MINEX Forum

Tag: lithium

  • EU moves to cut dependency on China for battery and solar panel materials

    EU moves to cut dependency on China for battery and solar panel materials

    The European Parliament, in a significant move, has voted to reduce regulatory burdens and diversify the sources of critical raw materials like lithium and silicon. This plan aims to secure a steady supply of these materials, which are essential for the production of solar panels, electric vehicle batteries, and other crucial elements of the EU’s green transition.

    By approving this act with an overwhelming majority of 515 votes in favor and 34 against, the European Parliament seeks to decrease its reliance on a single country for more than 65% of any strategic raw material by 2030. The details of this act will now undergo negotiations between the parliament and the council.

    Nicola Beer, a German MEP from the liberal Renew Europe group, who was responsible for the proposal, expressed that the European Parliament has taken a clear stance on the security of supply, emphasizing the path towards European sovereignty and competitiveness. The EU’s shift towards clean energy necessitates access to critical raw materials like lithium and silicon, as they are vital for electric vehicle batteries and solar panel semiconductors. Presently, the EU depends on a small number of countries, including China, as suppliers.

    Hildegard Bentele, a German MEP from the center-right European People’s Party, stressed the importance of increasing the supply of reliable sources for raw materials, stating that electric mobility cannot thrive without batteries, and batteries cannot be produced without an adequate supply of lithium. She emphasized the need for a credible and strategic raw materials policy to achieve this goal.

    The newly proposed plan establishes targets for the extraction, processing, and recycling of critical raw materials. By 2030, the EU aims to have the capacity to extract at least 10% of its demand and process 50% of its demand for these materials. The plan also includes provisions allowing for up to 20% of new processing capacity to come from partnerships with emerging markets. Furthermore, the recycling capacity is expected to reach 45% for the collection, sorting, and processing of strategic materials from waste.

    Mohammed Chahim, a Dutch MEP from the center-left Socialists and Democrats, highlighted the potential to reduce import demand through improved material efficiency and recycling. He noted that the revised plan expands the scope of national circularity plans to encompass more reuse, refurbishment, and recycling, in comparison to the original proposal put forth by the European Commission.

    According to the International Energy Agency’s net-zero emissions scenario, global demand for key critical minerals, including nickel, cobalt, lithium, copper, and neodymium, is projected to grow by 1.5 to seven times by the end of the decade. This underscores the urgency for the EU to diversify its sources of these materials.

    Since the conflict between Russia and Ukraine exposed the EU’s overreliance on Russian gas imports, European politicians and businesses have been actively seeking alternative suppliers for key minerals. Markus Beyrer, the head of the industry lobby group BusinessEurope, acknowledged the European Parliament’s recognition of the importance of securing and diversifying the supply of critical raw materials. He particularly welcomed the support for streamlined permitting processes, reduced bureaucratic obstacles, and the focus on strengthening partnerships with trading partners.

    However, some environmentalists have raised concerns regarding the act, fearing that it may lead to poorly regulated mines in countries like Finland, which is rich in critical minerals, thereby posing risks to the environment. They have criticized the proposal for expediting the issuance of permits without adequately raising the environmental standards that mining companies must adhere to.

    Satu Jaatinen, a board member of MiningWatch Finland, an environmental nonprofit organization, emphasized that mines and the battery industry can be made sustainable by adopting existing technologies. She expressed disappointment that the industry is unwilling to make the additional investments required for sustainability, asserting that mines should reflect their true costs.

    The negotiations and implementation of this act will play a significant role in shaping the EU’s approach to securing critical raw materials while balancing environmental concerns and sustainability.

  • Lithium Brine Co. Awarded 100%-Interest Kazakhstan Mining License

    Lithium Brine Co. Awarded 100%-Interest Kazakhstan Mining License

    Condor Energies Inc. has released its results from the second quarter of this year (Q223), including financial statements and management discussion and analysis. These documents are available on the company’s website.

    The report has included the highlights of Q2. In July of 2023, Kazakhstan gave Condor a 100% working interest for six years in a 37,300-hectare lithium brine mining license. The company is awaiting final approval from the government of Kazakhstan for its 95% working interest in a separate lithium brine mining license in Kazakhstan.

    In June, Condor created a US$5.9 million three-year term loan facility, with interest at 9.0% per annum, that is intended for working capital needs and corporate purposes.

    Condor is undertaking final negotiations in order to run the day-to-day operations of eight gas-condensate fields in Uzbekistan. In Kazakhstan, Condor is still attempting to lock in a long-term LNG feed gas supply contract.

    Prior to the government of Kazakhstan granting Condor a lithium mining license, in July of 2023, a well drilled on a previously acquired license found brine deposits that contained concentrations of 67 milligrams per liter of lithium in carboniferous aged intervals.

    A 670m column of lithium brine has been identified using historical records and data from core drilling. This well touched the top of Denovian-aged sediments. Reservoir sands that were found were not tested.

    Condor’s lithium licenses are ideally positioned between Europe and Asia. This location provides access to robust lithium markets. Condor’s goal is to produce lithium through closed-looped direct lithium extraction technologies, which is more cost-effective than other lithium extraction technologies.

    Analyst Malcolm Shaw of Hydra Capital identified Condor Energies as a company worth looking into.

    According to Shaw, “It took flight after the company announced that it is in advanced discussions with respect to taking over eight gas fields in Uzbekistan, along with an exploration block or two.”

    Condor is unique because its goal is “to revitalize Soviet-era fields with standard Western development practices.” He specifically compared it to the early success of PetroKazakhstan, which sold for CA$4 billion.

  • ION Energy expands lithium exploration portfolio in Canada’s Northwest Territories

    ION Energy expands lithium exploration portfolio in Canada’s Northwest Territories

    ION Energy Ltd. (TSX-V:ION, OTCQB:IONGF) has bolstered its lithium portfolio with the acquisition of two new claims in Canada’s Northwest Territories (NWT).

    The acquisition of the approximately 900-hectare Little Nahanni claims, situated in an area rich with pegmatites, is poised to significantly enhance ION’s ongoing lithium exploration initiatives in the region.

    Toronto-based ION also finalized the acquisition of the Bliss Lake lithium pegmatite project in NWT.

    The acquisition transaction involved the issuance of 571,428 company shares to the vendors, valuing the shares at $0.25 each, totaling a deemed value of $128,571. This immediate consideration package also features provisions for deferred equity-based components for the vendors, contingent on future exploration results from the Bliss Lake project.

    In a statement, ION Energy sees the Little Nahanni claims as a latent opportunity for substantial lithium discovery, with the potential to forge mutually beneficial collaborations with regional stakeholders.

    “What an exciting time for ION Energy: while we work towards an inferred resource calculation this Fall at our prized Urgakh Naran Brine asset in the booming mining jurisdiction of Mongolia in such close proximity to China, we have now identified and acquired further assets in a Tier 1 region,” CEO Ali Haji said.

    “Each of these new assets provide the company with exposure to proven pegmatite lithium districts in the Northwest Territories. ION’s long term vision of exploring and developing high quality lithium resources in strategic jurisdictions as the world continues to electrify, is materializing rapidly.”

    The acquisition of the Bliss Lake and Little Nahani projects in NWT significantly enhances ION’s lithium asset and jurisdiction profile.

    The firm’s flagship Baavhai Uul lithium brine project represents the largest and first lithium brine exploration licence award in Mongolia. ION also holds the large Urgakh Naran licence in Dorngovi Province in Mongolia, with highly prospective lithium brine.

  • Polish Briefing: Poland’s quest for rare minerals I Bogdanka mine wants to go green

    Polish Briefing: Poland’s quest for rare minerals I Bogdanka mine wants to go green

    Poland is looking for a substitute for lithium and other rare earth metals

    Poland is exploring the possibility of using a substitute for lithium and other rare earth metals. “The raw materials policy defines those raw materials that are used today. Today it is apparent that the energy transition makes it necessary to develop economic areas, which we should launch in our country. If we define the areas that we will launch in Poland, then we can adjust the needs for raw materials. Perhaps some of these needs are met, so we will open a discussion and try to introduce the point of view that not only critical raw materials are necessary, but they can also be replaced by other generally available raw materials, such as rare earth metals, lithium,” said Deputy Minister of Climate and Environment Piotr Dziadzio, Chief Geologist of the Country.

    “We should look for substitutions for raw materials and that is what we are doing. I do not want to reveal the details now, but in the coming weeks there may be additional information on this subject,” added minister Dziadzio.

    Lithium is used for the production of electric car batteries, among others. Rare earth metals are used to make semiconductors, which are an essential element of electronics, military equipment or vehicles. They are also needed for the energy transition.

    Wojciech Jakóbik / Jedrzej Stachura

    Bogdanka’s new strategy to turn the mine green

    Bogdanka Lubelski Węgiel presented a development strategy that involves more coal mining until the mine is closed in Poland, and in the meantime investments in renewables, their components and recycling.

    “The average level of coal production in 2023-2025 will be approx. 9.1 million tonnes, in the years 2026-2030 approx. 10.1 million tonnes, and in 2031-2040 approx. 9.1 million tons,” the new Bogdanka strategy announced in Lublin on May 17 said. Bogdanka intends to maintain more than half of the market share of coal.

    One of the priorities is to “guarantee production by 2049 by starting production from the K-6 and K-7 resource base in 2024 and preparing for the availability of a vertical Ostrów field, which after 2038 will guarantee the flexibility and energy security of the state in the energy transition.” The social contract with Polish miners provides for the pahse-out of mines by 2049.

    The company also declares “support for Ukraine’s energy recovery through the use of Bogdanka’s competencies and resources, which can actively support the reconstruction of critical infrastructure in Ukraine after the war.”

    Bogdanka is also expected to develop multi-resource mining based on the exploration and commercial extraction of a number of minerals crucial for sustainable transformation and attractive to the market. The aim is also to produce res components, i.e. foundation baskets for wind farms and structures for the installation of PV panels. The mine also wants to scale up RES installations to diversify Bogdanka’s revenue stream by adding 500MW RES installations and selling the energy produced by them, as well as trading batteries and PV waste.

    LW Bogdanka / Wojciech Jakóbik

  • Explained: The EU’s handicap in the global race for critical raw materials

    Explained: The EU’s handicap in the global race for critical raw materials

    The EU is highly dependent on third countries for the raw materials needed to engineer its energy transition and digital transformation.

    Russia’s war in Ukraine and the need to wean itself off fossil fuels in order to reach climate targets have prompted the EU to accelerate its green transition in recent months but also forced it to acknowledge its dependencies over access to critical raw materials.

    In the global race for raw materials, the EU faces multiple challenges.

    The first one is China, which recently started restricting exports of gallium and germanium, two metals essential for the production of semiconductors, in response to Western curbs on Beijing’s access to micro-processing technology.

    The EU considers both materials of high strategic importance. As well as semiconductors and other electronic devices, they are used for military applications such as missile defence and radar systems.

    Beijing’s restrictions come as a stark warning as the EU attempts to diversify and boost domestic supply of raw materials to reduce dependency on third countries.

    Reliance on ‘low-governance’ countries

    But diversifying supply chains could mean the EU has to source these materials from countries that don’t adhere to the same standards.

    Recent data suggests the EU’s supply is highly dependent on countries that have a low governance level, based on indicators including political stability, rule of law and corruption control.

    The EU’s Critical Raw Materials Act (CRMA), adopted in March this year, stipulates that EU strategic projects to scale up supply must be assessed taking into account all aspects of sustainability, including environmental protection, socially responsible practices and respect for human rights such as the rights of women.

    But many countries feeding EU supply are not aligned with European values. This raises concerns about the impact on the local communities where materials are mined, as well as the potential exploitation of natural resources.

    For example, the Democratic Republic of Congo, whose governance indicators are among the lowest in the world, supplies 63% of the EU’s cobalt, which is essential for manufacturing batteries for electrical vehicles.

    Diversifying supply a challenge

    The EU is also highly dependent on single countries for key materials such as Magnesium (China, 97%), Lithium (Chile, 97%), Iridium (South Africa, 93%) and Niobium (Brazil, 92%). These dependencies make supply chains vulnerable.

    The Critical Raw Materials Act aims to ensure no third country provides more than 65% of the Union’s annual consumption of any raw material.

    But diversifying supply is complex when refineries of many essential materials are monopolised by one or more global powers. China dominates the refining market for many critical raw materials.

    Russia’s invasion of Ukraine and the ensuing energy crisis has shown the acute dangers of over-reliance for supplies of raw materials. China’s increasingly antagonistic stance and the political instability in many African countries have also served as reminders of the fragility of the EU’s trading relationships.

    A spiralling global demand

    The demand for raw materials is growing steeply, as developed countries race to digitalise and decarbonise their economies. This can only happen with sufficient supply of raw materials, meaning countries must scale up extracting, refining and recycling operations.

    The global demand for lithium, for example, is set to increase a staggering 89-fold by 2050, according to the European Commission. Demand for gallium will multiply 17-fold during the same time.

    The Critical Raw Materials Act sets targets for the Union to extract 10%, process 40% and recycle 15% of its annual consumption of raw materials by 2030.

    To meet these targets and compete on the global stage, European Commission President Ursula von der Leyen has said the EU needs to speed up investments in research and development, recognising that the bloc’s global share of R&D expenditure has fallen 10% in the last 20 years.

  • Li-Cycle starts battery recycling operations at German plant

    Li-Cycle starts battery recycling operations at German plant

    By Ernest Scheyder

    (Reuters) – Li-Cycle said on Tuesday it has started operations at its German plant to break down electric-vehicle batteries for recycling, part of the company’s rapid expansion into the European market and plan to become one of the continent’s largest lithium producers.

    The facility in Magdeburg, roughly 112 miles (180 km)southwest of Berlin, has the capacity to process 10,000 metric tons of battery parts annually, an amount that will eventually grow to 30,000 tonnes.

    The plant is Li-Cycle’s first in Europe and will anchor the company’s plans to replicate its North American hub-and-spoke network, in which multiple collection and processing facilities turn batteries into black mass, which is essentially shredded battery parts, and then supply a central recycling plant that will separate the material into lithium, nickel and other metals.

    “We see the European market as one of our key growth areas for the coming years,” Tim Johnston, Li-Cycle’s executive chairman, told Reuters.

    Toronto-based Li-Cycle is also building battery collection and processing facilities in Norway and France. Collectively, the three will feed black mass to an Italian recycling plant that is expected to open by late 2026 or early 2027.

    “Being able to close the loop within the European ecosystem is a key strategic advantage moving forward,” Johnston said.

    The German plant is roughly 20,000 square feet in size and employs about 50 people.

    Li-Cycle declined to disclose how much it spent on the German operation, though the company has a budget of $35 million to $45 million to build battery processing facilities this year.

    Until the Italian facility opens, Li-Cycle will send black mass produced in Europe to its North American processing facility in New York.

    Amid strong opposition in Europe to lithium mining, Li-Cycle believes its operations on the continent could grow to become one of the region’s largest lithium producers, Johnston said.

    (Reporting by Ernest Scheyder in Houston; Editing by Matthew Lewis)

  • Rio Tinto looking at possible lithium deals, Stausholm says

    Rio Tinto looking at possible lithium deals, Stausholm says

    Rio Tinto Group, the world’s biggest iron ore miner, is looking at a number of possible lithium acquisitions and would like to buy an asset to produce the key battery material in Canada, according to chief executive officer Jakob Stausholm.

    The London-based company was “looking at a number of opportunities” in lithium, Stausholm told media in Melbourne on Tuesday.

    “I wouldn’t mind having lithium production in Canada,” he said, but added lithium was “a pretty hot market” and he was “reluctant to come out with too big of a check.” Rio already produces aluminum, iron ore and diamonds in the nation.

    Demand for lithium, a core ingredient in electric vehicle batteries, is surging as carmakers around the world rush to build their EV manufacturing capacity. Production of the metal is dominated by smaller specialist producers, with most global diversified miners staying away.

    Rio is the exception. The world’s second-biggest miner is developing the Rincon lithium project in Argentina, and was planning to mine the battery metal in Serbia before the government there blocked the development.

    Stausholm’s comments came shortly before an announcement that Rio had signed a deal with UK-based exploration company Aterian Plc to explore for lithium in Rwanda. The agreement gives Rio the option to invest $7.5 million in the joint venture.

    Rio still sees opportunities for small-scale deals in metals that could be similar to its purchase of a majority stake in a Chilean exploration project this week, Stausholm said. Still, he stressed the need for organic growth, saying the hype around lithium and copper — another key material in the clean energy transition — wouldn’t influence the company’s thinking on deals in those sectors.

    The move into lithium is part of Rio’s strategy to expand beyond its Australian iron ore business, by far its biggest earner, Stausholm said.

    While Rio sees steel production in China as falling slightly this decade, the market currently looked to be “fairly stable,” he said. Stausholm added there would be growth in steel production in other markets, particularly India.

    (By James Fernyhough, with assistance from Mark Burton)

  • How lithium can replace coal and ore for Ukraine’s economy

    How lithium can replace coal and ore for Ukraine’s economy

    In 2022, after a full-scale invasion, Ukrainian producers significantly reduced iron ore extraction.

    All of these factors have had a negative impact on Ukraine’s economy. To quickly compensate for such losses, new avenues for economic development need to be explored. One potential solution is the extraction and processing of lithium and other rare minerals that exist in Ukrainian subsoils and are in demand globally.

    For more information, read the column by the Chief Strategy Officer at LLC “UkrLithiumMining,” Denys Aloshyn, on the website of 24 Channel: https://24tv.ua/yaki-korisni-kopalini-ukrayina-mozhe-zaproponuvati-svitu-popri_n2350928

  • EBRD has agreed to invest €6 million to support the development of the Cinovec Project in the Czech Republic

    EBRD has agreed to invest €6 million to support the development of the Cinovec Project in the Czech Republic

    European Bank for Reconstruction and Development (EBRD) Strategic Investment: On July 21, 2023, European Metals Holdings Limited announced a strategic investment agreement with the European Bank for Reconstruction and Development (EBRD). EBRD has agreed to invest €6 million to support the development of the Cinovec Project in the Czech Republic.

    As part of the due diligence process, EBRD engaged an independent, international mining consultancy to undertake a technical review of the Cinovec Project. EBRD also performed a review of the Cinovec Project in respect to compliance with EBRD’s Environmental and Social Policy.

    Keith Coughlan, Executive Chairman, said: “The Company welcomes EBRD’s strategic investment, which is a strong endorsement of the Cinovec Project’s value and its commitment to the highest environmental and social standards. The EBRD investment aims to fund the project’s predevelopment work and opens a pathway to potentially securing project financing. The successful completion of the technical due diligence process is a testament to the quality of the Cinovec team, the work which has been done to date and a strong vote of confidence in the project.

    “The EBRD investment is confirmation that the Cinovec Project is a vital part of establishing a strong, sustainable European electric vehicle battery supply chain to support Europe’s accelerating transition to e-mobility.

    Natalia Lacorzana, Head of Natural Resources at EBRD said:

    “We are pleased to support the Cinovec project, the first lithium project financed by the Bank, on its path to become a responsibly mined source of battery grade lithium for Europe. EBRD is committed to supporting the global transition to a green economy, the move towards wider adoption of electric vehicles, in particular, via providing necessary funding and know-how to junior miners of critical and/or strategic raw materials.”

    The Company’s relationship with EBRD is expected to be highly strategic as the European Union charts a path towards greater lithium supply security and sustainability. Support for the Company’s lithium, tin and tungsten Cinovec Project aligns with these EU goals. The investment is to be implemented by way of a private placement of 12,315,213 shares of the Company to be issued to EBRD at a price of £0.423 per share (the “Placement”).2 Upon the closing of the Placement, EBRD will hold approximately 6% of the Company’s shares on issue (on a non-diluted basis).

    In connection with the Placement, European Metals and EBRD have an agreement whereby, subject to certain conditions, the EBRD has been granted rights that allow participation in future financings to maintain its pro rata equity interest in the Company. The agreements also provide for the Cinovec Project to be developed according to EBRD’s Environmental and Social Policy.

    The proceeds from the Placement will be used to assist in funding pre-development works and studies for the Cinovec Project including environmental works and working capital expenditures for the period up to the completion of the DFS. The Placement is subject to normal and customary conditions precedent for a transaction of this nature. The shares will be issued without shareholder approval utilising the Company’s existing placement capacity under ASX Listing Rule 7.1.

  • Savannah Resources fundraise raises extra GBP400,000

    Savannah Resources fundraise raises extra GBP400,000

    Savannah Resources PLC has recently announced a successful increase in the gross proceeds from its fundraise. The company raised the amount from GBP 6.1 million to GBP 6.5 million after issuing 8.8 million new shares, resulting in GBP 400,000 being raised. This brings the total number of new shares issued for the fundraise to 139.2 million, and the company will now have approximately GBP 11.4 million in cash reserves.

    Chief Executive Officer Dale Ferguson expressed great enthusiasm about Savannah’s current position, stating that the company is at an exciting juncture. The positive declaration of environmental impact received for the Barroso lithium project, followed by significantly improved project economics in their recent scoping study, marked important milestones for the company.

    The successful fundraise, conducted effectively at market price, adds to these achievements. With the cash balance of approximately GBP 11.4 million, Savannah is now well-positioned to significantly advance its strategic European lithium project.

    As of the date mentioned (2023-07-21), Savannah Resources’ stock price has increased by 10%, reaching 352.40 pence, and the company has experienced an impressive 32% increase over the past 12 months.

    The significance of Savannah’s achievements becomes more apparent in light of the growing importance of lithium ion batteries in the transport and energy sectors. The European Commission’s classification of lithium as a ‘Critical Raw Material’ emphasises the rising demand for lithium in the EU. Savannah’s commitment to responsibly producing lithium raw material from its Barroso Lithium Project in Portugal aligns with the region’s energy transition and climate change goals. This effort positions Savannah to play a crucial role in Europe’s new lithium value chain, catering to the increasing domestic battery manufacturing forecast in the region and reducing reliance on imported battery-grade lithium raw material.