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Jindalee Lithium Limited (ASX: JLL) – Trading Halt
Description
The securities of Jindalee Lithium Limited (‘JLL’) will be placed in trading halt at the request of JLL, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Wednesday, 3 July 2024 or when the announcement is released to the market.
Issued by
ASX Compliance
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This article includes content from Jindalee 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.
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Jindalee Lithium
Overview
Jindalee Lithium (ASX:JLL,OTCQX:JNDAF) is an Australia-based exploration and development company advancing North America’s largest lithium deposit. After a spinout of its Australian assets, Jindalee has become a pure-play lithium company focused exclusively on its promising 100-percent-owned McDermitt project. Jindalee recognises the vast opportunity for lithium projects in the US as the country progresses towards its sustainable energy transition and developing a robust domestic supply chain for critical minerals.
As the US strives to transition to clean energy, demand for lithium will continue to increase as this critical mineral is necessary to achieve the country’s net-zero goals. With its favorable mining policies and infrastructure, the US actively supports the advancement of new projects to strengthen its domestic supply chain.Jindalee’s McDermitt asset, located in southeast Oregon, contains a unique type of lithium mineralisation. Most lithium projects in North America are lithium brine or pegmatite deposits; however, the McDermitt project is an unconventional sediment-hosted lithium asset.
Sediment-hosted lithium deposits such as McDermitt are long-life assets with low strip ratios and low mining costs. Jindalee can leverage this advantage over other lithium assets, both in terms of reaching production faster and reducing operating expenses.
There is currently no commercially operating sediment-hosted lithium project in North America. Two recently announced projects, however, are under development and demonstrate McDermitt’s future trajectory as both companies move toward production.
The 2023 mineral resources estimate (MRE) for McDermitt contains a combined indicated and inferred mineral resource inventory of 3 billion tons at 1,340 parts per million (ppm) lithium for a total of 21.5 million tons (Mt) lithium carbonate equivalent (LCE) at 1,000 ppm cut-off grade. At 21.5 Mt LCE, McDermitt is the largest lithium deposit in the US by contained lithium in mineral resource, and a globally significant resource, with the deposit remaining open to the west and south.
In June 2023, Jindalee commenced a pre-feasibility study (PFS) on the McDermitt Lithium Project appointing Fluor Corporation as lead engineer. The company expects completion of the PFS by mid-2024. Jindalee also announced initial metallurgical results from acid leaching of the beneficiated samples of McDermitt ore. Lithium extraction from composite samples averaged 93 percent (250 micron (µm)) and 94 percent (75 µm) while lithium extraction from all units exceeded 98 percent with higher acid additions.
An experienced management team, with the right blend of experience and expertise in geology, corporate administration and international finance, leads Jindalee to fully capitalise on the potential of its assets.
Company Highlights
- Jindalee Lithium is a pure-play lithium exploration and development company focusing on its flagship McDermitt lithium project, currently the largest lithium deposit in North America.
- The United States has ambitious electrification goals but lacks the critical minerals to reach them. Jindalee aims to strengthen the North American supply chain to enable the country to reach net-zero emissions targets.
- Globally, most of the lithium is currently sourced from either pegmatite or lithium brine deposits. The company’s McDermitt deposit, however, is sediment-hosted, an emerging style of lithium deposit with the potential to be a long-life, low-cost source of lithium.
- There are presently no sediment-hosted lithium assets in North America that have reached production. Jindalee is ideally positioned to help fill this void in the market.
- Other companies in North America are moving towards production, and their progress indicates Jindalee’s future trajectory.
- An experienced management team leads Jindalee towards capitalising on the potential of its assets.
Key Project
McDermitt Lithium Project
The McDermitt Project is located in Malheur County on the Oregon-Nevada border and is approximately 35 kilometres west of the town of McDermitt. The 100-percent-owned asset covers 54.6 square kilometres of claims at the northern end of the McDermitt volcanic caldera. Following positive results from its 2022 drill campaign, the resource at McDermitt has increased to 21.5 Mt LCE, making McDermitt the largest lithium deposit in North America.
Project Highlights:
- Rare Sediment-hosted Lithium Deposits: The McDermitt asset supports low-cost mining operations due to its flat-lying sediments. This type of lithium deposit is amenable to low-cost mining operations, while still producing excellent metallurgical results.
- Resource Increased by 62 percent early 2023: Compilation of the 2022 drilling results saw the estimated indicated and inferred resources at McDermitt increase to 3 billion tons at 1,340 ppm lithium, a 62 percent increase in contained lithium. The updated resource released by the company contains a combined indicated and inferred total of 21.5 Mt LCE at 1,000 ppm cut-off grade.
- Memorandum of Understanding (MOU) with POSCO Holdings: Jindalee entered into an MOU with POSCO Holdings (NYSE:PKX), under which POSCO will fund metallurgical testwork on McDermitt ore and undertake joint research for the asset. POSCO is partnering with General Motors to supply cathode active material (including lithium) for its electric vehicles.
- Fluor recommended processing route: In March 2023, US engineering group Fluor reviewed all testwork undertaken at McDermitt and recommended beneficiation and acid leaching as the optimal processing route.
- Highly encouraging metallurgical testwork: Results from beneficiation and acid leaching tests have exceeded expectations. Beneficiation testwork completed in late 2023 (on sample representing a nominal life-of-mine average feed) recovered 92 percent of the lithium to leach feed and rejected 25.3 percent of the mass at a cut size of 250 µm. Additionally the acid leach test work announced in early 2024 demonstrated very high lithium extraction rates on beneficiated ore. Specifically, the calculated lithium extraction for a composite sample using 250 µm leach feed was 92.9 percent which compares favourably with the extraction rate (94 percent) achieved through testwork from the finer (75 µm) leach feed using 500 kg/t acid. Further testwork is now underway.
- PFS in progress: Jindalee has appointed Fluor Corporation to commence the PFS for McDermitt, set to be completed by mid-2024.
Management Team
Ian Rodger - Chief Executive Officer
Ian Rodger is a qualified mining business executive with almost 15 years of experience in various roles including as a mining engineer for Rio Tinto across two large greenfield mine developments, before successfully transitioning into mining corporate finance where he held Executive and Director positions at RFC Ambrian overseeing origination and management of numerous mandates across a range of corporate advisory roles. Rodger was the project director for Oz Minerals (ASX:OZL) where he made significant contributions to successfully define the value potential of the West Musgrave nickel/copper province through the delivery of a portfolio of growth studies. Most notably, he led technical, market and partnership development workstreams, successfully confirming value potential for producing an intermediate Nickel product for the battery value chain.
Rodger holds a Bachelor of Mining Engineering from the University of Queensland, a Masters of Mineral Economics from Curtin University and is also a graduate of the Australian Institute of Company Directors and member of the Australasian Institute of Mining and Metallurgy.
Lindsay Dudfield - Executive Director
Lindsay Dudfield is a geologist with over 40 years of experience in multi-commodity exploration, primarily within Australia. He held senior positions with the mineral divisions of Amoco and Exxon. In 1987, he became a founding director of Dalrymple Resources NL and spent the following eight years helping acquire and explore Dalrymple’s properties, leading to several greenfield discoveries. In late 1994, Lindsay joined the board of Horizon Mining NL (Jindalee Lithium’s predecessor) and has been responsible for managing Jindalee Lithium since inception. Lindsay is a member of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists, the Geological Society of Australia and the Society of Economic Geologists. He is also a non-executive director of Jindalee spin-out companies Energy Metals (ASX:EME), Dynamic Metals (ASX:DYM) and Alchemy Resources (ASX:ALY).
Wayne Zekulich - Non-executive Chair
Wayne Zekulich was appointed to the board as Chair on 1 February 2024. He holds a Bachelor of Business and is a fellow of the Institute of Chartered Accountants. Zekulich is a consultant and non-executive director who has substantial experience in advising, structuring and financing transactions in the infrastructure and resources sectors. He was previously the head of Rothschild in Perth, chief financial officer of Gindalbie Metals Limited, chief development officer of Oakajee Port and Rail and a consultant to a global investment bank. Currently, he is chair of Pantoro Limited (ASX:PNR) and non-executive director of the Western Australian Treasury Corporation. In the not-for-profit sector, he is the past chair of the Lester Prize and is a mentor in the Kilfinan program.
Darren Wates - Non-executive Director
Darren Wates is a corporate lawyer with over 23 years of experience in equity capital markets, mergers and acquisitions, resources, project acquisitions/divestments and corporate governance gained through private practice and in-house roles in Western Australia. Wates is the founder and principal of Corpex Legal, a Perth-based legal practice providing corporate, commercial and resources related legal services, primarily to small and mid-cap ASX listed companies. In this role, he has provided consulting general counsel services to ASX listed company Neometals (ASX:NMT) since 2016, having previously been employed as legal counsel of Neometals. Wates holds Bachelor's degrees in Law and Commerce and a Graduate Diploma in Applied Finance and Investment.
Paul Brown - Non-executive Director
Paul Brown has over 23 years of experience in the mining industry, most recently with Mineral Resources (ASX:MIN) where he was chief executive – lithium, and chief executive – commodities. Brown has held senior operating roles with Leighton, HWE and Fortescue (ASX:FMG) and has a strong track record in technical leadership, project/studies management, and mine planning and management. Brown is currently CEO of Hastings Technology Metals (ASX:HAS). He holds a Master in Mine Engineering.
Brett Marsh - VP Geology and Development (US)
Brett Marsh is an AIPG certified professional geologist and a registered member of the Society for Mining, Metallurgy and Exploration (SME) with over 25 years of diverse mining and geological experience. He has worked for and held senior leadership roles for Kastan Mining, Luna Gold, Kiska Metals, Newmont, Freeport-McMoRan, Phelps Dodge, ASARCO and consulted to deliver numerous NI 43-101 technical reports. Marsh has demonstrated the ability to deliver results in culturally diverse and geographically difficult environments, such as Brazil, Peru, Chile, Democratic Republic of Congo, Ghana, Tanzania, Indonesia, Australia, and has also worked in remote areas of Alaska. He has managed all phases of the mining lifecycle including greenfield and brownfield exploration, project development (including preliminary economic assessments, pre-feasibility and feasibility), project construction, mine operations, and environmental. He successfully led multi-cultural teams to develop business processes and implementation plans for many mine development and operational projects.
Carly Terzanidis - Company Secretary
Carly Terzanidis has 20 years of prior experience in the financial services industry, having been employed by Euroz Hartleys, DJ Carmichael and Shaw and Partners. Terzanidis’ recent experience has been in corporate services and in the role of company secretary for resources-focused entities. Terzanidis acts as company secretary for Alchemy Resources (ASX:ALY), Kalamazoo Resources (ASX:KZR) and Viridis Mining and Minerals (ASX:VMM). Terzanidis holds a Bachelor of Commerce with majors in Accounting and Corporate Administration and a Graduate Diploma in Applied Corporate Governance.
CRML Joins Russell Indexes
European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company) is pleased to announce that Critical Metals Corp. (Nasdaq: CRML) (Critical Metals Corp), a mining development company focused on critical metals and minerals, and producing strategic products essential to electrification and next generation technologies for Europe and its western world partners, today announced that it has been selected for inclusion in the Russell 2000® Index, Russell 3000® Index, and the Russell Microcap® Index, effective at the open of US equity markets on Monday, July 1st, as part of the 2024 Russell indexes annual reconstitution.
HIGHLIGHTS
- Critical Metals Corp. selected for inclusion in the Russell 2000® Index, Russell 3000® Index, and the Russell Microcap® Index
Critical Metals Corp CEO and Chairman, Tony Sage commented: “We are honored to have been chosen for inclusion in the Russell 2000®, Russell 3000® and Russell Microcap® indexes. This is a significant milestone for Critical Metals Corp and a testament to our team’s hard work and dedication. Inclusion in these indexes enhances our visibility within the investment community, broadens our investor base, and better positions us to create long-term value for our shareholders and execute on our strategic objectives.”
The annual Russell US indexes reconstitution captures the 4,000 largest US stocks as of Tuesday, April 30th, ranking them by total market capitalization. Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000 small-cap Russell 2000 Index or Index as well as the appropriate growth and value style indexes. Membership in the Russell Microcap® Index, which also remains in place for one year, means automatic inclusion in the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings, and style attributes.
Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to the data as of the end of December 2023, about $10.5 trillion in assets are benchmarked against the Russell US indexes, which belong to FTSE Russell, a prominent global index provider.
About FTSE Russell
FTSE Russell is a leading global provider of benchmarking, analytics, and data solutions for investors, giving them a precise view of the market relevant to their investment process. A comprehensive range of reliable and accurate indexes provides investors worldwide with the tools they require to measure and benchmark markets across asset classes, styles, or strategies.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products, and index-based derivatives.
Click here for the full ASX Release
This article includes content from European Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Successful Placement to Raise $750,000
The Placement proceeds will be used to part fund project generation, working capital and exploration activities in Canada.
The Placement Shares will rank equally with existing fully paid ordinary shares. Settlement of the Placement is expected to be completed on Tuesday, 30 July 2024.
The issue price represents a 4.0% discount to BMM’s last close on 24 June 2024 of $0.052, a 4.9% discount to the 5-day VWAP of $0.0524, a 8.6% discount to the 15-day VWAP of $0.0543 and a 14.5% discount to the 30-day VWAP of $0.0572.
BMM will issue one (1) free attaching unlisted option (Placement Option) for every two (2) Placement Shares issued pursuant to the Placement. The 7,500,000 Placement Options will be exercisable at 7.5 cents each, with an expiry three (3) years from the date of issue.
The Placement Shares will be issued pursuant to the Company’s existing placement capacities under ASX Listing Rules 7.1 (8,019,283 Shares) and 7.1A (6,980,717 Shares). The issue of 7,500,000 Placement Options will be subject to shareholder approval at a General Meeting proposed to be held in late August 2024.
Sixty Two Capital Pty Ltd acted as the Lead Managers to the Placement.
Click here for the full ASX Release
This article includes content from Balkan Mining, 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.
How to Invest in Lithium Stocks and the Lithium Market (Updated 2024)
Despite the current low price environment, the long-term demand for battery metals is robust and offers opportunity for those interested in lithium stocks.
Seasoned metals investors who want to look beyond gold and silver are getting involved, while new investors are being drawn into the space by expanding battery manufacturing capability and lithium supply deals between auto makers and lithium producers.
Whatever the reason, it’s important to get familiar with the lithium market before investing in lithium stocks. Here's a brief overview of some of the basics, including supply and demand, prices and companies.
Where is lithium mined?
Lithium is found globally in hard-rock deposits, evaporated brines and clay deposits. There’s some contention as to which type of deposit is superior, but generally there are tradeoffs for any option.
The world’s largest hard-rock mine is the Greenbushes mine in Australia, and the bulk of the world’s lithium brine production comes from salars in Chile and Argentina. Most large lithium reserves are in Chile, and the prolific “Lithium Triangle” spans Chile, Argentina and Bolivia. Australia was once again the world’s largest lithium producer in 2023, followed by Chile and China.
What's the difference between battery-grade and technical-grade lithium?
Technical-grade lithium is used in ceramics, glass and other industrial applications, while battery-grade lithium carbonate and lithium hydroxide, which are much more expensive, are used to make lithium-ion batteries. These lithium products can also be used for technical applications in a pinch. Those aren't the only classifications, though. Pharmaceutical grade lithium carbonate is used in medicine.
How is lithium priced?
Getting a look at lithium prices isn’t easy, and that can make it difficult for investors who are looking to assess the viability of a given project. Pricing in the lithium industry has always been opaque due to the dominance of a few major producers, with investors having very little pricing information they can trust.
Simon Moores of Benchmark Mineral Intelligence has emphasized that pricing can be a difficult concept for investors to grasp.
“The biggest myth surrounding pricing is, ‘What is the price of lithium?’ Because there is no one price,” he said. “The newcomers want one lithium price, but the existing market has a wide range of lithium chemicals and then grades within a specification."
There are also distinct prices for lithium on markets in different regions, meaning lithium hydroxide in China will be priced slightly different than in Europe.
For those looking to invest in lithium who want to learn about lithium prices, it's best to read reports on lithium price trends from experts to help you understand what is happening in the market.
What factors drive the lithium market?
A major driver for the lithium market is its use in the lithium-ion batteries that power electric vehicles, smart phones and laptops.
Tesla (NASDAQ:TSLA) was the first carmaker to stoke excitement in the lithium space. The company’s Nevada-based gigafactory is what initially began to drive enthusiasm, but the company now has about half a dozen of these facilities.
Tesla is also not the only firm with megafactory ambitions. While China is currently leading the world in battery factory capacity, its global dominance is shrinking as other regions seek to build out their own battery manufacturing sectors. According to Benchmark analyst Evan Hartley, “China holds close to 70 [percent] of the battery cell pipeline capacity, which has led to significant policy movements in both Europe and North America in order to reduce reliance on Chinese cells for the EV transition.”
In Europe, Germany leads the way. The German government has pledged nearly a billion euros to support Swedish battery maker NorthVolt in constructing an EV battery plant in the country which is expected to begin production in 2026. In the UK, the government is investing 500 million pounds in subsidies for Tata Motors and Jaguar Land Rover to build a gigafactory in Southwest England. Set to be one of the largest in Europe, by the early 2030s, the gigafactory “will contribute almost half of the projected battery manufacturing capacity required for the UK automotive sector,” reported the BBC.
In the US, the Biden administration's Inflation Reduction Act, which was signed into law in mid-2022, is investing US$369 billion in climate action and energy, including EVs and EV infrastructure. Speaking at the Benchmark World Tour in January 2024, Terry Scarrott, principal consultant at Benchmark, emphasized that the US is now on track to surpass Europe in terms of installed capacity for battery cells by 2030.
In short, going forward the world will continue to need a lot of lithium. However, prices have been trading at two-year record lows and the lithium market is expected to remain oversupplied throughout 2024. This has driven key Australian producers to curb production rates and/or expansion plans, including Pilbara Minerals (ASX:PLS,OTC Pink:PILBF), Arcadium Lithium (ASX:LTM) and Mineral Resources (ASX:MIN).
Even production at the world’s largest lithium mine, Greenbushes in Australia, is facing cutbacks for this year as the operation’s JV partners — Tianqi Lithium (SZSE:002466) IGO (ASX:IGO,OTC Pink:IPGDF) and Albemarle (NYSE:ALB) — seek to rebalance the market. As reported by S&P Global, Australia’s lithium producers believe their efforts will translate into a rebound in lithium prices down the road.
How to invest in lithium stocks?
So what's the best way to invest in lithium? How should investors interested in lithium stocks begin? To start, it helps to understand the lithium production landscape.
For a long time, most lithium was produced by an oligopoly of lithium producers often referred to as the “Big 3”: Albemarle, SQM (NYSE:SQM) and FMC. Rockwood Holdings was on that list too before it was acquired by Albemarle several years ago.
However, the list of the world’s top lithium-mining companies has changed in recent years. The companies mentioned above still produce the majority of the world’s lithium, but China accounts for a large chunk of output as well. As already discussed, the Asian nation was the third largest lithium-producing country in 2023.
But the biggest producer continues to be Australia, where up-and-comer Liontown Resources (ASX:LTR,OTC Pink:LINRF) is set to bring its Kathleen Valley deposit in Western Australia into production in mid-2024. The mine’s operations will include a plant with a planned lithium production capacity of 3 million metric tons per year.
In other words, lithium investors need to be keeping an eye on lithium-mining companies in Australia and other jurisdictions in addition to the New York-listed chemical companies that produce the material.
Of course, smaller lithium stocks are worth watching too — to find out which ones are currently thriving, check out our top lithium stocks article. You can also check out our articles on the biggest Australian stocks, top performing Australian lithium stocks, and top Canadian lithium stocks.
This is an updated version of article originally published by the Investing News Network in 2015.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
eWaste: From Recycling Challenge to Emerging Opportunity
Governments worldwide, federally and regionally are mandating environmental protection policies aimed at lowering carbon dioxide (CO2) emissions. Part of this is tied to finding opportunities in eWaste recycling, which provides added supply to the ever popular battery metals.
With the advent of low-carbon technologies aimed at reducing environmental impact, problems associated with climate change are starting to be addressed. Electric vehicles (EVs) — complemented by innovative energy storage units that use battery metals — are one solution to rising CO2 and greenhouse gas (GHG) levels in the atmosphere.
When the EV market began to emerge, it raised an issue that auto manufacturers and governments alike had not adequately addressed: where do spent lithium-ion batteries go?
Despite being focused on energy conservation and efficiency, the EV industry and regulations around it have mostly ignored the implications of not recycling EV batteries, categorized as eWaste. This particular challenge opens the door for a budding industry targeting opportunities in eWaste recycling.
Governing policies setting new environmental standards
EVs are proof that fueling transportation through electricity rather than burning fossil fuels can significantly reduce emissions of GHG; up to 50 percent less GHGs are emitted from EVs compared to traditional transportation.
This shift away from fossil fuels has been met with resounding praise for the significant efforts governments and automakers have implemented to reduce global GHG emissions. Take, for instance, the British and French governments, which in July 2017 committed to banning the sale of petrol- and diesel-powered cars by 2040, while carmaker Volvo (STO:VOLV-B) is working towards its goal of becoming a fully electric car maker by 2030.
While some countries are committing to fully banning combustion engines, others have comprehensive policies outlining climate change actions related specifically to CO2 emissions. Under the Paris Agreement, Canada has committed to reducing GHG emissions by 30 percent below 2005 levels by 2030. The Canadian government has also committed to restricting new light vehicle purchases to only zero-emission vehicles by 2035.
In the US, the Biden administration has issued new regulation that effectively ensures that the majority of all new passenger vehicles and light trucks sold in the US are either hybrid or electric by 2032, by instituting new tailpipe pollution limits.
Governments worldwide mandating policies and enforcing compliance aimed at the billion-dollar auto industry is one of the main driving forces behind the forecasted dramatic growth of the EV market.
The environmental landscape
While the increase in EVs marks a promising environmental milestone, both automakers and lawmakers will now have to address the lifecycle of EV batteries, which often make their way into landfills.
The EV battery typically has a lifespan of five to 10 years. An estimated 1.2 million batteries from EVs will reach their end-of-life by 2030, globally, according to a report from the International Council on Clean Transportation.
This forecasted increase in spent EV batteries poses a currently unrecognized environmental risk. Though there is existing infrastructure in place in Canada, Mexico, China and the US to collect, transport and recycle EOL EV batteries, there are currently only a few companies that have the technology and capacity to recycle EV battery metals.
Recycling lithium brings a unique set of challenges that, if not carefully mitigated in time (now) for the EV revolution, could result in drastic environmental consequences. Today most EV battery recycling efforts use smelting, which recovers only part of the cobalt and none of the lithium. Additionally, cobalt is recovered as a crude metal that can be used for alloying, but requires further refining for use in batteries. The remaining unrecovered cobalt and lithium is considered a hazardous waste material.
Because of the impressive increase in EVs as one solution to reducing GHGs, combating the resulting decrease in supply and further demand, as well as recovering and recycling the critical metals needed, has become a critical element to the entire EV lifecycle. To reduce CO2 levels and lower GHGs, both EVs and a full closed-loop lifecycle that incorporates eWaste recycling are needed. The by-product of the EV revolution has generated a significant opportunity in waste-management sectors.
The emerging eWaste market
As the EV market takes off and government agencies begin to realize the extent of the problem posed by spent batteries, jurisdictions across the world are starting to introduce legislation that challenges the EV and battery manufacturers to address battery EOL. The European Union's new Batteries Regulation, which took effect February 18, 2024, requires that new batteries must contain a specified proportion of recycled materials beginning in 2031.
RecycLiCo (TSXV:AMY;OTC:AMYZF) is an early-mover in EV battery recycling. Its patented process is capable of recovering up to 99 percent of cathode metals from battery waste and upcycles them into high-purity, battery-ready materials.
Governments such as China and the EU are starting to implement legislation that would make auto manufacturers responsible for recycling the lithium-ion batteries in the EVs they produce.
“Governments will do something, they are not going to permit electric car batteries to end up in landfills,” remarked Jim Greenberger from NAAT Batt International.
Some of the first large-scale recycling facilities are already underway. In March 2018, the Chinese government introduced the first recycling programs in four of its major regions. Chinese car manufacturers are responsible for the collection and recycling of EV lithium-ion batteries. The government is pushing EV manufacturers to inherit responsibility, and will contribute by providing policy supports and industrial funds for the trial operations. The Chinese government understands the excessive demand for lithium could mean a growing source of pollution, and is taking action now.
Though the legislation’s driving factor is environmental protection, the move also combats the rising costs and potential supply and demand concerns of EV battery materials, such as lithium and cobalt.
Federal governments around the world are starting to adopt similar legislation to comply with the Paris Agreement and national environmental standards.
The takeaway
As EV and battery production continues to grow on a global scale, eWaste is positioned as an emerging industry. The switch to EVs has opened up the potential for a notable market targeting EV battery recycling. As a result, companies are entering the market with sophisticated recycling technologies aimed at solving the EV battery recycling challenge while also capitalizing on the booming EV market.
As these companies look to enter into partnerships with battery and EV manufacturers across the globe, helping them to become environmentally compliant, there is an opportunity for investors to see positive results from an industry supported by strong government action.
This INNSpired article is sponsored by RecycLiCo Battery Materials (TSXV:AMY,OTC:AMYZF,FSE:2AM). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by RecycLiCo Battery Materialsin order to help investors learn more about the company. RecycLiCo Battery Materials is 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 RecycLiCo Battery Materialsand seek advice from a qualified investment advisor.
CleanTech Lithium
Overview
CleanTech Lithium (AIM:CTL,FWB:T2N,OTC:CTLHF) is a resource exploration and development company with four lithium assets with an estimated 2.72 million tons (Mt) of lithium carbonate equivalent (LCE) in Chile, a world-renowned mining-friendly jurisdiction. The company aims to be a leading supplier of ‘green lithium’ to the electric vehicle (EV) market, leveraging direct lithium extraction (DLE) – a low-impact, low-carbon and low-water method of extracting lithium from brine.
Lithium demand is soaring as a result of a rapidly expanding EV market. One study estimates the world needs 2 billion EVs on the road to meet global net-zero goals. Yet, the gap between supply and demand continues to widen. As the world races to secure new supplies of the critical mineral, Chile has emerged as an ideal investment jurisdiction with mining-friendly regulations and a skilled local workforce to drive towards a clean green economy. Chile is already the biggest supplier of copper and second largest supplier of lithium.
With an experienced team in natural resources, CleanTech Lithium holds itself accountable to a responsible ESG-led approach, a critical advantage for governments and major car manufacturers looking to secure a cleaner supply chain.
Laguna Verde is at Pre-Feasibility Study stage, which is due to be delivered by Q4 2024. The project is targeted to be in ramp up production from 2027. Laguna Verde has a JORC resource estimate of 1.8 Mt of lithium carbonate equivalent (LCE) while Viento Andino boasts 0.92 Mt LCE, each supporting 20,000 tons per annum (tpa) production with a 30-year and 12-year mine life, respectively. The latest drilling programme at Laguna Verde finished in June 2024, results from which will be used to convert resources into reserves.
The lead project, Laguna Verde, will be developed first, after which Veinto Andino will follow suit using the design and experience gained from Laguna Verde, as the company works towards its goal of becoming a significant green lithium producer serving the EV market.
CleanTech Lithium’s pilot DLE plant in Copiapó was commissioned in the first quarter of 2024. The plant will process brine from both Laguna Verde and Viento Andino to produce lithium chloride eluate, which will then be converted into battery-grade lithium downstream through a third-party partner.
The Company is carrying out the necessary Environmental Impact Assessments in partnership with the local communities. The indigenous communities will provide valuable data that will be in included in the assessments. The company also has two prospective exploration projects.
Llamara project is a greenfield asset and in the Antofagasta region and is around 600 kilometers north of Laguna Verde and Veinto Andino. The project is located in the Pampa del Tamarugal basin, one of the largest basins in the Lithium Triangle.
Salar de Atacama/Arenas Blancas comprises 140 licenses covering 377 sq km in the Salar de Atacama basin, one of the leading lithium-producing regions in the world with proven mineable deposits of 9.2 Mt.
CleanTech Lithium is committed to an ESG-led approach to its strategy and supporting its downstream partners looking to secure a cleaner supply chain. In line with this, the company plans to use renewable energy and the eco-friendly DLE process across its projects. DLE is considered an efficient option for lithium brine extraction that makes the least environmental impact, with no use of evaporation ponds, no carbon-intensive processes and reduced levels of water consumption. In recognition, Chile’s government plans to prioritize DLE for all new lithium projects in the country.
CTL has a DLE Pilot Plant which is located in Copiapó with the capacity to produce up to 1 tonne per month of lithium carbonate. The company recently sent 24m3 batches of concentrated eluate to North America for further downstream processing. This will produce battery-grade lithium in the coming weeks and months. The company will share with potential customers across car and battery manufacturers.
CTL’s experienced management team, with expertise throughout the natural resources industry, leads the company towards its goal of producing green lithium for the EV market. Expertise includes geology, lithium extraction engineering and corporate administration.
Company Highlights
- CleanTech Lithium is a lithium exploration and development company with four notable lithium projects in Chile and a combined total resource of 2.72 million tonnes JORC estimate of lithium carbonate equivalent.
- The company leverages direct lithium extraction (DLE), an efficient method for extracting lithium brine that minimizes environmental impact and reduces production time and costs, resulting in high-quality, battery-grade lithium
- The company’s DLE pilot plant in Copiapó, Chile has commenced operation and started producing highly concentrated to be converted into battery-grade lithium for car and battery manufacturers to test and verify. The pilot plant can produce up to 1 tonne per month of lithium carbonate.
- CleanTech Lithium’s flagship projects, Laguna Verde and Viento Andino, are located near existing power sources and established transport infrastructure that can support the scalability of each project.
- The company also has two greenfield exploration projects in the region: Llamara and Salar de Atacama.
- The board consists of the former CEO of Collahuasi, the largest copper mine in the world, having held senior roles at Rio Tinto and BHP. In-country experience developing major commercial projects runs through-out the team.
- CTL’s operations are underpinned by an established ESG-focused approach - a critical priority for governments introducing regulations that require a cleaner supply chain to reach net-zero targets.
- The Company aims to become a leading supplier of ‘green’ lithium to the EV market through environmentally and socially sound practices across its assets and corporate culture.
Key Projects
Laguna Verde Lithium Project
217 sq km and features a sq km hypersaline lake at the low point of the basin with a large sub-surface aquifer ideal for DLE. Laguna Verde is the company’s most advanced asset,
Project Highlights:
- Prolific JORC-compliant Resource Estimate: As of July 2023, the asset has a JORC-compliant resource estimate of 1.8 Mt of LCE at a grade of 200 mg/L lithium.
- Environmentally Friendly Extraction: The company’s asset is amenable to DLE. Instead of sending lithium brine to evaporation ponds, DLE uses a unique process where resin extracts lithium from brine, and then re-injects the brine back into the aquifer, with minimal depletion of the resources. The DLE process reduces the impact on environment, water consumption levels and production time compared with evaporation ponds and hard-rock mining methods.
- DLE Pilot Plant: The pilot DLE plant in Copiapo was commissioned in the first quarter of 2024, and will process brine from both Laguna Verde and Viento Andino to produce lithium chloride eluate, which will then be converted into battery-grade lithium downstream through a third-party partner.
- Scoping Study: Scoping study completed in January 2023 indicated a production of 20,000 tons per annum LCE and an operational life of 30 years. Highlights of the study also includes:
- Total revenues of US$6.3 billion
- IRR of 45.1 percent and post-tax NPV8 of US$1.8 billion
- Net cash flow of US$215 million
Viento Andino Lithium Project
CleanTech Lithium’s second-most advanced asset covers 127 square kilometers and is located within 100 km of Laguna Verde, with a current resource estimate of 0.92 Mt of LCE, including an indicated resource of 0.44 Mt LCE. The company’s planned second drill campaign aims to extend known deposits further.
Project Highlights:
- 2022 Lithium Discovery: Recently completed brine samples from the initial drill campaign indicate an average lithium grade of 305 mg/L.
- JORC-compliant Estimate: The inferred resource estimate was recently upgraded from 0.5 Mt to 0.92 Mt of LCE at an average grade of 207 mg/L lithium, which now includes 0.44 million tonnes at an average grade of 221 mg/L lithium in the indicated category.
- Scoping Study: A scoping study was completed in September 2023 indicating a production of up to 20,000 tons per annum LCE for an operational life of more than 12 years. Other highlights include:
- Net revenues of US$2.5 billion
- IRR of 43.5 percent and post-tax NPV 8 of US$1.1 billion
- Additional Drilling: Once drilling at Laguna Verde is completed in 2024, CleanTech Lithium plans to commence further drilling at Viento Andino for a potential resource upgrade.
Llamara Lithium Project
The Llamara project is one of the largest greenfield basins in the Lithium Triangle, covering 605 square kilometers in the Pampa del Tamarugal, one of the largest basins in the Lithium Triangle. Historical exploration results indicate blue-sky potential, prompting the company to pursue additional exploration.
Project Highlights:
- Promising Historical Exploration: The asset has never been drilled; however, salt crust surface samples indicate up to 3,100 parts per million lithium. Additionally, historical geophysics lines indicate a large hypersaline aquifer. Both of these exploration results indicate potential for significant future discoveries.
- Close Proximity to Existing Operations: The Llamara project is near other known deposits:
- Atacama (SQM / Abarmale): 18,100 square kilometers
- Hombre (Muerto Livent): 4,000 square kilometers
- Pampa del Tamarugal (CleanTech): 17,150 square kilometers
Arenas Blancas
The project comprises 140 licences covering 377 sq km in the Salar de Atacama basin, a known lithium region with proven mineable deposits of 9.2 Mt and home to two of the world’s leading battery-grade lithium producers SQM and Albermarle. Following the granting of the exploration licences in 2024, the Cleantech Lithium is designing a work programme for the project
The Board
Steve Kesler - Executive Chairman and Interim CEO
Steve Kesler has 45 years of executive and board roles experience in the mining sector across all major capital markets including AIM. Direct lithium experience as CEO/director of European Lithium and Chile experience with Escondida and as the first CEO of Collahuasi, previously held senior roles at Rio Tinto and BHP.
Gordon Stein - Chief Financial Officer
Gordon Stein is a commercial CFO with over 30 years of expertise in the energy, natural resources and other sectors in both executive and non-executive director roles. As a chartered accountant, he has worked with start-ups to major companies, including board roles of six LSE companies.
Maha Daoudi - Independent Non-executive Director
Maha Daoudi has more than 20 years of experience holding several Board and senior-level positions across commodities, energy transition, finance and tech-related industries, including a senior role with leading commodity trader, Trafigura. Daoudi holds expertise in offtake agreements, developing international alliances and forming strategic partnerships.
Tommy McKeith - Independent Non-executive Director
Tommy McKeith is an experienced public company director and geologist with over 30 years of mining company leadership, corporate development, project development and exploration experience. He's held roles in an international mining company and across several ASX-listed mining companies. McKeith currently serves as non-executive director of Evolution Mining and as non-executive chairman of Arrow Minerals. Having worked in bulk, base and precious metals across numerous jurisdictions, including operations in Canada, Africa, South America and Australia, McKeith brings strategic insights to CTL with a strong focus on value creation.
Jonathan Morley-Kirk - Senior Independent Non-executive Director
Jonathan Morley-Kirk brings 30 years of experience, including 17 years in non-executive director roles with expertise in financial controls, audit, remuneration, capital raisings and taxation/structuring.
Lithium Brine’s Economic and Ecological Benefits Present Strong Case for Investors
From extraction to production, lithium brine deposits represent a significant competitive advantage for exploration and development companies. Compared to their hard-rock counterparts, lithium brine projects are regarded as lower-cash-cost operations with genuine scale, and are seen as more environmentally friendly deposits, largely owing to recent innovations in extraction technologies.
Combined with the right geographic characteristics and expertise, lithium brine projects are worth considering as an investment opportunity, especially if located in the USA due the US focus on the complete battery supply chain.
This is particularly true given the lithium market's recent focus on the geopolitics of supply and mounting production costs and declining lithium prices as well as a desire to capture the entire battery supply chain within one country. In fact, lower prices currently potentially create more upside for investors if they are considering counter cyclical investments, as the prevailing view is that lithium will be required for decades to come.
A critical resource for decarbonisation
As a key component in both rechargeable batteries and electric vehicles, lithium ranks among the most important resources in the world's pursuit of a more sustainable future.
A 2022 article from McKinsey & Company has predicted demand for the battery metal will reach between 3 to 4 million metric tons by 2030. The resource, notes McKinsey, is used in the production of nearly every single type of electric vehicle battery, as well as consumer electronics, energy storage and aerospace.
"Raw materials will be at the center of decarbonization efforts and electrification of the economy as we move from fossil fuels to wind and solar power generation, battery- and fuel-cell based electric vehicles and hydrogen production," the firm explains in another article. "No matter which decarbonization pathway we follow, there will be fundamental demand shifts — and these will change the metals and mining sector as we know it, creating new sources of value while shrinking others."
Although lithium supply still lags behind, McKinsey's outlook is optimistic. The organisation predicts that in addition to increasing the conventional lithium supply, the key to scaling the lithium industry to demand lies with direct lithium extraction (DLE). Through DLE, mining companies can simultaneously reduce production costs and decrease their environmental footprint.
By 2030, DLE lithium could account for more than 10 percent of supply, according to McKinsey.
Production potential of lithium brine resources
There are three primary types of lithium deposits — pegmatite, sedimentary and brine.
Pegmatitic lithium deposits, also known as hard-rock lithium deposits, are formed from coarse-grained, igneous magmatic rock. Lithium in these deposits is most commonly found in spodumene but can also occur in minerals such as lepidolite, petalite and amblygonite. Hard-rock lithium extraction is typically done via conventional open pit or underground mining.
Hard-rock lithium extraction tends to be quite expensive from an operating cost perspective. Typically, this is offset by the fact that hard-rock deposits have a higher concentration of the resource compared to other deposit types and usually require less capital to start operations. Unfortunately, the declining lithium price landscape, plummeting by more than 80 percent in 2023, makes hard-rock extraction less economically viable.
Sedimentary lithium represents something of a middle ground between pegmatitic lithium and lithium brine. Formed through the dissolution and gradual precipitation of lithium-bearing minerals in water, sedimentary lithium occurs in either lacustrine evaporates or clay deposits. Compared to pegmatitic lithium and lithium brine, sedimentary deposits are quite rare, accounting for only 8 percent of known lithium resources.
With that said, McDermitt Caldera — potentially the world's largest known lithium resource — primarily consists of lithium clay. Lithium Americas (TSX:LAC,NYSE:LAC) currently holds the largest deposit in the region, Thacker Pass, which contains roughly 13.7 million tons of lithium carbonate equivalent. Construction of a shallow open-pit mine and processing facility on the deposit began in March 2023. However, due to legislative and regulatory challenges, it is not yet known when the mine will become operational.
Lastly, lithium brine deposits represent roughly 66 percent of global lithium resources. Though they typically contain lower concentrations of lithium than both sedimentary and pegmatitic deposits, brine deposits also tend to be considerably larger. It also benefits from significantly lower production costs compared to other types of deposits.
Continental saline desert basins represent the most common type of lithium brine deposit, with the majority found in the salt flats of Chile, Tibet, Argentina and China. Abandoned oilfields and orphan wells represent another compelling source of lithium brines.
While other deposits typically require extensive drilling and sampling to develop a resource estimate, all that's required to assess a brine deposit are a relatively small number of drill holes with lithium brines with an appropriate grade and flow rate. Lithium brine projects also require far less land than other lithium extraction methods, when using modern direct lithium extraction technology.
Traditional lithium brine production pumps lithium-containing highly saline groundwater (brine) into large evaporation reservoirs, where it sits for up to a year, with water evaporating and concentrating the lithium and other salts. Direct lithium extraction, on the other hand, applies a specialised sorbent or bead, separating out the lithium and then returning the groundwater to its source. This is not only significantly more cost-effective, but it also requires around 95 percent less space.
The end result is a process that has minimal impact on the environment compared to other techniques. Once a brine deposit is depleted, the mining company can tear down its infrastructure and return the area almost entirely to its natural state. This is an important consideration for a resource so tied to sustainability.
Lithium brine assets to keep on your radar
Given the prominence of lithium brine assets and the sharp downturn in alternative lithium production methods, it should come as little surprise that there are numerous companies primed for commercial lithium brine production. Below, we've listed three of the most promising for investors to keep an eye on.
Arcadium Lithium (NYSE:ALTM,ASX:LTM)
Formed from a recent merger between Livent and Allkem, Arcadium Lithium is one of the biggest players in not just DLE, but lithium production as a whole. Prior to the merger, Livent had already been using its own form of DLE for several decades, with multiple holdings throughout Argentina. Allkem, meanwhile, owned and operated the world-class Olaroz lithium carbonate project in Argentina, as well as several spodumene projects in Canada and Australia.
The vertically integrated company began trading on the NYSE on January 4 of this year.
QX Resources (ASX:QXR)
Based in Australia, QX Resources' primary focus is on the exploration and development of battery minerals.
The company maintains several hard-rock lithium assets in Western Australia, a strategic nickel sulphide investment in Sweden and a highly prospective lithium brine asset in the US. The brine project, known as Liberty Lithium, covers approximately 25,300 acres in California.
Notable for being one of the few large brine projects in the US, Liberty contains an extensive lithium brine surface anomaly with elevated lithium results of up to 215 milligrams per litre. Drilling and geophysics have confirmed multiple aquifers, and show that the basin is large and deep, mirroring the geological setting of Albemarle's (NYSE:ALB) nearby Silver Peak mine. Potential drilling is planned to intersect deep lithium brines in the centre of the basin at higher grades.
Volt Lithium (TSXV:VLT,OTCQB:VLTLF)
Volt Lithium's most significant resource is the Rainbow Lake project. Situated in a depleted Alberta oilfield, the world-class deposit spans roughly 430,000 acres. The project also benefits from an extensive pre-existing infrastructure.
Late last year, Volt announced it had pioneered a new DLE technology capable of recovering up to 97 percent of lithium from oilfield brines with concentrations higher than 120 milligrams per litre — the precise concentration present in Rainbow Lake.
Investor takeaway
The sharp decline in lithium prices over the past year came as both a shock to investors and a blow to the economic viability of traditional hard-rock lithium deposits. Lithium brine projects offer a more economical and sustainable alternative, with projects operating at low costs and high margins. As such, mining companies with brine resources are well-positioned in the current market, representing a promising potential investment.
This INNSpired article is sponsored by QX Resources (ASX:QXR). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by QX Resources (ASX:QXR)in order to help investors learn more about the company. QX Resources (ASX:QXR) is 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 QX Resources (ASX:QXR)and seek advice from a qualified investment advisor.
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