{"id":14565,"date":"2023-05-27T07:30:56","date_gmt":"2023-05-27T11:30:56","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/lithium-junior-miners-news-for-the-month-of-may-2023\/"},"modified":"2023-05-27T07:30:57","modified_gmt":"2023-05-27T11:30:57","slug":"lithium-junior-miners-news-for-the-month-of-may-2023","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=14565","title":{"rendered":"Lithium Junior Miners News For The Month Of May 2023"},"content":{"rendered":"
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Welcome to the May 2023 edition of the ‘junior’ lithium miner news. We have categorized those lithium miners that won’t likely be in production before 2024 as the juniors. Investors are reminded that many of the lithium juniors will most likely be needed in the mid and late 2020’s to supply the booming electric vehicle [EV] and energy storage markets. This means investing in these companies requires a higher risk tolerance and a longer time frame.<\/span><\/p>\n

May saw another very busy month of news from the lithium juniors.<\/p>\n

It is good to remember the Benchmark Minerals Intelligence forecast that the world will need 78 new lithium mines <\/strong> from 2022 to 2035. Or Trend Investing’s forecast that lithium demand will increase<\/strong> 35x<\/strong> from 2020 to 2037. At Tesla 2023 Shareholder Meeting Elon Musk said the world needs to increase <\/span>battery production by 29X\/year<\/strong> from now to reach a 100% renewable energy world.<\/span><\/p>\n

Lithium price news <\/strong><\/h2>\n

Asian Metal reported during the past 30 days, the 99.5% China delivered lithium carbonate spot price was up 44% and the China lithium hydroxide price was up 14.7%. The Lithium Iron Phosphate (Li 3.9% min) price was up 8.96%. The Spodumene (6% min) price was down 0.57% over the past 30 days.<\/p>\n

Metal.com reported lithium spodumene concentrate (6%, CIF China) average price of USD 4,120\/t, as of May 24, 2023.<\/p>\n

China lithium carbonate spot price 5 year chart – CNY 227,500 (~USD 32,197) (source)<\/strong><\/p>\n

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\"China <\/picture>
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Trading Economics<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Rio Tinto forecasts lithium emerging supply gap (chart from 2021) – 60 new mines the size of Jadar needed<\/strong><\/p>\n

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\"Rio<\/span>
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Rio Tinto<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Lithium market news<\/h2>\n

For a summary of the latest lithium market news and the “major” lithium company’s news, investors can read: “Lithium Miners News For The Month Of May 2023” article. Highlights include:<\/p>\n

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  • Samsung SDI, GM to build $3 bln joint EV battery plant in US.<\/li>\n
  • Hyundai Motor Group and SK On to establish EV battery cell production JV in US.<\/li>\n
  • Argentina’s lithium pipeline promises ‘white gold’ boom as Chile tightens.<\/li>\n
  • Germany to dedicate $2.2 billion to secure supply of critical commodities – report.<\/li>\n
  • Reuters: BMI – Lithium prices bounce after big plunge, but surpluses loom.<\/li>\n
  • Tesla lithium refinery groundbreaking in Texas.<\/li>\n
  • Tesla Master Plan 3 says we will need a massive 240 TWh of energy storage<\/strong> for a 100% renewable energy economy. Tesla 2023 shareholder meeting – Solar & wind production needs to increase by 3x\/yr, battery production by 29x\/yr, BEV production by 11x\/yr.<\/strong> <\/li>\n
  • Macron Flags $7.3 billion in battery investments in France.<\/li>\n
  • Japan to subsidize half of costs for lithium and key mineral projects.<\/li>\n
  • Argentina gets \u201cnod\u201d from US to increase lithium trade fivefold. Emerging lithium supplier Argentina says it\u2019s close to US deal under IRA.<\/li>\n
  • Korea\u2019s battery makers embrace LFP cells as China strides ahead.<\/li>\n
  • LG Chem to expand battery materials business more than six-fold by 2030.<\/li>\n
  • Sodium batteries need to grow up more before dethroning lithium, CPCA says.<\/li>\n
  • Albemarle OK’s up to $1.5B lithium hydroxide plant expansion in Australia. Albemarle establishes Strategic supply Agreement with Ford Motor Company to deliver battery-grade lithium hydroxide.<\/li>\n
  • SQM announces long-term lithium supply agreement with Ford.<\/li>\n
  • Ganfeng Lithium has announced mass production of solid-state batteries.<\/li>\n
  • Allkem and Livent to merge and create a leading Global Integrated Lithium Chemicals Producer.<\/li>\n<\/ul>\n

    Junior lithium miners company news<\/h3>\n

    Wesfarmers [ASX:WES] (OTCPK:WFAFY) (took over Kidman Resources)<\/h4>\n

    The Mt Holland Lithium Project is a 50\/50 JV between Wesfarmers [ASX:WES] (OTCPK:WFAFF) and SQM (SQM), located in Western Australia. There is also a proposal for a refinery located in WA. More details here at: Progress at the Mt Holland lithium project where Wesfarmers state: “Construction of the mine, concentrator and refinery is underway with first production expected in 2024.”<\/p>\n

    On May 2 The West Australian reported:<\/p>\n

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    Wesfarmers seeks high value acquisitions in lithium for group renewal. Wesfarmers is open to further deals in the lithium space and healthcare as it flags it is seeking high value \u201cbolt-on acquisitions\u201d to grow its portfolio<\/span><\/span><\/span>…<\/p>\n<\/blockquote>\n

    You can view the latest company presentation here.<\/p>\n

    Upcoming catalysts include:<\/p>\n

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    • Late 2023 – Mt Holland spodumene production.<\/li>\n
    • H1, 2025 – Kwinana LiOH refinery planned to begin and ramp to 45-50ktpa LiOH.<\/li>\n<\/ul>\n

      Liontown Resources [ASX:LTR] (OTCPK:LINRF)<\/h4>\n

      Liontown Resources 100% own the Kathleen Valley Lithium spodumene project in Western Australia. Mostly funded to production.<\/p>\n

      On April 28 Liontown Resources announced: “Quarterly activities report for the period ended 31 March 2023.” Highlights include:<\/span><\/p>\n

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      • “<\/span><\/span>…Mining activity commenced with first blast and 771,000 BCM of Total Material Movement on site.<\/span> <\/li>\n
      • Construction at Kathleen Valley continued at pace with a focus on earthworks, processing infrastructure foundations and delivery of pre-ordered critical path equipment progressing to site.<\/span><\/li>\n
      • Rapid expansion of the Accommodation Village with 444 rooms now on site and dining hall commissioned.<\/span><\/li>\n
      • Underground mining tender issued to market for award in the second half of 2023.<\/span><\/li>\n
      • Ongoing optimisation identified opportunity to expand initial plant capacity and updated capital estimate reflecting scope changes and industry-wide cost escalation.<\/span><\/li>\n
      • Large focus on detailed design completion and incorporation of throughput increase to 3 Mtpa.<\/span><\/li>\n
      • DSO opportunity progressed with ore already being stockpiled, samples sent to potential customers and commercial discussions advancing.<\/span><\/li>\n
      • Continuation of Buldania exploration program and Olympio farm-in executed.<\/span><\/li>\n
      • Cash at bank of $305.1 million and first draw down of Ford funding facility subsequent to the end of the quarter.<\/span><\/li>\n
      • Liontown Board rejects unsolicited non-binding indicative proposal from Albemarle.<\/span>“<\/li>\n<\/ul>\n

        On May 10 Liontown Resources announced: “Liontown awards Open Pit Mining Services Contrac<\/span>t.”<\/p>\n

        You can view the company’s latest presentation here.<\/p>\n

        Upcoming catalysts include:<\/p>\n

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        • 2023-24: Kathleen Valley Project construction<\/li>\n
        • Q1, 2024: Commissioning with production set to begin mid 2024 <\/li>\n<\/ul>\n

          Leo Lithium Limited [ASX:LLL] (OTCPK:LLLAF)<\/h4>\n

          Leo Lithium is developing the Goulamina Lithium Project (50\/50 JV with Ganfeng Lithium) in Mali with a total Resource of 142.3 Mt @ 1.38% Li2O targeting a production start in mid 2024.<\/p>\n

          On April 27 Leo Lithium Limited announced: “Goulamina Project mid-term status update. Mid-term review demonstrates project on track to deliver first spodumene by Q2, 2024. Ongoing optimisation work and improved cost visibility has resulted in an updated capital estimate reflecting DFS scope changes, which includes an accelerated mining ramp up, and industry-wide cost escalation to a lesser extent. Despite minor revisions, Leo Lithium remains a top tier, low-cost producer.” Highlights include:<\/span><\/p>\n

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          • “Detailed engineering of Stage 1, design optimisation, additional scope and industry wide inflationary pressures have resulted in a US$30 million increase in the 2021 DFS capital cost estimate from US$255 million to US$285 million (a 12% increase).<\/span> <\/li>\n
          • The costs for the Operational Readiness Phase are estimated at US$33 million and cover the accelerated ramp up of mining and plant commissioning activities.<\/span><\/li>\n
          • The combined impact of the revised capital cost estimate and the inclusion of costs for the Operational Readiness Phase brings total capital expenditure from FID to first production to US$318 million.<\/span><\/li>\n
          • Project schedule review completed, and mine plan for the first two years of operations finalised. 90% of contracts awarded or under negotiation, securing much of the supply and construction costs.<\/span><\/li>\n
          • Project remains on track for first spodumene production in Q2 2024, and early revenue opportunity from Direct Shipped Ore (DSO) confirmed at an expanded 185,000 tonnes, providing significant additional early funding: first DSO shipments are planned for Q4 2023.<\/span><\/li>\n
          • The Goulamina Project is one of the largest and lowest capital intensity lithium spodumene projects globally with a Stage 1 capacity of 506,000 dry tonnes per annum at a capital intensity of US$580\/tonne SC6 capacity based on the revised capital cost estimate of US$285 million which confirms Goulamina as a globally competitive, emerging spodumene producer.<\/span>“<\/li>\n<\/ul>\n

            On April 28 Leo Lithium Limited announced: “Quarterly report f<\/span>or the quarter ended 31 March 2023<\/span>. Goulamina Lithium Project: <\/span>Construction on track, Resource set to grow, and DSO swiftly materialising.” <\/span><\/p>\n

            On May 24 Leo Lithium Limited announced: “Drilling delivers thick high-grade mineralisation outside of current resource.” Highlights include:<\/p>\n

              \n
            • “More strong assay results received from Danaya and the Northeast Domains at the Goulamina Lithium Project.<\/span><\/li>\n
            • Significant down-hole pegmatite intercepts include:<\/span> 92 metres at 2.01 % Li2O, from 132 m <\/span>including 36 metres at 3.00 % Li2O, from 132 m (GMRC689). <\/span>112.7 metres at 1.43 % Li2O, from 83.2 m (GMDD013). <\/span>60.35 metres at 1.72 % Li2O, from 205.3 m <\/span>and 14m at 2.17 % Li2O from 271 m (GMRC597D). <\/span>76.4 metres at 1.73 % Li2O, from 90 m <\/span>and 70.65 metres at 2.24 % Li2O, from 175.6 m (GMRC533D).<\/span> <\/li>\n
            • Mineralisation remains open at depth and along strike<\/span>.<\/span> <\/li>\n
            • Update of Mineral Resource Estimate anticipated in June 2023<\/span>.”<\/li>\n<\/ul>\n

              You can view the company presentation here.<\/p>\n

              Upcoming catalysts include:<\/p>\n

                \n
              • H2, 2023: DSO targeted to begin.<\/li>\n
              • Q2, 2024: Commissioning targeted to begin for Goulamina.<\/li>\n<\/ul>\n

                Investors can read the recent Trend Investing article on Leo Lithium here.<\/p>\n

                Eramet [FR:ERA] (OTCPK:ERMAY) (OTCPK:ERMAF) – ‘Targets DLE production by early 2024’<\/h4>\n

                Eramet is in a JV ‘Eramine Sudamerica’ (50.1% Eramet, 49.9% Tsingshan) which owns the Centenario-Ratones Lithium Project in Argentina. Eramet targets to start DLE production by early 2024.<\/p>\n

                On April 27 Eramet announced: “Eramet: Q1 2023 turnover of \u20ac775m.” Highlights include:<\/span><\/p>\n

                  \n
                • “<\/span><\/span><\/span>…Significant decline in selling prices compared to Q1 2022 particularly for manganese alloys, of which prices were exceptionally at that time, but also for Class II nickel (NPI and ferronickel).<\/span> <\/li>\n
                • Input costs remain high, albeit with a trend reversal in freight and reducing agent prices.<\/span><\/li>\n
                • Strength of Eramet’s financial profile: first financial ratings obtained from Fitch (BB+) and Moody\u2019s (Ba2).<\/span><\/li>\n
                • Liquidity remains at a high level contributing to secure the Group’s financing plan.<\/span><\/li>\n
                • The outlook for 2023 is, as expected, set against the background of a less buoyant macroeconomic context.<\/span><\/li>\n
                • Adjusted EBITDA is revised slightly downwards to around \u20ac1.1bn in 2023<\/span><\/span>…<\/li>\n
                • The Group continues to focus on cost control, productivity actions and cash generation, while preparing its growth projects in the energy transition.<\/span>“<\/li>\n<\/ul>\n

                  On May 11 Eramet announced: “Eramet accelerates its CSR commitment with the launch of its first audit within the Initiative for Responsible Mining Assurance system.”<\/span><\/p>\n

                  Investors can read the recent Trend Investing article on Eramet here.<\/p>\n

                  POSCO [KRX:005490] (PKX)<\/h4>\n

                  POSCO owns the northern Sal de Vida (Hombre Muerto salar, Argentina) tenements bought from Galaxy Resources (now Allkem). POSCO targets to start DLE production by H1, 2024.<\/p>\n

                  On May 2 KED Global reported:<\/p>\n

                  \n

                  POSCO to spend $900 mn to expand lithium, cathode output in Korea. The S.Korean steel giant plans to produce total 150,000 tons of cathodes and run 3 lithium refining plants in Gwangyang by 2025.<\/p>\n<\/blockquote>\n

                  On May 10 Fastmarkets reported:<\/p>\n

                  \n

                  POSCO teams up with China\u2019s Huayou to build battery material plant in S Korea. POSCO has signed a preliminary agreement with Chinese battery material company Huayou Cobalt to build a nickel sulfate refining and precursor plant in South Korea<\/span><\/span>…The joint venture project is expected to go into commercial operations in 2027, according to domestic media in South Korea.<\/p>\n<\/blockquote>\n

                  On May 22 The West Australian reported:<\/p>\n

                  \n

                  Pilbara Minerals partner POSCO lauds South Korea as cheaper option for lithium hydroxide plant<\/span><\/span><\/span>…POSCO has partnered with several WA mining companies, including Gina Rinehart\u2019s Hancock Prospecting \u2014 through which it holds a 12.5 per cent stake in the Roy Hill iron ore mine \u2014 and Pilbara Minerals on a lithium hydroxide plant in the South Korean city of Gwangyang.<\/p>\n<\/blockquote>\n

                  Upcoming catalysts include:<\/p>\n