After facing a downturn for several months, the lithium price is rebounding and signaling the next leg of the mega bull run. The spot price has experienced a meaningful jump in the last four weeks and will likely continue to rise due to rising demand from the electric vehicle (EV) market, the growing supply shortage and overall improvement in market circumstances. Chinese EV sales are also once again breaking monthly records, revealing the beginning of a China lithium price recovery. This upward price momentum and ongoing government incentives to boost lithium production will create a positive environment for lithium exploration companies like American Lithium (TSXV:LI) (NASDAQ:AMLI), Standard Lithium (TSXV:SLI) (NYSE-A:SLI), and Lithium Americas (TSX:LAC) (NYSE:LAC), as well as lithium producers Albemarle (NYSE:ALB) and Sociedad Química y Minera de Chile S.A. (NYSE:SQM).
American Lithium Corp. (TSXV:LI) (NASDAQ:AMLI) is aggressively developing two of the largest lithium deposits in the Americas, its TLC project in Nevada and its Falchani project in Peru. The company also owns the world’s fifth-largest undeveloped uranium deposit, the Macusani uranium project in southeast Peru, which is in the process of being spunout into an independent public company.
American Lithium has been making significant progress at both TLC and Falchani. Earlier this year, the company submitted an independent NI 43-101 Technical Report on the Preliminary Economic Assessment (PEA) for the TLC project with resulted in robust economics.
Some of the highlights from the PEA include a NPV8% of $3.64 billion, an after-tax IRR of 27.5%. The project, which hosts 4.2 million tons (Mt) of lithium carbonate (Li₂CO₃) in measured resources, 4.63Mt Li₂CO₃ in indicated resources, and 1.86Mt Li₂CO₃ in inferred resources, is projected to bring in approximately $396 million annually over a 40-year period.
“We are extremely pleased to announce a very robust maiden PEA for TLC. Our team has worked hard and spent considerable time getting an in-depth understanding of TLC mineralization and the best way to recover high purity lithium utilizing conventional processing methods with the latest techniques and best in class plant and equipment,” said Simon Clarke, CEO of American Lithium. “At 99.4% LCE purity, TLC offers the capability to produce either battery grade lithium carbonate or hydroxide with minimal additional refining.”
The company has also made significant advancements in the development on Falchani. On May 8, American Lithium announced that it has received the first of three permits from Peruvian authorities for additional drilling near Quelcaya, 5-6 kilometers west of the company’s Falchani deposit and drilling will begin immediately. The 40-hole drill program will consist of up to 8,000 meters and focus on three key target areas where recent fieldwork discovered outcrop grab samples containing up to 3,272 ppm Li.
This accomplishment signals the successful completion of the company’s permit application process, which now allows the company to drill test numerous new, high-priority lithium prospects. It also validates recent comments from Peru’s new government that the mining sector is now operating “as normal” and supporting the development of American Lithium’s lithium projects and the industrialization of lithium in Peru.
Given these recent developments, the company hopes that final permits for the Falchani lithium deposit will be approved soon. Four diamond drills owned by American Lithium are located near Falchani, where drilling for the ongoing environmental impact assessment (EIA) started in 2022 and is almost complete.
Lithium Companies Enter Into Strategic Agreements
Lithium Americas Corp. (TSX:LAC) (NYSE:LAC) announced in May that its Board of Directors unanimously approved the execution of an agreement providing for the company’s reorganization, which includes the separation of its North American and Argentina-based business units into two independent public companies. The separation will create a lithium company focusing on Argentina (Lithium Argentina) and a lithium company focused on North America (Lithium Americas (NewCo)). Lithium Argentina will acquire Lithium Americas‘ current investment in its lithium properties in Argentina, which includes a 44.8% share in Cauchar-Olaroz, a 100% stake in Pastos Grandes, and a 65% stake in Sal de la Puna. Lithium Americas (NewCo) will be the sole owner of the Thacker Pass lithium project in Humboldt County, Nevada, as well as Green Technology Metals Limited and Ascend Elements, Inc.
Standard Lithium (TSXV:SLI) (NYSE-A:SLI) has signed a JDA with Koch Technology Solutions (KTS), an affiliate of Koch Engineered Solutions, to share data and to develop and commercialize integrated processing flowsheets for Standard’s exclusive use in the Smackover Formation. The agreement improves Standard Lithium’s ability to fulfill expanding lithium demand as well as develop the nation’s first commercial lithium project in several decades.
Albemarle Corporation (NYSE:ALB) has signed a formal agreement with Ford Motor to supply battery-grade lithium hydroxide to assist the manufacturer in increasing EV manufacturing. Albemarle will provide over 100,000 Mt of battery-grade lithium hydroxide to power roughly three million future Ford EV batteries. The five-year supply agreement is set to begin in 2026 and will extend until 2030. Albemarle and Ford have both stated their intention to offer the US EV supply chain with lithium hydroxide produced in the United States or originating in a country with whom the US has a free trade agreement.
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) and Ford Motor Company have signed a long-term strategic partnership to assure the supply of high-quality lithium materials for electric vehicle manufacture. Ford and SQM‘s agreement will assure the availability of battery-grade lithium carbonate and lithium hydroxide, both of which are required to create high-performance electric vehicle batteries. The source of SQM‘s lithium should make Ford vehicles eligible for the Consumer Tax Credit under the Inflation Reduction Act (IRA), as well as support the company’s aims to produce electric vehicles and increase its presence in international markets for electric mobility.
In March, American Lithium announced the submission of an NI 43-101 Technical Report on the Preliminary Economic Assessment (PEA) for the TLC project in Nevada. DRA Global and Stantec Consulting Services completed the PEA and Technical Report, showing that the TLC project may become a large, long-term producer of low-cost, high-purity lithium carbonate.
Featured Image @ FreePik
1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.
2) The Article was issued on behalf of and sponsored by, American Lithium Corp. Market Jar Media Inc. has or expects to receive from American Lithium Corp.’s Digital Marketing Agency of Record (Native Ads Inc.) thirty-eight thousand, six hundred USD for 8 days (6 business days).
3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. Market Jar has not independently verified or otherwise investigated all such information. None of Market Jar or any of their respective affiliates, guarantee the accuracy or completeness of any such information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.
5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.
6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding American Lithium Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to American Lithium Corp.’s industry; (b) market opportunity; (c) American Lithium Corp.’s business plans and strategies; (d) services that American Lithium Corp. intends to offer; (e) American Lithium Corp.’s milestone projections and targets; (f) American Lithium Corp.’s expectations regarding receipt of approval for regulatory applications; (g) American Lithium Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) American Lithium Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute American Lithium Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) American Lithium Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) the accuracy of budgeted costs and expenditures; (e) American Lithium Corp.’s ability to attract and retain skilled personnel; (f) political and regulatory stability; (g) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (h) changes in applicable legislation; (i) stability in financial and capital markets; and (j) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of American Lithium Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) American Lithium Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact American Lithium Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing American Lithium Corp.’s business operations (e) American Lithium Corp. may be unable to implement its growth strategy; and (f) increased competition.
Except as required by law, American Lithium Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does American Lithium Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither American Lithium Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of American Lithium Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of American Lithium Corp. or such entities and are not necessarily indicative of future performance of American Lithium Corp. or such entities.
8) Investing is risky. The information provided in this article should not be considered as a substitute for professional financial consultation. Users should be aware that investing in any form carries inherent risks, and as such, there is a possibility of losing some or all of their investment. The value of investments can fluctuate significantly within a short period, and investors must understand that past performance is not indicative of future results. Additionally, users should exercise caution as transactions involving investments may be irreversible, even in cases of fraud or accidental actions. It is crucial to acknowledge that rapidly evolving laws and technical issues can have adverse effects on the usability, transferability, exchangeability, and value of investments. Furthermore, users must be cognizant of potential security risks associated with their investment activities. Individuals are strongly encouraged to conduct thorough research, seek professional advice, and carefully evaluate their risk tolerance before engaging in any investment endeavors. Market Jar Media Inc. is neither an investment adviser nor a broker-dealer. The information presented on the website is provided for informative purposes only and is not to be treated as a recommendation to make any specific investment. No such information on PressReach.com constitutes advice or a recommendation.Read more investing news on PressReach.com.Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed