[ad_1]
With battery prices growing for the primary time in years in 2022, partially on the again of upper uncooked supplies costs, it’s clear why electrical car (EV) makers proceed to search for methods to safe provide of key metals akin to lithium.
Demand for EVs is predicted to stay excessive in coming years because the world strikes away from fossil fuels to greener sources of power, which in flip means electrifying transportation. Organizations from the US authorities to the EU have pledged to section out inner combustion engine automobiles, whereas carmakers have set formidable targets to impress their fleets.
For automotive producers from Tesla (NASDAQ:TSLA) to Basic Motors (NYSE:GM), the previous few years have seen the race to safe a gentle provide of lithium improve — way more so up to now 12 months, as costs climbed and geopolitical tensions uncovered the vulnerabilities of the worldwide lithium provide chain.
Present lithium producers have already dedicated contracts with battery producers and carmakers, however which juniors have inked offers for provide but to come back on stream? Learn on to search out out.
1. Lithium Americas (NYSE:LAC)
Market cap: US$3.22 billion; present share value: US$23.88
Twin-listed Lithium Americas inked the first-of-its-kind lithium provide deal with Basic Motors on the finish of January 2023 to develop the Thacker Go mine in Nevada. Underneath the settlement, the Detroit-based carmaker will make a US$650 million fairness funding in Lithium Americas, which represents the biggest funding ever by an automaker to provide battery uncooked supplies.
Lithium Americas owns one hundred pc of the Thacker Go lithium claystone undertaking within the US, which is projected to start manufacturing within the second half of 2026. With a mine lifetime of 40 years, the undertaking could have an annual manufacturing capability of 80,000 metric tons (MT) per 12 months. In line with estimates from the corporate, the lithium extracted and processed from the undertaking will have the ability to help the manufacturing of as much as 1 million EVs on an annual foundation.
Along with Thacker Go, Lithium Americas, along with Chinese language high lithium producer Ganfeng Lithium (OTC Pink:GNENF,HKEX:SZSE:002460), is growing the Caucharí-Olaroz undertaking, positioned in Jujuy, Argentina. The corporate additionally owns the Pastos Grandes lithium brine undertaking in Salta, Argentina.
Market cap: AU$3.29 billion; present share value: AU$1.50
Liontown Sources payments itself as a future Australian lithium producer, with two lithium initiatives in Western Australia, together with its flagship Kathleen Valley undertaking. Anticipated to come back on-line in 2024, the undertaking will produce an estimated 500,000 MT of 6 % lithium oxide focus per 12 months.
Final 12 months was busy for Liontown, which in February inked a deal with US EV maker pioneer Tesla. The deal is for an preliminary 5 12 months interval beginning in 2024 and accounts for about one-third of Kathleen Valley’s start-up manufacturing capability; the association is conditional on Liontown beginning business manufacturing by 2025.
In June 2022, Liontown signed one other 5 12 months offtake settlement with carmaker Ford (NYSE:F) for the availability of as much as 150,000 dry metric tons (dmt) from the Western Australia undertaking. As well as, the businesses executed a AU$300 million funding facility settlement for the undertaking’s growth.
Except for Tesla and Ford, Liontown additionally has an offtake settlement with South Korea’s LG Vitality Answer (KRX:373220). Including up all of those offers signify commitments of as much as 450,000 dmt per 12 months, or roughly 90 % of Kathleen Valley’s startup spodumene manufacturing capability.
Market cap: AU$1.78 billion; present share value: AU$0.98
Kicking off 2023 on a vivid be aware is ASX-listed Piedmont Lithium, which amended its lithium provide cope with Tesla on January 3. The lithium firm is now set to produce the US automaker with spodumene focus from the past-producing North American Lithium operation — a undertaking Piedmont is growing along with Sayona Mining (ASX:SYA). Underneath the amended deal, the corporate has agreed to ship roughly 125,000 MT of spodumene focus to Tesla beginning within the second half of 2023 by way of to the top of 2025.
North American Lithium, which is positioned in Quebec, shouldn’t be the one undertaking Piedmont Lithium is growing in North America. With a objective of turning into one of many largest lithium hydroxide producers within the area, the corporate can also be shifting ahead at its Carolina Lithium undertaking and Tennessee Lithium manufacturing facility. In Ghana, it has a partnership with Atlantic Lithium (ASX:A11;LSE:ALL), which is growing the Ewoyaa lithium undertaking.
4. Vulcan Vitality Sources (ASX:VUL)
Market cap: AU$1.03 billion; present share value: AU$7.16
With a deal with Europe, Vulcan Vitality Sources says its mixed geothermal power and lithium useful resource is the biggest within the area, with license areas in Germany’s Higher Rhine Valley and in Italy. The corporate touts its lithium undertaking as being a zero-carbon asset.
Netherlands-based Stellantis (NYSE:STLA), which was created from the merger of Fiat Chrysler and France’s Peugeot, purchased an 8 % stake in Vulcan in 2022, extending its preliminary lithium provide settlement that was signed on the finish of 2021. The carmaker has additionally not too long ago expanded its partnership with the lithium firm to develop geothermal power initiatives in Germany.
Beginning in 2026, Vulcan can also be set to ship lithium for an preliminary six-year time period to Renault (EPA:RNO), which is anticipated to buy between 26,000 and 32,000 MT of battery-grade lithium chemical substances throughout the binding offtake deal.
In 2022, Vulcan additionally signed a binding offtake deal with Volkswagen (FRA:VOW), which is predicted to buy between 34,000 and 42,000 MT of battery grade lithium hydroxide over the length of the lithium provide deal.
Except for signing provide offers with automakers, Vulcan has inked agreements with battery supplies maker Umicore (EBR:UMI) and South Korea’s LG Vitality Options.
Market cap: AU$902.29 million; present share value: AU$0.43
Ioneer wholly owns the Rhyolite Ridge lithium-boron undertaking in Nevada, US — in accordance with the corporate, the asset is the one identified lithium-boron deposit in North America, and one in every of solely two such identified deposits on this planet. Rhyolite Ridge is predicted to have an annual capability of 20,600 MT of lithium carbonate/hydroxide and practically 174,400 MT of boric acid.
In January, the corporate obtained a US$700 million mortgage from the US Vitality Division to construct its mining undertaking in Nevada. Rhyolite Ridge is estimated to provide sufficient lithium to construct 370,000 EVs every year.
Ioneer has a binding offtake settlement with Ford to produce 7,000 MT of lithium carbonate yearly for 5 years to BlueOvalSK, the carmaker’s battery three way partnership with SK Innovation, which can start by the top of 2025.
The junior lithium firm has additionally inked a deal with Toyota (OTC Pink:TOYOF,TSE:7203) and Panasonic’s (OTC Pink:PCRFF,TSE:6752) three way partnership — Prime Planet Vitality & Options — for the availability of 4,000 MT of lithium carbonate per 12 months for 5 years.
6. Rock Tech Lithium (TSXV:RCK)
Market cap: C$300.49 million; present share value: C$3.20
Rock Tech Lithium’s strategy consists of the manufacturing of sustainably sourced spodumene feedstock from its Ontario-based Georgia Lake undertaking, in addition to the development of lithium hydroxide converters in Europe. Within the years to come back, the corporate expects to supply uncooked materials from recycling discarded batteries, pledging to have 50 % of its feedstock at its German convertors come from recycled lithium by 2030.
In October 2022, the corporate signed a lithium provide deal with German carmaker Mercedes-Benz (OTC Pink:MBGAF,ETR:MBG). It’s set to begin in 2026, and would see Rock Tech provide a mean of 10,000 MT of battery-grade lithium hydroxide per 12 months over a 5 12 months time period.
Market cap: AU$121.81 million; present share value: AU$0.08
European Lithium’s totally licensed Wolfsberg hard-rock lithium deposit in Austria is predicted to begin manufacturing in 2025. In the mean time, the corporate has a definitive feasibility research in progress, which it expects to complete in Q1 2023.
The ASX-listed firm is aiming to be the primary and largest native provider of lithium hydroxide within the area and holds a non-binding memorandum of understanding with BMW (OTC Pink:BMWYY,ETR:BMW). If a deal goes by way of, the German carmaker would make an upfront cost of US$15 million for future provide of lithium hydroxide from Wolfsberg.
The corporate made headlines in October 2022, when it stated its subsidiary European Lithium AT would merge with Sizzle Acquisition, a particular goal acquisition firm, to create US-listed firm Crucial Metals. Crucial Metals will personal Wolfsberg and European Lithium would be the largest shareholder on this new agency. The resultant firm is predicted to go public after the transaction closes, which is predicted to happen in H1 2023.
8. Greenwing Sources (ASX:GW1)
Market cap: AU$42.99 million; present share value: AU$0.30
Australia-based Greenwing Sources is a crucial minerals explorer and developer that has lithium and graphite initiatives unfold throughout Madagascar and Argentina.
In September 2022, the lithium junior struck a deal with Chinese language electrical carmaker NIO (NYSE:NIO,HKEX:9866), which agreed to pay AU$12 million to change into Greenwing’s largest shareholder. The strategic funding is predicted to assist with the event of Greenwing’s San Jorge lithium undertaking in Catamarca province, Argentina, and aligns NIO as the corporate’s potential three way partnership and offtake associate.
All shares knowledge was correct as of February 6, 2023. The businesses listed are ordered by market cap.
Don’t overlook to observe us @INN_Resource for real-time updates!
Securities Disclosure: I, Priscila Barrera, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: European Lithium and Ioneer are purchasers of the Investing Information Community. This text shouldn’t be paid-for content material.
[ad_2]