
December 20, 2022
European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (the Company) is pleased to announce that it has signed a binding Long Term Lithium Offtake Agreement (Offtake Agreement) via its wholly-owned Austrian subsidiary ECM Lithium AT GmbH (ECM) with auto manufacturer Bayerische Motoren Werkte Aktiengesellschaft (BMW) to secure the Company’s first offtake of battery grade lithium hydroxide (LiOH) from its Wolfsberg Lithium Project in Austria.
HIGHLIGHTS
- Binding lithium offtake agreement with the premium automotive manufacturer, BMW, to supply battery grade lithium hydroxide.
- BMW to make an advance payment of US$15 million to be repaid through equal set offs against LiOH delivered to BMW.
- Conditions precedent includes successful start of commercial production and full product qualification and certification.
EUR’s Executive Chairman, Tony Sage, commented: “With the signing of the binding offtake agreement with BMW, our first offtake is secured, and we look forward to partnering with BMW in the future.”
ECM has granted BMW the first right to purchase 100% of the LiOH produced from the identified resources at Wolfsberg.
Securing its first offtake is a key milestone which will allow the Company to focus on the final steps of development and construction of the Wolfsberg Project while it looks to the future and builds a portfolio of prospective battery metals projects located in Europe.
The material terms of the Offtake Agreement include:
- Prepayment: BMW to make an advance payment of US$15 million to ECM to be repaid through equal set offs against LiOH delivered to BMW.
- Conditions: Successful start of commercial production and full product qualification and certification.
- Other terms: Refer to Annexure A.
Jett Capital Advisors, LLC is acting as Financial Advisor to the Company and Critical Metals Corp. This announcement has been approved for release on ASX by the Board of Directors.
Click here for the full ASX Release
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.
EUR:AU
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07 September 2023
European Lithium
Overview
As the global push to halt climate change gains momentum, the European Commission is looking to regionalize the battery supply chain to capitalize on the rapid electric vehicle (EV) growth and limit its dependency on other countries through heavy investment and policy changes. Europe’s electric vehicle market value reached US$29.49 million in 2021 and is projected to increase up to US$143.08 million by 2027, indicating a compounded annual growth rate of 23.4 percent in that period.
Even though Europe is one of the largest global producers of motor vehicles, it currently does not have a local supply of lithium hydroxide which is heavily used in EV battery technology. According to experts, the market is set to remain in a structural shortage until 2025
One company that aims to become the first local lithium supplier into an integrated European battery supply chain is European Lithium (ASX:EUR,FRA:PF8), a mining exploration and development company focused on exploring, identifying and acquiring lithium in Europe. The company is led by a management team with decades of experience and success in the mining and finance markets.“Our aim is to be the first supplier of lithium from Europe, for Europe,” European Lithium chairman Tony Sage said.
The company is focused on its wholly owned Wolfsberg Lithium project located in Carinthia, Austria. The pre-existing mine is located in a mining-friendly region with multiple mineral discoveries in the surrounding area. The property features a high-grade lithium resource at an average grade of one percent lithium hydroxide, with a total resource of 12.88 million tonnes based on resources measured, indicated and inferred in zone 1 only.
The Wolfsberg Lithium project resource has the potential to double based on positive drill results in another zone on the property.
Based on the definitive feasibility study (DFS) released in March 2023, Wolfsberg Lithium Project is well positioned to become a leading producer of battery-grade lithium hydroxide in Europe. It is set to deliver high returns, leveraging low operating costs, and benefiting from a lithium market that is anticipated to be in structural undersupply during most of the life of mine. The battery-grade lithium hydroxide monohydrate (LHM) prices modeled in the DFS are projected to be at a 39-percent discount to current spot prices in 2025 and then escalate by 2 percent per annum. The estimated capex is US$866 million which supports a post-tax NPV of US$1.5 billion.
European Lithium has established several strategic relationships with an aim to deliver value to the Wolfsberg Lithium Project through development and during production. This includes a partnership with KMI for liaising with Austrian authorities.
The company commissioned Dorfner Anzaplan to construct the pilot plant, which was successfully completed on schedule. Anzaplan has also overseen the completion of metallurgical test work on bulk ore extractions. Testing will allow significantly higher recovery rates at the start of production as opposed to only assessing metallurgical data from the core as other mining companies often do, giving European Lithium the advantage of a streamline refinement process.
The company has support from the European Battery Alliance, GREENPEG and other government initiatives, believing it has the potential to become a major, first-to-market producer of lithium in Europe. The company also remains committed to clean production in an effort to support sustainability.
Based on the DFS, the company plans to begin the permitting process of its Wolfsberg Lithium project and prepare the mining plan for the mining authority to authorize the mine and concentrator construction. Afterward, the company will determine the approval requirements of the carbonate hydroxide conversion plant with the Energy Information Administration (EIA) and then initiate the final financing plan.
European Lithium, through its wholly owned Austrian subsidiary ECM Lithium Aľ GmbH (ECM), signed a binding long-term lithium offtake agreement with top-tier European auto manufacturer BMW to secure the company’s first offtake of battery grade lithium hydroxide from its Wolfsberg Lithium Project in Austria.
The company is aiming to commence production of lithium hydroxide from the project in 2027 — subject to funding and approvals by the Austrian government.
In a bid to expand its project portfolio, European Lithium executed a binding Heads of Agreement with 2743718 Ontario Inc., a subsidiary of Richmond Minerals (TSXVRMD), to acquire 100 percent of the rights, title and interest in the Bretstein-Lachtal Project, Klementkogel Project and the Wildbachgraben Project, a group of exploration licenses covering 114.6 square kilometers, targeting lithium with known occurrences in the Styria mining district of Austria.Company Highlights
- European Lithium is a mining exploration and development company focused on exploring, identifying and acquiring lithium in Europe.
- The company aims to become the first local lithium supplier into an integrated European battery supply chain.
- The company’s focus is on its wholly owned advanced Wolfsberg Lithium Project (Wolfsberg) located in Carinthia, Austria.
- Wolfsberg is a high-grade lithium resource at an average grade of one percent lithium oxide, with a total resource of 12.88 million tonnes based on measured, indicated and inferred resources in zone one only.
- Wolfsberg’s definitive feasibility study results demonstrate potential to deliver high returns, leveraging low operating costs, and benefiting from a lithium market that is anticipated to be in structural undersupply during most of the life of mine.
- The Wolfsberg resource estimate has significant upside with the potential to double based on positive drill results.
- Through its wholly owned Austrian subsidiary ECM Lithium Aľ GmbH (ECM), European Lithium signed a binding long-term lithium offtake agreement with top-tier European auto manufacturer BMW AG (BMW) to secure the company’s first offtake of battery-grade lithium hydroxide from Wolfsberg.
- The company has signed a binding agreement to build a Saudi Arabia-based hydroxide processing plant in partnership with Obeikan and deliver significant cost savings.
- The company is led by a management team with decades of experience and success in the mining and finance markets.
- European Lithium entered into a business combination agreement with Sizzle Acquisition, a US special purpose acquisition company, to which European Lithium will sell down its interest in its wholly owned Wolfsberg Lithium Project (Wolfsberg and Wolfsberg Lithium Project) and merge with Sizzle via a newly formed, lithium exploration and development company named, Critical Metals Corp.
- European Lithium has acquired 100 percent of the rights, title and interest in the Bretstein-Lachtal Project, Klementkogel Project and the Wildbachgraben Project, a group of exploration licenses covering 114.6 square kilometers, targeting lithium with known occurrences in the Styria mining district of Austria and nearby the Wolfsberg Lithium Project
- The company received high-grade lithium assays from sampling undertaken at various prospects within the Eastern Alps Lithium Satellite Projects, located in Austria, which are held 20 percent by European Lithium and 80 percent by EV Resources Limited (ASX: EVR).
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10h
Landsat Data Shaping Lithium-Mining Plans at Nevada’s Thacker Pass
A Nevada lithium project central to US efforts to secure domestic mineral supply is leaning on a half-century-old satellite program for modern answers.
The US Geological Survey’s (USGS) Landsat program, managed with NASA, has provided continuous Earth observations since 1972. Its freely available images allow scientists and industry leaders to measure landscape changes with precision.
In Northern Nevada, those insights are proving crucial as Lithium Americas (TSX:LAC,NYSE:LAC) works to advance Thacker Pass in a way that meets strict environmental and land-use standards.
“Landsat imagery is valuable for critical minerals project development because it provides consistent, long-term data that document land use changes and geological features, assess environmental receptors and support planning decisions,” said Alexi Zawadzki, president of North American operations for Lithium Americas, in a USGS report.
When planning began, Landsat data revealed that the original mine site overlapped with important sage-grouse habitat.
Although the bird is not a protected species, its sharp population decline since the 1960s has made it an indicator of ecosystem health in Nevada’s rangelands. The finding prompted developers to shift the project six miles south, away from prime territory.
Water use is another critical challenge faced by the project. Landsat data has been paired with field checks to estimate groundwater levels, using differences in vegetation to infer depth.
With this data, the Thacker Pass project aims to recycle processed water up to seven times and to operate as a “zero liquid discharge facility.”
Unlike traditional lithium brine operations, the project will extract lithium from clay deposits. Tailings will be stored in dry facilities and later reused for reclamation work.
Economic promise
Lithium Americas estimates construction of Thacker Pass could generate more than US$700 million annually and support 1,800 jobs. Once operational, economic activity linked to the mine could average US$2.1 billion per year, according to a University of Nevada, Reno, study.
Lithium is a cornerstone of batteries that power smartphones, laptops and electric vehicles. The US ranks third globally in known lithium resources but remains dependent on imports.
Due to the resource’ growing importance, developing domestic supply has become a matter of both industrial policy and national security.
Landsat’s value, is hardly confined to mining. A 2023 economic analysis placed its annual contributions to US industries at US$25.6 billion, spanning everything from gold exploration to reduced insurance costs for farmers.
For Thacker Pass, the test will come as mining gets underway. But for now, the view from space has already reshaped how the project is planned and envisioned moving forward.
By applying Landsat data, planners hope to show that resource extraction and environmental stewardship can advance together.
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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17 September
Livium Expands Clean Energy Waste Recycling Capabilities
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Green Technology Metals: Delivering the Next Lithium Hub in North America
Green Technology Metals (ASX:GT1) is progressing Ontario’s first integrated lithium business, anchored by its Seymour, Root, and Junior projects, with plans to supply a proposed lithium hydroxide facility in Thunder Bay.
GT1 is leveraging Canadian policy support for critical minerals, with Ontario’s Building More Mines Act and federal programs. The company has secured conditional approval for C$5.5M from the Critical Minerals Innovation Fund (CMIF) for Seymour infrastructure, a C$100M financing LOI from Export Development Canada, and has pending applications with SIF/NRCan and CMIF Round 2, including C$5M tied to Root. These mechanisms help de-risk financing and advance development.
GT1’s three-phase strategy starts with Seymour production using a DMS concentrator, followed by construction of the Thunder Bay lithium hydroxide facility with EcoPro Innovation, and finally, development of Root as a larger, long-life mining hub feeding Thunder Bay.
Company Highlights
- Integrated strategy in Ontario: The Seymour and Root projects form the foundation for a vertically integrated lithium business, supported by a proposed lithium hydroxide plant in Thunder Bay, Ontario, with rail, port, power, gas and water access.
- Marketing and offtake secured: LG Energy Solution has a binding offtake for 25 percent of Seymour concentrate and has invested directly into the company, demonstrating strong downstream demand.
- Strategic process partner: EcoPro Innovation is co-developing the conversion facility. Pilot work has already produced battery-grade lithium hydroxide with high recoveries.
- Government backing: GT1 has secured conditional approval for significant funding programs, including C$5.5 million for road upgrades, a C$100 million project financing support LOI from EDC, and additional CMIF and SIF applications.
- Resource base: A combined inventory of over 30 Mt @ ~1.2 percent lithium oxide across Seymour and Root, providing both near-term production and long-life scale.
- By-product upside: Seymour hosts a significant rubidium resource in mica streams that could be recovered alongside lithium, creating an additional revenue line.
This Green Technology Metals profile is part of a paid investor education campaign.*
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17 September
Green Technology Metals
Investor Insight
Green Technology Metals aims to build Ontario’s first integrated lithium business, developing two mining hubs and a downstream conversion facility to supply North America’s fast-growing EV and battery industry. The company’s approach is straightforward: bring Seymour into production, secure the downstream footprint at Thunder Bay with EcoPro, and then layer in Root as a long-life second feed. The plan is underpinned by offtake agreements, government funding and a management team with direct experience building lithium mines.
Overview
Green Technology Metals (ASX:GT1) is building Ontario, Canada’s first integrated lithium business, anchored by three upstream assets and a planned downstream conversion facility. The portfolio consists of the flagship Seymour project, the large-scale Root lithium project, and the Junior exploration project, which together provide a clear pipeline of feed into a proposed lithium hydroxide facility in Thunder Bay, Ontario.
The company is actively leveraging Canadian policy support for critical minerals development and supporting a growing number of EV and battery manufacturers in Ontario. The province’s Building More Mines Act, alongside several federal programs, is creating a supportive funding environment for new projects. GT1 has already received conditional approval for C$5.5 million from the Critical Minerals Innovation Fund (CMIF) to support road and infrastructure upgrades at Seymour. In addition, the company has received a letter of intent for a C$100-million project financing support from Export Development Canada, and has pending applications with SIF/NRCan and CMIF Round 2, including a C$5-million submission tied to the Root project. These mechanisms substantially de-risk the financing path and provide tangible momentum toward development.
The strategy is being executed in three phases. First, Seymour will be brought into production with a concentrator based on a dense media separation flowsheet, taking advantage of coarse spodumene mineralogy and proven metallurgical performance. Second, GT1 will construct the Thunder Bay lithium conversion facility in partnership with EcoPro Innovation, replicating proven hydrometallurgical technology to produce battery-grade lithium hydroxide. Finally, Root will be developed as the company’s second, larger mining hub, designed to provide long-life scale and additional feed into the Thunder Bay facility.
Pilot processing of 600 kg of Seymour concentrate produced exceptional overall recoveries averaging >94 percent.
Strategic partnerships reinforce this integrated model. LG Energy Solution has secured a binding offtake for a portion of Seymour’s concentrate production and has invested directly into GT1, providing early validation of the project’s place in the EV supply chain. EcoPro Innovation, as the company’s technical partner on the Thunder Bay facility, has already piloted Seymour concentrate into high-purity lithium hydroxide.
Company Highlights
- Integrated strategy in Ontario: The Seymour and Root projects form the foundation for a vertically integrated lithium business, supported by a proposed lithium hydroxide plant in Thunder Bay, Ontario, with rail, port, power, gas and water access.
- Marketing and offtake secured: LG Energy Solution has a binding offtake for 25 percent of Seymour concentrate and has invested directly into the company, demonstrating strong downstream demand.
- Strategic process partner: EcoPro Innovation is co-developing the conversion facility. Pilot work has already produced battery-grade lithium hydroxide with high recoveries.
- Government backing: GT1 has secured conditional approval for significant funding programs, including C$5.5 million for road upgrades, a C$100 million project financing support LOI from EDC, and additional CMIF and SIF applications.
- Resource base: A combined inventory of over 30 Mt @ ~1.2 percent lithium oxide across Seymour and Root, providing both near-term production and long-life scale.
- By-product upside: Seymour hosts a significant rubidium resource in mica streams that could be recovered alongside lithium, creating an additional revenue line.
Key Projects
Seymour Lithium Project
The Seymour lithium project, near Armstrong, Ontario, contains a total resource of 10.3 million tonnes (Mt) @ 1.03 percent lithium oxide, including 6.1 Mt indicated @ 1.25 percent lithium oxide. Mineralization is hosted in the North and South Aubry pegmatites, which remain open along strike and at depth. An optimized preliminary economic assessment (PEA) demonstrated strong project economics based on a DMS-only concentrator producing 130 ktpa. Key numbers include a C1 cash cost of US$680/t, an after-tax NPV of US$251 million, an IRR of 33 percent, and a three-and-a-half-year payback.
The project benefits from existing road and rail access, low strip ratios, and simple metallurgy with coarse spodumene that responds well to dense medium separation (DMS). Mining leases were granted in August 2025, the environmental assessment submission has been lodged, and the closure plan is nearing completion.
An offtake agreement with LG Energy Solution secures sales for 25 percent of initial concentrate production. Seymour also includes a maiden rubidium resource (8.3 Mt @ 0.27 percent rubidium oxide, with a 3.4 Mt high-grade core at 0.40 percent), which can be recovered from mica streams already separated in the flow sheet, creating potential for a by-product circuit.
Thunder Bay Lithium Conversion Facility
GT1 and EcoPro Innovation are developing a lithium hydroxide monohydrate facility in Thunder Bay. The selected site is fully serviced with rail access, 44 kV power, municipal water and gas, and port facilities. The plant will replicate EcoPro’s operating hydromet trains, with two parallel ~13 ktpa back-end lines designed to scale with Seymour and Root concentrate supply.
Pilot-scale processing of 600 kg of Seymour concentrate at EcoPro’s Pohang facility achieved battery-grade lithium hydroxide, meeting downstream specifications with >94 percent overall recovery. This demonstration significantly de-risks the conversion step and supports ongoing financing discussions with Invest Ontario, SIF and EDC. The project is being advanced through PFS-level engineering, with permitting and JV structuring underway.
Root Lithium Project
Located in Northwestern Ontario, Root is GT1’s scale project, hosting 14.6 Mt @ 1.21 percent lithium oxide (10.0 Mt Indicated @ 1.32 percent). The April 2025 optimized PEA outlined a combined open-pit and underground mining scenario producing ~213 ktpa. The project carries a C1 cost of ~US$677/t, an after-tax NPV of US$668 million, an IRR of 53.5 percent, and a three-year payback.Root enjoys outstanding infrastructure advantages: road and rail access, proximity to port, and most critically, grid hydro power delivered by the Watay transmission line, reducing both operating costs and upfront capex for power infrastructure. Drilling has confirmed stacked pegmatite bodies that remain open along strike and down dip, leaving scope for significant resource expansion. A bulk sample has been completed, with further testwork and pilot runs at EcoPro planned. Permitting is in its early stages, with a PFS targeted for 2026 and potential construction by late 2027.
Junior Lithium Project
The Junior project is located near Seymour and contains three drill-ready targets. Its proximity to the planned Seymour concentrator makes it a strategic satellite project, with the potential to extend Seymour’s mine life and provide incremental feed. Drilling is expected to test these targets in upcoming campaigns, potentially increasing the overall feed available for the Seymour hub.
Management Team
John Young – Non-executive Chairman
John Young co-founded Pilbara Minerals and played a key role in transforming it into a multi-billion-dollar lithium producer. His background as a geologist spans more than three decades, with significant contributions across discovery, development and financing of lithium and gold projects. At GT1, Young provides strategic oversight and proven operational expertise to scale a lithium developer into a fully integrated producer.
Cameron Henry – Managing Director
Cameron Henry was appointed managing director in June 2024, stepping up from his earlier role as executive director. A founder and substantial shareholder of GT1, Henry has over 20 years’ experience in minerals processing and project delivery. Prior to GT1, he built Primero Group into a respected global leader in lithium infrastructure EPC, successfully executing major projects in Australia and globally. His role is to drive Seymour into production and to lead the execution of the Thunder Bay downstream strategy.
Patrick Murphy – Non-executive Director
Patrick Murphy brings nearly two decades of experience in resource sector investment and deal-making. He has held senior positions at Macquarie and AMCI Group, with expertise in capital deployment, project financing and strategic partnerships. His presence on GT1’s board ensures strong connectivity to the financial community and a disciplined approach to structuring project funding.
Robin Longley – Non-executive Director
With more than 30 years of experience in exploration and project evaluation, Robin Longley is a seasoned geologist who has led successful exploration and development programs across lithium, gold and other critical minerals in Australia, Canada and Africa. His practical technical knowledge and management experience strengthen GT1’s ability to evaluate and expand its Ontario portfolio.
Han Seung Cho – Non-executive Director
Representing EcoPro Innovation, Han Seung Cho serves as a direct link between GT1 and its strategic partner on the Thunder Bay conversion facility. As general manager of EcoPro’s strategic business team, he brings decades of experience in lithium procurement, downstream offtake structuring, and project development for LHM plants. His position ensures that GT1’s downstream ambitions remain closely aligned with end-user requirements in the battery sector.
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17 September
Livium Signs Binding Term Sheet with Iondrive related to DES Technology for Clean Energy Waste Recycling
Livium Ltd (ASX: LIT) ("Livium" or the "Company") is pleased to announce it has signed a binding term sheet (“Term Sheet”) with Iondrive Limited (ASX: ION) (“Iondrive”), an Australian company developing an innovative metal extraction process using Deep Eutectic Solvent technology (DES), via their subsidiary Iondrive AU Pty Ltd.
HIGHLIGHTS
- Livium has signed a binding Term Sheet with Iondrive to advance the recycling of clean energy waste using Iondrive’s innovative Deep Eutectic Solvent (DES) technology
- Livium will supply Iondrive with end-of-life solar panels, lithium-ion battery black mass, rare earth element (REE) magnets, to support evaluation of Iondrive's high-recovery DES process
- Partnership combines Livium’s customer and feedstock access with Iondrive’s novel technology, positioning both to become leaders in Australian clean energy waste processing
- Partnership compliments the recently announced collaboration with the University of Melbourne1, which also relies on the sourcing of waste by Livium
- This significant step further advances Livium’s strategic aim of deploying its recycling capabilities into broader waste markets
In accordance with the Term Sheet, Livium will supply Iondrive with a range of end-of-life materials, including solar panels, lithium-ion battery black mass, rare earth magnets, and other samples. This collaboration will support the continuous development and commercialisation of Iondrive’s DES process, which already demonstrates over 95% recovery rates in testing and offers a sustainable, closed-loop alternative to conventional methods2.
This deal, which follows the recently announced partnership with the University of Melbourne, is a significant step in strengthening the Company’s recycling capabilities across a range of adjacent market opportunities. The results of these programs will inform techno-economic assessments and pave the way for future commercial supply and co-location agreements.
Summary of Key Terms:
- Livium will provide Iondrive with defined waste streams of solar panels, lithium-ion battery black mass, rare earth magnets, and other samples.
- Iondrive will apply its DES processes to evaluate recovery pathways and commercial scalability.
- Iondrive will retain ownership of all DES intellectual property (IP) and results, Livium retains IP in Sample generation.
- Both parties will use their best endeavours to commence negotiations of binding commercial agreements for supply and co-location of DES processing units within 21 months.
- The Term Sheet includes limited exclusivity provisions in Australia during the evaluation period.
- Either party may terminate the agreement on 30 days’ notice, subject to customary conditions.
Adjacent Market Opportunities
Australia's transition to a clean energy future is creating a wealth of adjacent market opportunities in e-waste recycling, with the country's early adoption of renewable technology now generating a substantial and growing stream of end-of-life products.
The most prominent of these is solar panel (PV) recycling, where an estimated 100,000 tonnes of PV waste is projected annually by 20303, creating a significant feedstock opportunity for a nascent industry. Australia stands to unlock over A$1 billion in recoverable materials from end-of-life solar panels by 20354. Capturing this market domestically presents a major opportunity to secure a local supply of critical minerals like lithium, cobalt, and nickel.
The market for lithium-ion battery black mass recycling also represents a major growth opportunity within the circular economy. As a key component of end-of-life batteries, black mass is rich in critical minerals such as lithium, cobalt, and nickel. The global market, valued at US$14.4 billion in 2024, is projected to surge to US$51.7 billion by 20325, driven by the explosive adoption of electric vehicles and a global push for sustainable supply chains.
Beyond solar and batteries, the growing e-waste stream is also creating a business case for rare earth element (REE) recycling. While the global REE recycling market is still relatively small, valued at around US$248 million in 2021, it is projected to surpass US$422 million by 20266. This growth is driven by the demand for magnets in EVs and wind turbines, coupled with a global push to reduce reliance on primary REE mining and strengthen supply chain security. Despite low current recycling rates of less than 1%, the high value and critical importance of REE elements create a strong commercial incentive to develop innovative recycling solutions in Australia, ultimately helping to close the loop on the nation's strategic mineral supply.
Click here for the full ASX Release
This article includes content from Livium Ltd, 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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10 September
CATL Mine Restart Pressures Australian Lithium Market
Australia’s lithium sector is facing pressure on the back of news that Chinese battery giant Contemporary Amperex Technology (CATL) (SZSE:300750,HKEX:3750) is expected to resume production at its Jianxiawo mine.
Operations were halted in August when the mine’s licence expired, with the suspension expected to last three months.
Located in Yichun, Jiangxi province, Jianxiawo produces about 65,000 tonnes of lithium carbonate equivalent annually, roughly 6 to 8 percent of global supply. It is the largest mine in Yichun, often referred to as China’s “lithium capital.”
The restart is expected to tighten competition for Australian producers, which had briefly benefited from the closure and from renewed interest in non-Chinese supply following tariffs announced by US President Donald Trump.
ASX lithium stocks take a hit
ASX lithium stocks saw share price declines after news of the CATL restart hit, with Liontown Resources (ASX:LTR) falling nearly 17 percent and losing more than half of what it gained after the mine was suspended.
Even mining giants BHP (ASX:BHP,NYSE:BHP,LSE:BHP) and Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) succumbed to the situation, with both seeing 1.7 percent drops on Wednesday (September 10).
Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) saw a significant decrease as well, dropping 15 percent. MarketScreener states that this was the company’s worst daily performance since June 1, 2022.
Mineral Resources (ASX:MIN,OTC Pink:MALRF) also experienced a drop, falling 8 percent.
These miners have been making strategic moves toward addressing lithium demand.
Rio Tinto acquired Arcadium Lithium in March and is progressing its Rincon project in Argentina.
In August, Mineral Resourced entered into a joint venture with Livium (ASX:LIT) to commercialise the LieNA lithium-processing technology, which is designed to recover lithium from spodumene.
In its latest financial report, Pilbara Minerals underlined progress at its Colina project, which it secured through its acquisition of Latin Resources. As of 2025, Pilbara Minerals’ Pilgangoora mine has dethroned the Greenbushes mine in terms of resource size, at 446 million tonnes at 1.28 percent lithium oxide.
For its part, Liontown commenced commercial production at its Kathleen Valley plant in January. Kathleen Valley produced over 300,000 wet metric tonnes of spodumene concentrate during its first 11 months of operation.
Australia taking steps to support lithium
While the lithium sector remains susceptible to market changes, the Australian government has been making an effort to help mining companies move their projects forward.
Among these is the Battery Breakthrough Initiative, announced in the 2024/2025 federal budget. It seeks to provide AU$500 million in funding to promote the development of battery-manufacturing capabilities in Australia.
The Battery Breakthrough Initiative forms part of the Future Made in Australia agenda, and may provide funding through capital grants, production incentives and the like.
Western Australia has an incentive of its own called the Lithium Support Program, aiming to provide AU$150 million in lithium support via a loan facility for miners and the waiving of port charges and mining tenement fees.
A recent study from the Geological Survey of Western Australia, Curtin University and the University of Western Australia states that Western Australia supplies around 35 percent of the world's lithium, highlighting its potential.
The federal government also passed the Critical Minerals Production Tax Incentive in February to provide a 10 percent tax break on processing and refining costs for critical minerals, including lithium.
“The incentives are valued at AU$7 billion over the decade,” said Federal Resources Minister Madeleine King, calling the legislation a “historic moment” for the industry.
The incentive is applicable from 2028 to 2040, for up to 10 years per project.
There’s also the National Reconstruction Fund (NRF) and Critical Minerals Facility. The latter’s initial AU$2 billion amount has been doubled to AU$4 billion, plus new investments through the NRF.
Included in the NRF’s recent investments is AU$50 million to support Liontown’s Kathleen Valley.
Fastmarkets was optimistic about the lithium landscape in a February report, projecting that the surplus will shrink to 10,000 tonnes in 2025. After that, it anticipates a deficit of 1,500 tonnes in 2026.
“We’re expecting a rebalancing of market dynamics over the next few years,” a producer told the firm.
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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