Lithium Miners News For The Month Of May 2024

Benchmark Mineral Intelligence forecasts lithium surpluses to end 2028, then deficits to increase significantly from 2029 (as of May 2023)(source)

Benchmark Mineral Intelligence forecasts small lithium surpluses then deficits for lithium, nickel & cobalt to increase from 2027 onwards (source)

Trend Investing vs. IEA demand forecast for EV metals (IEA)

Lithium market and battery news

On April 25, Honda announced:

Honda plans to establish comprehensive electric vehicle value chain in Ontario, Canada…Honda Motor Co., Ltd. today announced that it plans to build a comprehensive EV value chain in Canada with an approximate investment of CAD$15 billion, including investment by joint venture partners, to strengthen its EV supply system and capability to prepare for a future increase in EV demand in North America. Honda has begun evaluating the requirements to build an innovative and environmentally responsible Honda EV plant and a stand-alone Honda EV battery plant in Alliston, Ontario. The proposed Honda EV value chain will also include a cathode active material and precursor (CAM/pCAM) processing plant through a joint venture partnership with POSCO Future M Co., Ltd. and a separator plant through a joint venture partnership with Asahi Kasei Corporation, with announcements to follow in their respective Ontario communities. Honda expects that electric vehicle production will begin in 2028. Once fully operational, the EV plant will have a production capacity of 240,000 EVs per year and the EV battery plant will have a capacity of 36 GWh per year.

On April 26, CarSales reported:

New CATL batteries set to transform EVs. New-gen batteries for electric cars claimed to be lighter, safer and provide much longer range. Chinese electric car component supplier CATL has launched revolutionary new batteries that are claimed to be up to 1.5 times more energy dense compared to the most advanced Tesla battery. Claimed to offer an ultra-dense energy capacity of up to 500Wh per kilogram, CATL’s new cells are almost twice as energy rich as its recently introduced Qilin batteries which have a maximum density of 255Wh/kg.

On April 28, Reuters reported:

Saudi Arabia set on securing lithium for EV ambitions. Saudi Arabia is committed to sourcing lithium from overseas as it looks to produce EV batteries and invest in the electric vehicle sector, a senior minister said in an interview, noting attempts to secure domestic supplies were at an early stage.

On April 29, Oilprice.com reported:

Battery storage is the No. 1 energy investment playground…Battery storage was the fastest-growing energy technology in the power sector in 2023, with deployment more than doubling year-on-year, the International Energy Agency (IEA) has revealed. Strong growth was recorded for utility-scale battery projects, mini-grids, solar home systems and behind-the-meter batteries, adding a total of 42 GW of battery storage capacity globally…

Note: The IEA stated in its 2024 report: “To facilitate the rapid deployment of new solar PV and wind power that is necessary to triple renewables, global energy storage capacity must increase sixfold to 1 500 GW by 2030.”

IEA global battery energy stationary storage capacity forecast additions, 2010-2023 (source)

On April 29 Fortune Business Insights reported:

The global lithium market size was valued at $22.19 billion in 2023 & is projected to grow from $26.88 billion in 2024 to $134.02 billion in 2032.

On April 30, the U.S. Loans Program Office announced:

How LPO can support all stages of the critical minerals supply chain. Further, the updated Title 17 Program Guidance added “supply of critical minerals” to the list of 1703 eligible technologies…Building on critical material and EV supply chain projects announced to date, LPO is clarifying that it may also fund “production” or mining and extraction activities as eligible expenses under LPO’s Title 17 Clean Energy Financing Program, which provides financing opportunities for innovative energy and supply chain projects.

Note: Bold emphasis by the author.

On May 3, Seeking Alpha reported:

U.S. government gives EV makers two year reprieve on FEOC graphite for batteries. The U.S. Treasury and Internal Revenue Service have extended tax credits for electric vehicles containing Chinese graphite for another two years, allowing EV makers more flexibility to manufacture and sell vehicles that are eligible for the $7,500 tax credit…For determining qualifying critical mineral content for purposes of the critical minerals requirement, today’s release provides a new test, the traced qualifying value add test. Under this test, manufacturers must conduct a detailed supply chain tracing to determine the actual value-added percentage for extraction, processing, and recycling. The actual percentage is used to determine the value for the applicable critical mineral that is qualifying. Manufacturers may continue to use the 50 percent roll up described in the proposed regulations as a transition rule until 2027…Friday’s ruling will expand the timetable to use graphite and other critical minerals until 2027, giving EV makers much needed breathing room to locate other sources of critical minerals that do not fall within FEOC restrictions…Once the extension runs out in 2027, the limits on foreign-made components and minerals becomes increasingly more restrictive. By 2027, 80% of critical minerals and 80% of battery components must originate in the U.S. In 2028, 90% of battery components must come from the U.S., while in 2029 80% of critical minerals and 100% of battery components must be domestic.

On May 5, Note Book Check reported:

Sodium batteries become less attractive with lithium price drop as CATL plans technology licensing. CATL is moving towards battery technology licensing to help automakers with local production, and is now in talks with a dozen of them. Ford’s LFP battery factory is now in the most advanced stage.

On May 13, CNEVPOST reported: “China’s 1st large-scale sodium battery energy storage station put into operation.”

On May 14, The White House announced:

FACT SHEET: President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices…

Batteries, Battery Components and Parts, and Critical Minerals

The tariff rate on lithium-ion EV batteries will increase from 7.5%% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on battery parts will increase from 7.5% to 25% in 2024. The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024.

A Reuters report shows lithium is not included in the critical minerals (source)

On May 20, Bloomberg reported:

South Korea said to build lithium reserves to aid battery sector…Nation allocates $171 million to buy critical minerals…It plans to spend most of it on building its lithium reserves…

Lithium miner news

Albemarle (ALB)

On May 1, Albemarle announced: “Albemarle reports first quarter 2024 results.” Highlights include:

• “Net sales of $1.4 billion, driven by Energy Storage volume growth as projects ramp.
• Net income of $2 million, or ($0.08)^(A) per diluted share, attributable to common shareholders.
• Adjusted diluted EPS attributable to common shareholders of $0.26.
• Adjusted EBITDA^(B) of $291 million.
• On track to deliver more than $280 million target in productivity benefits in 2024; in Q1, delivered over $90 million in productivity and restructuring cost savings.
• Conducted successful bidding events for spodumene concentrate and lithium carbonate, designed to promote price transparency and discovery.
• Achieved 50% operating rate milestone at Kemerton I; commissioning at Meishan and ramp of the Salar Yield Improvement Project continue to progress well.
• Reaffirmed FY 2024 corporate outlook considerations, including ranges based on lithium market price scenarios.”

On May 1, Seeking Alpha reported: “Albemarle Non-GAAP EPS of $0.26 beats by $0.03…Revenue of $1.36B (-47.3% Y/Y) in-line.”

On May 2, Seeking Alpha reported: “Albemarle could cut capex if lithium prices stay low, CEO says.”

Sociedad Quimica y Minera S.A. (SQM), Wesfarmers [ASX:WES] (OTCPK:WFAFY), Covalent Lithium (SQM/WES JV)

On April 29, SQM announced: “SQM informs revised accounting treatment for lithium mining tax…”

On May 2, SQM announced: “SQM informs effective implementation of Azure Scheme of Arrangement…”

On May 22, SQM announced: “SQM reports earnings for the three months ended March 31, 2024.” Highlights include:

• “SQM reported total revenues for the three months ended March 31, 2024 of US$1,084.5 million compared to total revenues of US$2,263.9 million for the same period last year.
• Net loss(1), (2) for the three months ended March 31, 2024, of (US$869.5) million or (US$3.04) per share, compared to net income(2) of US$749.9 million, US$2.63 per share for the same period last year.
• Over 30% year-on-year higher sales volumes in lithium business, surpassing 43,000 metric tons in 1Q2024.
• Revised and increased FY2024 lithium sales volumes guidance.
• Record-high quarterly sales volumes in iodine business, over 3,700 metric tons in 1Q2024.
• Concluded the acquisition of Andover lithium project in Western Australia.
• Successfully completed the ramp-up of the Dixin lithium hydroxide conversion facility in Sichuan, China, with a nominal capacity of 20,000 metric tons…

…we believe that our sales volumes could reach 200,000 metric tons in2024.”

On May 23, SQM announced:

SQM first quarter 2024 earnings conference call…Our total revenues for the first three months of the year reached almost US$1.1 billion with an adjusted EBITDA of over US$400 million. Our net profit was impacted by a one-time adjustment related to the accounting treatment of the lithium mining tax in Chile, from previous years, adding up to almost US$1.1 billion as of March 31, 2024. This is not having any significant cash impact, since the majority of this amount, close to US$930 million, was paid in prior years.

Upcoming catalysts:

H1, 2025 – Production to start and then ramp to 50ktpa Lithium hydroxide [LiOH] at the Kwinana refinery in WA (SQM/Wesfarmers JV).

Arcadium Lithium (ALTM) [ASX:LTM](formed from the Allkem and Livent merger in Jan. 2024)

On May 7, Arcadium Lithium announced: “Arcadium Lithium releases first quarter 2024 results.” Highlights include:

• “Solid first quarter results driven by average realized pricing for lithium hydroxide and carbonate of over $20,000 / product metric ton.
• On track to achieve $60 to 80 million of realized synergies / cost savings in 2024.
• Multiple expansions provide pathway to 170,000 LCEs¹ of capacity by 2026…

…First quarter revenue was $261 million and reported attributable GAAP net income was $15.6 million, or 1 cent per diluted share.”

Jiangxi Ganfeng Lithium [SHE:002460] [HK: 1772] (OTCPK:GNENY)

On May 8, the South China Morning Post reported: “China’s Ganfeng Lithium seals US$343 million mine deal in West Africa, gains control of one of the world’s largest sources.” Highlights include:

• “The deal is to ‘secure supply of lithium resources, facilitate expansion and enhance its core competitiveness’, the company says.
• Ganfeng will potentially buy out the mine subject to a mining code enacted last year, which gives the government of Mali the right to hold up to 35 per cent of the project.”

On May 18, Reuters reported:

Mali signs agreement with China’s Ganfeng to operate Goulamina lithium mine. Mali has signed an agreement with China’s Ganfeng Lithium (002460.SZ), to operate the Goulamina lithium mine and increase its share in the project in accordance with a new mining code, the West African country’s economy ministry said in a statement. The mining code, adopted last year, allows the military-led government to increase its ownership of mining projects and recoup what it says is a major shortfall in production revenue.

(Chengdu) Tianqi Lithium Industries Inc. [SHE:002466], Tianqi Lithium Energy Australia (TLEA) is a JV with Tianqi Lithium (51%) and IGO Limited (49%). TLEA owns the Kwinana lithium hydroxide facility in WA

On April 30, Tianqi Lithium announced: “Sustainability report 2023.”

On May 16, Tianqi Lithium announced: “Tianqi Lithium tops the 2024 Fortune China ESG Impact List.”

Pilbara Minerals [ASX:PLS] (OTC:PILBF)

No significant news for the month.

Upcoming catalysts:

• End Q2, FY 2024 – P680 Expansion Project set to reach full capacity.
• Q3 FY, 2025 – P1000 Expansion Project set to begin production.

Mineral Resources [ASX:MIN] (OTCPK:MALRF)

Mineral Resources core lithium assets include Mt Marion Mine (50% MIN: 50% Ganfeng) and the Wodgina Lithium Mine (50% ALB: 50% MIN).

No lithium related news for the month.

Sigma Lithium Resources [TSXV:SGML] (SGMLF) (SGML)

Sigma is producing lithium spodumene at its Grota do Cirilo Mine in Brazil.

On May 8, Sigma Lithium announced: “Sigma Lithium increases proven & probable open pit mineral reserve by 40% to 77mt extending operations to 25 years.” Highlights include:

• “Sigma Lithium is increasing its Proven and Probable Reserve balance by 40% to 77.0 million tonnes from 54.8 million tonnes.
• The entirety of this mineral Reserve balance is feasible through low-cost, open pit, mining operations, consolidating the Company‘s position as a low-cost producer of Quintuple Zero High Purity Lithium materials.

• Increased Proven and Probable Reserves lengthens the duration of Sigma’s integrated industrial-mining operations to an estimated 25 years at two phases of processing capacity at 520,000 tonnes/year.”

On May 16, Sigma Lithium announced: “Sigma Lithium reports 1Q 2024 results: May shipment priced at $1,290, increased 25% from 1Q; production costs at $397/t, 2nd lowest in industry.” Highlights include:

• “Strengthened commercial position in May, achieving a premium price of USD $1,290/t, at a fixed formula of 9% of lithium hydroxide quoted at LME, delivering:
  • 11% price increase from April
  • 25% price increase from 1Q24 realized sales price (USD $930/t or $1,035/t on a 6% basis)
• Revenues from volumes of Quintuple Zero High Purity Lithium Concentrate sold in 1Q totaled $49.1 million.
  • Sales volumes totaled 52,857/t
  • Production volumes totaled 54,168/t
• Reduced reported cash cost by 16% from 4Q23, approaching 3Q cost guidance:
  • FOB cash costs of $462/t (guidance $420/t)
  • Cash costs at industrial plant gate averaging $397/t (guidance of $370/t)
• Robust 1Q24 EBITDA margins:
  • 35.3% margins on pro forma EBITDA⁽³⁾ of $17.4 million, generated by business conducted in 1Q24.
  • 15.8% margins on reported 1Q adjusted EBITDA of $5.9 million.
• Board of Directors made a Final Investment Decision to build a second Greentech Industrial Plant that will increase production capacity to 520,000/t of Quintuple Zero Green Lithium from the current 270,000 t/year…”

On May 22, Sigma Lithium announced:

Sigma Lithium announces loading 22,000t shipment to LX International at premium fixed formula: 9% of LME lithium hydroxide…

Upcoming catalysts:

• 2024/25 – Grota do Cirilo Mine construction to double capacity to 520,000tpa of spodumene.

AMG Critical Materials N.V. [NA:AMG] [GR:ADG] (OTCPK:AMVMF) (Formerly AMG Advanced Metallurgical Group NV)

On May 7, AMG Critical Materials N.V. announced: “AMG reports first quarter 2024 results: Lithium projects on schedule.” Highlights include:

Lithium

• “In Brazil, the expansion of our lithium concentrate plant from 90,000 tons to 130,000 tons per annum is progressing as planned. We expect to reach full nameplate capacity of 130,000 tons in the fourth quarter of 2024.
• In Bitterfeld, Germany, AMG’s lithium hydroxide refinery’s first 20,000-ton module is on schedule, both in its advanced commissioning and product qualification process. We plan to ship production batches to clients in the third quarter of 2024.”

Financial Highlights

• “In April, AMG entered into a new $100 million incremental term loan, structured as a fungible add-on to the existing $350 million senior secured term loan. The $100 million incremental term loan has the same pricing, terms and 2028 maturity as the existing $350 million term loan. AMG will use the proceeds of the new incremental term loan for general corporate purposes and lithium resource development.
• AMG’s liquidity as of March 31, 2024, was $485 million, with $285 million of unrestricted cash and $200 million of revolving credit availability. These figures do not include the term loan expansion noted above, as it occurred after the end of the quarter.
• AMG Engineering signed $82 million in new orders for the first three months of 2024, 8% higher than for the same period in 2023.
• The Company will pay its final 2023 declared dividend of €0.20 per ordinary share on or around May 15, 2024, to shareholders of record on May 13, 2024.”

Upcoming catalysts:

• H1, 2024 – Stage 2 production at Mibra Lithium-Tantalum mine (additional 40ktpa) forecast to begin ramping up. Total nameplate capacity to reach 130ktpa by end 2024.
• 2025-2028 – German LiOH facility expansion plan with Modules 2-5 (100,00tpa LiOH).

Sayona Mining [ASX:SYA] (OTCQB:SYAXF)

On April 26, Sayona Mining announced: “March 2024 quarterly activities report.” Highlights include:

• “Significant increase in ore mined at NAL operation from mining areas with lower strip ratios and commencement of Phase 3 mining areas with higher ore tonnes than expected.
• Record monthly and quarterly spodumene concentrate production, with the quarter up 18% to 40,439 dmt at an average grade of 5.4% Li 2O. March production of 15,699 dmt was up 13% on the prior record.
• Adverse weather and tailings line blockages reduced process plant utilisation to 73%, a decrease of 2% compared to the prior quarter.
• Lithium recovery for the quarter was 67%, an increase of 5% compared to the prior quarter.
• Four marine cargos and one rail cargo of concentrate sold by NAL during the quarter. Of these, one marine cargo and one rail cargo were sold to Piedmont Lithium.
• Major capital projects substantially completed at NAL, including the Crushed Ore Dome and Tailings Storage Facility 1. The Crushed Ore Dome started commissioning in April 2024. Lower capital expenditures are expected at NAL moving forward.
• Finalisation of Definitive Feasibility Study [DFS] for the Moblan Lithium Project, confirming a post-tax net present value [NPV] of C$2.2 billion.”

On May 13, Sayona Mining announced: “New high-grade zones discovered at North American Lithium.” Highlights include:

• “New drilling at North American Lithium (NAL) operation with results from 91 drillholes and wedges totalling 26,605m has identified high-grade lithium mineralisation to the north-west, north-east, south-east and below the Mineral Resource Estimate (MRE) pit shell.
• North-West Extension – New Pegmatites: 32.88m @ 1.72% Li2O from 269.62m in drillhole LAN-23-094. 19.35m @ 1.63% Li2O from 346.72m in drillhole LAN-23-095. 20.05m @ 1.60% Li2O from 350.75m in drillhole LAN-23-139-W1.
• Resources Area – Potential Resources Upgrade or Conversion: 47.50m @ 1.29% Li2O from 402.85m in drillhole LAN-23-034. 25.65m @ 1.56% Li2O from 320.75m in drillhole LAN-23-044. 43.25m @ 1.48% Li2O from 377.75m in drillhole LAN-23-053A. 17.95m @ 1.81% Li2O from 168.80m in drillhole LAN-23-062. 21.40m @ 1.43% Li2O from 46.95m in drillhole LAN-23-075. 57.65m @ 1.54% Li2O from 334.85m in drillhole LAN-23-080. 21.90m @ 1.46% Li2O from 138.50m in drillhole LAN-23-085. 22.80m @ 1.36% Li2O from 106.30m in drillhole LAN-23-118.
• Additional, new pegmatites discovered to the south-east and north-east of the existing MRE.
• Assay results pending for additional 24 drillholes (4,592m) of the 2023 drilling campaign.”

On May 23, Sayona Mining announced: “Drilling of high priority targets commences at Tabba Tabba.”

Upcoming catalysts include:

• 2024 – Spodumene production ramp up at NAL operations (owned SYA 75%: PLL 25%).

Piedmont Lithium (PLL)[ASX:PLL]

Piedmont Lithium 100% own the Carolina Lithium spodumene project in North Carolina, USA; as well as 25% of the North American Lithium [NAL] Project in Canada and up to 40.5% of the Ewoyaa Lithium Project in Ghana (JV with Atlantic Lithium and Ghana Gov + Ghana MIIF).

On May 1, Piedmont Lithium announced: “Piedmont Lithium announces Q1 2024 NAL production results.” Highlights include:

On May 10, Piedmont Lithium announced: “Piedmont Lithium reports Q1 2024 results. NAL achieves record quarterly production, Carolina Lithium Mining permit received.” Highlights include:

• “Record quarterly production at NAL with recoveries exceeding target; full run-rate production on track for H2’24.
• Piedmont plans full-year customer shipments of approximately 126,000 dry metric tons (“dmt”), weighted to H2’24.
• Carolina Lithium mining permit issued in May 2024, accelerating funding discussions.
• Revenue of US$13.4 million on sales of approximately 15,500 dmt of spodumene concentrate.
• US$71.4 million in cash as of March 31, 2024; working capital nearly doubled from 2023 year-end.
• 2024 outlook for shipments to more than double and investments to decrease more than 50% in H2’24 vs. H1’24.”

Upcoming catalysts include:

• 2024-25 – Carolina Lithium (100%) – Off-take or project funding announcements.
• 2025 – Ewoyaa Project in Ghana (up to 40.5% PLL) construction targeted to begin, subject to funding.
• ?2026+ – Tennessee Lithium hydroxide Project targeted to begin.

Core Lithium Ltd. [ASX:CXO] [GR:7CX] (OTCPK:CXOXF, CORX)

Core 100% owns the Finniss Lithium Project (Grants Resource) in Northern Territory, Australia.

On April 29, Core Lithium Ltd. announced: “March quarterly activities report.” Highlights include:

• “As a result of an 85% fall in the lithium price, mining activities ceased on 5 January 2024, with the processing of ore stockpiles continuing during the quarter.
• 14% decrease in quarterly spodumene concentrate production 24,927t (28,837t Q2FY24), due to a 5-day planned shut down for operations maintenance, partially offset by higher recoveries.
• 10,199t of spodumene concentrate shipped (30,718t Q2FY24), with 19,756t of spodumene concentrate and 20,000t of lithium fines available for sale at the end of the quarter, with a market value of ~A$25m at current prices.
• ~139kt of ore stockpiles at the end of the quarter, with processing expected to complete mid-CY24.
• Cash balance at 31 March 2024 of $80.4 million, impacted by shipment timing, QP payments, and settlement of the Grants mining contract.
• Revised production, operating costs and capital guidance maintained.
• Gareth Manderson stepped down as Chief Executive Officer, with Doug Warden appointed as Interim CEO.
• Excellent exploration results with new large-scale, regional targets identified at Finniss and post quarter end a 58% increase in Mineral Resource to 48.2Mt at 1.26% Li2O.”

On May 20, Core Lithium Ltd. announced:

Appointment of Chief Executive Officer. Core Lithium Ltd (ASX:CXO) (Core or the Company) is pleased to announce that following a comprehensive domestic and global search process, the Board has appointed Paul Brown as Chief Executive Officer, effective 4 June 2024.

Upcoming catalysts include:

• 2024 – Any resumption of mining operations at the Grants open pit at Finniss where mining has been suspended in Jan. 2024.

Lithium Americas Argentina [TSX:LAAC](LAAC)

Lithium Americas Argentina owns the Argentina assets (Cauchari Olaroz JV, Pastos Grandes, Sal de la Puna) from the LAC split.

On May 13, Globe Newswire reported: “Lithium Argentina reports first quarter 2024 results.” Highlights include:

Operational Highlights

• “During the three months ended March 31, 2024, Caucharí-Olaroz produced approximately 4,500 tonnes of lithium carbonate.

  • The project continues to advance through the ramp up and test higher production levels.

  • In April 2024, a planned shutdown was performed to inspect and improve reliability of the processing plant.

• Caucharí-Olaroz remains on target to produce 20,000–25,000 tonnes of lithium carbonate in 2024.

• For 2024, Caucharí-Olaroz expects to be operating cash flow positive when adjusted for working capital changes.

• Working capital requirements are expected to remain elevated through the first half of 2024 as production continues to ramp up and sales shipments begin to normalize.”

Financial Highlights

• As of March 31, 2024, Lithium Argentina had $86M in cash and cash equivalents with an additional $20M in collateral related to loans to Caucharí-Olaroz expected to be released in Q2 2024.

• The Company has not drawn on its $75M credit facility with Ganfeng Lithium Co. Ltd. (“Ganfeng”) and has $259M in convertible debt at 1.75% due in early 2027.

• As of March 31, 2024, Minera Exar S.A. (“Minera Exar”), the Argentine joint venture company owned by the Company (44.8%), Ganfeng (46.7%) and Jujuy Energia y Mineria Sociedad del Estado (“JEMSE”) (8.5%) had approximately $241M (on a 100% basis, less cash collateral) of local debt tied to funding working capital and startup costs.

• A substantial portion of the local debt is being refinanced with unsecured credit facilities typical of an operating company.

• The Company is working with Ganfeng to pursue additional longer-term debt options to leverage improved lending conditions in Argentina and support future growth plans.”

Corporate Highlights

• “On March 5, 2024, Ganfeng agreed to invest $70M for an expected 15% stake in the Pastos Grandes project through a subscription of newly issued shares of the Company’s Argentine subsidiary, Proyecto Pastos Grandes S.A. (the “Pastos Grandes Transaction”). The transaction is expected to close in mid-2024 with proceeds available to support the Company’s Argentine operations.
• In the first quarter of 2024, the Company commenced additional measures to reduce discretionary spending at the corporate level by 25%.
• The Company will hold its Annual General Shareholders Meeting on June 20, 2024.”

Upcoming catalysts:

• 2024 – Cauchari-Olaroz lithium production ramp to 20,000-25,000tpa and then to 40,000tpa. From 2025+ a Stage 2 20ktpa+ expansion is planned.

NB: Ganfeng Lithium (51%) and Lithium Americas Argentina (49%) own the JV company Minera Exar S.A., which owns 91.5% interest and is entitled to 100% of the production from the Cauchari-Olaroz Project. The 8.5% interest is owned by Jujuy Energia y Mineria Sociedad del Estado (“JEMSE”) (a company owned by the Government of Jujuy province).

Zijin Mining Group [SHA:601899] [HKSE:2899] (OTCPK:ZIJMF)

Zijin Mining owns 100% of the 3Q Lithium Mine in Argentina, with Stage 1 production started producing 2,903t LCE in 2023 and planning to ramp to 25,000tpa LCE. Zijing Mining is a large diversified mining group with global mines focused on copper, gold, zinc/lead, silver and lithium.

On April 26, Zijin Mining Group announced: “Zijin’s net profit up 15% in Q1 2024 on cost control and output growth.” (No mention of their lithium production in Argentina)

Argosy Minerals [ASX:AGY][GR:AM1] (OTCPK:ARYMF)

Argosy has an interest in the Rincon Lithium Mine in Argentina. Argosy initially plans to ramp Stage 1 to 2,000tpa lithium carbonate.

On April 30, Argosy Minerals announced: “Quarterly activities report – March 2024.” Highlights include:

• “Government of Salta Province officially approves Company’s Environmental Impact Assessment for development of the 10,000tpa battery quality lithium carbonate production operation expansion at Rincon Lithium Project: EIA approval significantly de-risks Rincon Project development. Argosy will prioritise strategic partner process, targeting to secure capex funding and off-take arrangements for the 10,000tpa expansion operation.
• Dynamic modelling produces outstanding results for Rincon Project, indicating; brine can be pumped for a period of up to 42 years to produce 12,000tpa of lithium carbonate, or brine can be pumped for a period of up to 22 years to produce 24,000tpa of lithium carbonate.
• Upgraded Total Mineral Resource Estimate (MRE) of 686,875 tonnes of Li2 CO3 with a weighted mean average lithium concentration of 329mg/L (a 180% increase from previous resource estimate), and comprises; an Indicated MRE of 606,313 tonnes Li2CO3 with a weighted mean average lithium concentration of 326mg/L, and an Inferred MRE of 80,562 tonnes Li2CO3 with a weighted mean average lithium concentration of 351mg/L.
• 2,000tpa operational works progressing toward continuous production operations.
• Pre-development engineering works progressing for 10,000tpa operation expansion.
• International lithium carbonate price outlook remains supportive to realise Argosy’s growing lithium production development strategy.
• Argosy becoming only the 2nd ASX-listed battery quality lithium carbonate producer.
• Strong financial position with cash reserves of ~$9.3 million at 31 March 2024 (with an additional US$348,000 held in Puna Mining S.A. bank account).”

On May 15, Argosy Minerals announced:

Rincon Lithium Project – progress update. 2,000tpa operational works have achieved continuous operations on the path toward increasing effective production.

On May 24, Argosy Minerals announced: “US$5m strategic investment by ATL.” Highlights include:

• “US$5 million strategic investment by Amperex Technology Limited – a world leading producer and innovator of lithium-ion batteries.
• Investment at $0.14631 per share – represents a 15% premium to 10-day VWAP.
• Argosy and ATL to negotiate potential offtake sales agreement for lithium carbonate product from Rincon 2,000tpa facility.
• The Companies will also discuss future strategic cooperation opportunities and access to ATL networks for potential Rincon Lithium Project development.”

Upcoming catalysts:

• 2024 – Rincon Lithium full ramp-up toward steady-state production targeted 2,000tpa operation.

Covalent Lithium – Wesfarmers [ASX:WES] (OTCPK:WFAFY)/ SQM (SQM) JV

The Mt Holland Lithium Mine is a 50/50 JV (“Covalent Lithium”) between Wesfarmers and SQM, located in Western Australia. Stage 1 plans to ramp to 300ktpa spodumene production after beginning in March 2024.

No news for the month.

Upcoming catalysts include:

• H1, 2025 – Kwinana LiOH refinery planned to begin and ramp to 45-50ktpa LiOH.

Lithium miner ETFs

• Sprott Lithium Miners ETF (LITP) – A pure play lithium ETF
• Global X Lithium & Battery Tech ETF (LIT)
• ProShares S&P Global Core Battery Metals ETF (ION)
• The Amplify Lithium & Battery Technology ETF (BATT)

Global X Lithium & Battery Tech ETF (LIT) 10 year price chart (source)

Trend Investing lithium demand v supply model forecasts

Trend Investing forecasts lithium demand to increase 10.7x this decade.

Note: A Nov. 2020 UBS forecast is for “lithium demand to lift 11-fold from ~400kt in 2021 through to 2030.”

Conclusion

May lithium prices were slightly lower.

Highlights for the month were:

• New CATL batteries set to transform EVs with increased energy density.
• Saudi Arabia set on securing lithium for EV ambitions.
• IEA: Battery stationary storage was the fastest-growing energy technology in the power sector in 2023, deployments more than doubling year-on-year.
• The global lithium market size was valued at $22.19B in 2023 and is projected to grow to $134.02B in 2032.
• CATL is moving towards battery technology licensing to help automakers with local production, and is now in talks with a dozen of them.
• The U.S Loans Program Office has added “supply of critical minerals” to the list of 1703 eligible technologies. LPO is clarifying that it may also fund “production” or mining and extraction activities.
• President Biden introduces a new tariff on imports stating certain other critical minerals will increase from zero to 25% in 2024. A Reuters report shows lithium is not included in the critical minerals that will get a tariff.
• Sodium batteries become less attractive with lithium price drop as CATL plans technology licensing.
• South Korea said to build lithium reserves to aid battery sector.
• Albemarle is on track to deliver more than $280 million target in productivity benefits in 2024. Could cut capex if lithium prices stay low.
• SQM informs effective implementation of Azure Scheme of Arrangement.
• Arcadium Lithium is on track to achieve $60 to 80 million of realized synergies/cost savings in 2024.
• Mali signs agreement with China’s Ganfeng to operate Goulamina lithium mine and increase its share in the Project.
• Sigma Lithium increases proven & probable open pit mineral reserve by 40% to 77mt extending operations to 25 years at 520,000 tonnes/year.
• AMG Critical Materials – Expect to reach full nameplate capacity of 130,000 tons in the fourth quarter of 2024.
• Sayona Mining – New high-grade zones discovered at NAL.
• Core Lithium appoints a new CEO Paul Brown, mining activities remain suspended.
• LAAC – Caucharí-Olaroz remains on target to produce 20,000–25,000 tonnes of lithium carbonate in 2024.
• Argosy Minerals announces US$5m strategic investment by Amperex Technology Limited (“ATL”).

As usual, all comments are welcome.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.