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December 22, 2022
Lithium Power International Limited (ASX: LPI) (“LPI” or the “Company”) is pleased to advise that it has now successfully completed the Plan of Arrangement with joint venture partner Bearing Lithium Corp. (BRZ:TSXV) (“Bearing Transaction”) who held a 17.14% interest in the Maricunga lithium brine project in Chile (“Maricunga”).
HIGHLIGHTS
- LPI has now completed the Bearing Transaction to acquire the final 17.14% interest in Maricunga
- LPI has now consolidated ownership of 100% of Maricunga
As announced on 20 December, the Company completed the merger with Salar Blanco, LLC to acquire the 31.31% of Maricunga which was held by joint venture partner Minera Salar Blanco SpA (“SBD Transaction”) (together with the Bearing Transaction, the “Transactions”).
As a result of the Transactions LPI has now successfully completed consolidation of ownership of 100% of Maricunga. The Company is now well positioned to deliver further value to shareholders as consolidating ownership under LPI:
- provides the optimal ownership structure to oversee the development of Maricunga by streamlining decision making
- simplifies and de-risks the funding pathway for Maricunga which will enhance the Company’s ability to source capital from a wider range of providers to fund development in the lead up to Final Investment Decision. This in turn can potentially deliver enhanced returns to shareholders
LPI Chairman, David Hannon, said:
‘On behalf of the LPI Board I would like to thank our joint venture partners for their efforts to deliver this logical consolidation of ownership of Maricunga and welcome the new shareholders to LPI. With ownership of Maricunga now consolidated we are best placed to pursue the funding and development of Maricunga and deliver further value to our shareholders.’
Advisors
Treadstone Resource Partners acted as strategic and financial advisor to LPI in respect of the Transactions. Ashurst acted as the Australian legal advisor, Stikeman Elliott LLP acted as the Canadian legal advisor, and Pillsbury Winthrop Shaw Pittman acted as the US legal advisor to LPI. EY acted as the Australian, US and Canadian tax advisor to LPI.
Maricunga Lithium Brine Project
The Maricunga Project is located 170km north-east of Copiapó in Salar de Maricunga in the Atacama Region of northern Chile. In January 2022, LPI announced the results of its updated Definitive Feasibility Study (“DFS”) for the Stage One Maricunga Lithium Brine Project1, which supports 15,200 t/a production of battery grade lithium carbonate for 20 years. The DFS provides for a project NPV (leveraged basis) of US$1.4B (after tax) at an 8% discount rate, providing an IRR of 39.6%, a 2-year payback and estimated steady-state annual EBITDA of US$324 million.
The study confirmed that Maricunga could be one of the world’s lowest-cost producers of lithium carbonate, with an operating cost of US$3,718 per tonne not including revenue credits from a potassium chloride by-product. The project will have an exceptional ESG profile, aiming to achieving carbon neutrality once the operation beds down, setting new standards for social relationships.
Click here for the full ASX Release
This article includes content from Lithium Power International, 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.
LPI:AU
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Global Lithium Resources Receives Mining Lease for Manna Lithium Project
Western Australia’s Minister for Mines, Petroleum and Exploration has granted Global Lithium Resources’ (ASX:GL1) flagship project Manna lithium project mining lease M28/414.
In a Monday (August 25) release, Global Lithium said that the mining lease covers a term of 21 years pursuant to the Mining Act 1978.
“The granting of this mining lease is a transformative moment for (us) and (our) shareholders,” commented Managing Director Dr. Dianmin Chen. “This achievement, coming so soon after the successful native title mining agreement, validates our focused strategy and the diligent work of our team and partners.”
Global Lithium announced its signing of a native title agreement with the Kakarra Part B Native Title Group on August 13, underscoring its dedication to responsible mining and its commitment to ensuring and delivering benefits to the community concerning Manna.
Located in Eastern Goldfields and just 100 kilometres east of Kalgoorlie, Manna currently contains a mineral resource of 51.6 million tonnes at 1.0 percent lithium oxide.
The company said that it remains the third largest lithium resource in its region and holds potential to become a significant spodumene concentrate producer.
In its Diggers and Dealers presentation published August 1, it was specified that Manna is currently focusing on minimising production and operational costs by refining the processing flowsheet, optimizing capital expenditure through strategic design and procurement and enhancing mine design and scheduling.
Global Lithium also highlighted that it is leveraging advanced technologies and detailed process analysis.
In addition, the mining lease also “significantly de-risks” the project and assists in its steps towards a final investment decision (FID).
Following the agreement signing and the mining lease grant, the company said that it is now fully focused on finalising an optimised definitive feasibility study (DFS) for Manna.
“The DFS remains on track for the end of the 2025 calendar year… We are also pursuing discussions with potential development partners.”
Should the company follow its projected schedule and secure pending approvals, Manna is expected to be shovel-ready between 2026 to 2027.
Shares of Global Lithium went up 10 percent on the day of the mining lease announcement compared to its previous close of AU$0.20 on Friday (August 22), closing at AU$0.22 on Monday.
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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Livium and Mineral Resources Form Joint Venture to Advance LieNA Technology
Livium (ASX:LIT) and Mineral Resources (ASX:MIN,OTC Pink:MALRF) said on Monday (August 11) that they have agreed to a 50/50 joint venture regarding the LieNA lithium-processing technology.
LieNA, the joint venture entity, was formerly a subsidiary of Livium, the owner of the intellectual property for the LieNA technology — an innovative process designed to recover lithium from spodumene.
The joint venture's formation comes after the completion of Stage 1A activities under a joint development deal. The companies first began working together in August 2023, and agreed to additional Stage 1A work in January.
At the time, Livium and Mineral Resources said the work would include the assessment of alternate commercialisation pathways for the technology, and the selection of the preferred lithium product for LieNA's development.
The aim of the joint venture will be to commercialise the LieNA lithium-processing technology by issuing licences to third parties, with the next step on that path being to set up a demonstration plant. However, the companies note that current lithium market dynamics "do not support the economic construction and funding of the plant."
As a result, they have extended previous deadlines for the demonstration plant.
The partners intend for the demonstration plant to be the first licencee for the LieNA technology, and Mineral Resources can elect to independently fund, develop and operate the plant.
The licence will apply to current and future Mineral Resources projects, with the company receiving a reduced royalty rate in recognition of being the first to adopt the process.
Livium CEO and Managing Director Simon Linge emphasised that although the lithium market is currently in the midst of a "cyclical downturn," fundamental drivers like electrification and decarbonisation are in place.
“With our immediate priority being to scale our recycling business, we will now take the opportunity, with MinRes, to explore options to realise short term value or alternatively preserve medium-term value from the LieNA technology," he outlined in the company's press release.
Mineral Resources was positive on LieNA's progress so far and its future impact.
"We firmly believe the technology has a role to play in the future of lithium processing and are focused on working together to convert the strong technical delivery achieved to date into commercial outcomes," the firm said.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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13 August
Lithium Prices Surge After CATL Halts Major Mine in China
Lithium prices and mining stocks around the world soared this week after Chinese battery giant Contemporary Amperex Technology (CATL) (SZSE:300750,HKEX:3750) suspended operations at one of the world’s largest lithium mines.
The halt at the Jianxiawo lepidolite mine in Jiangxi province’s Yichun city, a hub for China’s lithium production, came after the mine’s permit expired on August 9.
CATL confirmed the closure on Monday (August 11), saying it is seeking a permit extension but offering no timeline for resuming output. The shutdown will last at least three months, according to people familiar with the matter cited by Bloomberg.
The mine produces around 65,000 tons of lithium carbonate equivalent (LCE) annually, equivalent to roughly 6 percent of global output, according to estimates.
That makes the stoppage one of the most significant supply interruptions in recent years for a metal central to electric vehicle (EV) batteries, grid storage, and consumer electronics.
The most-active lithium carbonate futures contract on the Guangzhou Futures Exchange (GFEX) jumped the daily limit of 8 percent on Monday (August 11), closing at 81,000 yuan (US$11,280) per ton for November delivery.
Meanwhile, spot prices in China also climbed, with Asian Metal reporting a 3 percent increase to 75,500 yuan per ton, the highest margin since February.
On the Liyang Zhonglianjin E-Commerce platform, November delivery prices surged over 10,000 yuan to around 85,500 yuan per ton.
Chandler Wu, senior analyst for battery raw materials at Fastmarkets, estimated that the shutdown would cut about 5,000 tons of LCE from China’s monthly output.
Market sentiment had been building for weeks amid speculation the mine’s license might not be renewed. By Wednesday, contracts on the GFEX were already posting sharp gains, with sellers in the spot market pushing up offers in line with futures prices.
Global mining stocks rally
The supply shock sent lithium miners’ shares higher from Sydney to New York.
In the US, Albemarle (NYSE:ALB) jumped more than 15 percent, Lithium Americas (NYSE:LAC) by 13 percent, and Chile’s SQM (NYSE:SQM) by 12 percent.
Australian producers saw similar gains: Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) climbed up to 20 percent, Liontown Resources (ASX:LTR,OTC Pink:LINRF), surged 25 percent, and Mineral Resources (ASX:MIN,OTC Pink:MALRF) advanced 14 percent.
Analysts say the suspension may be linked to Beijing’s “anti-involution” campaign — an initiative aimed at curbing overcapacity and promoting more sustainable production across industries.
The policy theme has recently swept China’s financial markets and affected sectors from steelmaking to e-commerce and EVs.
China has been the world’s top processor of lithium for years. CATL, the world’s largest battery maker, has also aggressively invested in raw material supply chains to secure long-term access to critical minerals like lithium, nickel, and cobalt.
That vertical integration has helped China dominate the global EV market, but it has also contributed to oversupply concerns in the lithium sector.
CATL emphasized that the Jianxiawo shutdown would have “little impact” on its overall operations.
Even so, traders warn that the effects could be far-reaching if the suspension extends beyond Jianxiawo. Local authorities in Yichun have reportedly asked eight other miners to submit reserve reports by the end of September after audits revealed non-compliance in registration and approvals.
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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12 August
New Study Highlights Western Australia's Lithium Leadership and Future Potential
Western Australia has a strong lithium history, and a recent study could help inform future exploration.
Put together by researchers from the Geological Survey of Western Australia (GSWA), Curtin University and the University of Western Australia, the report focuses on the formation of high-grade lithium deposits.
It states that Western Australia supplies around 35 percent of the world's lithium, with much of that coming from pegmatite, a coarse-grained rock commonly found in the state's Archean terrains.
"While most hard-rock lithium is sourced from similar formations, many existing exploration models are based on younger geological settings," an August 7 government press release explains.
The study's findings are summarised as follows:
"GSWA's research challenges these assumptions, as they may not apply to (Western Australia's) ancient crust. The new findings suggests that Archean lithium systems follow distinct rules and require a unique set of geological features for the formation of these deposits."
Lithium mines in Western Australia
The Greenbushes mine, owned by the Talison Lithium joint venture between Tianqi Lithium (SZSE:002466,HKEX:9696) and Albemarle (NYSE:ALB), is the world’s largest hard-rock lithium mine.
Operations date back to the 1980s, with annual production estimated at 1.95 million tonnes of lithium spodumene. Located adjacent to the town of Greenbushes in Western Australia, the asset is said to have been discovered in the 1970s, making it a significant mine in Western Australia's lithium history.
As of 2025, Pilbara Minerals' (ASX:PLS,OTC Pink:PILBF) Pilgangoora mine has dethroned Greenbushes in terms of resource size, with the former holding 446 million tonnes at 1.28 percent lithium oxide.
Greenbushes’ resource size as of late 2024 was 440 million tonnes at 1.5 percent lithium oxide.
Aside from these operations, Western Australia recently gained its first underground lithium mine, the Kathleen Valley asset owned by Liontown Resources (ASX:LTR).
Liontown’s latest quarter report, released on July 29, shows that Kathleen Valley produced over 300,000 wet metric tonnes of spodumene concentrate during its first 11 months of operations.
The Kathleen Valley plant reached commercial production in January 2025.
"Our findings provide fundamental insights that not only deepen our knowledge of WA's geology but also strengthen the State's position as a global leader in lithium exploration," said GSWA Executive Director Michele Spencer.
Government support for lithium
In November 2024, the government of Western Australia announced the Lithium Industry Support Program, which aims to bolster lithium miners and downstream processing facilities.
The program is scheduled to run for up to 24 months, at which time lithium prices “are expected to recover to an economically sustainable level.” During this time, government fees will be temporarily waived to support the continuation of downstream processing of lithium for up to two years, amounting to AU$90 million.
"Lithium is a key element in the global energy transition as we move to achieve a goal of net zero emissions by 2050,” Mines and Petroleum Minister David Michael said in a release at the time.
“We're providing (our lithium miners) with temporary and responsible support now to give them the best chance of continuing to supply the world with lithium products today and well into the future."
At the federal level, the Australian government has introduced critical support for the lithium sector under the broader Future Made in Australia industrial strategy.
Among its initiatives are the Critical Minerals Production Tax Incentive, legislation passed 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, with the latter’s initial AU$2 billion doubled to AU$4 billion, plus new investments through the NRF.
Recently, the NRF invested AU$50 million in Liontown to support Kathleen Valley, alongside private investment from Canmax Technologies (SZSE:300390), to stabilise financing during weak prices.
Lithium market due for a turnaround?
A March report by market research platform ASD Reports states that the Australian lithium market reached US$1,294.38 million in 2024 and is expected to hit US$5,309.55 million by 2032.
This demonstrates a compound annual growth rate of 19.3 percent during the forecast period of 2025 to 2032.
However, research firm Fastmarkets has said the lithium market recorded a surplus of around 175,000 tonnes in 2023, and almost 154,000 tonnes in 2024 based on current available data.
This oversupply has pushed prices down and prompted some miners to cut production, leaving investors wondering when a turnaround may come for lithium. Fastmarkets sees improvement this year, with the surplus projected to shrink to 10,000 tonnes. 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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