Favorable Initiatives by Various Governments a Significant Factor Driving Global Lithium Mining
FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., Sept. 14, 2023 /PRNewswire/ -- The increasing consumer demand for electric vehicles creates a strong demand for lithium. A report from Future Market Insights said that the growth of the market can be attributed to the increasing demand for EVs. Lithium-ion batteries are being used in electric vehicles because of their high energy per unit mass relative to other electrical energy storage systems. Further, they also have a high power-to-weight ratio, good high-temperature performance, high energy efficiency, and low self-discharge. Moreover, players in the market are taking various initiatives to launch new products in the market which will benefit the industry during the forecast period. The report projected that the global lithium mining market… secured US$ 1.66 Billion in 2022. From 2022-2032, the lithium mining market is projected to exhibit a CAGR of 7.43% while garnering a market value worth US$ 3.4 Billion. The report said: "During the period ranging from 2020 to 2022, lithium mining demand prospects flourished at a stellar rate, supported by a shift in the design and advancement of battery technology. There has been rising concern about the declining availability of fossil fuels, increasing carbon emissions, and an emphasis on alternative sources of power that have been worked on for a significant tenure. This void was gradually overcome with the latest advancements and development of cutting-edge technologies to reduce the cost of vehicles. since mid-2021, leading to a resurgence in growth projections." Active mining companies in markets include: Usha Resources Ltd. (OTCQB: USHAF) (TSX-V: USHA), Lithium Americas Corp. (NYSE: LAC) (TSX: LAC), Sigma Lithium Corporation (NASDAQ: SGML) (TSX-V: SGML), Livent Corporation (NYSE: LTHM), Standard Lithium Ltd. (NYSE American: SLI) (TSX-V: SLI).
Future Market Insights continued: "The Asia Pacific is anticipated to yield significant growth opportunities, backed by increasing lithium production in various countries. By 2032-end, the lithium mining industry is forecasted to register a growth rate of 7.4%. Within the Asia Pacific, Australia produces more than half of the world's lithium. Another lucrative country is China, which also exports lithium to countries including the US, Japan, and India. The significant contribution of China can be attributed to the large consumer base of electronic vehicles, and the availability of production facilities for electrical and electronics. This entails an expansion of electronic items production capabilities, which will attract key Lithium Miners. Governments across the globe are taking various initiatives to encourage the application of EVs which will benefit the market in the forecast period. Additionally, favorable initiatives by the government of various countries are anticipated to be another significant factor that can drive industry growth in the forecast period (2032)."
Usha Resources Ltd. (OTCQB:USHAF) (TSXV:USHA) BREAKING NEWS: Usha Resources Identifies Ten Key Drill Targets Across 25 Kilometre Strike at the White Willow Lithium Pegmatite Project - Usha Resources Ltd., a North American mineral acquisition and exploration company, is pleased to provide this update on its on-going field program at the White Willow Lithium Pegmatite Project ("White Willow" or the "Project") located 170 km west of Thunder Bay, Ontario.
The Company has completed 5 weeks of fieldwork this season, with data compilation complete for 618 samples. Assay highlights include:
Of note, a high-grade showing of 14.64% Ta2O5 is present at the Maple Leaf Dyke; coarse-grained tantalite is only known to be ound at one other locality in Ontario which is the North Aubrey pegmatite at Green Technology Metals (GT1) Seymour Lake Project where GT1 has identified a 9.9 Mt resource at 1.04% Li2O.
Geochemical assessment also indicates the strong potential for spodumene-bearing dykes to be present at the property. Per Selway et al., potassium/rubidium ratios (K/Rb), are a key tool in identifying these types of dykes; K/Rb ratios of <30 are indicative of rare-earth pegmatites and <20 of spodumene-subtype pegmatites. To-date, 10 pegmatites have been identified with K/Rb ratios <30 with a low of 7.5. Values below 10 are often associated with economic spodumene pegmatites. CONTINUED… Read the full Press Release for Usha Resources Ltd. at: https://usharesources.com/news-releases/
Other active mining companies in the markets this week include:
Lithium Americas Corp. (NYSE: LAC) (TSX: LAC) recently announced that shareholders have voted in favor of the separation of the Company into Lithium Americas (Argentina) Corp. ("Lithium Argentina") and a new Lithium Americas Corp. ("Lithium Americas (NewCo)") pursuant to a statutory plan of arrangement (the "Separation") at the Company's annual general and special meeting of shareholders held today (the "Meeting"). The Separation was approved by 98.85% of the votes cast by shareholders present or represented by proxy at the Meeting, as well as 98.78% of the votes cast excluding those of such shareholders who are required to be excluded pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.
"We are delighted to see our shareholders' overwhelming support for the Separation," said Jonathan Evans, Lithium Americas' President and CEO. "Following the Separation, the Lithium Americas (NewCo) team is committed to advancing the Thacker Pass project toward production to support the critical North American lithium supply chain. Meanwhile, the Lithium Argentina team will advance Caucharí-Olaroz toward full commercial production and pursue development opportunities in its significant growth pipeline in Argentina."
Sigma Lithium Corporation (NASDAQ: SGML) (TSXV: SGML) and its wholly-owned subsidiary Sigma Brazil (private), a leading global lithium producer dedicated to powering the next generation of electric vehicles with carbon neutral, socially and environmentally sustainable chemical-grade lithium concentrate, recently announced that both Companies' Board of Directors (together or separate, the "Board of Directors") are evaluating potential strategic alternatives for the Companies (the "Strategic Process").
The Companies received several proposals in relation to the Brazilian Company Sigma Mineração ("Sigma Brazil"), for the Canadian parent Sigma Lithium Corporation (together the "Companies" or separately the "Company") as well as for the Grota do Cirilo Project (the "Project"). The proposals from the potential strategic partners differ in nature and structure and are subject to ongoing review and negotiations.
Livent Corporation (NYSE: LTHM) recently reported results for the second quarter of 2023. Second quarter revenue was $235.8 million, 7% lower than the first quarter of 2023 and 8% higher than the second quarter of 2022. Reported GAAP net income was $90.2 million, or 43 cents per diluted share, compared to $114.8 million in the previous quarter and $60.0 million in the prior year's quarter. Adjusted EBITDA was $134.5 million, 15% lower than the previous quarter but 42% higher than the prior year's quarter, and adjusted earnings per diluted share were 51 cents. Volumes sold were roughly flat versus the first quarter of 2023 while average realized prices were slightly lower and overall costs were higher.
"We continued to see healthy demand from our customers which helped to support strong financial results in the second quarter. As anticipated, we experienced the lagged impact of lower market prices in certain lithium products and end markets, as well as higher operating costs during the quarter," said Paul Graves, president and chief executive officer of Livent. "We expect 2023 second half financial performance to be broadly similar to the first half of the year, supported by pricing visibility from our existing customer contracts and incremental volume available for sale in the second half of the year."
Standard Lithium Ltd. (NYSE American: SLI) (TSXV: SLI), a leading near-commercial lithium company, recently announced the acquisition of 118 acres of land intended to advance development of its South West Arkansas Project ("SWA Project" or the "Project"). Dr. Andy Robinson, President and COO of Standard Lithium, commented, "The land purchase demonstrates our commitment to advancing and de-risking the South West Arkansas Project. The land, which lies to the south west of the SWA Project's brine lease footprint, is ideally located close to a paved highway, robust regional infrastructure and a skilled workforce. This acquisition adds to our existing land options in the Project area and provides us with added design flexibility as we progress the Project to the Definitive Feasibility and FEED phase."
The South West Arkansas Project is located approximately 15 miles west of the City of Magnolia in southwestern Arkansas. The SWA Project's Indicated and Inferred Mineral Resource of 1.4 Mt and 0.4 Mt lithium carbonate equivalent, respectively, has some of the highest reported lithium brine concentrations in North America, averaging above 400 mg/L.
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