One issue that might strongly have an effect on the lithium {industry} is the results of the US election. What are the opposite elements?
In case you are a lithium investor, that is the one report you possibly can’t miss. Our journalists have reached out to the insiders to get unique forecasts and tricks to allow you to remain one step forward of this dynamic sector.
Desk of Contents:
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A Sneak Peek At What The Insiders Are Saying
“(Benchmark expects) to see extra offtake agreements snapped up, even at tasks which can be nonetheless underneath development as mission builders attempt to derisk their tasks and patrons attempt to safe provide. We count on to see accelerating efforts to provide and procure Inflation Discount Act-compliant materials.”
— Adam Megginson, Benchmark Mineral Intelligence
“2023 noticed the market shift into an oversupply; we now want to attend for demand to soak up that additional provide. We count on the market to stay in a surplus in 2024, though some provide restraint and ongoing good demand ought to guarantee the excess is manageable.”
— William Adams, Fastmarkets
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Lithium Forecast and Shares to Purchase in 2024
Lithium Market Replace: Q1 2024 in Overview
Lithium costs remained subdued within the first quarter of 2024, effectively beneath highs set in late 2022 and 2023. Varied elements, together with oversupply and weak electrical car (EV) demand, stored costs muted over the 90 day interval.
Whilst a market glut weighs on costs, Fastmarkets is forecasting that lithium provide will enhance by 30 p.c by the top of the yr. The agency notes in a January report that some new provide is being ramped up, whereas some high-cost output is being minimize — it stays to be seen how the present worth atmosphere will influence these plans.
“Market contributors count on downstream lithium demand to stay comparatively weak and with no imminent considerations about provide shortages, we forecast a tentatively balanced market in 2024,” Fastmarkets explains.
With a market backside probably approaching, what different elements have been at play within the lithium sector throughout Q1? Learn on for a take a look at key occasions through the quarter and what consultants see coming heading additional into the yr.
January: Lithium market calm amid stock saturation
Lithium oversupply from 2023 continued to saturate the market at first of 2024, dampening costs. Manufacturing in 2023 got here in at 180,000 metric tons (MT) of contained lithium, 34,000 MT increased than 2022’s output.
“Indications have been that stock was fairly sturdy each on the completed cell stage and upstream with miners/brine producers,” Adam Megginson, analyst at Benchmark Mineral Intelligence, instructed the Investing Information Community. “As such, procurement exercise on the spot market was pretty subdued. Consumers in Japan and South Korea opted to attract from stock or volumes already being procured underneath contract fairly than procure extra on the spot market.”
Buying and selling exercise was additionally muted in January as market contributors anticipated China’s Spring Competition.
“Expectations have been that demand and in flip costs would decide up afterwards,” defined Megginson. “This restocking exercise did not instantly materialize after the Spring Competition, which led to some gloomier sentiment in China.”
Notable lithium offers from the primary month of the yr embrace two transactions by Chinese language chemical and battery producer Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460,HKEX:1772).
The primary, between Ganfeng and Australia’s Pilbara Minerals (ASX:PLS,OTC Pink:PILBF), amended an current offtake settlement, growing short- and medium-term provide of spodumene focus. The revised settlement will see Pilbara provide Ganfeng with as much as 310,000 MT yearly in 2024, 2025 and 2026, in comparison with the earlier 160,000 MT.
“The long-term outlook for the {industry} stays extremely thrilling. Each Ganfeng and Pilbara Minerals stay targeted on extending our respective positions as main, low-cost producers within the burgeoning lithium market,” stated Dale Henderson, Pilbara’s managing director and CEO, within the announcement.
Subsequently, Ganfeng penned a provide settlement with South Korea’s Hyundai Motor Group (KRX:005380). The deal — which is efficient from January 1, 2024, by way of December 31, 2027 — will see Ganfeng provide an undisclosed quantity of battery-grade lithium hydroxide to Hyundai.
February: Lithium producers react to market stress
As downstream gamers sought offers amid low costs, producers started revising manufacturing tallies.
“We additionally started to see some provide response to the persistent lower cost atmosphere, with the announcement of delays to growth plans and layoffs at some lithium producers or aspirants,” Megginson stated. “I solely count on this to palpably influence the availability image in 12 to 18 months, as that’s when these expansions have been deliberate to ramp.”
In mid-January, Albemarle (NYSE:ALB) introduced it was trimming capital expenditures by US$500 million year-over-year.
“The actions we’re taking permit us to advance near-term development and protect future alternatives as we navigate the dynamics of our key end-markets,” CEO Kent Masters stated. “The long-term fundamentals for our enterprise are sturdy and we stay dedicated to working in a secure and sustainable method. As a market chief, Albemarle has entry to world-class assets and industry-leading expertise, together with a collection of natural tasks to seize development.”
A number of weeks later, the US-based firm entered right into a long-term partnership with BMW Group (ETR:BMW) to offer the automaker with battery-grade lithium for its high-performance EVs.
ASX-listed Liontown Assets (ASX:LTR,OTC Pink:LINRF), which plans to open its Kathleen Valley lithium mission mid-year, famous the precarious lithium market in a January replace.
“The current materials decline in spodumene costs has triggered vital reductions in brief and medium-term lithium worth forecasts,” it reads. “In consequence, we have now commenced a overview of the deliberate growth and related ramp-up of Kathleen Valley to protect capital and scale back the near-term funding necessities of the mission.”
Whereas the corporate is reviewing potential methods to chop general prices, it did be aware that there is not going to be any modifications to its plant design, which has a deliberate capability of three million MT per yr and is presently underneath development.
Given this atmosphere, some market watchers are calling for consolidation within the lithium sector.
“As lithium tasks wrestle to remain above water, analysts additionally count on M&A exercise to extend as main producers with optimistic money stream attempt to discover offers out there whereas junior firms attempt to promote tasks in a market the place non-public capitals are scarcer than earlier years,” a February 12 report from S&P World states.
March: Evolving provide and demand elements assist lithium costs
The start of March introduced some restoration in lithium costs as each carbonate and hydroxide made positive aspects.
After beginning the month at US$14,977.15 per MT, lithium carbonate costs registered a 5 month excessive of US$16,109.48 on March 14. Costs for lithium hydroxide additionally moved northward on the London Steel Trade, hitting a excessive for the primary quarter of US$13,425 per MT on March 11.
For Megginson, these strikes have been in keeping with a market that is coming again into equilibrium.
“We forecast a reasonably balanced market in 2024,” the Benchmark worth and information analyst stated. “Whereas the low worth atmosphere has brought on some mission expansions to be pushed again barely and among the marginal, higher-cost provide has come offline — this has been principally counterbalanced with bigger producers producing extra.”
He went on to stipulate the elements that possible introduced on the March worth rallies.
“On the demand facet, cathode producers in China introduced that they might considerably enhance manufacturing in March, some by as a lot as 30 p.c month-over-month — albeit in comparison with a really low stage in February as Spring Competition was going down,” Megginson stated. The drivers on the availability facet are somewhat extra nuanced.
“Environmental inspections at lepidolite producers in Jiangxi province led to some considerations about provide from the area,” he defined. “Transgressions have been discovered by way of the dealing with of lithium slag, and a few contributors thought that provide might change into constricted. In the long run, the influence of those inspections was comparatively restricted with two firms being instructed to take motion, with the rest recommencing regular manufacturing (as of April 5).”
Megginson went on to notice that there at the moment are “rumblings” that brine producers in the identical area might endure related environmental inspections. “Though downstream demand is ticking up notably in the meanwhile, ample provide general is more likely to restrict the extent of worth rises within the quick time period,” he concluded.
Along with worth spikes, March additionally introduced main developments for US-focused Lithium Americas (TSX:LAC,NYSE:LAC). The corporate, which is creating its Thacker Go mission in Nevada, obtained conditional dedication for a US$2.26 billion mortgage from the US Division of Power.
The mortgage is earmarked for the development of the processing services at Thacker Go, which Lithium Americas states has the largest-known measured and indicated lithium useful resource in North America.
The money injection is designed to additional strengthen the North American battery metals provide chain.
“America has an unimaginable alternative to steer the following chapter of world electrification in a approach that each strengthens our battery provide chains and ensures that the financial advantages are directed towards American staff, firms and communities,” Jonathan Evans, president and CEO of Lithium Americas, said.
What elements will transfer the lithium market in 2024?
Towards the top of Q1, there was extra vital information for the lithium market.
Chile, a key participant within the international lithium market, unveiled the total particulars of its complete plan to boost lithium manufacturing and appeal to funding. The nation defined that operations and tasks in its Atacama and Maricunga salt flats will must be majority managed by its state operators, which is able to maintain a 50 p.c plus one share stake.
Chile additionally introduced that it has opened up over two dozen salt flats within the nation for personal funding.
The brand new lithium coverage goals to advertise sustainable growth whereas guaranteeing truthful participation amongst {industry} stakeholders. Chile intends to streamline the allowing course of for lithium tasks, encouraging higher funding and boosting manufacturing. Moreover, the federal government plans to ascertain a lithium consortium to supervise analysis and growth initiatives, facilitating technological developments in lithium extraction and processing.
“The objective of the nationwide technique is to spice up Chile’s lithium manufacturing, which is presently anticipated to rise by 20 p.c to 270,000 tonnes in 2024 from 225,000 tonnes in 2023,” Fastmarkets analyst Jordan Roberts wrote. “Low manufacturing prices within the nation imply producers have been dealing with much less stress from the current weak spot in lithium costs.”
For his half, Megginson suggested watching lithium output from Africa.
“Though the standard of fabric is extra variable than comparable materials from, for instance Australia, and the continent nonetheless makes up a small proportion of general international provide, provide of hard-rock lithium concentrates from Africa is rising quickly, particularly from Zimbabwe and Namibia,” he stated. “At present, Chinese language converters are accountable for almost all of the tasks which can be at extra superior levels. It’s price noting that many of those tasks usually are not economical when lithium chemical compounds costs are considerably beneath RMB 150 per kilogram.”
Lastly, Megginson is monitoring gross sales exercise. “Now we have seen an growing variety of public auctions and pre-auctions for spodumene focus,” he stated. “That is positively one thing to look out for, and I count on to see extra auctions for the rest of the yr, and a few related auctions going down for lithium chemical compounds as effectively.”
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Securities Disclosure: I, Georgia Williams, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the knowledge reported within the interviews it conducts. The opinions expressed in these interviews don’t mirror the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.
Lithium Market Replace: Q2 2024 in Overview
Costs for lithium continued to sink throughout Q2, falling to lows unseen since 2021.
Oversupply, weaker-than-expected electrical car (EV) gross sales and a stalling vitality storage sector have impeded lithium’s skill to regain momentum, with lithium carbonate equal costs hitting US$12,610.44 per tonne on the finish of June.
Throughout a dialogue at this yr’s Fastmarkets Lithium and Battery Uncooked Supplies convention, Zihao Lee, Fastmarkets worth reporter, gave an summary of the present state of the general lithium market.
“The worldwide market is at a surplus of 180,000 tonnes of lithium carbonate equal,” he stated. “The worldwide lithium surplus is essentially a results of a manufacturing ramp over the previous few years, when costs have been at their historic highs.”
A lot of that elevated manufacturing has come out of China, the place home lithium carbonate equal output grew by a whopping 44 p.c in 2023. On Mainland China, manufacturing climbed to 275,000 tonnes, whereas Chinese language operations in Africa and South America delivered 30,000 tonnes of the fabric.
Though China ranks third on the planet for annual lithium mine manufacturing, the nation dominates the refinement phase, which permits it to leverage management over international worth dynamics, in accordance with Lee.
“Totally different regional markets share related pricing restraints, with Chinese language lithium costs figuring out the route of lithium costs,” he stated. “As a result of China manages 70 p.c of world lithium-refining capability, it’s the greatest client on the planet and the nation additionally has essentially the most lively spot lithium market.”
As new lithium tasks get sidelined as a result of low costs, what different elements are shaping the lithium market in 2024? Learn on for a take a look at key occasions throughout Q2 and what consultants see coming heading into the second half of the yr.
April: Oversupply retains lithium costs low
Lithium carbonate equal costs slipped to US$14,780.57 in the beginning of April, however had clawed again to a Q2 excessive of US$15,503.96 by April 9. They then started a consolidation interval that may final for the remainder of the quarter.
Costs for lithium hydroxide on the London Steel Trade remained flat from the beginning of the yr.
“Regional markets have begun to converge to related ranges (towards) the backdrop of a bearish market globally and oversupply considerations,” stated Lee on the Fastmarkets occasion, which was held in Las Vegas, Nevada.
With costs locked in a downward trajectory, Will Adams, head of base metals analysis at Fastmarkets, warned of the sector’s precarious state in his presentation on the convention. “The lithium market is in a troublesome area — low costs are placing the brakes on growth, when in actuality there is no such thing as a time to waste,” he stated.
In the long run, demand for lithium carbonate equal is ready to enhance to 2.5 million tonnes by 2030, a considerable distinction from the 292,000 tonnes of demand recorded in 2020.
As Adams defined, this elevated demand can be satiated from a “extra diversified provide base.”
A few of that new provide might come from Piedmont Lithium (NASDAQ:PLL,ASX:PLL), considered one of North America’s main lithium suppliers. On April 17, the lithium miner introduced that the North Carolina Division of Environmental High quality had accredited a mining allow for its Carolina lithium mission in Gaston County.
The open-pit lithium mine might play a key function within the North American lithium provide chain.
Additional down the availability chain, Honda Motor (NYSE:HMC) revealed plans to speculate C$15 billion to construct a complete EV worth chain in Canada. In a late April announcement, the corporate stated the funds can be used to assemble an EV plant and a separate EV battery facility in Alliston, Ontario, slated to start manufacturing in 2028.
One other portion of the funding will set up a cathode lively materials processing plant and a separator plant.
In keeping with Honda Motor, as soon as open, the EV plant will have the ability to produce 240,000 autos yearly, whereas the battery plant can have a capability of 36 gigawatt hours per yr.
Could: Robust financing atmosphere for lithium juniors
Regardless of the troublesome worth atmosphere, S&P World information exhibits that juniors noticed some positivity in Q2.
In keeping with the agency, funds raised by junior and intermediate mining firms soared 179 p.c month-on-month in April to succeed in US$1.38 billion, following a gradual begin to 2024.
The supersized quantity represented the very best month-to-month whole in 10 months, and was pushed by a 14 p.c enhance in financings and a number of other high-value offers. The surge was led by the lithium and copper sectors.
Nevertheless, this energy-driven momentum did not final lengthy.
“After practically tripling in April, funds raised by junior and intermediate mining firms fell 16 p.c to US$1.16 billion in Could,” a subsequent S&P World report states. “The decline was fueled by decrease copper and lithium financings and partially offset by a rise in gold financing, which rose for a fourth consecutive month.”
As Fastmarkets’ Lee defined throughout his presentation, the market glut and weak costs have been particularly difficult for junior miners and lithium firms within the intermediate stage.
Commenting on incentive costs, he famous, “They normally sit round US$20 to US25 per kilogram per for battery-grade lithium chemical compounds. At present, in accordance with Fastmarkets’ assessments, battery-grade lithium chemical compounds sit beneath US$15. Subsequently, entry to capital for brand spanking new mission growth or current manufacturing growth may very well be difficult.”
This hindrance to the mission pipeline might make the market swing again into deficit as early as 2028, stated Lee.
June: EV makers signal strategic offers regardless of gross sales considerations
Because the final month of Q2 unfolded, considerations about weakened EV gross sales within the EU and Europe continued to use stress to lithium demand and costs. Adams famous that Chinese language demand development is ready to dip from 113 p.c in 2022 to 32 p.c this yr, whereas in Europe it is projected to fall from 44 p.c in 2022 to 7 p.c in 2024.
Nevertheless, essentially the most pronounced decline is anticipated to be the US market, the place demand development will fall from 81 p.c in 2022 to a meager 4 p.c in 2024.
These drops are the results of first-adopter saturation, in addition to client considerations about affordability, vary and charging infrastructure, stated Adams. There are additionally combined alerts from OEMs and governments.
These challenges didn’t inhibit EV makers from penning large-scale offers on the finish of Q2.
In mid-June, sector main SQM (NYSE:SQM) introduced that its subsidiary, SQM Salar, had secured a long-term settlement to produce lithium hydroxide to Hyundai Motor (KRX: 005380) and Kia (KRX: 000270).
“We’re extremely proud to announce this provide settlement with Hyundai and Kia,” stated Carlos Diaz, CEO of SQM Salar, on the time. “By offering these world-leading EV producers with high-quality battery-grade lithium hydroxide, we’re actively contributing to a extra sustainable future.”
Earlier within the month, SQM partnered with Codelco, Chile’s state-owned copper miner, to collectively exploit lithium and different assets within the Salar de Atacama. The enterprise aligns with Chile’s technique to nationalize its lithium {industry}, leveraging its standing because the holder of the world’s largest lithium reserves and a number one producer of the battery metallic. Below the nationalization plan, Codelco will maintain the bulk stake within the three way partnership. The partnership entails merging Codelco’s subsidiary, Minera Tarar, with SQM’s subsidiary, SQM Salar, to spice up lithium manufacturing by way of 2060.
Different notable information occasions from June embrace Volvo’s (STO:VOLV-B) introduction of a “battery passport” for its EX90 electrical SUVs, enhancing transparency within the provide chain. This digital tracker, developed with British agency Circulor, verifies the origins and recycled content material of uncooked supplies like lithium, cobalt, and nickel utilized in EV batteries.
The battery passport goals to make sure accountable sourcing and enhance sustainability.
Accessible within the EU and US beginning this yr, clients can entry the knowledge by way of an app or QR code within the car, leveraging Circulor’s blockchain expertise for safe monitoring.
To finish the quarter, SQM introduced plans to pilot check direct lithium extraction applied sciences with a objective of choosing a number of for long-term use by 2025. “We want to have a number of direct lithium extraction options,” Diaz stated on stage through the Fastmarkets convention. “It is troublesome to decide on one that’s going to suit and be appropriate for all types of various chemical compounds that may be in several types of brine.”
Wanting forward, Adams famous that the lithium market is consolidating in an atmosphere of oversupply, weak demand and excessive stock. He added that there’s a threat of additional worth weak spot because of the continued oversupply.
Nevertheless, decrease costs might immediate extra provide restraint, serving to to rebalance the market.
“We count on costs to stay flat within the quick to medium time period,” he stated.
Remember to comply with us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, maintain no direct funding curiosity in any firm talked about on this article.
High 6 Lithium Shares of 2024
The second quarter has drawn to an in depth, and the yr’s best-performing lithium shares on Canadian, US and Australian exchanges are making strikes regardless of right now’s robust market atmosphere.
After 2023’s fluctuations, the lithium sector exhibited higher stability within the first half of 2024. Whereas oversupply and weak costs stored some firms from registering giant positive aspects through the interval, others noticed share worth development.
So which lithium-focused firms achieved the largest will increase?
The record beneath was generated utilizing TradingView’s inventory screener, and information was gathered on July 16, 2024. Whereas US lithium firms have been thought of for the record, none have been up year-to-date on the time information was gathered. All prime lithium shares had market caps above $10 million of their respective currencies when information was gathered.
High Canadian lithium shares
1. Lithium Chile (TSXV:LITH)
12 months-to-date acquire: 32.08 p.c; market cap: C$148.56 million; share worth: C$0.70
South America-focused Lithium Chile owns a number of lithium land packages in Chile and Argentina. Presently, the explorer is working to delineate the deposit at its Salar de Arizaro property in Argentina.
On April 9, Lithium Chile introduced a 24 p.c enhance within the useful resource estimate for Salar de Arizaro. The brand new whole for the mission is 4.12 million metric tons (MT) of lithium carbonate equal, categorized as follows: 261,000 MT within the measured class, 2.24 million MT within the indicated class and 1.62 million MT within the inferred class.
Not lengthy after, on April 18, the corporate reported the creation of two wholly owned Canadian subsidiaries — Lithium Chile 2.0 and Kairos Gold — as a part of a spinout to separate its Chilean and Argentinian belongings.
Lithium Chile will retain its Argentinian lithium tasks, and switch its 111,978 hectares of Chilean lithium properties to Lithium Chile 2.0 and its portfolio of gold belongings in Chile to Kairos Gold.
After trending upward by way of Q1, shares of Lithium Chile reached a year-to-date excessive of C$0.88 on March 21.
2. Q2 Metals (TSXV:QTWO)
12 months-to-date acquire: 32 p.c; market cap: C$28.46 million; present share worth: C$0.325
Exploration agency Q2 Metals is exploring its flagship Mia lithium property within the Eeyou Istchee James Bay area of Québec, Canada. The property comprises the Mia development, which spans over 10 kilometers. Additionally included in Q2 Metals’ portfolio is the Stellar lithium property, comprised of 77 claims and positioned 6 kilometers north of the Mia property.
This yr, Q2 Metals has additionally targeted on exploring the Cisco lithium property, which is located in the identical area. On February 29, the corporate entered into three separate choice agreements to achieve a 100% curiosity in Cisco, information that brought on its share worth to skyrocket; it reached a year-to-date excessive of C$0.54 on March 4.
In mid-Could, Q2 Metals launched re-assayed outcomes from 2023 drilling carried out at Cisco by the property’s distributors. The corporate used the analytical technique it has utilized to its Mia drill cores.
“We’re happy with the optimistic consequence of the re-analysis of the Cisco drill outcomes,” stated Q2 Metals Vice President of Exploration Neil McCallum. “A radical overview of the standard management measures has solidified that the brand new outcomes are extra correct than the unique outcomes beforehand introduced. It’s not an sudden change because the analytical strategies now used are extra correct at increased grades above roughly 1.5 p.c Li2O and we have now a number of samples above that vary.”
Later that month, the corporate introduced the beginning of a summer season drill program on the Cisco property. It has since launched a number of vital updates, together with the affirmation of eight new mineralized zones on July 8.
Q2 Metals closed the acquisition of Cisco in June and now wholly owns the mission.
3. Rock Tech Lithium (TSXV:RCK)
12 months-to-date acquire: 14.81 p.c; market cap: C$163.05 million; present share worth: C$1.55
Rock Tech Lithium is creating upstream and downstream lithium capabilities. The corporate’s strategy contains the manufacturing of sustainably sourced spodumene feedstock from its Ontario-based Georgia Lake mission, in addition to the development of lithium hydroxide converters, beginning with its Guben converter in Brandenburg, Germany.
In Could, Rock Tech obtained development and operations permits for Guben, which has a deliberate annual capability of 24,000 MT of lithium hydroxide monohydrate; this was the ultimate approval wanted for the refinery.
Within the years to return, the corporate expects to supply uncooked materials from recycling discarded batteries, pledging to have 50 p.c of the feedstock at its German converters come from recycled lithium by 2030.
In late June, Rock Tech obtained a binding letter of intent from Brandenburg’s Ministry for Financial Affairs, Labor and Power for as much as 90 million euros in subsidies for its Guben converter.
Moreover, the corporate’s utility for federal funding from the German Railway Authority is progressing effectively, and can probably yield one other 10 million euros in grants. Rock Tech plans to make use of this funding to assist shift transport from highway to rail. Shares of Rock Tech reached an H1 excessive of C$2.01 on June 5.
High Australian lithium shares
1. Prospect Assets (ASX:PSC)
12 months-to-date acquire: 57.38 p.c; market cap: AU$64.62 million; share worth: AU$0.14
Africa-focused explorer Prospect Assets holds a diversified portfolio of belongings positioned in Zimbabwe, Zambia and Namibia. The corporate’s lithium tasks, Omaruru and Step Apart, are in Namibia and Zimbabwe, respectively.
In late June, Prospect launched an replace on its exploration actions on the tasks. The corporate reported sturdy assay outcomes from Part 4 diamond drilling at Step Apart, and shared outcomes from follow-up Part 2 drilling at Omaruru.
In a launch, Managing Director Sam Hosack highlights the numerous mineralization potential at each tasks.
Shifting ahead, Prospect plans to decelerate spending at its lithium tasks because it turns to its newly acquired Mumbezhi copper mission. The corporate believes it might probably monetize Step Apart within the close to time period to assist on this objective.
Firm shares rose to an H1 excessive of AU$2.05 on Could 27.
2. Vulcan Power Assets (ASX:VUL)
12 months-to-date acquire: 53.79 p.c; market cap: AU$867.55 million; present share worth: AU$4.46
Europe-focused Vulcan Power Assets goals to assist a carbon-neutral future by producing lithium and renewable vitality from geothermal brine. The corporate is presently creating the Zero Carbon lithium mission in Germany’s Higher Rhine Valley. Vulcan is using a proprietary alumina-based adsorbent-type direct lithium extraction course of to provide lithium with an finish objective of supplying sustainable lithium for the European electrical car market.
On April 11, Vulcan introduced the graduation of lithium chloride manufacturing at its lithium extraction optimization plant in Germany. In keeping with the corporate, the milestone marks the primary lithium chemical manufacturing in Europe utilizing native provide. The plant constantly exhibited over 90 p.c lithium extraction effectivity.
Vulcan will now put together the 40 million euro facility for industrial manufacturing. The corporate already has binding lithium offtake agreements in place with main automakers and battery producers, and expects to produce sufficient lithium for 500,000 electrical autos through the first section of manufacturing.
Shares of Vulcan marked an H1 excessive on Could 22, buying and selling for AU$5.54.
3. Anson Assets (ASX:ASN)
12 months-to-date acquire: 11.11 p.c; market cap: AU$200.03 million; share worth: AU$0.15
Anson Assets holds a portfolio of tasks within the US and Western Australia. Its main asset is the Paradox lithium mission in Utah, which Anson is remodeling into a significant lithium manufacturing operation for the North American market.
On Could 8, Anson obtained approval from Utah’s Division of Pure Assets to supply water, or brine, for lithium extraction at its Inexperienced River lithium mission. The allow permits the non-consumptive use of 19 cubic toes of brine, which the corporate will course of after which return to its unique geological formation.
That is the corporate’s first allow approval for lithium manufacturing from brine in Utah.
In late June, Anson partnered with Koch Expertise Options to make use of Koch’s Li-Professional course of for a pilot Lithium Selective Sorption unit on the Inexperienced River lithium mission.
The pilot mission, funded collectively by Anson Assets and Koch by way of a convertible be aware, can be used to gather information for the potential launch of a commercial-scale plant utilizing the expertise. It’s anticipated to enter pilot manufacturing in July.
Shares of Anson marked a year-to-date excessive of AU$0.16 on July 10.
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Securities Disclosure: I, Georgia Williams, maintain no direct funding curiosity in any firm talked about on this article.
