Snow Lake Resources, Ltd. (NASDAQ: LITM) is engaged as a natural resource exploration company. The company’s flagship property is the Thompson Brothers Lithium Project, which spans 55,318-acres and has potential lithium deposit representing 11.1 million metric tons. Shares of the lithium exploration company are rallying 42% through early trading on Friday, September 23, 2022. Over the past three months, Snow Lake Resources has seen average daily volume of 313,990 shares. However, volume of 67.41 million shares or dollar volume of around $218.41 million, has already exchanged hands through afternoon trading.
Shares of Snow Lake Lithium are gaining after the company announced that it has entered into a non-binding Memorandum of Understanding (MOU) with LG Energy Solutions to collaborate on the development of a North American-based lithium supply chain. The two companies will initially explore an opportunity to build one of the first lithium hydroxide processing plans in CentrePort, Winnipeg, Manitoba. Snow Lake Lithium and LG Energy are currently working with Primero for a scoping study to fully identify the technologies, skills and resources needed to develop the lithium hydroxide plant in Manitoba.
Under the terms of the MOU, Snow Lake Lithium will supply LG Energy with lithium over a 10-year period once the facility begins production in 2025. The MOU and potential for a larger partnership commitment will be subject to proper due diligence from both companies.
Snow Lake Lithium’s Thompson Brother Lithium Project is estimated to produce 160,000 tons of 6% lithium spodumene per year over a 10-year period. The potential lithium output would be enough to power 5 million electric vehicles.
Philip Gross, CEO Snow Lake Lithium stated: “We are delighted to collaborate with world-leading LG Energy Solution to build a rock to road battery supply chain for the electric vehicle market in North America.”
“Both Snow Lake Lithium and LG Energy Solution recognize the importance of local sourcing of critical raw materials, such as lithium, and that this is the logical step for battery and electric vehicle manufacturers.”
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