With growing demand for electric vehicles, lithium will remain a hot commodity. For one, supply can’t keep up with demand. According to Stellantis CEO Carlos Tavares, there’s not enough lithium to go around. Automakers are so concerned about supply for EV batteries, they’re racing to secure supply. For instance, Albemarle will deliver more than 100,000 tonnes of lithium hydroxide over a five-year period to support Ford EVs. General Motors invested $650 million into Lithium Americas’ Thacker Pass mine, where the miner estimates the lithium extracted can support production of up to a million EVs per year. That’s all substantial news for companies, such as LithiumBank Resources Corp. (TSXV: LBNK) (OTCQX: LBNKF), Albemarle Corporation (NYSE: ALB), Lithium Americas (NYSE: LAC) (TSX: LAC), American Lithium Corp. (NASDAQ: AMLI) (TSXV: LI), and Piedmont Lithium (NASDAQ: PLL).
Also, remember, according to Li-Bridge, global demand for lithium batteries is expected to jump five-fold by 2030, as noted by Reuters, which added, “Demand for lithium batteries in the United States is expected to grow more than six times and translate into $55 billion per year by the end of the decade.”
Look at LithiumBank Resources Corp. (TSXV: LBNK) (OTCQX: LBNKF), For Example
LithiumBank Resources Corp. announced the filing of the Boardwalk Lithium Brine Project Preliminary Economic Assessment Technical report entitled “Preliminary Economic Assessment (PEA) for LithiumBank Resources Boardwalk Lithium-Brine Project in West- Central Alberta, Canada” effectively dated June 16, 2023, originally announced May 25th, 2023.
PEA Highlights
- 31,350 metric tonnes per year of battery grade lithium hydroxide monohydrate production over a 20-year period, the largest proposed LHM production in North America;
- USD $2.7 Billion NPV8 and 21.6% IRR on a pre-tax basis;
- USD $1.7 Billion NPV8 and 17.8% IRR on an after-tax basis;
- OPEX of USD $6,807/ton LHM;
- Direct Lithium Extraction (“DLE”) used to process Boardwalk brine will require less fresh water and have a surface footprint that is a fraction of hard rock or evaporation lithium production;
- Ramp up to commercial production within 3 years is possible under newly established permitting directives;
- Located in Tier 1 jurisdiction, west-central Alberta, which has a long history of resource extraction, well established infrastructure, and an actively supportive government;
- Power to be generated on site using high-efficiency gas turbines with steam cogeneration that will lower the project’s overall carbon footprint. The proposed gas turbine units may be run on 80% hydrogen when a reliable supply is available;
- Multiple opportunities to enhance project economics through optimization, further engineering, and pending incentive tax credit;
- Project economics used USD $26,000/t LHM and provides strong leverage to higher lithium prices.
A PEA is preliminary in nature as it includes a portion of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
In addition to the Boardwalk project, LithiumBank also holds two other development ready, district scale assets in Western Canada, Park Place (AB) & Saskatchewan. The Company sees multiple avenues to create value in the coming months through enhancing the economics of the Boardwalk PEA, delivering an initial PEA for Park Place (AB), and by estimating a resource at its Saskatchewan assets.
“The Boardwalk PEA sets the stage for our team to pursue advanced lithium resource development in Western Canada” commented Rob Shewchuk CEO & Director of LithiumBank. "By the end of 2023, we expect to commence pilot plant studies in parallel on both Boardwalk and Park Place and capture near-term enhancement opportunities that have already been identified. We believe this has the potential to position both the Boardwalk and Park Place districts among the most attractive direct brine projects in North America.”
Near Term PEA Enhancements
- The Government of Canada announced an Investment Tax Credit (ITC) for Clean Technology Manufacturing in its Budget 2023. Refundable tax credit will be applied on capital expenditures for the extraction and processing of critical minerals (ITC link);
- Use of smaller electrical submersible pumps (ESPs) that could fit in reduced diameter well casing throughout the network that is expected to reduce capital expenditures;
- Leveraging of existing wells and surface infrastructure including roads, well pads, pipelines, and utilities;
- Reduction of well and power requirements through enhanced 3-D reservoir modelling and new drilling information;
- Next generation sorbent being developed by Conductive, the provider of the lithium brine DLE technology chosen for the PEA, is expected to reduce costs, increase efficiency and reduce reagent consumption;
- Alternative DLE technology trade-off studies;
- Utilise ZS2 Technologies Inc. to capture and sequester CO2 emissions to produce carbon credits, extract magnesium from barren brine to produce low carbon cement products that will lower brine reinjection amounts by at least 10%; and
- Additional trade-off studies aimed at streamlining pipeline infrastructure.
The PEA Technical Report was prepared by the following Qualified Persons; Roy Eccles, P. Geol. of APEX Geoscience Ltd., Kim Mohler, P. Eng., of GLJ Ltd., Gordon MacMillan, P. Geol. of Fluid Domains, Jim Touw, P. Geol. of HCL Ltd., Frederick Scott, P. Eng., of Scott Energy, Egon Linton, P. Eng., of Hatch Ltd., Evan Jones, P. Eng., of Hatch Ltd., Stefan Hlouschko, P. Eng., of Hatch Ltd.
Other related developments from around the markets include:
Albemarle Corporation announced a definitive agreement with Ford Motor Company to deliver battery-grade lithium hydroxide to support the automaker's ability to scale electric vehicle (EV) production. Albemarle will supply more than 100,000 metric tons of battery-grade lithium hydroxide for approximately 3 million future Ford EV batteries. The five-year supply agreement starts in 2026 and continues through 2030. Both Albemarle and Ford are committed to supplying the U.S. EV supply chain via lithium hydroxide domestically produced in the United States or originating in a country with a U.S. Free Trade Agreement. "With the growing demand for EVs in the United States, our customers are seeking to regionalize their supply chain for greater security, sustainability and lower costs," said Eric Norris, President, Albemarle Energy Storage. "This agreement exemplifies the industry collaborations and investments required. We're honored to be entering into this strategic partnership with a legendary automotive manufacturer such as Ford."
Lithium Americas announced that its Board of Directors has unanimously approved the execution of an arrangement agreement providing for the reorganization of the Company that will result in the separation of its North American and Argentine business units into two independent public companies. The Separation will establish an Argentina focused lithium company and a North America focused lithium company. Lithium Argentina will own Lithium Americas’ current interest in its Argentina lithium assets, including the 44.8% interest in Caucharí-Olaroz, the 100%-owned Pastos Grandes project and the 65% interest in the Sal de la Puna project. Lithium Americas (NewCo) will own the 100%-owned Thacker Pass lithium project in Humboldt County, Nevada, as well as the Company’s investments in Green Technology Metals Limited (ASX:GT1) and Ascend Elements, Inc.
American Lithium Corp. announced receipt of the first of three permits from Peruvian authorities for drilling near Quelcaya, 5-6 kms west of the Company’s Falchani deposit, and drilling will start immediately. Simon Clarke, CEO of American Lithium states, “This is a very significant development for the Company, which validates recent supportive comments from the new government in Peru and enables us to target the discovery of new lithium mineralization on some of the best previously identified targets on the Macusani Plateau. With momentum building, the Company continues to advance its projects in Peru and Nevada with PFS work being fast-tracked on both of our large-scale lithium projects.”
Piedmont Lithium, a leading global developer of lithium resources, reported the results of a Definitive Feasibility Study of the Company’s proposed Tennessee Lithium project in McMinn County, Tennessee. The Study of the 30,000 metric ton per year lithium hydroxide plant featuring the innovative and waste-reducing Metso:Outotec conversion technology affirms the potential for Piedmont to develop an American-based lithium hydroxide business using spodumene concentrate from market sources, including via existing offtake agreements with Sayona Quebec and Atlantic Lithium.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for LithiumBank Resources Corp. by LithiumBank Resources Corp. We own ZERO shares of LithiumBank Resources Corp. Please click here for full disclaimer.
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