With battery expenses increasing for the very first time in years in 2022, in part on the back of greater basic materials rates, it is clear why electrical car (EV) makers continue to search for methods to protect supply of essential metals such as lithium.
Need for EVs is anticipated to stay high in coming years as the world moves far from nonrenewable fuel sources to greener sources of energy, which in turn suggests electrifying transport. Organizations such as the United States federal government and the EU have actually promised to phase out internal combustion engine automobiles, while carmakers have actually set enthusiastic targets to amaze their fleets.
For cars and truck makers from Tesla (NASDAQ: TSLA) to General Motors (NYSE: GM), the previous couple of years have actually seen the race to protect a stable supply of lithium boost– a lot more so in the previous year, as rates climbed up and geopolitical stress exposed the vulnerabilities of the international lithium supply chain.
Existing lithium manufacturers have currently devoted to agreements with battery makers and carmakers, however which juniors have tattooed offers for supply yet to come on stream? Keep reading to discover.
1. Liontown Resources (ASX: LTR)
Market cap: US$ 3.97 billion; existing share cost: AU$ 2.75
Liontown Resources expenses itself as a future Australian lithium manufacturer, with 2 lithium jobs in Western Australia, including its flagship Kathleen Valley job. Anticipated to come online in 2024, the job will produce an approximated 500,000 MT of 6 percent lithium oxide concentrate each year.
In 2015 was hectic for Liontown, which in February tattooed an offer with United States EV maker leader Tesla. The offer is for a preliminary 5 year duration beginning in 2024 and represent about one-third of Kathleen Valley’s start-up production capability; the plan is conditional on Liontown beginning business production by 2025.
In June 2022, Liontown signed another 5 year offtake contract with carmaker Ford (NYSE: F) for the supply of approximately 150,000 dry metric lots (dmt) from the Western Australia job. In addition, the business carried out a AU$ 300 million financing center contract for the job’s advancement.
Aside from Tesla and Ford, Liontown likewise has an offtake contract with South Korea’s LG Energy Service (KRX: 373220). Building up all of these offers represent dedications of approximately 450,000 dry metric lots each year, or around 90 percent of Kathleen Valley’s start-up spodumene production capability.
2. Lithium Americas (NYSE: LAC)
Market cap: US$ 3.11 billion; existing share cost: US$ 19.48
Dual-listed Lithium Americas tattooed a huge lithium supply offer with General Motors at the end of January 2023 to establish the Thacker Pass mine in Nevada. Under the contract, the Detroit-based carmaker will make a US$ 650 million equity financial investment in Lithium Americas, which represents the biggest financial investment ever by a car manufacturer to produce battery basic materials.
Lithium Americas owns one hundred percent of the Thacker Pass lithium claystone job in the United States, which is forecasted to start production in the 2nd half of 2026. With a mine life of 40 years, the job will have a yearly production capability of 80,000 metric lots (MT) each year. According to price quotes from the business, the lithium drawn out and processed from the job will have the ability to support the production of approximately 1 million EVs on a yearly basis.
In addition to Thacker Pass, Lithium Americas is establishing the CaucharÃ-Olaroz job in Jujuy, Argentina, together with Chinese leading lithium manufacturer Ganfeng Lithium (OTC Pink: GNENF, HKEX: SZSE:002460). Lithium Americas likewise owns the Pastos Grandes lithium salt water job in Salta, Argentina.
3. Piedmont Lithium (ASX: PLL)
Market cap: US$ 1.05 billion; existing share cost: AU$ 0.82
ASX-listed Piedmont Lithium started 2023 on a brilliant note when it changed its lithium supply offer with Tesla on January 3. The lithium business is now set to provide the United States car manufacturer with spodumene concentrate from the past-producing North American Lithium operation– a task Piedmont is establishing together with Sayona Mining (ASX: SYA). Under the changed offer, the business has actually accepted provide around 125,000 MT of spodumene concentrate to Tesla beginning in the 2nd half of 2023 through to the end of 2025.
North American Lithium, which lies in Quebec, is not the only job Piedmont Lithium is establishing in The United States and Canada. With an objective of turning into one of the biggest lithium hydroxide manufacturers in the area, the business is likewise progressing at its Carolina Lithium job and Tennessee Lithium production center. In Ghana, it has a collaboration with Atlantic Lithium (ASX: A11, LSE: ALL), which is establishing the Ewoyaa lithium job.
4. Vulcan Energy Resources (ASX: VUL)
Market cap: US$ 499.05 million; existing share cost: AU$ 4.52
Europe-focused Vulcan Energy Resources states its combined geothermal energy and lithium resource is the biggest in the area, with license locations in Germany’s Upper Rhine Valley and in Italy. The business promotes its lithium job as being a zero-carbon property.
Netherlands-based Stellantis (NYSE: STLA), which was produced from the merger of Fiat Chrysler and France’s Peugeot, purchased an 8 percent stake in Vulcan in 2022, extending its preliminary lithium supply contract that was signed at the end of 2021. The carmaker has likewise just recently broadened its collaboration with the lithium business to establish geothermal energy jobs in Germany.
Beginning in 2026, Vulcan is likewise set to provide lithium for a preliminary six-year term to Renault (EPA: RNO), which is anticipated to acquire in between 26,000 and 32,000 MT of battery-grade lithium chemicals throughout the binding offtake offer
In 2022, Vulcan likewise signed a binding offtake offer with Volkswagen (FRA: VOW) for in between 34,000 and 42,000 MT of battery grade lithium hydroxide over the period of the lithium supply offer.
Aside from signing supply handle car manufacturers, Vulcan has actually tattooed arrangements with battery products maker Umicore (EBR: UMI) and South Korea’s LG Energy Solutions
Market cap: US$ 410.893 million; existing share cost: AU$ 0.30
Ioneer entirely owns the Rhyolite Ridge lithium-boron job in Nevada, United States– according to the business, the property is the just recognized lithium-boron deposit in The United States and Canada, and among just 2 such recognized deposits on the planet. Rhyolite Ridge is anticipated to have a yearly capability of 20,600 MT of lithium carbonate and almost 174,400 MT of boric acid.
In January, the business got a US$ 700 million loan from the United States Energy Department to construct its mining job in Nevada. Rhyolite Ridge is approximated to produce adequate lithium to construct 370,000 EVs each year.
Ioneer has a binding offtake contract with Ford to provide 7,000 MT of lithium carbonate each year for 5 years to BlueOvalSK, the carmaker’s battery joint endeavor with SK Development, which will start by the end of 2025.
The junior lithium business has likewise tattooed an offer with Toyota (OTC Pink: TOYOF, TSE:7203) and Panasonic’s (OTC Pink: PCRFF, TSE:6752) joint endeavor– Prime World Energy & & Solutions– for the supply of 4,000 MT of lithium carbonate each year for 5 years.
6. Rock Tech Lithium (TSXV: RCK)
Market cap: US$ 147.41 million; existing share cost: C$ 2.00
Rock Tech Lithium’s method consists of the production of sustainably sourced spodumene feedstock from its Ontario-based Georgia Lake job, along with the building and construction of lithium hydroxide converters in Europe. In the years to come, the business anticipates to source basic material from recycling disposed of batteries, promising to have half of its feedstock at its German convertors originate from recycled lithium by 2030.
In October 2022, the business signed a lithium supply offer with German carmaker Mercedes-Benz (OTC Pink: MBGAF, ETR: MBG). It is set to begin in 2026, and would see Rock Tech provide approximately 10,000 MT of battery-grade lithium hydroxide each year over a 5 year term.
7. European Lithium (ASX: EUR)
Market cap: US$ 75.85 million; existing share cost: AU$ 0.08
European Lithium’s completely certified Wolfsberg hard-rock lithium deposit in Austria is anticipated to begin production in 2025. According to a March 2023 conclusive expediency research study, the property would have a typical production rate of 780,000 MT each year, peaking at 840,000 MT, over a 14.6 year life of mine.
The ASX-listed business is intending to be the very first and biggest regional provider of lithium hydroxide in the area and holds a non-binding memorandum of comprehending with BMW (OTC Pink: BMWYY, ETR: BMW). If an offer goes through, the German carmaker would make an in advance payment of US$ 15 million for future supply of lithium hydroxide from Wolfsberg.
The business made headings in October 2022, when it stated its subsidiary European Lithium AT would combine with Sizzle Acquisition, an unique function acquisition business, to produce US-listed business Crucial Metals. Crucial Metals will own Wolfsberg and European Lithium will be the most significant investor in this brand-new company. The resultant business is anticipated to go public on the NASDAQ after the deal closes.
8. Greenwing Resources (ASX: GW1)
Market cap: US$ 22.88 million; existing share cost: AU$ 0.20
Australia-based Greenwing Resources is a vital minerals explorer and designer that has lithium and graphite jobs spread out throughout Madagascar and Argentina.
In September 2022, the lithium junior struck an offer with Chinese electrical carmaker NIO (NYSE: NIO, HKEX:9866), which accepted pay AU$ 12 million to end up being Greenwing’s biggest investor. The tactical financial investment is anticipated to assist with the advancement of Greenwing’s San Jorge lithium job in Catamarca province, Argentina, and lines up NIO as the business’s possible joint endeavor and offtake partner.
All stocks information was precise since August 1, 2023. The business noted are purchased by market cap.
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Securities Disclosure: I, Priscila Barrera, hold no direct financial investment interest in any business discussed in this post.
Editorial Disclosure: European Lithium and Ioneer are customers of the Investing News Network. This post is not paid-for material.