LTHM - Lithium Miners News For The Month Of June 2023

2023-06-26 12:59:44 ET

Summary

• Lithium chemical spot prices and spodumene prices were very slightly higher in the past month. Fastmarkets - Lithium prices to remain elevated this year.
• Lithium market news - BNEF forecasts a 22x scale-up in annual lithium demand in 2022 and 2050 in the Net Zero Scenario. EU, Argentina sign raw materials MOU, lithium focus.
• Lithium company news - Ganfeng/LAC - First lithium produced as part of commissioning at Caucharí-Olaroz. Ganfeng/Leo Lithium - Goulamina total Resource increased by 48.2% to 211 Mt grading 1.37%.
• Sayona Mining/Piedmont Lithium - NAL lithium carbonate plant NPV of $3.2b to produce a combined NAL NPV of $5.4b, targeting production as early as 2026.

Welcome to the June 2023 edition of the lithium miner news.

The past month saw a solid month of news from the lithium producers boosted recently by the lithium price recovery. The Ganfeng/Lithium Americas Cauchari Olaroz Project started commissioning with production of lithium carbonate, albeit not yet battery grade.

Lithium price news

Asian Metal reported during the past 30 days, the 99.5% China delivered lithium carbonate spot price was up 2.37% and the China lithium hydroxide price was up 1.11% . The Lithium Iron Phosphate (Li 3.9% min) price was up 1.00% . The Spodumene (6% min) price was up 1.00% over the past 30 days.

Metal.com reported lithium spodumene concentrate (6%, CIF China) average price of USD 4,050/t, as of June 21, 2023.

China lithium carbonate spot price 5 year chart - CNY 310,500 (~USD 43,245) ( source )

S&P Global lithium price forecast as of Nov. 2022 ( source )

Wood Mackenzie's lithium price forecast - July 2022 ( Source )

Lithium demand versus supply outlook

2022 - UBS lithium demand v supply forecast to 2030

Lithium demand vs. supply forecast by Benchmark Mineral Intelligence (mid 2022 forecast)

Fastmarkets lithium demand vs. supply forecast (as of 2022) ( Source )

BMI (Q2, 2022 forecast ) - Lithium demand to exceed supply mostly this decade

Lithium demand vs. supply chart (kt LCE battery grade) (deficits forecast every year with only a slight surplus in 2027) ( source )

Trend Investing v IEA demand forecast for EV metals ( Trend Investing ) ( IEA )

2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 - Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, And Copper 2x to 3x

Rio Tinto forecasts lithium emerging supply gap (October 2021) - 60 new mines the size of Jadar will be needed

BMI demand growth 2022-2035 (in mtpa) for critical metals. Number of new mines required by 2035 - 78 new lithium mines needed

Lithium market and battery news

On May 24 The Driven reported :

Breakthrough EV battery pack could last 2 million kms, or 130 years of average driving. Chinese manufacturer Gotion High-Tech has announced a new battery pack will go into mass production in 2024 that it says will deliver range of up to 1,000kms for a single charge and could last two million kms. The company says the manganese doped L600 LMFP Astroinno will be able to do 4,000 full cycles at room temperature, and at high temperature will get 1800 cycles and over 1500 cycles of 18-minute fast charging.

On May 25 Energy Storage News reported :

Lithium prices to remain elevated this year, battery packs to fall to US$100/kWh by 2025-27.....Lithium carbonate prices have started to creep back up again after coming down from 2022's extreme highs, but the long-term outlook and its impact on battery pack costs is one of downwards prices, research firm Fastmarkets said.

On May 30 Seeking Alpha reported :

Chile sees lithium swinging into surplus by 2025 as new supply comes online. Major lithium producer Chile said it sees the battery metal remaining in tight supply this year and next before switching to surplus in 2025. The government's Cochilco agency said Tuesday it forecast demand growth for lithium would average more than 16% annually over the next 12 years as the world increasingly shifts to electric vehicles, with the market swinging into a surplus during 2025-29 and returning to a deficit in the early 2030s.....

On May 31 Reuters reported :

France inaugurates first of four gigafactories in the north.....The development by Automotive Cells Company, a joint-venture between Stellantis, Mercedes and TotalEnergies, involves total investment of 2 billion euros ($2.20 billion) - with the French state and local authorities providing nearly half.

On May 31 Seeking Alpha reported :

Lithium mining and producing ETF in the works from BlackRock.....The financial behemoth has filed a prospectus with the U.S. Securities and Exchange Commission for the iShares Lithium Miners and Producers ETF (ILIT). ILIT will be a passively managed ETF that looks to track the performance of the STOXX Global Lithium Miners and Producers Index. The underlying index related to ILIT seeks to capture the performance of U.S. and non-U.S. equity securities that are involved with the lithium industry, either in ore mining or the lithium compounds manufacturing processes.

On May 31 Investing News reported :

A British consortium that includes mining giant Glencore will invest about $9 billion in Indonesia's mining and electric vehicle (EV) battery sectors, a minister said on Wednesday.....The ministry confirmed the British consortium included firms such as Glencore, Indonesian state miner Aneka Tambang, materials company Umicore and energy company Envision Group.

On June 1 Asia Financial reported :

Toyota powers up US stake with $2.1bn EV battery plant boost. The Japanese vehicle-maker is ramping up its investment in its new factory in North Carolina as it bids to join the EV elite.....its first US-made battery electric sports utility vehicles (SUVs) will be assembled at the company's Kentucky plant from 2025. The new SUVs, with three rows of seats, will be powered by batteries from the North Carolina plant once it begins production in 2025.

In early June the Bloomberg's EV Outlook 2023 announced: "22x Scale up in annual lithium demand between 2022 and 2050 in the Net Zero Scenario."

On June 11 The Times reported : "The white gold rush: how lithium became our most precious metal."

On June 13 Electrek reported :

GM plans fourth EV battery plant with new Samsung SDI partnership...... The new plant will produce nickel-rich prismatic and cylindrical cells and is expected to help "significantly increase the accessibility and affordability of EVs." Once complete, the plant is expected to have over 30 GWh capacity, bringing GMs total to over 160 GWh.

On June 13 Mining.com reported :

EU, Argentina sign raw materials MOU with lithium in focus.....Argentina's president and the chief of the European Union signed a memorandum of understanding [MOU] on Tuesday to boost cooperation on sustainable raw materials during an event in Buenos Aires, in a push for more clean energy tie-ups. The agreement is designed to boost cooperation on climate-friendly infrastructure as well as new research on raw materials, including lithium.

On June 14 Wood Mackenzie reported :

US grid-scale energy storage installations record second-straight quarterly decrease. Supply chain issues and interconnection queue backlogs hamper industry growth; Q2 projected to bounce back.....

On June 15 the Mining Weekly reported :

Hancock signs up for lithium at Mt Bevan....Gina Rinehart's Hancock Magnetite Holdings has inked a lithium earn-in and joint venture (JV) agreement with junior explorers Legacy Iron and Hawthorn Resources over the Mt Bevan project, in Western Australia....

On June 16 Arena EV reported :

ProLogium's solid-state battery unveiled with twice the energy density.......the company, in partnership with Mercedes, developed its first-generation 100% silicon oxide anode technology last year, which paved the way for high energy density. Its second-generation solid-state battery showcased for the first time in Germany has the potential to change the EV scene.......Another advantage of the new technology is weight reduction, and since solid-state batteries are going to be hugely expensive for the foreseeable future, manufacturers are likely to keep the battery sizes down.......The company is in the process of preparing assessment samples for automakers, and the tests will begin later this year.

On June 20 GlobeNewswire reported :

Global Battery Recycling Market predicted to generate a revenue of $47.2 billion and rise at a stunning CAGR of 14.5% over the forecast timeframe from 2022-2031. The global battery recycling market is expected to see prominent growth over the analysis period, due to the rising demand for electric vehicles worldwide. Based on battery type, the li-ion battery sub-segment is expected to be the most profitable. The Asia-Pacific region generated the highest revenue in 2021......

On June 22 Mining.com reported :

Lithium producers warn global supplies may not meet electric vehicle demand.......Lithium producers are growing anxious that delays in mine permitting, staffing shortages and inflation may hinder their ability to supply enough of the battery metal to meet the world's aggressive electrification timelines.

Lithium miner news

Albemarle (NYSE: ALB )

On June 5 Albemarle announced : "Albemarle 2022 sustainability report highlights strong progress toward goals." Highlights include:

Progress against sustainability targets

• "Albemarle is on track to achieve its goal of reducing the intensity of freshwater usage in Chile and Jordan by 25% by 2030......
• Lithium GHG emissions intensity is tracking well below 2030 target....."

On June 19 Lithium Power International reported :

A$30 million cash sale agreed for Western Lithium Ltd. Lithium Power International Limited (ASX: LPI) (LPI or the Company) is pleased to announce that it has entered into a binding agreement to sell its wholly-owned Australian subsidiary, Western Lithium Ltd (WLI) (100% owner of a number of tenements, including through its subsidiary, CMC Lithium Pty Ltd, in Western Australia) to Albemarle Lithium Pty Ltd (an Australian subsidiary of Albemarle Corporation).......

On June 20 Albemarle announced :

Albemarle becomes first lithium producer to complete independent audit and publish IRMA report. Company earns IRMA 50 Rating for Salar de Atacama Lithium Site in Chile.

On June 21 Albemarle announced : "Albemarle named to TIME's list of the TIME100 most influential companies."

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

On May 26 Sociedad Quimica y Minera S.A. announced : "SQM announces beginning of negotiations with Codelco......"

Upcoming catalysts:

Q4, 2023 - Mt Holland spodumene production to begin (SQM/Wesfarmers JV).

Q4, 2024 - 50ktpa Lithium hydroxide [LiOH] refinery (SQM/Wesfarmers JV).

Investors can read SQM's latest presentation here or the latest Trend Investing article on SQM here .

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

On June 12 Market Screener reported :

Ganfeng Lithium Group Co., Ltd. announces first lithium carbonate products of its Cauchari-Olaroz Salt Lake Project in Argentina.....The Company expects that with the subsequent ramp-up of production capacity and optimization of production lines, the project will gradually produce battery-grade products. Cauchari-Oar salt lake project is located in Jujuy Province, Argentina, with total lithium resource of approximately 24.58 million tons of lithium carbonate equivalent (LCE), and the Company has control of the project.

PLUS - June 12 Lithium Americas (Ganfeng JV with LAC) reported : "Lithium Americas announces first lithium as part of commissioning at Caucharí-Olaroz." See Lithium Americas news below.

On June 19 Market Screener reported : "Ganfeng Lithium terminates processing agreement with Mineral Resources Unit." See Mineral Resources news below.

On June 20 Leo Lithium (JV with Ganfeng at Goulamina Project) reported : "Total Goulamina Resource tonnage increased by 48.2% to 211.0 Mt grading 1.37% Li2O...."

Investors can read the very recent Trend Investing article on Ganfeng Lithium here .

Goulamina Lithium Project (Ganfeng/Leo Lithium JV) is set to begin DSO in Q4, 2023 and spodumene in Q2, 2024 ( source )

(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

No significant news for the month.

Kwinana lithium refinery JV (51% Tianqi: 49% IGO) in Western Australia

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

No significant news for the month.

You can view the latest company presentation here .

Upcoming catalysts:

• Late 2023 - P680 Expansion Project set to begin production.
• Late 2023 - Plan to commission production of POSCO/Pilbara Minerals (18%, option to increase to 30%) JV LiOH facility in Korea.
• Q3, 2025 - P1000 Expansion Project set to begin production.

Mineral Resources [ASX:MIN] ( MALRF )

Mineral resources lithium assets include Mt Marion Mine (50% MIN: 50% Ganfeng). Wodgina Lithium Mine (50% ALB: 50% MIN). The 50ktpa Kemerton Lithium Hydroxide refinery trains 1 & 2 (85% ALB: 15% MIN) to take feed from Greenbushes. Qinzhou (25ktpa) and Meishan (under construction - 50ktpa) conversion plants in China (50% ALB: 50% MIN) will take feed from Wodgina.

On June 2 Mineral Resources announced : "MinRes completes acquisition of Norwest....."

On June 16 Mineral Resources announced :

Exploration and lithium business update.....MinRes confirms the mutual early termination with effect from 1 June 2023 of the Agreement to convert Mt Marion spodumene concentrate into lithium battery chemicals with Ganfeng. The parties have further confirmed that there will be no payments under the Agreement in respect of the sales of lithium battery chemicals in calendar year 2023. The prior guidance of lithium battery chemicals of 19.0-21.3kt for FY23 is therefore withdrawn. The Company will continue to sell its share of spodumene concentrate to Ganfeng at prevailing market prices. The construction of the processing plant at Mt Marion was completed in June 2023 and the commissioning process is now underway. A second spodumene shipment, expected in June, will now be delivered in July. Mt Marion FY23 spodumene concentrate shipment guidance, previously the lower end of 160-180k dmt, is therefore reduced to 145-150k dmt (SC6 equivalent). Wodgina FY23 volumes are expected to be at the lower end of spodumene concentrate guidance of 150-170kt dmt (SC6 equivalent) and lithium battery chemicals guidance of 11.5-12.5kt. Lithium battery chemicals sold guidance is increased from 5.0-6.0kt to 7.0-7.5kt. Wodgina FY23 spodumene concentrate FOB cost guidance has increased to $925-975/t (SC6 equivalent) (previously $850-900/t SC6 equivalent3).

Investors can read the latest Trend Investing article on Mineral Resources here .

Livent Corp. ( LTHM )[GR:8LV] (NB: Alkem and Livent plan to merge late 2023)

No news for the month.

Allkem [ASX:AKE] [TSX:AKE] ( OROCF ) (NB: Alkem and Livent plan to merge late 2023)

On June 16 Allkem announced : "Mt Cattlin Ore Reserve update confirms mine life extension." Highlights include:

• "Ore Reserve tonnage increased 34% to 7.8Mt at 1.20% Li2O and 130ppm Ta2O 5 at a cut-off grade of 0.4% Li2O.
• The Ore Reserve and planned mining schedule suggests a projected Life-of-Mine for the next 4-5 years (2027-2028) via open pit mining methods. The Ore Reserve has increased with higher grade despite mining depletion to support production......
• An underground Feasibility Study is expected to be delivered by Q1 CY24. It will enable a variety of scenarios to be modelled and will ensure an optimised future mining method is selected."

Upcoming catalysts include:

• Q2, 2023 - Olaroz Stage 2 expansion production followed by a 2 year ramp to 25ktpa. When combined with Stage 1 total capacity will be 42.5ktpa.
• Mid 2024 - Sal De Vida Stage 1 production targeted to begin and ramp to 15ktpa . SDV Stage 2&3 combined will begin about 2025 and ramp to an additional 30ktpa. Total combined when completed will be 45ktpa.
• ?2025/26 - James Bay production targeted to start.

You can read the latest investor presentation here . You can read the latest Trend Investing Allkem article here .

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

On May 24 AMG Advanced Metallurgical Group NV announced :

AMG Lithium and Fortum Battery Recycling Oy sign MoU for supply of recycled lithium hydroxide.....

Upcoming catalysts:

• H2, 2023 - Stage 2 production at Mibra Lithium-Tantalum mine (additional 40ktpa) forecast to begin, bringing total production capacity to 130ktpa.
• Q4, 2023 - Lithium hydroxide facility in Bitterfeld-Wolfen Germany to be commissioned. First module to be 20,000tpa LiOH.
• 2025-2028 - German LiOH facility expansion plan with Modules 2-5 (100,00tpa LiOH).

You can view the latest company presentation here or the Trend Investing article here .

Sayona Mining [ASX:SYA] ( SYAXF )

On May 30 Sayona Mining announced : "Completion of bookbuild: a$200m placement to advance lithium resources." Highlights include:

• "Bookbuild successfully completed for A$200 million underwritten placement at A$0.18 per SYA share.
• New highly credentialled Australian and offshore investors introduced to share register.
• Funds to bolster Sayona's Québec lithium resources, speeding development of northern lithium hub and Abitibi lithium hub and including investment in downstream processing, amid continued growth in demand from global electrification drive."

On June 21 Sayona Mining announced : "Standalone lithium carbonate plant NPV of $3.2b at NAL produces a combined NAL NPV of $5.4b."Highlights include:

• "Positive preliminary technical study for lithium carbonate production at North American Lithium ((NAL)) operation in Québec, with fully integrated pre?tax NAL NPV now exceeding A$5 billion, including NAL DFS (refer ASX release 14 April 2023).
• Standalone estimated pre?tax net present value ((NPV)) (8% discount) for lithium carbonate production of A$3.2B (pre?tax); standalone carbonate plant pre?tax IRR of 60%.
• Total earnings before interest, tax, depreciation, and amortisation (EBITDA) over 16?year project life for standalone carbonate plant of A$7.5B, based on life of plant production of 372,000 tonnes lithium carbonate.
• Sayona to advance definitive technical study for lithium carbonate plant's restart, targeting production as early as 2026, amid focus on North American supply chain for battery/EV sector."

Upcoming catalysts include:

• 2023 - Spodumene production ramp up at NAL (SYA 75%: PLL 25%) operations.

Piedmont Lithium (NASDAQ: 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 50% of the Ghana Lithium Project.

On June 20 Piedmont Lithium announced : "Initial drilling results reported infill resource drilling confirms continuity and grade Ewoyaa Lithium Project, Ghana, West Africa Mining Lease Application update." Highlights include:

• "Initial assay results received for 2,208m of infill reverse circulation ("RC") drilling completed at Ewoyaa as part of the broader 18,500m 2023 planned drilling programme.
• Newly reported assay results confirm mineralisation continuity within the Ewoyaa South-2 deposit, part of the 35.3Mt @ 1.25% Li 2O Ewoyaa JORC (2012) Compliant Mineral Resource Estimate1 ("MRE" or the "Resource").
• Drilling designed to convert Inferred resources to higher confidence Indicated resources at the Ewoyaa South-2 deposit for future mine sequencing optionality.
• Multiple high-grade drill intersections reported as downhole intercepts.... GRC0892: 57m at 1.17% Li 2 O from 45m. GRC0899: 54m at 1.14% Li2 O from 3m. GRC0900: 41m at 1.16% Li2 O from 73m. GRC0909A: 33m at 1.12% Li 2 O from 78m. GRC0896: 18m at 1.16% Li 2 O from 80m. GRC0908: 19m at 0.93% Li2 O from 47m. GRC0906: 11m at 1.5% Li2O from 38m. GRC0906: 17m at 0.91% Li 2 O from 54m. GRC0908: 10m at 1.53% Li2 O from 33m.
• Drilling and regional exploration programmes ongoing......
• Definitive Feasibility Study remains on track for release end Q2 2023.
• Awaiting approval of Mankessim licence consolidation ahead of resubmission of Mining Lease application for the Project."

Upcoming catalysts include:

• Late 2024 - Ghana Project (50% PLL) targeted to begin.
• 2026 - Tennessee Lithium hydroxide project targeted to begin.
• 2023-25 - Carolina Lithium (100%) - Permitting, off-take or project funding announcements.

You can view the company's latest presentation here , recent CEO interview here , or a Trend Investing article here .

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

Core 100% owns the Finniss Lithium Project (Grants Resource) in Northern Territory Australia. Significantly they already have an off-take partner with China's Yahua (large market cap, large lithium producer), who has signed a supply deal with Tesla ( TSLA ). The Company states they have a "high potential for additional resources from 500km2 covering 100s of pegmatites." Fully funded and starting mining with a planned H1 2023 production start.

No news for the month.

Investors can read a company presentation here , or the Trend Investing article when Core Lithium was back at A$0.055 here .

Catalysts include:

• 2023 - Ramp up of spodumene production from Finniss.

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

Sigma is developing a world class lithium hard rock deposit with exceptional mineralogy at its Grota do Cirilo Project in Brazil.

On May 26 Sigma Lithium Resources announced : "Sigma Lithium delivers on Zero Tailings strategy, receives first payment and obtains premium pricing for sale of Green Lithium at 9% of LiOH Index." Highlights include:

• "Sigma Lithium is delivering on its pioneering "Zero Tailings" environmental sustainability strategy, eliminating the environmental footprint of tailings with a positive ecosystem impact.
• The Company received the first payment on its first shipment under a three-year environmental offtake agreement to sell 100% of its Green Tailings (the "Green Tailings Environmental Offtake") together with one spot shipment of 15,000 tonnes of Green Lithium. Green Tailings are high-purity, zero chemicals, approximately 1.3% lithium oxide ("Li2O"), ultra-fine tailings generated by the Company's Greentech Lithium Processing Plant ("Greentech Plant") as a by-product. Green Lithium is high purity 5.5% battery grade sustainable lithium produced by the Greentech Plant.
• The Green Tailings Environmental Offtake and the spot sale agreement were concurrently signed on May 3, 2023, with Yahua......
• This shipment of 30,000 tonnes is in the process of being transported and stored at port to be shipped in early June, and is comprised of 15,000 tonnes of Green Tailings and 15,000 tonnes of Green Lithium.
• The Greentech Plant generates coarse gravel tailings as an additional by-product, 100% of which are being donated to neighboring communities to pave dirt roads, enabling improved access to rural areas that are mostly blocked during wet season in Vale do Jequitinhonha, also known as Lithium Valley."

On June 12 Sigma Lithium Resources announced :

Sigma Lithium files fy2022 audited financial statements, continuous disclosure report and NI 43-101 technical report...

Upcoming catalysts:

• 2023 - Ramp up of spodumene production from Grota do Cirilo.

Investors can read the latest company presentation here or the Trend Investing article here back when Sigma was trading at C$5.00.

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

Argosy has an interest in the Rincon Lithium Project in Argentina, targeting a fast-track development strategy. Argosy initially plans to ramp to 2,000tpa lithium carbonate starting mid-2023.

For further details see:

Lithium Miners News For The Month Of June 2023