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Investing Guides
New Assay Results Confirm Strong Lithium Mineralisation At Adina
February 13, 2023
Winsome Resources (ASX:WR1; “Winsome” or “the Company”) is pleased to announce further assay results from drilling at its 100 per cent-owned Adina project in Quebec, Canada.
HIGHLIGHTS
- Assays from Adina continue to show impressive lithium mineralisation:
- 1.28% Li2O over 93.5m from 3.0m (AD-22-001)
- 1.52% Li2O over 23.9m from 4.6m (AD-22-005A)
- 1.56% Li2O over 17.0m from 88.6m, and
- 1.04% Li2O over 54.2m from 232.8m (AD-22-007)
- Intersections include exceptionally high grade zones such as:
- 2.16% Li2O over 16.0m from 23.0m,
- 2.37% Li2O over 5.7m from 60.4m, and
- 4.19% Li2O over 4.1m from 73.1m (AD-22-001)
- 2.04% Li2O over 13.9m from 4.6m (AD-22-005A)
- 2.72% Li2O over 7.0m from 98.6m, and
- 2.14% Li2O over 6.0m from 232.8m (AD-22-007)
- Assays have now been received from 6 drillholes of 32 holes completed to date.
- Results are in addition to the recent identification of a potential extension to the strike length of the Adina pegmatite body to 1,600m.
- Assays being received in a more consistent timeframe meaning further results will be able to be reported at regular intervals during the remainder of the programme.
- Expanded drilling program at Adina continues to progress rapidly and now well-funded after recent capital raising.
Assays reported here are from drillholes AD-22-001, AD-22-002, AD-22-005A, AD-22-007 and AD-22-008 within the Adina Main Zone with results including:
- 1.28% Li2O over 93.5m from 3.0m to 96.5m, including:
- 1.61% Li2O over 8.0m from 3.0m to 11.0m
- 2.16% Li2O over 16.0m from 23.0m to 39.0m
- 2.37% Li2O over 5.7m from 60.4m to 66.1m
- 1.89% Li2O over 12.7m from 73.1m to 85.8m
further including 4.19% Li2O over 4.1m from 73.1m to 77.2m (AD-22-001)
- 1.52% Li2O over 23.9m from 4.6m to 28.5m, including:
- 2.04% Li2O over 13.9m from 4.6m to 18.5m (AD-22-005A)
- 2.04% Li2O over 13.9m from 4.6m to 18.5m (AD-22-005A)
- 1.56% Li2O over 17.0m from 88.6m to 105.6m, including:
- 2.72% Li2O over 7.0m from 98.6m to 105.6m and
- 2.72% Li2O over 7.0m from 98.6m to 105.6m and
- 1.04% Li2O over 54.2m from 232.8m to 287.0m, including:
- 2.14% Li2O over 6.0m from 232.8m to 238.8
- 1.14% Li2O over 11.0m from 249.0m to 260.0m
- 1.77% Li2O over 11.7m from 275.3m to 287.0m and
- 0.88% Li2O over 19.0m from 324.6m to 343.6m, including:
- 2.01% Li2O over 4.6m from 324.6m to 329.6m (AD-22-007)
- 2.01% Li2O over 4.6m from 324.6m to 329.6m (AD-22-007)
- 0.88% Li2O over 23.8m from 41.9m to 65.7m, including:
- 1.31% Li2O over 7.0m from 41.9m to 48.9m
- 1.34% Li2O over 3.0 m from 51.9m to 54.9m
- 1.89% Li2O over 3.0 m from 60.5m to 63.5m (AD-22-008)
Intercepts are calculated using a 0.3 % Li2O cut-off grade, a minimum thickness of 5m and including up to 7m of internal dilution. A full list of intersections can be found in Appendix 1 below.
WINSOME RESOURCES MANAGING DIRECTOR CHRIS EVANS SAID:
“These results are just as impressive as our initial assays from drill hole AD-22-005 and confirm the high- grade nature of the lithium mineralisation at the Adina Main Zone. They also give us encouragement for the numerous other intersections which are currently being logged, sampled, assayed and interpreted. The progress since we made the Jamar Discovery in September is remarkable and we continue to rapidly progress an intensive drill programme at Adina with the recent backing of the capital markets. We look forward to further results delineating the high grade zones of lithium mineralisation at Adina as well as building up the geological interpretation with the aim of starting resource estimation work later in the year.”
Click here for the full ASX Release
This article includes content from Winsome Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
WR1:AU
09 May 2022
Winsome Further Expands Lithium Exploration Footprint in Quebec
Perth-based lithium exploration and development company Winsome Resources (ASX:WR1; “Winsome” or “the Company”) is pleased to advise it has partnered with geology specialist Mr Glenn Griesbach and with local prospector Mr Marc de Keyser.
Highlights:
- Exclusive option agreement executed for Winsome to acquire and explore a further 259 claims, totalling 149 km2 in the highly sought after greater Decelles region of Quebec, Canada
- Option agreement expands Winsome’s lithium exploration footprint in Quebec, enlarging Company’s recently acquired Decelles claim area by nearly 40%
- This expanded area, known as Mazérac, is located around the Decelles Reservoir, about 50km southwest of Val-d’Or and easily accessible by a network of forestry roads
- The region has seen much recent staking and prospecting activity, including highgrade spodumene discoveries by Vision Lithium at their nearby Cadillac property1
- Enlarged property holding is highly complementary to Company’s 100% owned, existing projects in the James Bay region – Cancet, Adina and Sirmac-Clapier
The Company has entered into an exclusive option agreement to acquire 258 claims from Mr Glenn Griesbach and one claim from Mr de Keyser, totalling 149km2 in the prospective Mazérac region of Quebec, Canada. This is within the greater Decelles area, where the Company also acquired new property in January 20222 .
Mazérac is located close to the mining centres of Val-d’Or and Rouyn-Noranda, approximately 600km from Montreal. The Company has signed an exclusive option agreement to explore and subsequently acquire the claims over a 24-month period.
Mr Griesbach is a Canadian-certified geologist with more than 40 years of mineral exploration experience across Canada, Africa, China, and Southeast Asia. Mr de Keyser is a seasoned local prospector of First Nation heritage, with a strong understanding of the Mazérac region.
By entering into this agreement, the Company further expands its land holding in Quebec, exploring a new area of the province known for granitic and pegmatitic outcrops. The area is located close to infrastructure and the major mining centres immediately adjacent to recent lithium discoveries1 (see Figure 1 map)
Managing Director Chris Evans said:
“We are delighted to have entered into the option agreement for a further 259 claims at Mazérac in the Decelles region. There has been a considerable amount of recent lithium focused activity in the surrounding region, with several public and private companies making successful discoveries.
“By acquiring this project, we significantly increase the Company’s prospective lithium landholding in Quebec and continue towards achieving our vision of supplying high grade lithium products into the North American battery supply chain.”
Transaction details
Winsome has entered into an exclusive option agreement to acquire 259 claims from Mr Griesbach under the following broad terms:
- An upfront fee of AUD$75,000, paid in WR1 shares
- AUD $250,000 paid in three tranches of WR1 shares, based on the five-day VWAP from last week’s trading (AUS $0.47). This will equate to:
- 177,000 WR1 shares issued now
- 177,000 WR1 shares issued on 3 May 2023
- 177,000 WR1 shares issued on 3 May 2024
- A 2% Net Smelter Royalty (NSR) over the properties which can be reduced to 1% at any time for a consideration of AUD $1,000,000
Once the final payment of 175,000 WR1 shares is made on 3 May 2024, the 259 claims will transfer to Winsome’s Canadian subsidiary.
The Company also has the ability to accelerate the acquisition at any point within the next 24 months and have the claims transferred immediately by issuing all shares due to Mr Griesbach.
As a separate transaction, the Company paid Mr de Keyser CAD $20,000 to acquire outright the ‘Nippy Hill’ claim which is contiguous to the other Mazérac claims described above.
Click here for the full ASX Release
This article includes content from Winsome Resources 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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3h
New Bridging Loan and Termination of Convertible Loan Notes
CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF), an exploration and development company advancing lithium projects in Chile, is pleased to announce it has secured commitments from a number of investors (including existing shareholders) to raise gross proceeds of approximately A$4 million (approximately £2.1 million) through the issue of loan notes (the "Loan Notes"). In addition, the Company announces that on 28 June 2024 it has terminated the £1 million convertible loan notes (the "CLNs"), details of which were announced on 22 April 2024.
The Loan Notes:
The Loan Notes subscribed for are for an aggregate amount of A$3,995,000, have been denominated in both Australian Dollars (the "AUD Loan Notes") and Pounds Sterling (the "GBP Loan Notes") and carry an entitlement to warrants ("Warrants"). Each A$ 0.9126 of AUD Loan Notes subscribed and/or each £0.48 of GBP Loan Notes subscribed will carry an entitlement to one Warrant. Each Warrant grants the holder the right to subscribe for one new Ordinary Share at a price of either A$0.456 or £0.24 (at the warrant holder's election), being a 71.4 per cent. premium to the Company's closing share price on 28 June 2024 of £0.14 and each has a term of 5 years.
The funds raised through the issue of the Loan Notes will provide CTL with immediate liquidity and will enable the Company to maintain its current activities and work programmes whilst it prepares for the planned dual-listing on the Australian Securities Exchange ("ASX").
CLNs Termination:
On 28 June 2024 the Company terminated the agreement relating to the £1 million CLNs, details of which were announced on 22 April 2024, due to the CLNs subscriber failing to pay the subscription monies for the CLNs to the Company, despite ongoing assurances to the Company that they would meet their obligations under the agreement.
Steve Kesler, Chairman and Interim Chief Executive Officer, CleanTech Lithium PLC, said:
"The Board considered it prudent to bring in the necessary funds now to provide for our working capital as we move forwards towards the intended ASX dual-listing. We are grateful to the Loan Note holders for responding to our request for a short-term facility which is undertaken on what the Board considers to be in line with reasonable terms for a loan facility of this type. This loan is intended to be a short-term bridging facility to be repaid from the proceeds of the next capital raise, which as previously announced, the Company intends to conduct in connection with its dual-listing on the ASX.
I was in Australia for meetings with various parties for 10 days recently, along with our advisors and fellow director Tommy McKeith, and we were very pleased at the reception to our Company's story.
We will update the market again soon on the next steps with the listing."
Further Information on the Loan Notes:
On 28 June 2024 CTL has entered into the Loan Notes with four lenders on the following terms:
- A$3,140,000 AUD Loan Notes and £450,000 GBP Loan Notes have been subscribed for, equivalent to total gross proceeds of A$3,995,000 or £2,102,632 at an FX rate of GBP1.00/A$1.90
- The Loan Notes attach a Warrant for every A$0.912 of AUD Loan Notes subscribed and/or each £0.48 of GBP Loan Notes issued respectively
- The AUD Loan Notes are issued in integral multiples of A$10,000 and the GBP Loan Notes in multiples of £10,000
- The Loan Notes do not bear interest and have a maturity date of 12 months from issue date ("Maturity Date")
- A premium shall be payable on the principal amount of any outstanding Loan Notes, to be paid on the date of redemption, as follows:
- 15% premium if the Loan Notes are repaid within three (3) calendar months of their issue date; and
- Should the repayment not be made within the first three (3) months, then the premium incrementally increases to up to 50% should the Loan Notes be repaid between ten (10) and twelve (12) calendar months from the date of issue.
- All of the outstanding Loan Notes shall be redeemed on the earlier of:
- the Maturity Date, and
- 10 business days following the completion of a capital raise of at least A$5,000,000.
- Security:
- The Loan Notes are unsecured for the first three months. Should the repayment not be made during that period, security over assets will need to be procured. Until the Loan Notes have been redeemed, the Company will not take out any other loan facilities without the prior approval of at least 75% of the Loan Noteholders.
Related Party:
Regal Tactical Credit Fund, of which Regal Funds Management Pty Ltd is a trustee, has subscribed for A$3,000,000 of the AUD Loan Notes. Regal Funds1, as defined below, are currently interested in 15.35 per cent. of the Company's issued share capital and therefore are, as a substantial shareholder, a Related Party under the AIM Rules. As such, Regal Tactical Credit Fund's participation in the subscription under the AUD Loan Notes is a Related Party Transaction for the purposes of Rule 13 of the AIM Rules.
In assessing the reasonableness of the terms of the Loan Notes, the Directors considered several prevailing factors including the Company's cash position in general, the need to replace proceeds from the CLNs which had not been paid (as referred to above) the pressing need to manage Company's near-term working capital requirements with suitably priced alternative funding and also to find supportive Loan Note holders who are supportive of the Company's wider objectives. The only equity linkage is the Warrants with a fixed subscription price of either A$0.456 or £0.24 which compares to a closing price on AIM on 28 June 2025 of £0.14. As explained above, the Loan Notes are intended to be repaid from the proceeds of the next capital raise in conjunction with the planned ASX listing, were that listing not to occur then the Company would need to undertake an alternative raise at some point over the next twelve months to allow for the Loan Notes to be repaid in full.
Accordingly, the Directors of the Company, all independent, having consulted with Beaumont Cornish Limited, the Company's Nominated Adviser, have concluded that the terms of the Loan Notes are fair and reasonable insofar as the Company's shareholders are concerned.
1Regal Funds comprising Regal Funds Management Pty Limited and its associates (including Regal Partners Limited, of which Regal Funds Management Pty Limited is a wholly owned subsidiary) which act as trustee and investment advisor for certain funds
Warrant Instrument:
The Loan Notes carry an entitlement to Warrants. Each Warrant grants the holder the right to subscribe for one new Ordinary Share at a price of either A$0.456 or £0.24 (at the warrant holder's election), being 71.4 per cent. above the Company's share price at close of trading on 28 June 2024 of £0.14 and has a term of 5 years. If exercised, the Warrants would generate approximately £1.1m in additional cash proceeds for the Company. All Warrants are transferrable.
In aggregate a total of 4,380,181 Warrants have been granted and any Warrants which are unexercised at the end of the relevant subscription period shall automatically expire. Upon exercise of the Warrants, it is anticipated the underlying Ordinary Shares will be issued within seven days.
For further information contact: | |
CleanTech Lithium PLC | |
Steve Kesler/Gordon Stein/Nick Baxter | Jersey office: +44 (0) 1534 668 321 Chile office: +562-32239222 |
Or via Celicourt | |
Celicourt Communications Felicity Winkles/Philip Dennis/Ali AlQahtani | +44 (0) 20 7770 6424 |
Beaumont Cornish Limited (Nominated Adviser) Roland Cornish/Asia Szusciak | +44 (0) 20 7628 3396 |
Canaccord Genuity (Joint Broker) James Asensio | +44 (0) 20 7523 4680 |
Fox-Davies Capital Limited (Joint Broker) | +44 (0) 20 3884 8450 |
Daniel Fox-Davies |
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
Notes
CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and development company advancing sustainable lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium's mission is to produce material quantities of sustainable battery grade lithium products using Direct Lithium Extraction technology powered by renewable energy. The Company plans to be a leading supplier of 'green' lithium to the EV and battery manufacturing market.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and hold licences in Llamara and Salar de Atacama, located in the lithium triangle, a leading centre for battery grade lithium production. The two major projects: Laguna Verde and Viento Andino are situated within basins controlled by the Company, which affords significant potential development and operational advantages. All four projects have direct access to existing infrastructure and renewable power.
CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction with reinjection of spent brine. Direct Lithium Extraction is a transformative technology which removes lithium from brine, with higher recoveries than conventional extraction processes. The method offers short development lead times with no extensive site construction or evaporation pond development so there is minimal water depletion from the aquifer. www.ctlithium.com
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6h
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.
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9h
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
Click here for the full ASX Release
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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26 June
Successful Placement to Raise $750,000
Balkan Mining and Minerals Ltd (BMM or the Company) is pleased to announce that it has successfully received binding commitments for a private placement to raise $750,000 (before costs) (Placement). The Placement will comprise the issue of 15,000,000 new fully paid ordinary shares (Placement Shares) in the Company at an issue price of $0.05 per share.
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.
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26 June
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.
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26 June
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.
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