthfully, we, as a society, haven't collectively explored enough for lithium to meet our decarbonization objectives," Charles said. "Many of the largest producers, companies with multibillion dollar market caps, are essentially working old deposits and not having the expertise to discover new ones."
What this means is that some of the richest lithium deposits in the world may be either undeveloped, undiscovered, or, more often, both.
"Brine and clay deposits will not be the solution in the long-term," Charles said. "They are large, yes, but they are also typically very low-grade, expensive and water-intensive to process. Pegmatite, on the other hand, is typically up to 10 times richer than even the richest clay or brine deposit while also being cheaper and simpler to develop."
The value of pegmatite greenfield exploration
Canada is, in many ways, a microcosm of the larger problems with global lithium production.
The country is home to some of the largest lithium deposits in North America. Much of the development over the last decade in the country's lithium sector has focused on repurposing these deposits.
All the while, lithium greenfield exploration remains largely dormant compared to gold or even base metal exploration.
There are a few exceptions to this, of course. Brunswick Exploration, for instance, has spent the past several years exploring and developing multiple diversified assets in Eastern and Maritime Canada. The most notable projects in its portfolio are the Pontiac lithium and North Shore lithium projects in Quebec, the Catamaran project in New Brunswick and the NS Critical Minerals package in Nova Scotia.
"What we've really noticed is that systemic lithium exploration is something that hasn't really happened in Canada," Charles said. "Everyone is focused on existing known assets, but very few companies are really pushing the boundaries — and that's what Brunswick Exploration has always been about."
Origen Resources (CSE:ORGN,FWB:4VX) is another major player in pegmatite exploration and development. Working together with Coast Mountain Geological, in 2021 the company claimed 29,000 hectares in Newfoundland. Leveraging its innate knowledge of pegmatite-hosted lithium deposits, it identified 10 highly promising areas in a newly identified prospective lithium belt.
Developing a domestic supply chain
It is no secret that at the current moment, North America is lagging behind in the electric vehicle race. Nor is the reason particularly mysterious. Over-reliance on imported lithium coupled with an unstable international supply chain represents not only a considerable manufacturing bottleneck, but also considerably amplifies development costs.
Battery manufacturers and electric vehicle manufacturers alike would benefit considerably from a stabler, more readily accessible domestic supply. This is precisely what the long-term development of pegmatite greenfields can provide. It's essentially a way of killing two birds with one stone: contributing to global lithium production while also supporting domestic industry growth.
Takeaway
There is no denying that the world sits on the cusp of a lithium shortage, but this is not an insurmountable problem. Underdeveloped and underexplored pegmatite greenfields offer not only a reasonable solution but also a compelling option for anyone looking to add more lithium projects to their investment portfolio
This INNSpired article is sponsored by Brunswick Exploration (TSXV:BRW). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Brunswick Explorationin order to help investors learn more about the company. Brunswick Explorationis a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Brunswick Exploration and seek advice from a qualified investment advisor.
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