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Jindalee Lithium
Investor Insight
Jindalee Lithium’s flagship McDermitt Lithium Project (McDermitt) offers investors exposure to a generational, high-margin critical minerals asset. The recently completed Pre-Feasibility Study (PFS) demonstrates robust economics, positioning McDermitt as a key enabler of North America's clean energy transition and a cornerstone of the US critical minerals strategy to de-risk supply chains through increased domestic production.
Overview
Jindalee Lithium (ASX:JLL,OTCQX:JNDAF) is a pure-play lithium company with a strategic focus on the United States. Its 100 percent-owned McDermitt Lithium Project is the largest lithium deposit in the US, boasting a resource of 21.5 million tons (Mt) of lithium carbonate equivalent (LCE).
Backed by a recently released (November 2024) Pre-Feasibility Study (PFS) demonstrating very compelling economics, McDermitt is poised to play a crucial role in meeting North America’s growing lithium demand for battery materials.
As the US continues to transition to clean energy, demand for lithium is expected to exponentially increase. Jindalee’s McDermitt project, located in southeast Oregon, is a game-changer for North American lithium supply, critical for meeting the demands of a fast-growing electric vehicle and renewable energy industries with specific emphasis on developing and de-risking domestic supply chains.
McDermitt also stands to significantly benefit from the US government’s policies and incentives to boost domestic supply of critical resources. In fact, in a move that signifies the US government's support of the McDermitt Project, the US Department of Energy's Ames National Laboratory signed a Cooperative Research and Development Agreement (CRADA) with Jindalee's subsidiary HiTech Minerals to develop cutting-edge extraction methods for McDermitt. Under this agreement the US Department of Energy (DOE) will fund work aimed at reducing costs and improving sustainability outcomes for the Project. The Ames National Laboratory spearheads the DOE's Critical Materials Innovation Hub. Jindalee is also advancing an application for a grant from the US Department of Defense, which has the potential to co-fund a feasibility study and associated work programs at McDermitt.
Key milestones in the US lithium resource space also provide significant insights into the future prospects for McDermitt. Lithium Americas’ (TSX:LAC), has received a US$945 million commitment from General Motors, to fund the development, construction and operation of the Thacker Pass project in Humboldt County, Nevada, located 30km away from and in the same geological formation as Jindalee’s McDermitt Lithium Project. LAC has also closed a $2.3 billion US Department of Energy loan in late 2024 to fund approximately 75 percent of the construction capital cost (US$2.93B).
Another lithium resource developer in Nevada, Australia-based Ioneer (ASX:INR) is expected to receive a total investment of US$700 million through a new joint venture with Sibanye Stillwater, in addition to a conditional loan commitment of US$650 million from the US Department of Energy, both acting to strengthen the development of its flagship Rhyolite Ridge lithium-boron project.
In late 2024, ASX-listed company Patriot Battery Metals Inc (ASX:PMT) announced a C$69 million investment, strategic partnership and offtake agreement with global automotive group Volkswagen which aims underpin the development of Patriot’s upstream lithium project in Quebec, Canada.
These are just a few examples of current market dynamics that point to rapidly accelerating lithium resource development in the US and Canada demonstrating the investment appetite of strategic partners, as well as support from the US government via low-cost concessional debt funding.
An experienced management team, with the right blend of experience and expertise in project development, corporate administration and international finance provides Jindalee with the leadership to fully capitalise on the potential of its assets.
Company Highlights
- Jindalee Lithium is focused on its wholly owned flagship McDermitt Lithium Project, currently the largest lithium deposit in the US
- A PFS for McDermitt – delivered in November 2024 - supports very strong project economics, including a US$3.23 post-tax NPV and a 5 year capital payback period over a 63 year project life
- Jindalee’s McDermitt Lithium Project seeks to assist in the development of US critical minerals supply chains to enable America to meet its energy security and electrification goals
- Jindalee’s wholly owned US subsidiary HiTech Minerals has executed a strategic Cooperative Research and Development Agreement (CRADA) with the US Department of Energy (DOE) as part of the DOE’s Critical Materials Innovation (CMI) Hub
- McDermitt is located in the same geological formation and is of similar size and scale to Lithium Americas’ Thacker Pass Project, which is backed by major investments from General Motors and the US Department of Energy and is currently under construction
- McDermitt is eligible for a wide range of government incentives including tax credits, grants and concessional loans. Jindalee is currently progressing a grant application with the Department of Defense to potentially co-fund a feasibility study at McDermitt
- In collaboration with lead engineer Fluor, Jindalee has produced battery grade lithium carbonate from McDermitt’s lithium bearing ore in metallurgical testwork.
- Experienced management team is focused on maximising the potential of Jindalee’s assets.
Key Project
McDermitt Lithium Project Economics
The economic metrics revealed in the PFS paint a compelling picture of the McDermitt Lithium Project's potential:
Production Capacity: The Project is set to produce 1.8 Mt of battery-grade lithium carbonate over its first 40 years, with an annual output forecast of 47,500 tonnes per annum (tpa) in the initial 10 years, and averaging 44,300 tpa over the first 40 years.
Financial Metrics: The Project boasts a post-tax net present value (NPV) of US$3.23 billion at an 8 percent discount rate, with an internal rate of return (IRR) of 17.9 percent. These figures underscore the Project's strong economic viability.
Payback Period: Investors can expect a payback period of less than five years, a relatively short timeframe for a project of this magnitude.
Robust margins: Exceptional EBITDA margins of 66 percent over the first 10 years of operations, with C1 costs in the bottom half of industry and 17 percent pre-tax net operating cashflow margins (including sustaining capital) at current bottom of the cycle spot prices (October 2024 spot of US$10,888/t of lithium carbonate)
Significant future upside. Several opportunities identified in the PFS have potential to significantly enhance returns, which includes process optimisation to reduce opex/capex as well as potential for production of by-products. Additionally, there remains significant optionality to further exploit the ore body, with only ~15 percent of the current resource included in the PFS schedule (on contained metal basis).
The PFS estimates a total project cost of US$3.02 billion, which includes a conservative 21 percent contingency provision estimated on P70 basis (70 percent probability total capital cost will be lower), prepared by US headquartered global engineering and construction firm, Fluor Corporation. This substantial investment is expected to provide the platform for a long life, stable supply of domestically sourced battery grade lithium chemicals, which is expected to be highly attractive to partners in the battery value chain.
Project Overview
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.
The Project is characterised by its unique sedimentary lithium deposits, primarily composed of lithium-bearing clays, a geological formation that sets McDermitt apart from many other lithium projects worldwide. This sedimentary nature of the deposit offers several advantages, including:
- Consistent grade distribution throughout the ore body
- Potential for large-scale, low-cost mining operations
- Amenability to environmentally friendly extraction methods
The lithium-rich clays at McDermitt are part of a broader geological context that includes volcanic tuffs and sedimentary rocks. This geological setting is indicative of a complex depositional history, which has resulted in the concentration of lithium in economically viable quantities.
The 2023 mineral resources estimate (MRE) for McDermitt contains a combined indicated and inferred mineral resource inventory of 3 billion tonnes at 1,340 parts per million (ppm) lithium for a total of 21.5 Mt LCE at 1,000 ppm cut-off grade. As part of the PFS, a maiden ore reserve estimate was declared of 251 @1,761 ppm Lithium for 2.34 Mt LCE (representing only ~11 percent of MRE)
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.
- Low cost mining. Ore is soft, free-digging material, located at surface with a strip ratio of only 1.3 over project life. As a result mining costs are relatively low.
- 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 (similar to that used by more advanced peers in the region).
- Battery-grade lithium carbonate successfully produced: Process flowsheet was validated through PFS test work program, which produced battery grade lithium carbonate in July 2024. This is an important milestone validating all steps of the processing flowsheet for the Project from ore beneficiation and leaching to purification and production of battery-grade lithium carbonate.
- High metallurgical recovery. PFS test work demonstrated exceptional recoveries through beneficiation and acid leaching steps, with an average metallurgical recovery of 84.4 percent over first 40 years, comparing favourably to industry peers.
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. Ian 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.
Ian 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 (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. Darren 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. Darren 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. Paul 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. Paul is currently CEO of Core Lithium Limited (ASX:CXO). 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. Brett 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.
Drilling targets defined – Bananal Valley tenement, Lithium Valley, Brazil
Highlights
Work Undertaken
- Assays received from 100 and 200 metre spaced soil sampling lines with soil samples taken at 50 metre intervals.
- Lithium anomalies identified over the 1.5 km strike extent of the soil grid with coincident Be, Rb, Sn and Tl anomalies.
- No lithium anomalies found in areas of laterite however tin anomalies as well as quartz and tourmaline occurrences suggest pegmatite extensions under the laterite.
- Drill holes defined so environmental permits can be obtained to allow drilling to take place.
Future Workplan
- Obtain environmental permits for drilling
- Extra soil lines in the NW of tenement to follow up anomalies previously defined
- Continue detailed mapping to refine currently identified pegmatite trends
- Drilling of the lithium targets identified.
Details
Results from exceptionally high value stream sediment sample have been followed up with soil samples and grid based mapping in the southern part of 831.700/2022 and drilling targets had been identified.
Mapping prior to and during soil sampling identifies numerous small pegmatites and some larger pegmatites to a maximum of 10 metres wide. Areas of large quartz boulders, possibly quartz cores to pegmatites, were also mapped and in places are coincident with lithium and lithium pathfinder anomalies. Pegmatites cross cut and are younger than the foliation in the host G3 type granite.
Regional structure from geophysics and from topography shows a strong NE to ENE trend, subparallel to the Latin Resources “Lithium Corridor.” Drilling will be oriented at 90 degrees to the regional trend initially, as the most probable major pegmatite orientation direction.
Strong vertical zonation in the lithium pegmatite geochemical responses are present and close attention to the location of laterite and the old lateritised surface is critical to interpretation of where lithium pegmatites may be concealed by leaching of lithium.
Drill targets were defined by lithium anomalies and by occurrences of pegmatite or extensive float of pegmatite minerals, lithium pathfinder elements, large quartz boulders or anomalous quartz concentrations.
The lateritic weathering zone is estimated from mapping to be up to 50 metres thick within the tenement, but locally may be significantly thicker. Drilling below this weathered layer is essential to get analyses that reflect the actual grade of any pegmatites present. Within the weathering zone low values of lithium are expected from potentially economic pegmatites.
Images & Maps
Figure 1 shows the location of the Salinas Project tenements in relation to Latin resources Collina deposit and to other tenements held by major explorers including Rio Tinto.
Figure 1. Location of the Bananal Valley tenements in the GMN Salinas Project. This region contains two producing mines, the undeveloped Colina deposit, and several prospects with significant exploration activity. While close proximity does not guarantee similar results it does provide evidence to assist in targeted exploration.
Mapping and soil sampling in the western Bananal Valley tenement, 831.700/2022, has defined areas of laterite as well as various larger pegmatite and quartz occurrences.
Figure 2 shows the extensive high order stream sediment target zones in the Bananal valley tenement, with their follow up soil lines and potential pegmatite mineral occurrences, including green tourmaline, indicating highly evolved pegmatites.
Figure 2. Highest priority target zone in the south western part of the Bananal Valley tenement, 831.700/2022. Lithium anomalies are plotted as anomalous catchments (released 22 August 2024) to indicate the large prospective area that is present. Soil sample lines shown in yellow, mapping of occurrences shown in legend. Laterite extent defines limits of anomalous lithium in soil responses at surface.
Lower order anomalies in the northeast are still considered highly prospective, with lower order results due to more intensive weathering and leaching of surface rocks.
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Inside Billionaire Gina Rinehart's Key Mining Investments (Updated 2024)
In this article
- Who is Gina Rinehart?
- How did Gina Rinehart get rich?
- What mining companies does Gina Rinehart own?
- Where does Hancock Prospecting mine iron?
- Gina Rinehart’s iron ore investments
- Gina Rinehart’s lithium investments
- Gina Rinehart’s rare earths investments
- Gina Rinehart’s copper investments
- Gina Rinehart’s oil and gas investments
- Gina Rinehart’s potash and agriculture investments
- FAQs for Gina Rinehart
Who is Gina Rinehart?
Gina Rinehart is an Australian iron ore magnate and the executive chair of Hancock Prospecting, as well as the richest person in Australia and one of the world’s richest women. Rinehart is the daughter of Australian mining mogul and Hancock Prospecting founder, the late Lang Hancock. As the current executive chair of Hancock Prospecting, Rinehart won the inaugural Lifetime Achievement Award from CEO Magazine in 2019.
Rinehart was appointed as an Officer of the Order of Australia in 2022 for her “distinguished service to the mining sector, to the community through philanthropic initiatives, and to sport as a patron.”
How did Gina Rinehart get rich?
Gina Rinehart inherited Hancock Prospecting after her father’s passing in 1992. The following year, Gina Rinehart’s company acquired the Roy Hill tenements. Centering the massive project as the cornerstone of the company, Hancock Prospecting has greatly benefited from the iron ore market boom that began in the early 2000s.
Today, Roy Hill is Australia’s largest iron ore mine, producing 60 million tonnes of iron ore per year. The mine was recently approved to increase its annual production to 70 million tonnes. Success at Roy Hill has made Hancock Prospecting Australia’s most valuable private company, worth an estimated AU$15.6 billion.
As with many of the world’s most successful billionaires, Gina Rinehart has developed an investment strategy based on strategic partnerships as well as diversification to mitigate risk and build value. Under her leadership, Hancock Prospecting Pty Limited (HPPL) as well as the HPPL Group of companies has expanded into some of the world’s most economically important markets, such as real estate, agriculture, energy and critical metals.
For the 2024 fiscal year, Rinehart's Hancock Prospecting reported a bumper profit of AU$5.6 billion, up 10 percent from the previous year.
What mining companies does Gina Rinehart own?
Through her company Hancock Prospecting, Gina Rinehart owns interest in mining companies across many sectors, including iron ore, lithium, rare earths, copper, oil and gas, as well as potash. While much of her investment portfolio is focused on Australia and ASX companies, Rinehart is actively strengthening the geographical diversification of her investments.
In recent years, Rinehart has made a series of key investments in mining companies, especially targeting critical metals projects in Germany, Brazil, Ecuador and the United States. These include exploration-stage firms such as Titan Minerals (ASX:TTM) and Azure Minerals as well as producers such as Atlas Iron and MP Materials.
Where does Hancock Prospecting mine iron?
Vehicles hauling ore at Roy Hill iron ore mine.
Photo of Roy Hill iron ore mine via Roy Hill.
Hancock Prospecting’s Roy Hill and Hope Downs iron ore mines are located in the resource rich Pilbara region of Western Australia.
Roy Hill has attracted strategic partnerships with major global enterprises: Marubeni (TSE:8002) with a 15 percent equity stake; POSCO (NYSE:PKX,KRX:005490) holds a 12.5 percent stake; and China Steel (TPE:2002) has a 2.5 percent equity position. The minority partners purchase a combined 28.75 million tonnes of iron ore annually from Roy Hill’s production.
In September 2024, Hancock Prospecting got the green light for its AU$600 million McPhee iron mine located about 100 kilometres north of the Roy Hill mine after a long approval process. The McPhee iron mine is expected to produce around 10 million tonnes of the metal each year over an estimated 15 year mine life. First production is expected to kick off next year, and ore will be transported by road trains to Roy Hill for processing and blending. The goal is to improve the larger mine's product mix and sustain its production volumes.
The Hope Downs iron ore complex is another of Australia’s largest iron ore projects. A 50/50 joint venture partnership with Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), Hope Downs hosts four open-pit mines and has an annual production capacity of 47 million tonnes. Hope Downs has also been the subject of a more than decade-long civil dispute in a Western Australian court over royalties, put forth by the descendants of Lang Hancock's business partner Peter Wright as well as Rinehart’s own children.
Gina Rinehart’s iron ore investments
Gina Rinehart’s iron ore investments in Western Australia extend beyond Roy Hill and Hill Downs to its subsidiary Atlas Iron’s three producing mines and a pipeline of development projects, as well as an earn-in agreement on Legacy Iron Ore (ASX:LCY) and Hawthorn Resources’ (ASX:HAW) Mt Bevan project through its subsidiary Hancock Magnetite Holdings.
Rinehart’s Hancock Prospecting acquired Atlas Iron in 2018 through a AU$427 million deal that turned out to be dirt cheap as the company would go on to deliver AU$1.5 billion in revenues over the next three years alone.
Today, Atlas Mines operates the Mt Webber, Sanjiv Ridge and Miralga Creek mines. Production from these mines in its fiscal year ended June 2023 led to a AU$222 million dividend payment for Rinehart’s Hancock Prospecting.
At Mt Bevan, as part of its earn-in agreement, Hancock completed a prefeasibility study (PFS) for a 12 million tonne per year high-grade magnetite project in July of 2024. The PFS incorporated a mineral resource estimate totalling 1,291 million tonnes, which was completed by Atlas, and delineates a capital cost of AU$5 billion to develop the potential Mt Bevan mine.
Completion of the PFS increased Hancock’s stake in the JV ownership from 30 percent to 51 percent with Legacy now holding 29.4 percent and Hawthorn 19.6 percent.
Like iron, coal is another essential material in steel manufacturing. To this end, Rinehart is also pursuing an investment in a past-producing metallurgical coal mine in Alberta, Canada. Hancock Prospecting subsidiary Northback Holdings is the owner of the proposed Grassy Mountain steelmaking coal project in the province’s Crowsnest Pass region. Northback is awaiting approval of its exploration licenses for the project.
Gina Rinehart’s lithium investments
Gina Rinehart's lithium investments include Azure Minerals’ Andover lithium project, Liontown Resources, Delta Lithium (ASX:DLI) and Vulcan Energy Resources (ASX:VUL). The majority of her lithium investments have came in a flurry over the past year.
In June 2023, Rinehart’s Hancock Prospecting signed a separate joint venture earn-in agreement for the Mt Bevan magnetite project, which is discussed above, this time for the lithium, nickel and copper mineralization at the project. The agreement will similarly see Hancock able to earn a 51 percent interest by completing certain milestones.
Last September, Rinehart made headlines when she took a position in Liontown Resources and then rapidly increased the position to 19.9 percent over the following month. This allowed Hancock, which was now Liontown's largest shareholder, to effectively block Albemarle’s (NYSE:ALB) accepted takeover of the smaller lithium company.
However, since then, Liontown’s stock has taken a hit as the economics for its near-production Kathleen Valley lithium project in Western Australia have been damaged by the effects of high inflation and low lithium prices. Ultimately, in January, Albemarle decided to sell off its 4 percent stake in Liontown Resources. The lack of any further moves or comment by Rinehart in relation to Liontown Resources has led to speculation she may be waiting for the right opportunity to buy up the lithium company at a discount.
Kathleen Valley entered production in late July 2024, and is expected to produce approximately 2.8 million tonnes per year of spodumene concentrate by the end of FY 2027.
That wasn't the only lithium bid Rinehart blocked in October 2023. As is her strategy, Rinehart scooped up an 18.9 percent stake in Azure Minerals last year after SQM announced its intention for a total takeover of the company and its Andover lithium project in the West Pilbara region of Western Australia. This story had a different ending, though, as Hancock Prospecting instead joined the lithium giant in a AU$1.7 billion deal to become a co-owner of the exploration-stage Andover project, which also hosts nickel, copper and cobalt mineralisation. The deal closed in May 2024.
Shortly after its Liontown and Azure moves last year, Hancock Prospecting continued investing in Western Australia's lithium prospects when it participated in a AU$70.2 million fundraising for Delta Lithium in November 2023. The proceeds of the fundraising will help Delta Lithium to fund the development of its Mt Ida lithium-gold project, which is adjacent to Hancock's Mt Bevan joint venture project. As of November 2024, Hancock Prospecting owns 10.65 percent of Delta Lithium.
Rinehart has made lithium investments outside of Australia as well. Looking further afield to Germany, with a 7.5 percent stake, Hancock Prospecting is the second largest shareholder in Vulcan Energy and its flagship Zero Carbon lithium project in Germany’s Upper Rhine Valley, a milestone Rinehart's company reached after investing an additional AU$20 million in Vulcan, which made headlines in June. The Zero Carbon project is slated to produce an initial 24,000 tonnes of lithium hydroxide by the end of 2025, targeting Europe’s electric vehicle manufacturing sector.
In November 2024, Vulcan Energy reached another major milestone with first production at its downstream lithium hydroxide optimisation plant, which is designed to produce lithium hydroxide and battery-grade lithium hydroxide monohydrate.
Gina Rinehart’s rare earths investments
Facilities at MP Materials' Mountain Pass rare earths mine.
clayton harrison / Shutterstock
Through Hancock Prospecting, Gina Rinehart has recently made investments in some of the world’s most well known rare earths producing companies — US-based MP Materials and Australia’s Lynas Rare Earths — as well as development-stage Arafura Rare Earths and exploration-stage Brazilian Rare Earths (ASX:BRE). Rinehart taking a position in these rare earths companies shows she is looking to capitalise on the significant need for these critical metals outside of China.
As mentioned in the introduction to this article, Rinehart’s Hancock Prospecting is the largest shareholder of Arafura Rare Earths, giving it a 10 percent stake in the advanced-stage Nolans project in the Northern Territory. Rinehart made the investment in December 2022.
In April of 2024, Rinehart made two significant moves into the sector. The first came on April 9, when it was revealed that Hancock Prospecting had acquired a 5.3 percent stake in MP Materials, the second largest rare earths producer outside of China. The company’s California-based Mountain Pass mine is the only integrated rare earth mining and processing operation in North America.
Rinehart’s investment in MP Materials could later bring in “Roy Hill-type cash flow,” Dylan Kelly, head analyst at Terra Capital, told Australian Financial Review. “Anything that is producing and not China-aligned is highly strategic. These materials are very, very hard to make and there’s a lot of demand in making magnets for electric vehicles and wind turbines."
One week later, Rinehart’s Hancock Prospecting also took up a 5.82 percent interest in Lynas Rare Earths, the largest ex-China rare earths producer. The Australian rare earths miner produces the critical metals at its Mount Weld mine in Western Australia and ships the raw material to Malaysia for processing. Lynas is also ramping up processing at its Kalgoorlie rare earth processing facility in Australia, and building light rare earths processing facilities and a heavy rare earths separation facility in Texas, US.
Rinehart’s near simultaneous investments in both Lynas and MP Materials comes after merger talks between the two rare earths behemoths stalled in February. There is speculation stirring that Rinehart’s participation could renew merger discussions, Reuters reported. In November, the mining mogul increased her position in MP Materials to 8.5 percent, further raising the possibility of a merger down the road.
Andy Forster, Lynas investor and senior investor of Argo Investments, had his interest piqued by Rinehart’s move "given she's clearly made a play across the whole space. She obviously wants to potentially have a seat at the table if there's any chance of consolidation."
Rinehart is also getting her foot in the rare earths door at the exploration level. In 2023, Rinehart’s Hancock Prospecting made a pre-IPO investment for a 5.85 percent share in Brazilian Rare Earths, which went on to list on the ASX in December of that year. The rare earths explorer is working its district-scale Rocha da Rocha rare earth province in the state of Bahia, Brazil. The province is highly prospective for both heavy and light rare earths, with grades of over 40 percent total rare earth oxides found. Brazilian Rare Earths is working to complete an updated JORC mineral resource estimate.
Gina Rinehart’s copper investments
Gina Rinehart’s copper investments are centered on Ecuador’s Andean copper-gold belt, and include explorer Titan Minerals and Ecuador's state-owned Empresa Nacional Minera (ENAMI).
Ecuador has seen a rush of major mining companies taking up positions in key copper and gold projects in recent years, placing Hancock Prospecting in the company of Barrick Gold (TSX:ABX,NYSE:GOLD), Zijin Mining (HKEX:2899) and Anglo American (LSE:AAL,OTCQX:AAUKF).
Rinehart’s Ecuadorian copper investments are in line with her shift toward the critical metals necessary for the green transition and her strategy to expand the global footprint of her mining empire.
Hancock Prospecting subsidiary Hanrine Ecuadorian Exploration and Mining has been in the region since 2017, but recently began making more investments. In March 2024, Hancock Prospecting subsidiary Hanrine Ecuadorian Exploration and Mining acquired a 49 percent stake in six mining concessions for AU$186.4 million. The deal sees it partner with state mining company ENAMI for the concessions, which surround the stalled Llurimagua copper-molybdenum project in Northern Ecuador.
In late April, Ecuador’s constitutional court nixed appeals by ENAMI and its partner in the Llurimagua project, Chile’s state-owned CODELCO, to review the March 2023 decision by Imbabura’s provincial supreme court suspending the environmental license for Llurimagua.
Shortly after the investment with ENAMI, Rinehart's Hanrine made another play in Ecuador by striking an earn-in agreement with Titan Minerals for up to an 80 percent ownership stake in the explorer’s Linderos copper-gold project contingent on up to AU$120 million in exploration spending. Linderos is an early-exploration stage project with the potential to host a large-scale copper porphyry system. Hanrine has made an initial investment of AU$2 million for a 5 percent stake.
Gina Rinehart’s oil and gas investments
Gina Rinehart’s oil and gas investments include private firms Warrego Energy in Western Australia and Senex Energy in Queensland.
In February 2023, Hancock Prospecting won a protracted bidding war for the then-public Warrego with Warrego's joint venture partner Strike Energy (ASX:STX) for a price of AU$0.36 per share. Warrego and operator Strike Energy maintain their 50/50 joint venture on the West Erregulla onshore gas field within exploration permit EP 469 near Perth in Western Australia.
In mid-August 2024, the West Erregulla project received its production licence and the partners expect to start operations once a final investment decision is made later this year. During phase one, the project is expected to produce 87 terajoules per day.
As for Senex Energy, it is a joint venture between POSCO (50.1 percent) and Hancock Prospecting subsidiary Hancock Energy (49.9 percent) that holds the Atlas and Roma North natural gas developments in Queensland’s Surat Basin. The two JV partners acquired Senex in 2022, with Rinehart’s company putting up AU$440.89 million.
Senex Energy is embarking on a AU$1 billion expansion endeavor at Atlas and Roma North this year that will see 60 petajoules of natural gas delivered to Australia’s east coast market annually by the end of 2025. This figure represents more than 10 percent of the region’s demand. Regulatory approval for the expansion was finally approved following an uphill battle with a Federal government more keen on renewable energy projects than the natural gas variety. Hancock Prospecting reported the first flows of gas production from the expansion field in late November 2024.
Rinehart once had a significant stake of nearly 20 percent in Lakes Oil, now Lakes Blue Energy (ASX:LKO), through subsidiary Timeview Enterprises. Timeview's stake in Lakes Blue Energy has been lowered in recent years, but it remains the company's fourth largest shareholder at 4.63 percent.
In late October, Rinehart offered financial assistance to Mineral Resources (ASX:MIN,OTC Pink:MALRF), a diversified mining company with lithium, iron ore and oil and gas operations in Western Australia. Headed by another mining heavyweight, Chris Ellison, Mineral Resources, or MinRes, is reportedly drowning in debt and embroiled in a tax evasion investigation. At that time, Hancock Prospecting agreed to a AU$1.13 billion buyout of MinRes' oil and gas projects in the Perth Basin and an exploration acreage in the Carnarvon Basin.
The 100 percent sale of two of MinRes' exploration permits to Hancock was completed in December for initial consideration of AU$780 million, with potential for up to AU$327 million depending on whether certain conditions and thresholds are met. The permits include the Moriarty Deep prospect and the Lockyer gas and Erregulla oil discoveries.
Separate to that sale, the two companies are also forming two 50/50 exploration joint ventures for MinRes' remaining permits in the Perth and Carnarvon Basins. Hancock will acquire 50 percent of the MinRes Explorer drill rig, which is the largest in Australia.
Gina Rinehart’s potash and agriculture investments
Gina Rinehart’s potash and agricultural investments center on Hancock Prospecting’s ownership interests in multiple premium cattle stations in Australia, and the company's royalty revenue generated from the Anglo-American-controlled Woodsmith potash project currently under construction in the United Kingdom.
With an original investment of AU$380.6 million in 2016 to then-owner Sirius Minerals, Hancock Prospecting has a 5 percent revenue royalty on the first 13 million tonnes of fertiliser produced from Woodsmith and 1 percent thereafter. Hancock also has a 20,000 tonne-a-year offtake option. The timeline for Rinehart’s royalty revenue has been pushed back, however, as Anglo is cutting spending at Woodsmith following BHP’s (ASX:BHP,NYSE:BHP,LSE:BHP) failed mega-merger with Anglo American.
Investor takeaway
With Gina Rinehart at the helm of Hancock Prospecting, the Roy Hill iron ore mine has generated stellar revenues. That wealth creation not only made her Australia's richest person, but has also built a powerful war chest from which Rinehart is expanding her mining empire.
Investors can take cues from her recent and future moves in the mining sector. Although she may be defensive toward renewable energy technologies encroaching on agricultural land, she understands the strategical importance of investing in critical metals for the green transition such as lithium, rare earths and copper.
FAQs for Gina Rinehart
How much is Gina Rinehart worth?
Gina Rinehart's net worth is reported to be AU$40.61 billion as of May 31, 2024. That's up 8.5 percent over the previous year, according to figures from the Australian Financial Review's Rich List 2024.
"Rinehart’s net worth jumped $3.2b in the last year thanks to multiples in the sector expanding," the list's authors explain. "However, her iron grip on the Rich List top spot may be weakened by ore price declines in 2024, on the back of concerns over steel output reducing in China."
What company does Gina Rinehart own?
Gina Rinehart owns Hancock Prospecting, a private company founded by her late father Lang Hancock. Originally an iron ore mining company, today the firm has strategic stakes in a wide-range of metals and commodities from lithium and rare earths to copper and agriculture, which are detailed in this article.
Can I buy shares in Hancock Prospecting?
While investors can't buy public shares in privately held Hancock Prospecting, they can take equity positions in the publicly traded stocks in which the company itself holds interest. Some of these stocks include Arafura Rare Earths (ASX:ARU,OTC Pink:ARAFF), Liontown Resources (ASX:LTR), MP Materials (NYSE:MP) and Lynas Rare Earths (ASX:LYC).
Does Gina Rinehart own Rio Tinto?
Although she has interest in many mining companies and the two companies share the Hope Downs joint venture, Gina Rinehart does not own mining giant Rio Tinto. Yahoo Finance reports that Aluminum Corporation of China (SHA:601600) is its largest shareholder at 11 percent, followed by BlackRock (NYSE:BLK) with 8.7 percent and the Vanguard Group at about 3.1 percent of shares.
What does Gina Rinehart think about nuclear energy?
Gina Rinehart is pro-nuclear energy. During a speech at The Australian Bush Summit in 2023, she railed against the impact of wind and solar farms on much needed agricultural land in Australia. She suggested that nuclear energy offers a more viable solution for reaching the country's net zero targets.
Is Gina Rinehart the richest person in Australia?
Gina Rinehart is the richest person in Australia. In 2024, she made the Australian Financial Review's Rich List for the fifth consecutive year in a row. The next richest Australian, real estate developer Harry Triguboff, trails her by about AU$14 billion.
Is Gina Rinehart the richest woman in the world?
Gina Rinehart is not the richest woman in the world, but she does rank as the world's ninth richest woman in 2024. The distinction of richest woman in the world goes to France's Francoise Bettencourt Meyer, the heir of L'Oréal (EPA:OR). Rinehart previously held the title in 2012.
Don't forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Pilot Plant Downstream Process Produces Lithium Carbonate with 99.78% Purity
CleanTech Lithium PLC (AIM: CTL, Frankfurt: T2N), an exploration and development company advancing sustainable lithium projects in Chile, further to "Pilot-Scale Lithium Carbonate Production" RNS on 21 November 2024, announces the production of a high purity lithium carbonate sample from the Company´s pilot plant downstream process.
The Company has also made the decision to voluntarily delist from the OTCQX market in the U.S. The Board did not see the value from low trading volumes and the associated administration costs. The Company's Ordinary Shares continue to trade on the London AIM Market, the Frankfurt Stock Exchange and the U.S. OTC Pink Market.
Highlights:
- The Company is processing concentrated eluate from its DLE pilot plant in Copiapó, Chile at the facilities of Conductive Energy ("Conductive") in Chicago, USA with the aim of producing battery grade lithium carbonate.
- The downstream process design aims to minimise process steps and demonstrate a process that is scalable and can consistently produce a battery-grade lithium carbonate product. Key stages are:
- Eluate concentration using Forward Osmosis ("iFO") to produce a highly concentrated pre-carbonation solution with low energy input
- Treatment of the pre-carbonation solution to remove contaminants
- Carbonation to technical-grade lithium carbonate
- Post-carbonation polishing to achieve battery-grade lithium carbonate
- A substantial volume of pre-carbonation solution and lithium carbonate was produced as reported to the market on 21 November 2024.
- Due to the onset of freezing weather in Chicago from late November, steps were taken to mitigate damage to sensitive iFO processing equipment and iFO concentration was paused.
- Further downstream processing continued using the already produced pre-carbonation solution to refine and analyse the downstream process and lithium carbonate product.
- A test run volume of pre-carbonation solution was processed in December into an 8kg sample of high grade lithium carbonate which a laboratory at the University of Calgary has recently confirmed achieved 99.78% purity.
- This exceeds the 99.6% purity standard (Chinese GB/T 23853-2022 (Type 1) for battery grade lithium carbonate from brine. However, certain individual impurity concentrations were higher than the standard.
- The treatment process was shown to be effective at removing contaminants, resulting in high-quality feed to the carbonation stage.
- The most problematic contaminants in the pre-carbonation solution, Calcium, Magnesium and Boron, were reduced by 98.5%, 99.9% and to non-detection (>99.99%) respectively.
- Conductive Energy is is currently assessing best options to restart iFO operations that are paused due to winter conditions.
- Conductive is utilising the current pause to upgrade the system based on initial data as well as add an nanofiltration step to remove divalent ions (Calcium, Magnesium) before the ion exchange steps which will improve purification efficiency further whilst improvements in automation and process control will be made.
Steve Kesler, Executive Chairman, CleanTech Lithium said: "We are pleased to report the production of high grade lithium carbonate with a purity of 99.78% from an initial batch of concentrated eluate from our Laguna Verde project. This phase of work has focused on fine-tuning the process and preparing to scale up pilot plant output. Our collaborative efforts with Conductive Energy and Forward Water on the downstream process are advancing our aim to produce signifigant quantities of battery grade product to introduce to potential strategic partners and off-takers."
Images 1-2: High purity lithium carbonate falling from filter plate and final product. Low adhesion and moisture content is an indicator of high product purity & exceptional crystal structure
Further Details:
In 2H 2024, a total of 88m3 of concentrated eluate produced at the Company´s DLE pilot plant located in Copiapó, Chile, was shipped to the facilities of Conductive Energy in Chicago, USA, for conversion into lithium carbonate. Processing commenced in November 2024 and a total of 27.5m3 of concentrated eluate was processed through the iFO stage which reduced the volume to 5.3m3 of pre-carbonation solution with lithium concentrations up to 14,400mg/l. The iFO unit is a mobile demonstration scale unit with a feed flow rate of 800 - 1,000L per hour and is an outdoor installation and therefore susceptible to weather conditions. A portion of the solution was processed into approximately 50kg of lithium carbonate as announced to the market on 21 November 2024.
Image 3: The iFO unit installed at the Conductive Energy site in Chicago, USA
Despite challenging weather conditions in late November, with temperatures in Chicago dropping below zero degrees Celsius, process evaluation continued with the aim of achieving iterative improvements in yield at lower energy and reagent inputs, which helps assess scalability and operating costs.
Adverse weather did pose risks to sensitive process equipment, such as the membrane modules of the iFO unit and further iFO concentration was paused. Under commercial-scale operations, such systems would be housed within temperature-controlled facilities to mitigate these challenges.
Production of High Purity Product
Downstream processing continued using iFO concentrate already produced to run the final purification, carbonation and polishing stages and produce a test quantity of high grade lithium carbonate. The solution produced by the iFO unit was 14,350mg/l Li, a 6.5X increase in concentration of the concentrated eluate. This was achieved without optimisation and in sub-optimal weather conditions. Optimization is expected to achieve a minimum 10X increase in concentration at this stage. Further stages of contaminant removal, carbonation and polishing achieved a high grade lithium carbonate product with a purity of 99.78% Li2CO3
 |
Feed Brine | Concentrated Eluate | Post iFO Solution | Lithium Carbonate | |
Grade (mg/L Li) | 180 | 2,210 | 14,350 | 99.78% |
Table 1: Lithium grade in key stages from feed brine to final product
Treatment to Remove Impurities
The purification stage consists of 3 process units - microfiltration, divalent ion exchange and boron ion exchange. These were shown to greatly reduce the concentrated contaminants in the pre-carbonation solution resulting in a high-quality feed to the carbonation process. The most problematic contaminants in the pre-carbonation solution, Calcium, Magnesium and Boron were reduced by 98.5%, 99.9% and to non-detection (>99.99%), respectively. Table 2 shows the major ions in each process stage. Upgrades to the system, including the addition of a nanofiltration step is being implemented to more efficiently remove divalent ions which were at a higher concentration in the concentrated eluate received (although within Lanshen design specification) than the Conductive pilot plant was set up for.
Element (mg/L) | Concentrated Eluate (mg/L) | iFO (mg/L) | Microfiltration (mg/L) | Ion Exchange (mg/L) | Boron Ion Exchange (mg/L) |
B | 506 | 1,655 | 1,480 | 1,230 | ND |
Ca | 48.2 | 346 | 319 | 5 | 5 |
K | 21.8 | 129 | 132 | 114 | 70 |
Mg | 49.7 | 357 | 318 | 1.7 | 0.4 |
Na | 428 | 2,685 | 4,140 | 7,870 | 5,115 |
S | 19.3 | 136 | 132 | 117 | 78 |
Table 2: Major impurities following each stage of pre-treatment
Carbonation Stage
Carbonation proceeded as designed, with initial technical grade material produced from the feed in under 15 minutes of reactor time. The technical grade product was subsequently polished in a single wash step to produce a high-purity lithium carbonate product. Table 2 presents all the detected elements by ICP, undertaken by a laboratory at the University of Calgary, as a percent weight of the total dry product (100% dry mass). Moisture in the product prior to kiln drying was low at 28% wt. The final product achieved 99.78% lithium carbonate purity on a fully dry basis (Table 3).
Image 4: Filter press used in the conversion process to produce lithium carbonate
A comparison to Chinese standard GB/T 23853-2022 (Type 1) for battery grade lithium carbonate is shown in Table 3. Potassium, sodium and chloride will be reduced through changes in carbonation reactor operation such that post-carbonation washing is more effective. The divalent ions, calcium and magnesium, will be reduced following introduction of the nanofiltration step.
Product | CTL T1 Product2 | GB/T 23853-2022 |
Li2CO3 | 99.78% | 99.60% |
Na | 0.050% | 0.030% |
K | 0.014% | 0.002% |
Ca | 0.022% | 0.005% |
Mg | 0.015% | 0.005% |
SO4 | 0.016% | 0.01% |
Cl | 0.044% | 0.02% |
B | 0.001% | 0.005% |
Fe | nd (0.0005%) | 0.001% |
Cu | nd (0.0005%) | 0.005% |
Pb | nd (0.0005%) | |
Al | 0.001% | |
Zn | nd (0.0005%) | |
Si | 0.006% | 0.002% |
Mn | 0.0003% | 0.001% |
H2O | 0.2% | 0.4% |
Insoluble | nd (0.01) | 0.005% |
Table 3: Weight (%) of elements in the final product after drying
Next Steps
Downstream processing is scheduled to resume in February 2025, with the rest of the 88m³ volume of concentrated eluate anticipated to be processed between February and April 2025.
Conductive Energy is utilising the the iFO operations pause to implement several improvements to the system will be implemented primarily in automation and process control and debottlenecking for continuous operation and addition of a nanofiltration stage. The planned schedule is:
- Early January - early February 2025: facility recommissioning and recommence processing
- Mid-February - plan additional tours with third parties for offtake purposes
- Mid-February - early April, completion of CleanTech Lithium's concentrated eluate processing and conversion to battery grade lithium carbonate to produce larger quantities for start of product qualification by potential strategic partners and off-takers.
Competent Persons Statement
The following professional acts as qualified person, as defined in the AIM Note for Mining, Oil and Gas Companies (June 2009) and JORC Code (2012):
The technical information contained within this announcement has been reviewed and approved by Dr Steve Kesler, a Director of the Company. Dr Kesler is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer with over 40 years' experience in the mining and resource development industry. Dr Kesle holds a degree in Mining Engineering and Ph.D in Mineral Technology both from Imperial College, London Dr Kesler and has sufficient experience, as to qualify as a Competent Person as defined in the 2012 edition of the "Australian Code for Reporting of Mineral Resources and Ore reserves" and for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009. Dr Kesler consents to the inclusion in this announcement of the matters based on information in the form and context in which it appears. The Company is reporting progress on project development and metallurgical results under the 2012 edition of the Australasian Code for the Reporting of Results, Minerals Resources and Ore reserves (JORC code 2012).
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain. The person who arranged for the release of this announcement on behalf of the Company was Gordon Stein, Director and CFO.
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 |
Fox-Davies Capital Limited (Joint Broker) Daniel Fox-Davies | +44 (0) 20 3884 8450 |
Canaccord Genuity (Joint Broker) James Asensio | +44 (0) 20 7523 4680 |
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 lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium's mission is to become a new supplier of battery grade lithium using Direct Lithium Extraction technology powered by renewable energy.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and exploration stage projects in Llamara and Arenas Blancas (Salar de Atacama), located in the lithium triangle, a leading centre for battery grade lithium production. The two most advanced 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 good access to existing infrastructure.
CleanTech Lithium is committed to utilising Direct Lithium Extraction with reinjection of spent brine resulting in no aquifer depletion. Direct Lithium Extraction is a transformative technology which removes lithium from brine with higher recoveries, short development lead times and no extensive evaporation pond construction. www.ctlithium.com
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This article includes content from Cleantech Lithium PLC, 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.
Argentina’s Lithium Resource Holds Potential to Power the Global Energy Transition
The significance of Argentina's lithium resources is underscored by recent industry movements. For instance, Rio Tinto's (ASX:RIO,NYSE:RIO,LSE:RIO) $6.7 billion planned acquisition of Arcadium Lithium (NYSE:ALTM,ASX:LTM) highlights the growing interest in brine projects and the strategic value of their location within the Lithium Triangle.
This move signals a broader trend of major players recognising the potential of Argentina's lithium deposits.
The Lithium Triangle: A geological profile
The Lithium Triangle, aptly named for its abundance of the lightweight metal, is the world's largest source of lithium. This region holds the key to meeting the surging demand for lithium-ion batteries that power EVs and store renewable energy. Argentina, with its vast salt flats, is particularly well-positioned to capitalise on this demand.
This region’s extensive salt flats are the result of ancient lakes that have evaporated over millions of years. These salars are underlain by vast aquifers containing lithium-rich brines, formed through the weathering of lithium-bearing rocks. The concentration of lithium in these brines is exceptionally high, with some areas reporting concentrations up to 1,500 milligrams per litre (mg/L), significantly higher than deposits found elsewhere. This unique geological formation, coupled with the arid climate that promotes natural evaporation, creates ideal conditions for lithium extraction.
The geological stability of the region, marked by minimal tectonic activity, further enhances its attractiveness for long-term mining operations. These factors combine to make Argentina's lithium resources not only abundant but also economically viable and strategically accessible for extraction.
Argentina's lithium production primarily relies on brine extraction, a method that offers several advantages over traditional hard rock mining. This process involves pumping lithium-rich brine from underground reservoirs and allowing it to evaporate in large ponds, leaving behind concentrated lithium compounds.
The benefits of brine extraction include:
- Lower production costs compared to hard rock mining
- Reduced environmental impact due to less intensive mining operations
- Higher-grade lithium with fewer impurities, ideal for battery production
These factors contribute to Argentina's competitive edge in the global lithium market, making its projects particularly attractive to investors and battery manufacturers alike.
Spotlight on excellence: Hombre Muerto West project
A prime example of Argentina's lithium potential is Galan Lithium's (ASX:GLN) Hombre Muerto West (HMW) project. Located in the heart of Argentina's lithium-rich Salar del Hombre Muerto, this project exemplifies the high-grade, low-impurity brine that makes Argentine lithium so valuable.
Key features of the HMW project include:
- High-grade lithium brine with concentrations of 859 mg/L
- Low levels of impurities, reducing processing costs
- Strategic location near established operations like Livent Corporation's El Fenix site
- A substantial resource of approximately 8.6 million tonnes of lithium carbonate equivalent
The project's proximity to existing operations enhances its value proposition, potentially allowing for shared infrastructure and knowledge transfer. This strategic positioning within the Lithium Triangle underscores the importance of location in the lithium industry.
Wood Mackenzie’s emissions benchmarking service has also placed HMW within the first quartile of the industry greenhouse gas emissions curve, making the project a globally significant, long-term source of lithium.
Argentina's commitment to lithium production
Recognising the immense potential of its lithium resources, Argentina has taken significant steps to foster growth in its lithium industry. The government has implemented a supportive regulatory framework aimed at attracting investment and accelerating project development.
Key initiatives include:
- A $7 billion investment plan to boost lithium production
- Projected export growth from $1.7 billion in 2022 to $5 billion by 2025
- Streamlined permitting processes for lithium projects
- Incentives for companies investing in lithium extraction and processing
These efforts are expected to significantly increase Argentina's lithium output, solidifying its position as a major player in the global supply chain.
Investment potential
The combination of high-grade resources, favorable extraction methods and supportive government policies makes Argentina's lithium projects highly attractive to investors. Companies like Galan Lithium, with their focus on high-grade brine assets, are well-positioned to capitalise on the growing demand for lithium in the clean energy sector.
Key factors driving investment interest in Argentina’s lithium sector include:
- Lower production costs compared to hard rock lithium mining
- High-quality lithium suitable for high-performance batteries
- Increasing global demand for lithium, driven by EV adoption and renewable energy storage
- Argentina's commitment to expanding its lithium industry
As the world transitions towards cleaner energy sources, the importance of securing a stable lithium supply becomes paramount. Argentina's lithium projects offer a compelling opportunity for investors looking to participate in this global shift.
Investor takeaway
Argentina's strategic position in the Lithium Triangle makes it a crucial player in the global lithium supply chain.
With its high-grade brine resources, favorable extraction methods and supportive government policies, the country is poised to significantly impact the future of clean energy technologies.
As projects like Galan Lithium's HMW continue to develop, and as global demand for lithium surges, Argentina's strategic importance in the lithium market is set to grow. For investors, policymakers and industry stakeholders, keeping a close eye on developments in Argentina's lithium sector will be crucial in navigating the evolving landscape of the global energy transition.
This INNSpired article is sponsored by Galan Lithium (ASX:GLN,FSX:9CH). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Galan Lithiumin order to help investors learn more about the company. Galan Lithium 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 Galan Lithiumand seek advice from a qualified investment advisor.
World Lithium Outlook 2025
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World Lithium Outlook 2025
Table of Contents
Lithium Market 2024 Year-End Review
Lithium Market 2024 Year-End Review
Lithium prices remained low in 2024 on the back of oversupply and weak demand.
Lithium carbonate spent the majority of the year contracting, shedding 22 percent between January and December. Prices started the 12 month period at US$13,160.20 per metric ton (MT) and ended it at US$10,254.16.
The weak price environment was the result of a supply glut, a factor that S&P Global expects to persist in 2025.
In a November report, the firm forecasts a “global surplus of approximately 33,000 metric tons of lithium carbonate equivalent in 2025, a decrease from the 84,000 metric tons surplus projected for 2024 and 2023's 120,000 metric tons."
Against that backdrop, S&P is projecting continued lithium carbonate price declines next year, with the annual average price projected at US$10,542 in 2025, down from US$12,374 in 2024 and a steep drop from US$40,579 in 2023.
Adding to price pressure, advances in alternative battery technologies are posing challenges to lithium's traditional dominance. In 2024, these factors combined to create a year of volatility and transformation for the critical battery metal.
Supply surplus weighs on lithium prices
Market saturation emerged as a key theme for lithium early in the year as a continued surplus weighed on prices.
The excess comes on the back of steadily growing mine supply over the last four years. In 2020, the annual global mine supply tally was 82,500 MT, a number that more than doubled in 2023 to 180,000 MT.
Prices for lithium carbonate remained in the US$13,000 range for January, but began to rise in mid-February, ultimately reaching a year-to-date high of US$15,969.26 on March 14.
The price momentum was attributed to announcements that some new projects were being delayed, while operations in development and production were being transitioned to care and maintenance.
“We also began to see some supply response to the persistent lower price environment, with the announcement of delays to expansion plans and layoffs at some lithium producers or aspirants,” Adam Megginson, analyst at Benchmark Mineral Intelligence, told the Investing News Network during the first quarter.
“I only expect this to palpably impact the supply picture in 12 to 18 months, as that is when these expansions were planned to ramp.”
Record-setting lithium M&A activity
This precarious landscape was fertile ground for M&A deals, which occurred throughout the year.
“As lithium projects struggle to stay above water, analysts also expect M&A activity to increase as major producers with positive cash flow try to find deals in the market while junior companies try to sell projects in a market where private capitals are scarcer than previous years," a February 12 report from S&P Global states.
2024 started with the completion of Livent (NYSE:LTHM) and Allkem's merger of equals. The deal saw the two companies combine under the Arcadium Lithium (NYSE:ALTM,ASX:LTM) banner,boasting a market cap of US$5.5 billion and an extensive portfolio of lithium production assets and resources across the Americas and Australia.
By September, the weak price environment had forced Arcadium to halt expansion plans for its Mount Cattlin spodumene operation in Western Australia, with plans to transition to care and maintenance by mid-2025.
Despite that setback, Arcadium made headlines once again a month later as global mining major Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) made a move to acquire the multinational lithium company. Once the US$6.7 billion all-cash transaction closes, Rio Tinto will become the third largest producer of lithium globally.
Another notable 2024 lithium deal was Pilbara Minerals' (ASX:PLS,OTC Pink:PILBF) August plan to acquire Latin Resources (ASX:LRS,OTC Pink:LRSRF) in an all-stock deal valued at approximately US$369.4 million.
The acquisition will grant Pilbara Minerals access to Latin Resources' flagship Salinas lithium project in Brazil's Minas Gerais state, enhancing its presence in the burgeoning North American and European battery markets.
In late November, Sayona Mining (ASX:SYA,OTCQB:SYAXF) and US-based Piedmont Lithium (ASX:PLL,NASDAQ:PLL) unveiled a merger that is set to create a consolidated entity valued at about US$623 million.
These deals helped make lithium one of the most active M&A segments in the critical minerals space.
“Lithium stands out with both the highest volume of deals and largest total deal value from 2020-24 (US$24 billion),” a 2025 critical minerals outlook from Allens reads. “Deal volume for lithium M&A deals peaked in 2023, but remains relatively high in 2024, showing comparable volume to 2022.”
Global EV sales rebound amid trade tensions and policy shifts
As one of the largest end-use segments for lithium, the EV industry is a key factor in the market.
Weak North American EV sales early in the year offset some positivity out of Asian markets; however, in late Q3 and Q4, global sales began to pick up momentum. In October, the Chinese EV market set another monthly record with 1.2 million units sold, a 6 percent month-on-month increase. According to data from research firm Rho Motion, EV sales between January and October were up 24 percent compared to the same period in 2023.
“The global EV market is now picking back up again, hitting record sales for the second month in a row. Most of the growth is coming from China and Western manufacturers are clearly feeling threatened by this. The US market remains buoyant in part thanks to Inflation Reduction Act (IRA) funding for consumers switching to electric which may be at risk with the start of the Trump presidency,” said Charles Lester, data manager at Rho Motion.
However, there is speculation that President-elect Donald Trump will dismantle key components of the IRA, particularly targeting the US$7,500 EV tax credit. His transition team has indicated intentions to eliminate this consumer incentive, which was designed to promote EV adoption and bolster the country's clean energy sector.
Critics have argued that removing the tax credit could hinder domestic EV sales and potentially benefit foreign competitors, notably China, by undermining investments in the US battery supply chain.
With that in mind, the proposed repealing of the tax credit has raised concerns among automakers and environmental advocates about the future of America's competitiveness in the rapidly growing global EV market.
The Biden administration made efforts to address that issue in May, when it sharply increased tariffs on Chinese EVs, raising duties to over 100 percent to counter alleged unfair trade practices. While the move was made to bolster domestic EV production and sales, critics said it could disrupt supply chains and raise consumer costs.
Following suit in August, North American neighbor Canada levied a 100 percent tariff on Chinese EVs, aligning with the US and EU to counter China’s trade practices. At the time, Prime Minister Justin Trudeau criticized China’s policies as unfair, citing their impact on Canadian industries and workers. He emphasized the need to protect the domestic EV and metal sectors from overcapacity caused by China’s state-driven production.
Canada also introduced a 25 percent surtax on Chinese steel and aluminum imports.
In response, China filed a formal complaint with the World Trade Organization over Canada’s decision to impose tariffs on Chinese-made EVs, steel and aluminum. Beijing criticized the measures as protectionist and in violation of international trade rules. China also filed similar complaints against the US and EU.
As uncertainty continues to plague the lithium space, analysts are projecting a sustained low-price environment into 2025, despite the production cuts and project delays that were prevalent in 2024.
"With the production cuts announced so far having primarily been about slowing future growth rather than immediate production, strong mine supply growth is still expected in the short-term, namely 24.7 percent in 2024 and 17.4 percent in 2025," Macquarie analysts told S&P Global as 2024 drew to a close.
"This suggests lower prices will need to persist for longer in the absence of any further price-induced cuts that rebalance the market sooner than our forecasts indicate.”
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Lithium Market Forecast: Top Trends for Lithium in 2025
After a tumultuous 2024 that saw lithium carbonate prices tumble 22 percent amid a global supply glut, analysts are predicting another year of volatility for the important battery metal.
Even so, some balance is expected to return — according to S&P Global, the lithium surplus is projected to narrow to 33,000 metric tons in 2025, down from 84,000 metric tons in 2024, as production cuts begin to temper excess supply.
Demand from the electric vehicle (EV) market remains a key driver, with China maintaining its dominance after record-breaking sales in late 2024. In North America, the EV sector will face uncertainty under the Trump administration.
As 2025 unfolds, the lithium sector will also have to navigate geopolitical tensions, including rising tariffs on Chinese EVs and escalating trade disputes that are reshaping global supply chains.
“The name of the game in lithium (in 2025) is oversupply. Excess production in places like Africa and China, coupled with softer EV sales, has absolutely hammered the lithium price both in 2023 and 2024. I wouldn't think we can dig ourselves out of this hole in 2025 despite reliably strong EV sales,” said Chris Berry, president of House Mountain Partners.
In his view, the next 12 months could be unpredictable in terms of lithium price activity.
“Lithium price volatility is a feature of the energy transition and not a bug,” he said. “You have a small but fast-growing market, opaque pricing, legislation designed to rapidly build critical infrastructure underpinned by lithium and other metals, and this is a recipe for boom-and-bust cycles demonstrated by extremely high and extremely low pricing.”
For Gerardo Del Real of Digest Publishing, seeing prices for lithium contract by 80 percent over the last two years evidences a bottoming in the lithium market and also serves as a strong signal.
“I think the fact that we're up some 7 percent to close the year in 2024 in the spot price leads me to believe that we're going to see a pretty robust rebound in 2025. I think that's going to extend to the producers that have obviously been affected by the lower prices, but also to the quality exploration companies,” Del Real said in December.
He believes contrarian investors with a mid to long-term outlook have a prime opportunity to re-enter the space.
Lithium market to see more balance in 2025
As mentioned, widespread lithium production cuts are expected to help bring the sector into balance in 2025.
William Adams, head of base metals research at Fastmarkets, told the Investing News Network (INN) via email that output cuts for the battery metal have already started inside and outside of China.
“We expect further cutbacks if prices do not recover soon in the new year. While we have seen some cuts, we are also seeing some producers continue with their expansion plans and some advanced junior miners ramp up production. So we are now in a situation where we are waiting for demand to catch up with production again," he said.
Adams and Fastmarkets expect to see lithium demand catch up to production in late 2025. However, he warned that refreshed demand is unlikely to push prices to previous highs set in 2022.
“We do not expect to see a return to the highs we saw in 2022, as there are more producers and mines around now and there has been a buildup of stocks along the supply chain, especially in China,” he said.
“This should prevent any actual shortage being seen in 2025, but stocks can be held in tight hands, and if the market senses a tighter market, then they may be encouraged to restock, which could lift prices. But the restart of idle capacity in such a case is likely to keep prices rises in check," Adams added.
Analysts at Benchmark Mineral Intelligence are taking a similar stance, with a slightly more optimistic tone.
“In 2025, prices are likely to remain fairly rangebound. This is because Benchmark forecasts a relatively balanced market next year in terms of supply and demand,” said Adam Megginson, senior analyst at the firm. He also referenced output reductions in Australia and China, noting that they may not be as impactful as some market watchers anticipate.
This past July, Albemarle (NYSE:ALB), announced plans to halve processing capacity in Australia and pause an expansion at its Kemerton plant amid the prolonged lithium price slump. One of the plant’s two processing trains will be placed on care and maintenance, while construction of a third train has been scrapped.
“These supply contractions are likely to be balanced by capacity expansions due to come online in China in 2025, as well as in African countries like Zimbabwe and Mali,” Megginson said.
“Expect supply from these other regions to play a bigger role in the market in 2025.”
Unpredictable geopolitical situation to impact sector
Geopolitics is likely to play a key role in the lithium market this year, both directly and indirectly.
In 2024, the Biden administration raised tariffs on Chinese EVs to over 100 percent to counter alleged unfair trade practices, aiming to boost domestic production, but drawing criticism over potential supply chain disruptions.
Canada followed suit with similar 100 percent tariffs on Chinese EVs, as well as a 25 percent surcharge on Chinese steel and aluminum, citing the need to protect local industries. China has responded with World Trade Organization complaints against Canada and the US, along with the EU, labeling the measures protectionist.
Whether these tariffs against China will be enough to bolster the domestic North American EV market remains to be seen; however, the issue could become even more complicated if US President-elect Donald Trump makes good on his threats to levy tariffs on America's continental trade partners, Canada and Mexico.
Del Real doesn't expect US tariffs on critical minerals like lithium, but expressed concerns about a trade war.
“The bottom line is getting into a tit-for-tat with China is a dangerous proposition because of the leverage they have, especially in the commodity space, and so the tariffs are going to be passed down to consumers," he said. In his view, Trump's tariff threats could be more of a negotiating tactic than a sustained strategy.
More broadly, the experts INN heard from expect resource nationalism, near shoring and supply chain security to play prevalent roles in the lithium market and the critical minerals space as a whole.
“There's no doubt that lithium in particular has become politicized as policy makers across the globe have awoken from their slumber and realized that dependence on critical materials and supply chains in a single country is a bad idea for both economic and national security,” said Berry, noting that China had this realization decades ago.
“There is no easy fix, and you're looking at roughly a decade before any western countries have any sort of a regionalized or 'friend-shored' supply chain. Accelerating this would involve massive capital investment, patience and most importantly, political will. North America in particular has made great strides in recent years, but we have a long way to go. I'm not sure if fully decoupling from China is even a good idea," the battery metals expert added.
For Benchmark’s Megginson, 2025 could be a year of increased domestic development.
“We have seen several countries attempting to adopt some form of 'resource nationalism.' In some cases, this has been driven by wanting to onshore the production of critical minerals that are necessary for defense and nuclear applications. In others, it stems from a desire to be more self-sufficient so they can be more resilient to supply shocks.”
Proposed tariffs from Trump could also serve as a catalyst for US lithium output.
“With the incoming Trump administration, everyone has their eyes on how promises of increased tariffs will be implemented. Ultimately, heavier tariffs would accelerate efforts to onshore capacity in the US,” Megginson said.
“We may see the EU following suit with tariffs. There has been much said of the diversification of the lithium market away from China, but many of those efforts stalled in 2024 as the downswing in prices and a shifting geopolitical landscape made these endeavors more challenging," added the Benchmark senior analyst.
This nationalistic focus is also projected to impact refinement capacity and jurisdiction.
“While extracting the lithium from the ground has been successfully done in non-incumbent countries, such as in Brazil, Central Africa and Canada, with others expected to follow, the building of refining capacity has proved more difficult from a know-how and cost point of view, with a number of companies announcing that they are reining in some expansion plans, canceling some building projects or delaying decisions,” Adams of Fastmarkets said.
He went on to note that South Korea is an area to watch.
“Outside of China, South Korea has successfully ramped up new refining capacity, while Australia has had mixed results. The general issue is it’s hard to get the process right, and the CAPEX and OPEX outside of China means it is hard to be competitive. It will be interesting to see how Tesla’s (NASDAQ:TSLA) new Texas plant ramps up,” Adams noted.
Elsewhere, Adams pointed to the desire to secure supply chains. “Resource nationalism has also been an issue in some jurisdictions, with more countries now wanting processing capacity to be built in the country, and in order to force that they have banned the export of lithium-bearing ores. Zimbabwe a case in point,” he told INN.
Adams also pointed to Chile’s efforts to partially nationalize lithium producers, with the government mining company having controlling stakes in producers. “This could deter international investment in developing these mines,” he said. “In other metals, Indonesia has been very successful in playing the resource nationalism card.”
EV and ESS sectors to be key lithium price drivers
While the factors mentioned will undoubtedly impact the lithium industry in 2025, the market's most pronounced driver is the EV sector, and to a lesser extent the energy storage system (ESS) space.
“Demand for lithium-ion batteries is set to continue to grow rapidly in 2025. Benchmark forecasts that EV and ESS-related demand for lithium will both increase by over 30 percent year-on-year in 2025,” said Megginson.
To satiate this uptick in demand, “additional volumes of lithium will need to come to market.”
Megginson also noted that robust ESS demand is a positive demand signal for lithium-iron-phosphate (LFP) cathode chemistries, but is unlikely to outweigh the mounting EV demand in China.
This sentiment was echoed by Berry of House Mountain Partners, who expects the EV and ESS sectors to continue dominating market share in terms of lithium end use. “EVs and ESS are roughly 80 percent of lithium demand, and this shows no signs of abating. Other lithium demand avenues will grow reliably at global GDP, but the future of lithium is tied to increasing proliferation of the lithium-ion battery,” he commented to INN.
Despite weak EV sales in Europe and North America in 2024, Fastmarkets’ Adams expects to see a recovery in demand from these regions, paired with strong sales in China. The dip in European sales, particularly in Germany after subsidy cuts in early 2024, mirrors China’s 2019 slowdown following subsidy reductions. However, as with China, the decline appears temporary, with a recovery expected as stricter emissions penalties take effect in Europe in 2025.
Additionally, Adams pointed to the growing adoption of extended-range EVs, which address range anxiety and use larger batteries than plug-in hybrid EVs, as a catalyst for lithium demand.
However, he noted that the outlook for EVs in the US remains uncertain as Trump takes the helm.
“ESS demand has been particularly strong, especially in China, and we expect that to continue as the need to build renewable energy generation capacity is ever present and has a wide footprint. For example, ESS buildout in India is strong, whereas demand for EVs is less strong, but again it is strong for 2/3 wheelers," said Adams. He added that low prices for battery raw materials have lowered prices for lithium-ion batteries, benefiting ESS projects.
Ultimately the lithium market is expected to see volatility in 2025, but could also present opportunities.
"I can see a 100 to 150 percent rebound in the lithium spot price easily in 2025. And again, I think there's a lot of opportunity there,” Del Real of Digest Publishing emphasized to INN.
For Megginson, the sector will be shaped by geopolitics and relations moving forward.
“Policy will have a huge role to play in driving price trends in 2025," he said.
"For instance, there remains uncertainty around how the tariffs promised by an incoming Trump administration in the US would be implemented, and how they could reshape the global lithium landscape."
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Beyond Lithium and Grid Battery Metals are clients of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
6 Best-performing Lithium Stocks of 2024
Global lithium stocks and the overall lithium marketfaced a turbulent 2024, marked by oversupply, softer-than-expected electric vehicle (EV) demand and geopolitical tensions that reshaped the industry.
Prices for lithium carbonate plummeted 22 percent, driven by a supply glut and weaker demand outside of China.
Amid this challenging landscape, mergers and acquisitions surged. The year started out with the completion of Livent and Allkem's merger, which birthed Arcadium Lithium (NYSE:ALTM,ASX:LTM). Then, in October, major diversified miner Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) announced plans to acquire Arcadium.
Meanwhile, EV demand rebounded late in the year, led by record sales in China.
Even against this tumultuous backdrop, some lithium stocks listed in Canada and Australia performed strongly. Below the Investing News Network has gathered the top gainers year-to-date using TradingView’s stock screener. All lithium stocks listed had market caps above $50 million in their respective currencies when data was gathered.
Data for Canadian stocks was collected on December 27, 2024, and data for Australian stocks was gathered on December 31, 2024. While US lithium companies were considered, none were up year-to-date at the time data was collected.
1. Q2 Metals (TSXV:QTWO)
Year-to-date gain: 220 percent
Market cap: C$106.11 million
Share price: C$0.80
Exploration firm Q2 Metals is exploring its flagship Mia lithium property in the Eeyou Istchee James Bay region of Québec, Canada. The property contains the Mia trend, which spans over 10 kilometers. Also included in Q2 Metals' portfolio is the Stellar lithium property, comprised of 77 claims and located 6 kilometers north of the Mia property.
In 2024, Q2 Metals also focused on exploring the Cisco lithium property, which is situated in the same region. On February 29, the company entered into three separate option agreements to gain a 100 percent interest in Cisco. The news caused its share price to skyrocket, reaching a Q1 high of C$0.54 on March 4.
Q2 Metals closed the acquisition of Cisco in June and now wholly owns the project.
In mid-May, the company announced the start of a summer drill program at the Cisco property. It has since released multiple progress updates, including the confirmation of eight new mineralized zones on July 8.
On October 1, Q2 Metals shared assays from the drill program at the Cisco site. The company's share price spiked on the news, ultimately climbing to an all-time high of C$1.48 on October 11.
“These assays continue to validate the potential and scale of the Cisco Property as that of a larger mineralized system,” said Neil McCallum, vice president of exploration. “One important observation of these results is the higher-grade nature of the larger mineralized system as we test and track the system progressing to the south.”
By the end of the Cisco drill program, the company had drilled 17 holes covering 6,360 meters in total. Q2 Metals released the final results from the campaign on December 17.
As of mid-December, Q2 Metals had the exclusive right to acquire a 100 percent interest in 545 additional mineral claims, which would triple its land position at the Cisco lithium property. The new claims, located south of the original property, enhance prospects for development and future mining infrastructure.
2. Power Metals (TSXV:PWM)
Year-to-date gains: 73.08 percent
Market cap: C$67.57 million
Share price: C$0.45
Exploration company Power Metals holds a portfolio of diversified assets in Ontario and Québec, Canada.
In late February, Power Metals commenced a winter drill program at its Case Lake property in Northeastern Ontario. The company said the program was designed to expand and define lithium-cesium-tantalum mineralization, building on previous work that revealed high-grade lithium and cesium mineralization.
Company shares rose to an H1 high of C$0.47 at the end of March. The increase coincided with the news that Power Metals had staked the 7,000 hectare Pelletier project, consisting of 337 mineral claims in Northeast Ontario.
According to the company, the project features lithium-cesium-tantalum potential, with peraluminous S-type pegmatitic granites intruding into metasedimentary and amphibolite formations.
During the fourth quarter, Power Metals identified a new pegmatite zone at Case Lake through soil sampling. The samples from the zone, located north-northwest of its West Joe prospect, revealed elevated levels of cesium, tantalum, lithium and rubidium, highlighting promising drill targets for the winter program.
The company also launched a Phase 2 drone magnetic survey that is geared at refining its structural model for critical minerals targets at West Joe and the Main zone ahead of 2025 exploration efforts.
In a December 10 exploration update, Power Metals said its partner Black Diamond Drilling, a First Nations-owned drilling company, had completed 16 drill holes for 971 meters of the planned 2,000 meter program. Environmental studies were also ongoing. Shares rose over the following week to a year-to-date high of C$0.49 on December 16.
3. Lithium Chile (TSXV:LITH)
Year-to-date gains: 45.28 percent
Market cap: C$163 million
Share price: C$0.77
South America-focused Lithium Chile owns several lithium land packages in Chile and Argentina.
On April 9, the company announced a 24 percent increase in the resource estimate for its Arizaro property in Argentina. The new total for the project is 4.12 million metric tons (MT) of lithium carbonate equivalent, with 261,000 MT in the measured category, 2.24 million MT in the indicated category and 1.62 million MT in the inferred category.
Not long after, on April 18, the company reported the creation of two wholly owned Canadian subsidiaries — Lithium Chile 2.0 and Kairos Gold — as part of a spinout to separate its Chilean and Argentinian assets.
Lithium Chile will retain its Argentinian lithium projects, and transfer its 111,978 hectares of Chilean lithium properties to Lithium Chile 2.0 and its portfolio of gold assets in Chile to Kairos Gold.
In a July operational update for the Arizaro project, the company highlighted that a drill hole had encountered "a brine-rich, sandy formation encountered from 161 to 500-metres."
In an August announcement, Lithium Chile noted that the spinout of Lithium Chile 2.0 was reliant on finalizing a strategic deal for Arizaro. As for Kairos Gold, its spinout was effective on December 4.
In mid-December, Lithium Chile penned a letter of intent to sell its 80 percent stake in Arizaro.
The company said the buyer “is a large, Asian based company founded over two decades ago (and) a diversified enterprise with significant interests in mining, renewable energy, and technology sectors.”
The move to sell its flagship asset signals a strategic realignment for Lithium Chile. Although company shares reached a year-to-date high of C$0.88 in March, the recent sale news has pushed shares to the C$0.80 level.
Top Australian lithium stocks
1. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 84.48 percent
Market cap: AU$1.19 billion
Share price: AU$5.35
Europe-focused Vulcan Energy Resources aims to support a carbon-neutral future by producing lithium and renewable energy from geothermal brine. The company is currently developing the Zero Carbon lithium project in Germany's Upper Rhine Valley. Vulcan is utilizing a proprietary alumina-based adsorbent-type direct lithium extraction (DLE) process to produce lithium with an end goal of supplying sustainable lithium for the European EV market.
On April 11, Vulcan announced the commencement of lithium chloride production at its lithium extraction optimization plant in Germany. According to the company, the milestone marks the first lithium chemical production in Europe using local supply. The plant has consistently exhibited over 90 percent lithium extraction efficiency.
The company already has binding lithium offtake agreements in place with major automakers and battery manufacturers, and expects to supply enough lithium for 500,000 EVs during the first phase of production.
During Q3, Vulcan received its first licenses for lithium and geothermal exploration in Alsace, France. The permits cover 463 square kilometers, expanding Vulcan's total licensed area in the Upper Rhine Valley to 2,234 square kilometers.
In early August, Vulcan began commissioning its downstream lithium hydroxide optimization plant (CLEOP) near Frankfurt, Germany, which will process the lithium chloride concentrate from its DLE plant.
A mid-October release from Vulcan outlines a memorandum of understanding with industrial software designer AVEVA. The partnership will see AVEVA build a digital framework for Vulcan’s Zero Carbon lithium project.
Also in October, the company earned S&P Global’s highest "dark green" sustainability rating, a first for the mining sector, under its Green Financing Framework. On November 8, Vulcan announced it had commenced lithium hydroxide production at CLEOP. The milestone coincided with an AU$162 million funding infusion from Germany’s Federal Ministry of Economics and Climate Protection and the European Recovery and Resilience Facility.
To end the year, Vulcan announced the signing of a AU$1.45 billion conditional debt commitment letter with Export Finance Australia and a group of seven commercial banks.
2. Ioneer (ASX:INR)
Year-to-date gain: 6.67 percent
Market cap: AU$353.35 million
Share price: AU$0.16
Australia-listed Ioneer owns the Rhyolite Ridge lithium-boron project in Nevada, US. According to the company, the project is considered the “sole lithium-boron deposit in North America.”
As part of the permitting process for Rhyolite Ridge, Ioneer completed and submitted an administrative draft environmental impact statement (EIS) to the US Bureau of Land Management (BLM) in mid-January. In mid-September, Ioneer announced that the BLM had published the final EIS, moving the company closer to construction.
The comprehensive review process addressed environmental concerns, particularly regarding the protection of the endangered Tiehm's buckwheat plant found at the site. Ioneer has committed to measures aimed at safeguarding the plant's habitat. In October, Ioneer secured final federal approval for Rhyolite Ridge.
The project became the first US lithium mine authorized under the Biden administration.
Rhyolite Ridge is projected to produce sufficient lithium for approximately 370,000 EV batteries annually. Construction is slated to commence in 2025, with production expected by 2028.
3. Prospect Resources (ASX:PSC)
Year-to-date gain: 2.25 percent
Market cap: AU$52.03 million
Share price: AU$0.09
Africa-focused explorer Prospect Resources holds a diversified portfolio of assets in Zimbabwe, Zambia and Namibia. The company’s lithium prospects, Omaruru and Step Aside, are in Namibia and Zimbabwe, respectively.
In late June, Prospect released an update on its exploration activities, reporting strong assay results from Phase 4 diamond drilling at the Step Aside lithium project in Zimbabwe and follow-up Phase 2 drilling at the Omaruru lithium project. Managing Director Sam Hosack highlighted the significant mineralization potential at both projects.
Moving forward, Prospect plans to slow down spending at its lithium projects as it turns to its newly acquired Mumbezhi copper project in Zambia. The company believes it can monetize Step Aside in the near term to aid in this goal.
In its June quarterly results, Prospect noted the completion of drilling and fieldwork for a Phase 4 diamond drilling program at the Step Aside lithium project in Zimbabwe, with no further exploration planned.
The project is being prepared for sale to help fund the Mumbezhi copper project.
Meanwhile, Phase 2 drilling at the Omaruru lithium project is complete, and the company has reduced spending to holding costs as its focus shifts to the Mumbezhi project.
In its September quarterly report, Prospect said it was discontinuing its Bikita Gem earn-in project in Southeastern Zimbabwe after drilling results failed to identify economically viable volumes of petalite-rich lithium mineralization.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.