
January 13, 2023
ioneer Ltd ("Ioneer" or the "Company") (ASX: INR, Nasdaq: IONR) is pleased to announce finalisation of a term sheet and offer of a Conditional Commitment1 for a proposed loan of up to US$700 million2 from the U.S. Department of Energy (DOE) Loan Programs Office for financing the construction of the Rhyolite Ridge Lithium-Boron Project in Nevada, USA.
Highlights:
- The Conditional Commitment1 from the U.S. Department of Energy follows finalisation of a term sheet with the DOE for a proposed loan of up to US$700 million to develop the Rhyolite Ridge Lithium-Boron Project
- The proposed loan is to be made under the DOE Loan Programs Office's Advanced Technology Vehicles Manufacturing program for a term of approximately 10 years with an interest rate fixed from the date of each advance for the term of the loan at applicable U.S. Treasury rates
- The Conditional Commitment follows nearly two years of extensive and detailed technical, legal, and market due diligence by the DOE
- The proposed DOE loan coupled with Sibanye-Stillwater's expected equity contribution to secure a 50% interest in the Project, is anticipated to fund a substantial part of the preliminary capital expenditure estimate, representing a significant step towards a complete funding package for Rhyolite Ridge
- The DOE's conditional commitment reflects continued strong and dedicated support under the Biden Administration to develop a U.S. domestic EV supply chain
- Financial close of the loan is conditional on several achievements including a positive Record of Decision and Final Investment Decision
- Rhyolite Ridge is the most advanced undeveloped U.S. lithium project, and it is on track to provide an environmentally sustainable, long-life source of both lithium and boron for delivery into the U.S. domestic EV supply chain
Under the term sheet, the proposed loan is for an amount up to US$700 million with a term of approximately 10 years. The loan will be at an interest rate fixed from the date of each advance for the term of the loan at applicable U.S. Treasury rates.
The proposed loan is to be made under the DOE's Advanced Technology Vehicles Manufacturing (ATVM) loan program in support of the Biden Administration's critical minerals strategy. DOE has over US$50.0 billion in remaining loan authority under the ATVM program to support the manufacture of eligible advanced technology vehicles including electric vehicles (EVs), and qualifying components and materials, in the United States. Domestic processing of critical minerals, such as lithium, for use in EV batteries qualifies for the ATVM loan program3.
After commencing pre-application discussions in February 2021 regarding the DOE's ATVM loan program, Ioneer submitted an application in October 2021. The application was deemed substantially complete in December 2021 which initiated a third-party due diligence process that has been ongoing since March 2022. The Loan Programs Office has undertaken extensive and detailed market, technical and legal due diligence on both Ioneer and the Rhyolite Ridge Project. The Conditional Commitment is based on a revised Plan of Operations submitted by Ioneer to the U.S. Bureau of Land Management (BLM), now in the National Environmental Policy Act (NEPA) process, which completely avoids all direct impact and minimises indirect impact on Tiehm's buckwheat.
Rhyolite Ridge is the most advanced undeveloped U.S. lithium project, and it is on track to provide an environmentally sustainable, long-life source of both lithium and boron for delivery into the U.S. domestic EV supply chain.
The term sheet and Conditional Commitment from DOE demonstrates its strong support for the Rhyolite Ridge Project and, if finalised, the loan would be the first-ever by the DOE to provide financing for the processing component of a project where lithium is extracted and refined at site.
The proceeds from the DOE loan, along with Sibanye Stillwater Limited's ("Sibanye-Stillwater") expected equity contribution to secure a 50% stake in the Rhyolite Ridge Project once all conditions precedent for the joint venture have been fulfilled or waived, as applicable, are anticipated to fund a substantial part of the preliminary capital expenditure estimate from the revised plan of operations included in the application submitted to the DOE. Finalising the term sheet and receiving the Conditional Commitment from the DOE represent a significant step towards completing the funding for the Rhyolite Ridge Project.
The proposed loan amount is necessarily based on preliminary and partially complete information that the DOE required from Ioneer pertaining to: 1) capital expenditure for a conceptual mine plan; 2) macroeconomic cost escalation assumptions; and 3) capital expenses to meet DOE stipulated requirements for participation in the ATVM program. As a result, the proposed loan amount remains subject to negotiation and documentation of long-form agreements and various conditions and may be subsequently revised to appropriately match updated project economics leading up to financial close and upon satisfaction of several conditions, including:
- Positive Record of Decision (ROD) issued by the BLM;
- Updated cost estimate including a P85 cost contingency4;
- Updated Resource and Reserve statements and mine plan incorporating the southern extension to the deposit;
- Updated economic model based on the updated information above;
- All necessary permits; and
- Final Investment Decision (FID) by both Ioneer and Sibanye-Stillwater.
Ioneer and Sibanye-Stillwater will continue to progress work on the engineering, complete additional drilling post ROD to delineate the southern limits of the deposit where mining is expected to commence and optimize the mine plan. Based on these outcomes, an updated capital and operating cost estimate will be provided to stakeholders before making an FID.
The final loan is subject to approval of the Ioneer and Sibanye-Stillwater Boards, receipt of all material governmental consents necessary for the loan and the negotiation and execution of binding loan documents. When binding loan documents are signed, certain closing conditions must be satisfied before the loan commitment from DOE becomes effective and funds can be advanced.
Jigar Shah, Director of DOE's Loans Programs Office commented:
"Rhyolite Ridge is a major step towards bolstering domestic lithium production for clean energy technologies, and LPO is excited to further develop an environmentally responsible U.S. supply chain for critical materials."
James Calaway, Executive Chairman of Ioneer commented:
"The Conditional Commitment highlights Rhyolite Ridge's strategic role in strengthening America's critical mineral supply chain in providing a secure, sustainable, and reliable domestic source of lithium for the growing electric vehicle ecosystem."
Bernard Rowe, Managing Director of Ioneer commented:
"We are pleased to have finalised the term sheet and received a Conditional Commitment from the DOE for up to a $700mm loan from the ATVM program. The Conditional Commitment is the culmination of 23 months of discussions with and due diligence by the Loan Programs Office and it represents a significant milestone for Rhyolite Ridge. We look forward to working with the DOE and Sibanye-Stillwater to complete the remaining milestones to start construction of Rhyolite Ridge."
Neal Froneman, Chief Executive Officer of Sibanye-Stillwater commented:
"Rhyolite Ridge is a world-class lithium project which is ideally positioned to provide locally mined and beneficiated metals to further develop the U.S. battery ecosystem. The proposed loan represents a significant step towards further de-risking funding and ultimately progressing Rhyolite Ridge to production. We are encouraged by the DOE's commitment to the development of the U.S. national battery metals mining industry through supportive funding programs such as the ATVM program and the commitment of the Ioneer team to date, aimed at ensuring that this high-quality project can be swiftly advanced once the necessary permits have been granted and outstanding conditions have been fulfilled. This is a significant milestone in the development of this critical project which promises to positively contribute to reducing climate change."
"Sibanye-Stillwater's battery metals strategy is primarily focused on the U.S. and Europe in recognition of the developing need for battery metals for the transition towards greater electrification of their established automotive industries. Sibanye-Stillwater is well placed to be a supportive partner and add significant value to Rhyolite Ridge given its complementary global mining experience and expertise, including its US mining operational and project development expertise, hydrometallurgical expertise and deep relationships with automakers and automotive OEMs globally."
DOE's blog post in connection with its Conditional Commitment to Rhyolite Ridge is on the Loan Programs Office website.
Transaction Advisers
Ioneer's financial adviser is Goldman Sachs, and its legal adviser is Vinson & Elkins (US) and Ashurst (Australia).
Sibanye-Stillwater's financial adviser is Macquarie Capital, and its legal adviser is Davis Polk & Wardwell LLP (United States).
About Ioneer
Ioneer Ltd is the 100% owner of the Rhyolite Ridge Lithium-Boron Project located in Nevada, USA, the only known lithium-boron deposit in North America and one of only two known such deposits in the world. The Definitive Feasibility Study (DFS) completed in 2020 confirmed Rhyolite Ridge as a world-class lithium and boron project that is expected to become a globally significant, long-life, low-cost source of lithium and boron vital to a sustainable future. In September 2021, Ioneer entered into an agreement with Sibanye-Stillwater to advance the Rhyolite Ridge project. Following the satisfaction of all conditions precedent of the agreement, Sibanye-Stillwater will acquire a 50% interest in a joint venture, with Ioneer maintaining a 50% interest and retaining the operational management responsibility for the joint venture. Ioneer signed separate offtake agreements with Ford Motor Company and PPES (joint venture between Toyota and Panasonic) in 2022 and Korea's EcoPro Innovation in 2021.
About Sibanye-Stillwater
Sibanye-Stillwater is a multinational mining and metals Group with a diverse portfolio of mining and processing operations and projects and investments across five continents. The Group is also one of the foremost global PGM autocatalytic recyclers and has interests in leading mine tailings retreatment operations. For more information, visit our website at www.sibanyestillwater.com.
This ASX release has been authorised by Ioneer Managing Director Bernard Rowe.
Contacts:
Chad Yeftich Ioneer USA Corporation |
Jason Mack |
Investor Relations (USA) | Investor Relations (AUS) |
T: +1 775 993 8509 | T: +61 410 611 709 |
Important notice and disclaimer
Forward-looking statements
This announcement contains certain forward-looking statements and comments about future events, including Ioneer's expectations about the Project and the performance of its businesses. Forward looking statements can generally be identified by the use of forward-looking words such as 'expect', 'anticipate', 'likely', 'intend', 'should', 'could', 'may', 'predict', 'plan', 'propose', 'will', 'believe', 'forecast', 'estimate', 'target' and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, the Conditional Commitment, financing plans, future earnings or financial position or performance are also forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward-looking statements will not be achieved. Forward-looking statements are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. Forward looking statements involve known and unknown risks, uncertainty and other factors which can cause Ioneer's actual results to differ materially from the plans, objectives, expectations, estimates, and intentions expressed in such forward-looking statements and many of these factors are outside the control of Ioneer. Such risks include, among others, uncertainties related to the finalisation, execution, and funding of the DOE financing, including our ability to successfully negotiate definitive agreements and to satisfy any funding conditions, as well as other uncertainties and risk factors set out in filings made from time to time with the U.S. Securities and Exchange Commission and the Australian Securities Exchange. As such, undue reliance should not be placed on any forward-looking statement. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward-looking statements, forecast financial information or other forecast. Nothing contained in this announcement, nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Ioneer.
Except as required by law or the ASX Listing Rules, Ioneer assumes no obligation to provide any additional or updated information or to update any forward-looking statements, whether as a result of new information, future events or results, or otherwise.
1 A conditional commitment is offered by DOE prior to issuing a loan and indicates that DOE expects to support the Rhyolite Ridge Project, subject to the satisfaction of certain conditions including fulfilling remaining legal, contractual, and financial requirements.
2 Excludes estimated capitalised interest costs. Approximately US$700 million in advances from DOE loan is proposed to be available to fund eligible costs of the Rhyolite Ridge Project.
3 Further information about the ATVM loan program is available at https://www.energy.gov/lpo/advanced-technology-vehicles-manufacturing-loan-program.
4 A cost contingency to the base estimate to achieve a probability at the 85th percentile.
INR:AU
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19 December 2024
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.Keep reading...Show less
23h
CEOL Application Process Update
CleanTech Lithium PLC (AIM: CTL), a lithium exploration and development company operating in Chile, further to its announcement on 15 January 2025 ("Application RNS"), provides an update regarding the Special Lithium Operating Contract ("CEOL") application process for the Laguna Verde project.
As outlined in the Application RNS, the Company expected the simplified procedure for the CEOL Award Mechanism to be as follows: Submission of applications closed on 31 January 2025 following which the Ministry IT and legal departments had 5 business days to register and organise the submittal. The Ministry´s Lithium and Salar Unit then has 45 business days to review and analyse the request. Once this analysis is completed and the Lithium and Salar Unit verifies that all the information and documents needed to enter the simplified procedure have been submitted then an administrative act to accept the application will be made.
This timetable indicated that an update from the Government was expected at the beginning of April confirming which applicants will enter direct negotiation on the CEOL with the Ministry. So far, no such update has been made and following recent discussions between CleanTech Lithium and the Ministry, the Company understands that the administration process is still progressing for all applicants. The Company will inform the market as soon as official communication is received.
Steve Kesler, Executive Chairman and Interim CEO, CleanTech Lithium said:
"Clearly, the process is taking a little longer than we had initially anticipated but we look forward to the response when the Ministry has completed its review process."
For further information contact: | |
CleanTech Lithium PLC | |
Steve Kesler/Gordon Stein/Nick Baxter | Jersey office: +44 (0) 1534 668 321 Chile office: +562-32239222 |
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) 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 scale battery grade lithium at its flagship project, Laguna Verde, using Direct Lithium Extraction technology powered by renewable energy.
CleanTech Lithium is committed to utilising Direct Lithium Extraction ("DLE") 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. For more information, please visit: www.ctlithium.com
Click here for the full release
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.
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04 April
Galan Declines AU$240M Bid for Argentina Projects
Galan Lithium (ASX:GLN) has rejected a US$150 million (AU$240 million) cash bid from China’s Zhejiang Huayou Cobalt Co and France’s Renault Group to acquire its Hombre Muerto West and Candelas lithium brine projects in Argentina, The West Australian reports.
Described as unsolicited, conditional, and non-binding, the offer from battery materials giant Zhejiang Huayou and EV manufacturer Renault was deemed “opportunistic” and “undervalued,” the report noted.
Galan and its advisors refused the offer, asserting confidence in the long-term value of its flagship Hombre Muerto West project, which is nearing production of 5,400 tonnes per annum (tpa) of lithium carbonate equivalent. They believe the project holds greater potential to deliver superior returns for shareholders.
Click here to connect with Galan Lithium (ASX:GLN) for an Investor Presentation
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03 April
Top 7 Global Lithium Stocks in 2025
The lithium market faced continued pressure in Q1 2025 as oversupply and weaker-than-expected demand pushed prices to a four-year low, with the lithium carbonate CIF North Asia price dipping below US$9,550 per metric ton.
The broad market decline led many analysts to speculate that the market had bottomed and a rebound was imminent. This was further supported by production cuts in China and Australia aimed at stabilizing supply.
Despite near-term challenges, long-term prospects remain strong, highlighted by Rio Tinto’s (ASX:RIO,NYSE:RIO,LSE:RIO) AU$6.7 billion acquisition of Arcadium Lithium, the company formed by the merger of Allkem and Livent.
The major is also reportedly in talks to develop the Roche Dure lithium deposit in the Democratic Republic of Congo.
Long term electric vehicle (EV) market growth and a projected draw down in excess supply has prompted Benchmark Intelligence researchers to forecast a 12 percent compound annual growth rate for the lithium market over the next 10 years.
Even against this tumultuous backdrop, some lithium stocks listed in Canada, Australia and the United States performed strongly. Below the Investing News Network has gathered the top gaining lithium companies year-to-date using TradingView’s stock screener.
All lithium stocks listed had market caps above $20 million in their respective currencies when data was gathered. Data for Canadian stocks was collected on March 25, 2025, data for Australian stocks was gathered on March 27, 2025, and data for US stocks was gathered on March 31, 2025.
1. Power Metals (TSXV:PWM)
Year-to-date gain: 163.04 percent
Market cap: C$196.57 million
Share price: C$1.21
Exploration company Power Metals holds a portfolio of diversified assets in Ontario and Québec, Canada. The company’s flagship Case Lake project in Ontario hosts spodumene-bearing lithium-cesium-tantalum pegmatites.
In November 2024, 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 anomalous levels of cesium, tantalum, lithium and rubidium, which the company said "affirmed prospective drill targets" for its winter exploration program.
On February 10, Power Metals announced the beginning of work associated with the maiden mineral resource estimate and preliminary economic assessment for Case Lake, which it expected to release in Q1 and Q2 of 2025 respectively.
Days later, on February 14, the company followed that announcement by releasing the final assays from its Phase 3 drilling at Case Lake, including “exceptional cesium oxide and tantalum intercepts” from the West Joe prospect. Power Metals stated it planned to begin its 2025 Phase 1 drilling sometime after early March.
The company's share price rose in the weeks following the pair of announcements to reach a Q1 high of C$1.46 on February 25.
2. NOA Lithium Brines (TSXV:NOAL)
Year-to-date gain: 41.18 percent
Market cap: C$46.99 million
Share price: C$0.36
NOA is a lithium exploration and development company with three projects in Argentina’s Lithium Triangle region. The company’s flagship Rio Grande project and prospective Arizaro and Salinas Grandes land packages total more than 140,000 hectares.
In late January, NOA reported its completion of 28 vertical electrical sounding geophysics tests at the Rio Grande project as part of its 2025 exploration program.
The recent testing expands on past studies and will aid NOA's water exploration program, refining one of three identified potential water sources.
In a subsequent corporate update on February 7, NOA outlined its plans for Q1 2025, which largely focused on the advancement of the Rio Grande project through geophysical evaluation and water exploration drilling. The company also plans to review engineering proposals for preliminary economic assessment work.
The company's share price began climbing in early February and reached a Q1 high of C$0.37 on March 13.
The high came days after a Simply Wall Street report highlighted insider buying at the company, a signal of strong internal confidence.
According to the report, NOA insiders invested C$862,600 over the prior six months, with C$358,000 of that coming in a single transaction by CEO and Director Gabriel Rubacha. Additionally, they had not sold any shares in the prior 12 months.
3. Frontier Lithium (TSXV:FL)
Year-to-date gain: 35.56 percent
Market cap: C$141.38 million
Share price: C$0.61
Pre-production mining company Frontier Lithium aims to be a strategic and integrated supplier of premium spodumene concentrates as well as battery-grade lithium salts in North America.
The Company's flagship PAK lithium project, which is a joint venture with Mitsubishi (TSE:8058), holds the “largest land position and resource” in a premium lithium mineral district located in the Great Lakes region of Ontario, Canada. Frontier also owns the Spark deposit, located northwest of the PAK project.
Shares of Frontier Lithium reached a Q1 high of C$0.79 on March 4. After already trending upwards through February, its share price peaked alongside news that the Government of Canada and the Ontario Government supported the company's plans to build a critical minerals refinery in Northern Ontario.
Once complete the proposed lithium conversion facility will process lithium from PAK into around 20,000 metric tons (MT) of lithium salts per year. “This expected capacity would support the production of batteries for approximately 500,000 electric vehicles per year,” Frontier's statement reads.
1. Tyranna Resources (ASX:TYX)
Year-to-date gain: 40 percent
Market cap: AU$23.02 million
Share price: AU$0.007
Africa-focused explorer Tyranna Resources is currently focused on its flagship Muvero lithium project in Angola.
In a January 30 update, Tyranna reported it completed a drill program totalling 11 diamond drill holes spanning 817 meters. Initial results from drilling at the Muvero and Loop prospects confirmed visible spodumene-bearing pegmatite. Additionally, core from the Muvero prospect will be used for metallurgical testing and structural data.
The company is also pursuing and evaluating additional projects that align with its strategy of focusing on in-demand metals, and had applied for one licence at that time.
Shares of Tyranna reached a quarterly high of AU$0.007 several times over the three month period.
2. Liontown Resources (LTR:AU)
Year-to-date gain: 24.53 percent
Market cap: AU$1.58 billion
Share price: AU$0.66
Liontown Resources has two assets in Western Australia, including the producing Kathleen Valley mine, which entered production during the second half of 2024 and transitioned to commercial production in January 2025.
The company's Buldania project in the Eastern Goldfields Province of Western Australia has an initial mineral resource of 15 million MT at 1.0 percent lithium oxide.
In its fiscal H1 2025 financial update, Liontown reported that over 100,000 wet metric tons of spodumene concentrate had been shipped from Kathleen Valley between July and the end of December.
Liontown’s shares rose to a Q1 high of AU$0.735 on March 19, 2025, shortly after the release of the half year results.
3. Delta Lithium (ASX:DLI)
Year-to-date gain: 9.09 percent
Market cap: AU$125.39 million
Share price: AU$0.18
Delta Lithium is a diversified exploration and development company focused on discovering high quality, lithium bearing pegmatite deposits in Western Australia.
Currently, Delta is developing the Mount Ida gold and lithium project, which reportedly has a JORC-compliant resource of 14.6 million MT grading 1.2 percent. Additionally, the company is exploring its Yinnetharra lithium project, including the Malinda deposit, in the Upper Gascoyne Region.
Company shares registered a Q1 high of AU$0.20 on January 14.
On January 21, Delta released an exploration update for Yinnetharra that highlighted drilling and metallurgical results from the M1 pegmatite at the Malinda deposit.
“The program has realised highly positive metallurgical results, with pilot plant spodumene recoveries exceeding our Internal financial modelling and proving the whole-of-ore flotation flowsheet as suitable for the M1 mineralogy,” Managing Director James Croser said.
In a subsequent financial statement, Delta noted the submission of the mining lease application for the Malinda mining area and the commencement of Native Title negotiations. The company is also advancing its environmental permitting process at Malinda.
Top US Lithium Stocks
1. SQM (NYSE:SQM)
Year-to-date gain: 9.29 percent
Market cap: AU$11.36 billion
Share price: US$40.23
SQM is one of the world’s largest lithium producers with projects in South America and China, outputting both lithium carbonate and hydroxide.
In 2024, SQM produced approximately 210,000 MT of lithium, with about 180,000 MT sourced from its chemical plant in northern Chile and an additional 30,000 MT processed in China.
The lithium major also saw lithium sales increase 21 percent year-over-year to nearly 205,000 MT of lithium carbonate equivalent (LCE).
“However, the increase in volume was not enough to offset the continuous decline in prices, a trend we have been observing since early 2023,” the 2024 earnings report noted. “As a result, our average realized price dropped by more than 64 percent, from US$30,467 per ton in 2023 to US$10,936 per ton in 2024.”
Shares of SQM reached a Q1 high of US$45.61 on March 17, 2025.
In late February, SQM’s US$7 million investment in Andrada Mining’s (LSE:ATM,OTCQB:ATMTF)Lithium Ridge project received final approval from the Namibian government. The deal will see SQM obtain a 30 percent stake in the project with an option to increase to 50 percent.
FAQs for investing in lithium
How much lithium is on Earth?
While we don't know how much total lithium is on Earth, the US Geological Survey estimates that global reserves of lithium stand at 22 billion metric tons. Of that, 9.2 billion MT are located in Chile, and 5.7 billion MT are in Australia.
Where is lithium mined?
Lithium is mined throughout the world, but the two countries that produce the most are Australia and Chile. Australia's lithium comes from primarily hard-rock deposits, while Chile's comes from lithium brines. Chile is part of the Lithium Triangle alongside Argentina and Bolivia, although those two countries have a lower annual output.
Rounding out the top five lithium-producing countries behind Australia and Chile are China, Argentina and Brazil.
What is lithium used for?
Lithium has many uses, including the lithium-ion batteries that power electric vehicles, smartphones and other tech, as well as pharmaceuticals, ceramics, grease, lubricants and heat-resistant glass. Still, it is largely the electric vehicle industry that is boosting demand.
How to invest in lithium?
Those looking to get into the lithium market have many options when it comes to how to invest in lithium.
Lithium stocks like those mentioned above could be a good option for investors interested in the space. If you’re looking to diversify instead of focusing on one stock, there is the Global X Lithium & Battery Tech ETF (NYSE:LIT), an exchange-traded fund (ETF) focused on the metal. Experienced investors can also look at lithium futures.
Unlike many commodities, investors cannot physically hold lithium due to its dangerous properties.
How to buy lithium stocks?
Through the use of a broker or an investing service such as an app, investors can purchase lithium stocks and ETFs that match their investing outlook.
Before buying a lithium stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it's critical to complete due diligence before making any investment decisions.
It's also important for investors to keep their goals in mind when choosing their investing method. There are many factors to consider when choosing a broker, as well as when looking at investing apps — a few of these include the broker or app's reputation, their fee structure and investment style.
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.
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03 April
Livium to Advance Battery Recycling with AU$850,000 Government Grant
Livium (ASX:LIT) subsidiary Envirostream Australia said on Wednesday (April 2) that it has executed an AU$850,000 grant funding agreement with the Western Australian government.
The grant will partially fund the development of Envirostream’s battery-recycling facility in Western Australia.
The money is being provided via an electronic waste (e-waste) infrastructure grants program, an initiative designed to support a statewide ban on sending e-waste to landfills that began on July 1, 2024.
Livium first announced the grant in November 2024, saying that the recycling facility will collect, sort, discharge and store batteries to establish integrated end-of-life battery processing domestically.
The facility forms part of Envirostream’s efforts to build a nationwide solution for e-waste management.
“This funding agreement with the WA Government represents another significant step forward in our mission to establish a sustainable national battery recycling ecosystem,” said Livium Managing Director and CEO Simon Linge.
“The company’s long-term recycling strategy also involves the development of battery processing capabilities in WA and other states once minimum collection volumes are met," he added.
According to Livium, the grant is part of a recently announced additional AU$5.4 million in support for e-waste recycling initiatives in Western Australia. This amount is on top of AU$10 million in government grants to date.
Envirostream was launched in 2017 and is the first onshore company to offer lithium and mixed battery recycling in Australia. Its goal is to provide solutions for lithium-ion battery recycling.
Livium has been strengthening its position in the battery-recycling industry over the years.
On March 24, the company signed an exclusive recycling agreement with leading power tool manufacturer Hilti. Livium will exclusively recycle Hilti Fleet Management batteries over an initial period of three years.
The deal officially commenced on Tuesday (April 1).
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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01 April
4 Best-performing ASX Lithium Stocks of 2025
Global demand for lithium presents a significant opportunity for Australia, which is home to many ASX lithium mining stocks as the world's top lithium producer.
Australia’s abundant lithium reserves and strong mining sector, position the country as a key player in the battery value chain into the 2030s. However, rapid electric vehicle (EV) market growth projections drove increased lithium mining rates, leading to a global surplus.
Against that backdrop, Australia’s lithium sector faced headwinds in Q1 2025 due to falling global lithium prices and continued market oversupply.
As profit margins across the sector tightened, mining companies implemented production cuts, shuttered projects and cancelled expansion plans. Additionally, some refining operations were put on hold amid the unfavourable economic conditions.
The challenges that have plagued the lithium market over the past year have prompted speculation that the market has bottomed and prices will begin to recover by year’s end.
Despite the current downturn the lithium market long term outlook remains bright. The closing of Rio Tinto’s (ASX:RIO,NYSE:RIO,LSE:RIO)AU$6.7 billion acquisition of Arcadium Lithium underscores the long-term potential that major miners see in the lithium sector. Rio Tinto also made headlines in late March with reports that it was engaged in preliminary talks with the Democratic Republic of Congo about developing the massive Roche Dure lithium deposit.
Below the Investing News Network looks at the top four ASX-listed lithium companies by year-to-date gains.
The list below was generated using TradingView’s stock screener on March 27, 2025, and Australian lithium companies with market caps above AU$10 million at that time were considered for inclusion.
1. Tyranna Resources (ASX:TYX)
Year-to-date gain: 40 percent
Market cap: AU$23.02 million
Share price: AU$0.007
Africa-focused explorer Tyranna Resources is currently focused on its flagship Muvero lithium project in Angola.
In a January 30 update, Tyranna reported it completed a drill program totalling 11 diamond drill holes spanning 817 meters. Initial results from drilling at the Muvero and Loop prospects confirmed visible spodumene-bearing pegmatite. Additionally, core from the Muvero prospect will be used for metallurgical testing and structural data.
The company is also pursuing and evaluating additional projects that align with its strategy of focusing on in-demand metals, and had applied for one licence at that time.
Shares of Tyranna reached a quarterly high of AU$0.007 several times over the three month period.
2. Liontown Resources (ASX:LTR)
Year-to-date gain: 24.53 percent
Market cap: AU$1.58 billion
Share price: AU$0.66
Liontown Resources has two assets in Western Australia, including the producing Kathleen Valley mine, which entered production during the second half of 2024 and transitioned to commercial production in January 2025.
The company's Buldania project in the Eastern Goldfields Province of Western Australia has an initial mineral resource of 15 million tonnes at 1.0 percent lithium oxide.
In its fiscal H1 2025 financial update, Liontown reported that over 100,000 wet metric tons of spodumene concentrate had been shipped from Kathleen Valley between July and the end of December.
Liontown’s shares rose to a Q1 high of AU$0.735 on March 19, 2025, shortly after the release of the half year results.
3. Delta Lithium (ASX:DLI)
Year-to-date gain: 9.09 percent
Market cap: AU$125.39 million
Share price: AU$0.18
Delta Lithium is a diversified exploration and development company focused on discovering high quality, lithium bearing pegmatite deposits in Western Australia.
Currently, Delta is developing the Mount Ida gold and lithium project, which reportedly has a JORC-compliant resource of 14.6 million tonnes grading 1.2 percent. Additionally, the company is exploring its Yinnetharra lithium project, including the Malinda deposit, in the Upper Gascoyne Region.
Company shares registered a Q1 high of AU$0.20 on January 14.
On January 21, Delta released an exploration update for Yinnetharra that highlighted drilling and metallurgical results from the M1 pegmatite at the Malinda deposit.
“The program has realised highly positive metallurgical results, with pilot plant spodumene recoveries exceeding our Internal financial modelling and proving the whole-of-ore flotation flowsheet as suitable for the M1 mineralogy,” Managing Director James Croser said.
In a subsequent financial statement, Delta noted the submission of the mining lease application for the Malinda mining area and the commencement of Native Title negotiations. The company is also advancing its environmental permitting process at Malinda.
4. Future Battery Minerals (ASX:FBM)
Year-to-date gain: 5.56 percent
Market cap: AU$12.64 million
Share price: AU$0.019
Explorer and developer Future Battery Minerals (FBM) is advancing its flagship Coolgardie lithium project in Western Australia’s Eastern Goldfields region.
The project includes FBM's wholly owned Kangaroo Hills lithium project and the 85 percent-owned Miriam lithium project.
Shares of FBM marked a Q1 high of AU$0.028 on January 9, 2025.
On January 22, FBM announced the expansion of the Coolgardie project footprint through the application for new tenements near the asset.
In its report for the quarter ended in December 2024, released in late January, FBM outlined near-term plans for the Coolgardie project, including completing its ground gravity survey. The company also reported that initial drilling of high-priority lithium targets at the Miriam project remains on track for H1 2025, while the mining lease application for Kangaroo Hills is advancing.
4. Future Battery Minerals (ASX:FBM)
Year-to-date gain: 5.56 percent
Market cap: AU$12.64 million
Share price: AU$0.019
Explorer and developer Future Battery Minerals (FBM) is advancing its flagship Coolgardie lithium project in Western Australia’s Eastern Goldfields region.
The project includes FBM's wholly owned Kangaroo Hills lithium project and the 85 percent-owned Miriam lithium project.
Shares of FBM marked a Q1 high of AU$0.028 on January 9, 2025.
On January 22, FBM announced the expansion of the Coolgardie project footprint through the application for new tenements near the asset.
In its report for the quarter ended in December 2024, released in late January, FBM outlined near-term plans for the Coolgardie project, including completing its ground gravity survey. The company also reported that initial drilling of high-priority lithium targets at the Miriam project remains on track for H1 2025, while the mining lease application for Kangaroo Hills is advancing.
FAQs for investing in lithium
What is lithium?
Lithium is the lightest metal on the periodic table, and it is used in a wide variety of applications, including lithium-ion batteries, pharmaceuticals and industrial applications like glass and steel.
How do lithium-ion batteries work?
Rechargeable lithium-ion batteries work by using the flow of lithium ions in the battery's cell to power a device.
A lithium-ion battery has one or more cells, depending on the amount of energy storage it is capable of, and each cell has a positive electrode and negative electrode with an electrolyte separating them. When the battery is in use, lithium ions flow from the negative electrode to the positive electrode, running out of power once all have transferred. When the battery is charging, ions flow the opposite way.
Where is lithium mined?
Lithium is mined from two types of deposits, hard rock and evaporated brines. Most of the world's lithium production comes out of Australia, which hosts the Greenbushes hard-rock lithium mine. The next-largest producing country is Chile, which like Argentina and Bolivia is located in South America's Lithium Triangle.
Lithium in this famed area comes from evaporated brines, including the Salar de Atacama. Lithium can also be found in sedimentary deposits, but currently none are producing.
Where is lithium found in Australia?
Australia is the world’s top producer of lithium, and its lithium mines are all located in Western Australia except for one, which is Core Lithium’s (ASX:CXO,OTC Pink:CXOXF) Finniss mine in the Northern Territory. Western Australia accounts for around half of global lithium production, and the state is looking to become a hub for critical elements.
Who owns lithium mines in Australia?
Several companies own lithium mines in Australia, including some of the biggest ASX lithium stocks. In addition to the entities discussed above, others include: Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) with its Pilgangoora operations; Jiangxi Ganfeng Lithium (HKEX:0358), which owns the Mount Marion mine alongside Mineral Resources (ASX:MIN,OTC Pink:MALRF); and Tianqi Lithium (SZSE:002466), which is a partial owner of Greenbushes via its stake in operator Talison Lithium.
Who is Australia’s largest lithium producer?
Australia’s largest lithium producer is Albemarle (NYSE:ALB), which has interests in both the Greenbushes and Wodgina hard-rock lithium mines. Greenbushes is the world’s largest lithium mine, and Albemarle holds 49 percent ownership of operator Talison Lithium’s parent company.
Albermarle also has 60 percent ownership of Mineral Resources’ Wodgina mine, and owns the Kemerton lithium production facility as part of a 60/40 joint venture with Mineral Resources.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Georgia Williams, currently hold no direct investment interest in any company mentioned in this article.
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28 March
California Touts US$540 Billion Salton Sea Lithium Discovery
Scientists have discovered an estimated US$540 billion worth of lithium beneath California’s Salton Sea, a finding that could reshape the global energy market and reduce US reliance on foreign lithium supply.
The Salton Sea, located in Southern California’s Imperial County, has long been considered an environmental concern due to its receding shoreline and rising air pollution.
Now, researchers funded by the US Department of Energy have confirmed the area holds approximately 18 million metric tons of lithium — far more than previous estimates of 4 million metric tons.
“This is one of the largest lithium brine deposits in the world. This could make the United States completely self-sufficient in lithium and stop importing it through China,” the Daily Galaxy quotes Michael McKibben, a geochemistry professor at the University of California, Riverside, as saying in a Monday (March 24) article.
With global demand for lithium surging due to the rise of electric vehicles and renewable energy storage, California officials are viewing the discovery as a potential economic windfall.
Governor Gavin Newsom has dubbed the Salton Sea region the “Saudi Arabia of lithium,” underscoring its potential to dominate the supply chain for battery production. Local officials have also branded the area as “Lithium Valley,” hoping to generate new revenue streams and job opportunities for Imperial County, one of California’s poorest regions.
Currently, talk is circulating about plans to allocate 80 percent of the revenue from lithium extraction to local development, which could significantly improve infrastructure and public services.
Despite the economic promise, extracting lithium from the Salton Sea’s geothermal brine presents challenges.
The process involves pumping lithium-rich brine from deep underground, separating the lithium and re-injecting the liquid back into the earth. While this technique is considered more environmentally friendly than traditional open-pit mining, it still raises concerns over water consumption, air quality and potential harm to Indigenous lands.
The Colorado River, a critical water source for California, is already facing shortages, and large-scale lithium extraction could further strain the region’s limited water resources.
Additionally, the Salton Sea’s receding lakebed has led to increased levels of toxic dust in the air, which has been linked to rising asthma rates among local residents. Mining operations could exacerbate these public health risks, making environmental safeguards a critical component of any development plans.
Adding to the complexity of lithium extraction is an evolving geopolitical landscape. China, the world’s largest lithium producer, has recently taken steps to tighten control over its battery technology exports.
Jiangsu Jiuwu Hi-Tech (SZSE:30063), a Chinese firm, announced in February that it would halt exports of a key lithium-processing component known as a sorbent. Sorbents are crucial in lithium extraction from brine, and export restrictions could disrupt supply chains for US and European companies looking to develop alternative lithium sources.
The US, the European Union and allied countries have accelerated initiatives such as the Minerals Security Partnership, launched in 2022, to secure alternative sources of lithium and other essential materials.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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