Germany is poised to emerge as a significant buyer of Australian lithium in efforts to reduce its reliance on Chinese imports. During a recent visit to Australia, German Foreign Minister Annalena Baerbock emphasized the need to diversify the nation’s lithium supply chain, particularly in light of past political tensions stemming from reliance on Russian fuel during the Ukraine conflict. Baerbock highlighted the current circuitous route of lithium, originating in Australia, then exported to China for processing before being re-imported, advocating for direct importation from Australia to strengthen ties between democracies and free markets. Australian Federal Resources Minister Madeleine King echoed similar sentiments, advocating for Australia’s dominance in the international critical minerals sector and urging European markets to prioritize ethical and sustainable sources for critical minerals. The Federal Government’s ‘Resources and Energy Quarterly’ (REQ) for March 2024 projected a substantial increase in Australia’s lithium mine production by 2029, driven primarily by the growing demand for electric vehicles (EVs). With Europe leading the EV market expansion, Germany’s initiative to diversify its supply chain with Australian lithium sets a precedent for other international markets, paving the way for a promising future for the commodity.
Tag: lithium
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Kazakhstan’s President Emphasizes Potential of Rare Earth Minerals Mining
President Kassym-Jomart Tokayev of Kazakhstan views the extraction of critical raw materials as a promising area for cooperation, as reported by the state leader’s press service.
“Rare earth metals have become a crucial component for a wide range of technologies. They are essential for achieving net-zero emissions and are vital in strategic sectors such as industry, digital technologies, space, and defense. We continue to work with international partners on the most effective ways to develop our large deposits of uranium, lithium, titanium, and other rare earth elements,” quoted the press service Tokayev’s remarks on Thursday at the plenary session of the Boao Asian Forum (BAF).
Earlier, it was reported that exploration work on the potential of lithium was planned to commence in three regions of Kazakhstan. In particular, during the partnership forum between the European Union and Kazakhstan in Belgium, Erlan Galiev, Chairman of the Board of JSC “National Geological Survey,” stated that “as part of state geological exploration, work is planned to begin on studying the potential of lithium in three regions of Kazakhstan.”
“If indigenous lithium deposits are projected in the eastern and southeastern parts, then the mineralized brines of the Aral sedimentary basin, according to preliminary data, are very favorable for lithium. Its geological conditions are similar to the Salar de Atacama salt flat in Chile, which holds about 30% of the world’s lithium reserves,” Galiev said.
According to the Chairman of the Board, as of 2023, six deposits where lithium may be present are listed on the state balance sheet in Kazakhstan: Jubilee, Verkhne-Baimurzinskoye, Bakenoye, Akhmetkino, Medvedka, and Akhmirovskoye.
“Significant lithium and REM (rare earth metals) reserves are concentrated in the tailings and ‘tail sand’ of beneficiation plants and deposits in central and southern Kazakhstan, as well as rare metal deposits in eastern Kazakhstan,” he said.
Galiev assured that JSC “National Geological Survey” is ready to partner with foreign companies and invited interested parties to familiarize themselves with the projects, promising to take all necessary measures to ensure favorable conditions for investors.
Later, it became known that German companies Knauf Gruppe, GP Gunter Papenburg AG, Roxtec, and the German Lithium Institute (ITEL) formed a consortium for the development and production of lithium, using Kazakhstan’s deposits as a basis.
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European Lithium’s Nasdaq Surge and Future Outlook
The ascent of Critical Metals Corp. (CRML) on the Nasdaq exchange has been truly remarkable. With a remarkable surge of more than 26% in a single trading day, CRML concluded at an impressive US$13.03, causing ripples throughout the market. This surge, coupled with a substantial turnover exceeding A$1 million, highlights the strong interest and confidence surrounding CRML’s initiatives. Leading this narrative is European Lithium Ltd (EUR), which recently joined forces with Sizzle Acquisition Corp, positioning itself at the forefront of this growing story. This strategic merger not only enhances EUR’s market presence but also lays the groundwork for potential value appreciation for its investors. Despite CRML’s remarkable success, Barry Dawes of Martin Place Securities points out a disparity between CRML’s performance and EUR’s current share price, hovering around A$0.078. Dawes suggests that EUR’s market capitalization of US$1.064 billion significantly undervalues its inherent potential, given CRML’s trajectory. He argues that EUR shares should reasonably be at least five times higher to mirror CRML’s performance, indicating a considerable value disparity that needs addressing. At the core of European Lithium’s strategic vision lies the development of the Wolfsberg Lithium Project in Austria. This ambitious initiative, now elevated to a pre-development stage, underscores EUR’s unwavering commitment to becoming a pivotal player in the European lithium-ion battery supply chain. With Critical Metals Corp. spearheading this transformative project, Wolfsberg emerges as a crucial asset poised to reshape the regional battery landscape. EUR’s chairman, Tony Sage, expresses confidence in the company’s path, citing access to US capital markets and the synergistic advantages of being listed on Nasdaq. He envisions Critical Metals as a cornerstone supplier in Europe’s burgeoning battery sector, with Wolfsberg playing a catalytic role in driving sustainable innovation. In a positive development, European Lithium Ltd recently settled APL and Okewood Pty Ltd, boosting investor confidence and removing potential obstacles to growth. This resolution, praised by EUR’s executive chairman Tony Sage as “very positive,” underscores the company’s dedication to creating a favourable environment for value enhancement. Sage’s optimism resonates with shareholders, as the elimination of uncertainties clears the path for unimpeded progress and strategic alignment. As European Lithium navigates the complexities of the global market, such resolutions serve as a testament to its resilience and steadfast commitment to delivering value to shareholders.
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New lithium deposit discovered in Eastern Kazakhstan: Foreign investors show interest in development
In 2023, experts from the Korea Institute of Geoscience and Mineral Resources (KIGAM) announced their discovery of a new lithium deposit in Kazakhstan. The information about the unnamed deposit was published by the “Kursiv” newspaper, citing the Korea Times.
The discovery of the deposit occurred as a result of geological studies on an area of 1.6 km² in Eastern Kazakhstan. Foreign investors have already shown interest in developing this deposit.
KIGAM experts estimated the potential resources of the new deposit at $15.7 billion, although the exact amount of lithium found in the ground has not been disclosed. According to estimates, the deposit contains high concentrations of lithium up to 5.3%, making it potentially profitable.
According to previous data, German companies have actively invested in lithium mining in Kazakhstan. Three major enterprises, including GP Gunter Papenburg AG, Knauf Gruppe, and Roxtec, have formed a consortium to develop production of this strategically important metal in the republic.
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Korean Geologists Uncover $15.7 Billion Lithium Deposit in Kazakhstan
Korean Institute of Geoscience and Mineral Resources (KIGAM) reveals plans to exploit a lithium deposit in eastern Kazakhstan, covering an area of 1.6 square kilometers, as reported by Orda.kz citing The Korea Times. The region, previously mined for tantalum, has resources estimated at around $15.7 billion. KIGAM, responding to Kazakhstan government’s request, studied the area since May last year, considering the significance of tantalum coexisting with lithium and cesium. Lithium, a crucial mineral for electric vehicle and modern industries, is a key component in batteries. KIGAM aims to apply for drilling rights in the region, intending to commence lithium extraction next year.
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Rio Tinto Takes Cautious Approach to Lithium Amid Price Volatility
Rio Tinto remains cautiously optimistic about the future of lithium, driven by increasing demand for batteries in electric vehicles, but CEO Jakob Stausholm has indicated that the company will not pursue major acquisitions in the sector. Instead, Rio Tinto plans to focus on improving lithium extraction technology, as reported by Reuters.
While acknowledging the growth potential of lithium, Stausholm emphasized the volatile nature of the metal’s price. Despite this, Rio Tinto, known primarily as the world’s largest iron ore producer, is among the few major mining companies investing in lithium. In contrast, competitors like BHP have refrained from significant investments in the electric vehicle battery sector.
The recent decline in demand for electric vehicles has led to a significant drop in lithium prices, with Benchmark Mineral Intelligence reporting an over 80% decrease in lithium prices over the past year. This downturn has forced many producers to halt production and cut jobs.
Speaking at the annual Prospectors & Developers Association of Canada (PDAC) conference in Toronto, Stausholm reiterated Rio Tinto’s stance on the volatile nature of battery material prices.
Rio Tinto’s current lithium projects include the Rincon project in Argentina, where the company plans to construct a lithium carbonate plant with an annual capacity of 3000 tons for battery production, expected to commence by the end of 2024. Additionally, Rio Tinto owns the Jadar lithium project in Serbia, although the project has faced challenges after Serbia revoked its license in 2022 due to environmental concerns.
Stausholm also expressed optimism about decreasing inflation in Western countries, foreseeing potential cost stabilization for the company in the upcoming year.
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Russia is Becoming a Leader in Lithium Reserves
The exploration of the Kolmozero deposit of rare metals is being completed in the Kola Peninsula in Russia. As a result, the country will become one of the three leaders in lithium reserves, a strategically important element for modern industry.
Simultaneously, Russia has achieved a significant milestone by completing the development of a technology that allows the extraction of lithium from pegmatites with an impressive yield of 98%. This breakthrough in extraction technology enhances Russia’s capabilities in lithium production.
Speaking on 28 December 2023, Russia’s Natural Resource Minister Alexander Kozlov told the Interfax News Agency that Russia will retain its leading position in the world in gas and gold reserves, and for scarce mineral types such as tungsten, lithium, uranium and rare earth metals.
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New ‘water batteries’ safer and cheaper than lithium-ion
RMIT has led a global team of researchers and industry partners in the development of a new recyclable ‘water battery’ that is expected to be much safer than lithium-ion batteries.
Lithium-ion energy storage dominates the market due to its technological maturity, but its suitability for large-scale grid energy storage is limited by safety concerns with the volatile materials inside.
Professor at RMIT’s School of Science and lead researcher, Tianyi Ma, said that their batteries were at the cutting edge of an emerging field of aqueous energy storage devices, with breakthroughs that significantly improve the technology’s performance and lifespan.
“What we design and manufacture are called aqueous metal-ion batteries – or we can call them water batteries,” said Prof Ma.
The team uses water to replace organic electrolytes – which enable the flow of electric current between the positive and negative terminals – meaning their batteries can’t start a fire or blow up, unlike their lithium-ion counterparts.
“Addressing end-of-life disposal challenges that consumers, industry and governments globally face with current energy storage technology, our batteries can be safely disassembled and the materials can be reused or recycled.
“The simplicity of manufacturing processes for the water batteries helped make mass production feasible.
“We use materials such as magnesium and zinc that are abundant in nature, inexpensive and less toxic than alternatives used in other kinds of batteries, which helps to lower manufacturing costs and reduces risks to human health and the environment.”
Energy-storage and life-cycle potential
The team has made a series of small-scale trial batteries for numerous peer-reviewed studies to tackle various technological challenges, including boosting energy storage capacity and the lifespan.
In their latest work, published in Advanced Materials, they’ve triumphed over a major challenge – the growth of disruptive dendrites, which are spiky metallic formations that can lead to short circuits and other serious faults.
The team coated affected battery parts with a metal called bismuth and its oxide (otherwise known as rust) as a protective layer that prevented dendrite formation.
“Our batteries now last significantly longer – comparable to the commercial lithium-ion batteries in the market – making them ideal for high-speed and intensive use in real-world applications.
“With impressive capacity and extended lifespan, we’ve not only advanced battery technology but also successfully integrated our design with solar panels, showcasing efficient and stable renewable energy storage.”
The team’s water battery is closing the gap with lithium-ion technology in terms of energy density, with the aim of using as little space per unit of power as possible.
“We recently made a magnesium-ion water battery that has an energy density of 75 watt-hours per kilogram (Wh/kg) – up to 30 per cent that of the latest Tesla car batteries.”
This research is published in Small Structures.
“The next step is to increase the energy density of our water batteries by developing new nano materials as the electrode materials.”
Prof Ma said that magnesium was likely to be the material of choice for future water batteries.
“Magnesium-ion water batteries have the potential to replace lead-acid batteries in the short term – like one to three years – and to potentially replace lithium-ion batteries in the long term, five to ten years from now.
“Magnesium is lighter than the alternative metals, including zinc and nickel, has a greater potential energy density and will enable batteries with faster charging times and better capability to support power-hungry devices and applications.”
Potential applications
Prof Ma said that the team’s batteries were well suited for large-scale applications, making them ideal for grid storage and renewable energy integration – especially in terms of safety considerations.
“As our technology advances, other kinds of smaller-scale energy storage applications such as powering people’s homes and entertainment devices could become a reality.”
As part of an ARC Linkage project, Prof Ma’s team is continually developing their water batteries in collaboration with industry partner GrapheneX, a tech innovator based in Sydney.
“We also collaborate closely with researchers and experts from renowned universities and research institutions in Australia, the US, the UK, Japan, Singapore, China and elsewhere.
“These collaborations facilitate knowledge exchange and access to cutting-edge facilities. By drawing on this global team’s expertise in different areas, we can tackle the complex challenges involved from various angles.”
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445% Increase in Mineral Resource Estimate
Zinnwald Lithium plc is thrilled to announce a significant upgrade to its Mineral Resource Estimate (MRE) at the 100% owned Zinnwald Lithium Project in Saxony, Germany.
Key Highlights:
- 445% increase in tonnage and 243% increase in contained lithium in Measured and Indicated categories compared to 2018 MRE.
- Second largest hard rock lithium resource in the EU by both size and contained lithium.
- Inclusion of broader mineralized granite zone boosts potential production rates and project economics.
CEO Quote:
“This substantial increase in our Mineral Resource establishes Zinnwald as a strategically important project of scale within the EU,” said Anton du Plessis, CEO of Zinnwald Lithium. “The wider mineralized zone allows for more efficient mining techniques, potentially further increasing lithium production beyond our 2022 PEA projections.”
Additional Notes:
The updated MRE incorporates 26,911 meters of new drilling across 84 holes and a revised geological model.
The statement was prepared by Snowden Optiro Ltd in accordance with NI 43-101 standards.About Zinnwald Lithium plc
Zinnwald Lithium plc is a European-focused lithium company developing the Zinnwald Lithium Project, with the goal of becoming a leading domestic supplier of lithium hydroxide to the European battery industry.
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Savannah Resources Initiates Contentious Lithium Mining Venture in Portugal
Savannah Resources, a London-based company, has embarked on a lithium mining project in Boticas, Portugal, which has garnered significant attention due to potentially becoming Western Europe’s largest lithium mine. This initiative is part of a broader push to capitalise on Portugal’s lithium reserves, which are over 60 000 tonnes, positioning the country as a key player in Europe’s strategy to secure a more self-sufficient battery value chain and reduce dependency on imported raw materials.
This initiatives was approved by the Portuguese Environmental Agency last year, conditional on some premises, for this initiative to take place. However, the project has encountered substantial legal and environmental challenges. Portuguese prosecutors have raised concerns about the environmental permit granted to the project, citing potential violations and the risks it poses to the local environment, including the Barroso region — a world heritage site recognised for its agricultural significance since 2018.
The primary issues highlighted include the project’s potential impact on this heritage site, inadequate assessments of mining waste management, and water contamination risks. This is significant as poor environmental strategies in the context of mining projects, such as those involving lithium extraction, can have significant health repercussions, as well as, fundamentally eroding local human rights. This relationship stems from the fact that environmental degradation often directly impacts the fundamental needs and rights of local communities. For example, water contamination and air pollution can impinge on the right to clean water, and healthy living conditions.
In regions where mining projects for things like precious metals are situated, the environmental consequences can seriously disrupt local ecosystems, leading to loss of biodiversity, soil erosion, alteration of water courses and the water table. Environmental impacts can, in turn, affect agricultural productivity and access to natural resources that local populations depend on for their livelihoods, thereby, infringing upon their right to food security and economic stability.
The Prosecutor’s Office has requested that the Administrative Court of Mirandela, in Northern Portugal, to annul the approval of the Boticas mine on the basis that it “suffers from the defect of violating the law”. Additionally, the cumulative environmental impact of Savannah’s project and another nearby lithium initiative by Lusorecursos in Montalegre has not been fully considered, raising concerns about the broader implications for the region’s ecosystem. In response, Savannah Resources has expressed it’s readiness to address these concerns and stated that the legal actions do not hinder the project’s operations.
The legal challenges faced by Savannah Resources, couple with the ongoing investigation into alleged illegalities in lithium and ‘green hydrogen’ deals in Portugal, which led to the then-Prime Minister Antonio Costa’s resignation, highlighting the delicate and volatile state of environmental policy. The case surely serves as a serious reminder of the importance of adhering to legal and environmental standards to ensure sustainable development and trust in the workings of political institutions.
With that being said, navigating the complexities of lithium mining projects such as the one undertaken by Savannah Resources necessitates a multi-faceted approach to the policy making to ensure sustainable development. There are a number of cogent options available to the Portuguese state, notably, Chile’s approach to managing it’s lithium reserves and the associated environmental and regulatory challenges could offer relevant insights for Portugal.
Chile has significant lithium reserves, the largest in the world, and has positioned itself as a key player in the global lithium market. Chile has established a legal and regulatory framework that treats lithium as a strategic mineral, limiting its extraction to state, state-owned companies, or private firms in partnership with the Chilean Production Development Corporation. This framework aims to ensure that lithium mining benefits the country, while mitigating environmental impacts. Chile’s experience highlights the importance of a clear regulatory framework that balances economic interests with environmental protection and social responsibility. Given Portugal’s significant lithium reserves, and the environmental concerns surrounding the Savannah Resources project, adopting a strategic approach similar to Chile’s could help Portugal navigate the complexities of mining. In this sense, implementing a framework, perhaps similar to Chile’s, would hold companies accountable for their environmental compliance and provide clear, actionable guidelines for conducting mining operations sustainably.
The National Lithium Strategy, announced in April 2023, is the clear frameworks to “exploit lithium in Chile’s salt flats”. Perhaps with the longer-term goal of creating the “National Lithium Company”, which should lead to negotiations with private companies wishing to explore and exploit the salt flats. With the largest share of lithium deposits in the world, the Chilean state is looking to create a balance between private and public sectors.
Furthermore, there is a critical need to enhance the rigor and comprehensiveness of Environmental Impact Assessments. By mandating the EIAs to consider the cumulative impacts of nearby projects, policymakers can gain a more holistic understanding of potential environmental consequences, thereby facilitating the implementation of effective mitigation strategies.
Equally important is the engagement of local communities and stakeholders in the decision-making processes. Such involvement ensures that the concerns and insights of those most directly impacted by mining activities are heard, leading to mining practices that are not only more socially accepted but also sustainable. Developing clear forums for local discussion, perhaps through state initiatives, are the most cogent manner in which to develop clear community guidance.
Accordingly, the protection of heritage sites also demands attention, with the development of specific guidelines and regulations aimed at ensuring mining activities do not encroach upon or degrade cultural and environmental values. This is particularly pertinent in areas like the Barroso region, which holds significant agricultural and cultural importance.
Additionally, adopting a sustainable mining practice is another cornerstone of our policy recommendations. Urging the use of advanced technologies in waste management, investing heavily in protective measures, as well as, ensuring that companies are prepared to financially compensate locals for any issues that may arise are vital. Water protection is another serious issue. Minimising the environmental impact through continuous and public testing of the water table is vital. Precious metal mining, particularly lithium and copper mines, can be disastrous for local water supply if not persistently analysed. impACT implores the Portuguese state to consider establishing a public dataset for analysis of the regions ecological analysis.
Fostering cross-sector collaboration stands out as a vital strategy. By encouraging partnerships between the mining sector, environmental agencies, and research institutions, innovative solutions can be developed for waste reduction, the recycling of mining by-products, and the implementation of conservation strategies. Adoption of a similar public-private model, like Chile’s, may prove a good method of this collaboration.
Through the implementation of these policy recommendations, countries like Portugal, endowed with significant lithium reserves, can leverage their natural resources to fuel economic growth and achieve strategic autonomy in the battery value chain. This approach ensure not only the safeguarding of environmental heritage but also the well-being of local communities, thereby aligning economic interests with sustainable and responsible environmental stewardship.