Lithium Miners News For The Month Of June 2024

Welcome to the June 2024 edition of the lithium miner news.

The past month saw lithium prices lower.

Lithium price news

Asian Metal reported during the past 30 days, the China delivered lithium carbonate (99.5% min.) spot price was down 7.90% and the China lithium hydroxide (56.5% min.) price was down 7.90%. The Lithium Iron Phosphate (3.9% min) price was down 1.72%. The Spodumene (6% min) price was down 7.39% over the past 30 days.

Metal.com reported lithium spodumene concentrate Index (Li2O 5.5%-6.2%, excluding tax/insurance/freight) spot price of USD 1,095, as of June 21, 2024.

China lithium carbonate spot price 5 year chart – CNY 93,500 (~USD 12,878) (source)

Lithium demand versus supply outlook

China’s CITIC Futures forecasts lithium surpluses in 2024 and 2025 (source) – In 2024 they forecast a China lithium carbonate price average of CNY 100,000/t (~US$14,000/t)

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

Lithium market and battery news

On May 15 Stockhead reported:

Mission Critical: Albanese and Chalmers’ budget delivers $7bn splash for critical minerals refiners. Canberra answers miners’ prayers, with $7b production tax credit at centre of $22b Future Made in Australia program. The budget announcement could see 10% of operating costs for downstream processing in critical minerals like nickel, vanadium, lithium and rare earths returned to miners as a tax credit.

Note: Bold emphasis by the author.

On May 24 Linklaters reported:

The EU Critical Raw Materials Act entered into force in May 2024. Key measures to strengthen the EU’s supply chain vulnerabilities. The Critical Raw Materials Act (“CRMA”) entered into force on 23 May 2024. At present, the EU relies almost exclusively on imports from suppliers concentrated in a limited number of countries – making it vulnerable to geopolitical risks and supply chain disruptions. The CRMA aims to secure the raw materials supply chain and sets clear priorities for the EU and Member States in order to mitigate future supply risks.

On May 28 Bloomberg reported:

EU, Australia sign critical minerals pact to diversify supply chains. Ministers in Canberra and Brussels signed a memorandum of understanding on Tuesday, which will be followed by the joint development of “concrete actions” over the next six months to improve collaboration on critical minerals projects.

On May 29 Bloomberg reported:

China to spend $828 million on high-tech EV batteries, China Daily says. Investment to focus on all-solid-state batteries, report says. EU set to announce results of probe into China’s EV subsidies.

On May 31, The Rio Times reported:

Milei’s reforms to attract foreign investment. President Javier Milei’s government has made significant changes to attract investments in Argentina’s natural resources. These changes, part of ongoing negotiations to advance tax and economic deregulation reforms, focus on mining royalties and the Incentive Regime for Large Investments (RIGI).

On June 2 Mining.com reported: “Argentine Chamber of Mining Companies rejects possible royalty hike.”

On June 4 Investing News Network reported: “Chile firms up lithium nationalization strategy with SQM, Codelco partnership.”

On June 17 Autoevolution reported:

BYD and CATL to produce EV batteries that fully charge in 10 min by the end of 2024. The world’s biggest battery manufacturers, BYD and CATL, will soon ship lithium-iron-phosphate (LFP) battery cells that can be charged from zero to 100% in ten minutes. CATL will ship 6C-capable Qilin 2.0 batteries by the end of the year, while BYD will have its Blade 2.0 batteries with similar charging performance in the second half of 2024.

On June 21 Yahoo Finance reported (quoting ResearchAndMarkets):

Global lithium-ion battery market poised for exceptional growth, reaching an estimated $340.4 billion by 2030. The lithium-ion battery market stands at the cusp of significant expansion, with growth trajectories indicating a compound annual growth rate [CAGR] of 17.9% from 2024 to 2030. This growth is primarily fueled by the escalating demand for electric vehicles (EVs), the need for efficient energy storage for industrial use, and the ever-increasing penetration of portable electronics.

Lithium miner news

Albemarle (ALB)

On June 11, Albemarle announced:

Albemarle introduces Project Plan for the Kings Mountain Mine to Community…The plan includes the proposed site footprint, primary physical features and details of the mining processes. Pending permitting approval and a final investment decision, the mine is anticipated to produce approximately 420,000 tons of lithium-bearing spodumene concentrate yearly, providing a crucial building block for sustainable transportation and to support key defense applications.

On June 12, Albemarle announced: “All the elements for a better world: Albemarle Publishes 2023 Sustainability Report.”

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

On May 31, SQM announced: “SQM and Codelco sign partnership agreement…”

On June 17, SQM announced: “SQM announces long-term lithium supply agreement with Hyundai Motors and Kia Corporation…”

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)

No news for the month.

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

No news for the month. See also Pilbara Minerals news below.

(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 June 4, Bloomberg reported:

China’s Tianqi reminds SQM of hurdles in Codelco’s Landmark Lithium Pact. Just days after celebrating a landmark deal to share ownership of one of the world’s biggest lithium operations, SQM and Codelco are turning to regulatory — and possibly legal — obstacles. Tianqi Lithium Corp., the Chinese firm that owns a 22% stake in SQM, filed a statement Monday reminding the market of its pending request with Chilean securities regulators to rule on whether the partnership requires a shareholder vote. Announcing a deal without that clarity is “a worrying precedent in terms of corporate governance,” Tianqi wrote…

On June 22, Bloomberg reported: “Tianqi slams Chile regulator, weighs legal options in SQM deal.” Highlights include:

• “It’s latest twist in spat between SQM and No. 2 shareholder.
• Regulator’s approach weakens investor confidence, Tianqi says.”

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

On June 21, Pilbara Minerals announced: “Study delivers 2Mtpa expansion option – Highly accretive.” Highlights include:

• “The P2000 PFS establishes that the Pilgangoora Operation could be expanded to an annualised production volume of more than 2Mtpa with an average forecast annual spodumene concentrate production for the first ten years of 1.9Mtpa (spodumene concentrate (SC) 5.2% grade).
• The Company’s existing Pilgangoora Ore Reserves1 solely underpin the P2000 production profile, with a revised life of mine (LOM) of 23 years.
• P2000 would further extend Pilbara Minerals’ position as the largest pure play lithium producer globally. The timing of the P2000 Project will be subject to the successful outcome of the next level of feasibility study, project approvals and the market outlook at the time of the financial investment decision (FID).
• P2000 would require construction of a new whole of ore flotation plant at Pilgangoora with an estimated capital expenditure of $1.2B (-20/+30% accuracy). The new plant would complement existing processing flowsheets in use at the Pilgangoora Operation.
• The expansion will create significant shareholder value with a P2000 incremental net present value [NPV] of $2.6B2 and incremental internal rate of return (IRR) of 55%.
• Pilbara Minerals has commenced a feasibility study in relation to P2000 (FS) with outcomes expected in the December Quarter of calendar year 2025 (CY25). A potential FID will follow the FS outcomes.
• Funding requirements will be determined during the FS and FID phases. Pilbara Minerals will consider all available funding options including the Company’s cash balance ($1.8B as at 31 March 2024), cashflows from existing production, new loan facilities or other sources.
• P2000 will deliver significant additional spodumene concentrate annual production capacity for offtake and strategic partnership opportunities, which Pilbara Minerals will explore in parallel with the FS and FID.”

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.

No significant news for the month.

Upcoming catalysts:

• 2024/2025 – 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 June 20, AMG Critical Materials N.V. announced:

AMG Critical Materials acquires a strategic stake in Savannah Resources. AMG Critical Materials N.V subsidiary (“AMG”, EURONEXT AMSTERDAM: “AMG”) AMG Lithium B.V., AMG’s wholly owned subsidiary, is pleased to announce a capital investment of GBP 16 million (approximately USD 20 million) in Savannah Resources Plc (“Savannah”), the developer of the Barroso Lithium Project (the “Project”) in Portugal, Europe’s largest spodumene lithium deposit. AMG’s capital investment yields a 15.77% ownership stake, making AMG the largest shareholder of record…

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 May 27, Sayona Mining announced: “Moblan drilling delivers thick, high-grade intersections.” Highlights include:

• “Latest results for 94 new drillholes totalling 20,735m for Sayona’s Moblan Lithium Project, Québec, Canada with highlights including: South Pegmatites: 40.70m @ 1.52% Li2O from 130.50m in drillhole 1331-23-537. 78.20m @ 1.55% Li2O from 51.50m in drillhole 1331-23-679. 57.05m @ 1.48% Li2O from 41.15m in drillhole 1331-23-684. Inter Pegmatites: 44.75m @ 1.41% Li2O from 250.15m in drillhole 1331-23-461. 49.70m @ 1.61% Li2O from 143.30m in drillhole 1331-23-503. 45.00m @ 1.17% Li2O from 291.50m in drillhole 1331-23-513. Moleon Pegmatites: 30.20m @ 1.73% Li2O from 158.80m in drillhole 1331-23-552. 44.25m @ 1.29% Li2O from 214.00m in drillhole 1331-23-582. 42.75m @ 1.85% Li2O from 176.80m in drillhole 1331-23-583A. 36.85m @ 1.77% Li2O from 181.95m in drillhole 1331-23-584. 43.90m @ 1.66% Li2O from 139.90m in drillhole 1331-23-585.
• Potential connection between Main and Moleon MRE pit shells supported by significant drilling results obtained from the Inter Pegmatite Area (Figure 1).
• Potential additional mineral resources and conversion from Inferred to Indicated mineral resources in current resource pit shells.
• Assay results pending for additional 34 drillholes (7,852m) of the 2023 drilling campaign.”

On June 13, Sayona Mining announced: “Moblan drilling reveals further high-grade lithium intersections.” Highlights include:

• “Latest results for 34 new drillholes totalling 7,853m for Sayona’s Moblan Lithium Project, Québec, Canada with highlights including: New South Pegmatites (East): 41.80m @ 1.44% Li2O from 206.20m in drillhole 1331-23-515. 40.00m @ 1.37% Li2O from 253.00m in drillhole 1331-23-516. New South Pegmatites (West): 39.55m @ 1.63% Li2O from 38.00m in drillhole 1331-23-678. Moleon Pegmatites: 44.95m @ 1.56% Li2O from 81.05m in drillhole 1331-23-689. 46.75m @ 1.49% Li2O from 197.35m in drillhole 1331-23-689. All assay results of the 2023 drilling campaign are now complete, validated and released.
• New drilling results illustrate the potential connection between the Main, South, New South, Inter and Moleon sectors within a single extensive lithium mineralised system.
• New 3D geological modelling is underway to consider all 2023 drilling results as part of an updated Mineral Resource Estimate (MRE).
• Further drilling program of 70,000m to be completed throughout 2024.”

On June 19, Sayona Mining announced: “Further high-grade drilling results at North American Lithium.” Highlights include:

• “Latest results for 36 new drillholes totalling 8,803 m for Sayona’s North American Lithium (NAL) operation, Québec, Canada with highlights including: North-West Extension – New Pegmatites. 21.00m @ 1.55% Li2O from 352.90m in drillhole LAN-24-153A. 25.50m @ 1.64% Li2O from 308.20m in drillhole LAN-24-156. 25.35m @ 1.76% Li2O from 269.25m in drillhole LAN-24-159. 18.40m @ 1.54% Li2O from 356.05m in drillhole LAN-24-159. Resources Area – Potential Resources Upgrade or Conversion. 26.05m @ 1.66% Li2O from 324.25m in drillhole LAN-23-010-W1. 19.90m @ 1.52% Li2O from 52.20m in drillhole LAN-23-072.
• All assay results of the 2023 drilling campaign are now completed, validated and released (24 holes for 4,9001 m in this release).
• High-grade results were obtained from the first 2024 drillholes (12 drillholes and wedges totalling 3,903 m).
• Further drilling program totalling approximately 30,000 m to be completed at NAL throughout 2024.”

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 June 14, Piedmont Lithium announced: “Piedmont Lithium reports results of Annual Meeting of Stockholders.”

On June 19, Piedmont Lithium announced: “Further high-grade drill results at North American Lithium…”

On June 21, Piedmont Lithium announced:

High-grade drill results continue at North American Lithium…The 2023-2024 drill program has identified multiple, new, high-grade lithium zones beyond the planned pit shell model, with intercepts at thicker and higher grades than previously encountered. Mineralization within the pit shell model has shown continuity and consistency in grade and thickness. An additional 30,000 meters of exploration drilling at NAL is planned for 2024…

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.

No significant news for the month

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 June 19, Lithium Argentina announced: “Lithium Argentina publishes 2023 Sustainability Report.”

On June 20, Lithium Argentina announced: “Lithium Argentina reports 2024 Annual General and Special Meeting results.”

Upcoming catalysts:

• 2024/25 – 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. Zijin Mining is a large diversified mining group with global mines focused on copper, gold, zinc/lead, silver and lithium.

On June 18, Zijin Mining Group announced:

Zijin Mining raises $2.5 billion through convertible bonds, placement. On the morning of June 18, Zijin Mining announced that it had raised US$2.5 billion in the Hong Kong H-share market from global investors. The issuance, which includes US$2 billion in convertible bonds and US$500 million in share placements, is Zijin’s largest equity financing since its establishment in 1993. The shares were priced at a 5% discount, while the convertible bonds were issued at a 1% coupon and a conversion premium of 28% relative to the share placement price…

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.

No news for the month.

Upcoming catalysts:

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

Covalent Lithium – Wesfarmers [ASX:WES] (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.

Other Chinese lithium producers (several are not listed)

• Zhicun Lithium Group Ltd (private)
• Chengxin Lithium Group Co Ltd [SHE:002240] – also owns Sichuan Zhiyuan Lithium Industry Co., Ltd
• Sichuan Yahua Industrial Group Co Ltd [SHE:002497]
• Jianxiawo (owned by CATL)
• Jiangxi Nanshi Lithium Battery New Material Co., Ltd (owned by Nanshi Group and Yichun Mining)

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 vs 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

June lithium prices were lower.

Highlights for the month were:

• Australia – Mission Critical: Albanese and Chalmers’ budget delivers $7bn splash for critical minerals ‘refiners’.
• The EU Critical Raw Materials Act entered into force in May 2024.
• EU, Australia sign critical minerals pact to diversify supply chains.
• Milei’s reforms to attract foreign investment. Milei’s reforms to attract foreign investment. Argentine Chamber of Mining Companies rejects possible royalty hike.
• BYD and CATL to produce EV batteries that fully charge in 10 min by the end of 2024.
• ResearchAndMarkets: Global lithium-ion battery market poised for exceptional growth, reaching an estimated $340.4 billion by 2030…with growth trajectories indicating a CAGR of 17.9% from 2024 to 2030.
• SQM and Codelco sign partnership agreement. SQM announces a long-term lithium supply agreement with Hyundai and Kia.
• Tianqi Lithium slams Chile regulator, weighs legal options in SQM deal.
• Pilbara Minerals Study delivers 2Mtpa spodumene expansion option – Highly accretive. Commenced an FS in relation to P2000 due out by Q4, 2025.
• AMG Critical Materials acquires a strategic equity stake of 15.77% in Savannah Resources.
• Sayona’s Moblan Project drilling delivers thick, high-grade intersections including 57.05m @ 1.48% Li2O from 41.15m.
• Zijin Mining raises $2.5 billion through convertible bonds placement.

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.