World demand for lithium-based energy presents a big alternative for Australia, the highest lithium-producing nation.
As international locations and corporations set up their positions within the battery worth chain, Australia has the flexibility to leverage its robust output and huge reserves to form the trade panorama into the 2030s.
The way forward for lithium demand depends closely on the expansion of the electrical automobile (EV) market, and lately its speedy growth has led to a lot larger mining of the commodity — a lot in order that the market has entered a surplus.
This oversupply stored lithium costs subdued within the first half of 2024, however consultants proceed to forecast a brilliant long-term outlook for the important battery materials as international locations world wide pursue net-zero objectives.
Continued consolidation via Q3 2024 led many analysts to declare that the market bottomed in July. Late within the 90 day session the lithium market started to see some worth development amid higher than anticipated September EV gross sales.
Right here the Investing Information Community appears on the prime three ASX-listed lithium firms by year-to-date positive factors. The checklist beneath was generated utilizing TradingView’s inventory screener on October 18, 2024, and contains firms that had market caps above AU$10 million at the moment. Learn on to study extra about their actions over the previous yr.
1. Ioneer (ASX:INR)
Yr-to-date acquire: 73.33 p.c
Market cap: AU$572.84 million
Share worth: AU$0.26
Australia-listed Ioneer owns the Rhyolite Ridge lithium-boron challenge in Nevada, US. The challenge is taken into account the “sole lithium-boron deposit in North America.”
As a part of the allowing course of for the Rhyolite Ridge challenge, Ioneer accomplished and submitted the executive draft environmental influence assertion (EIS) to the US Bureau of Land Administration (BLM) in mid-January. In mid-September, Ioneer introduced that the BLM printed the ultimate EIS, shifting the corporate nearer to constructing its Rhyolite Ridge lithium-boron challenge.
In line with the corporate, the milestone now makes Rhyolite Ridge the primary lithium challenge below the Biden Administration to achieve the superior stage of the environmental allowing course of.
“Since Ioneer’s work at Rhyolite Ridge started in 2016, we’ve got listened to members of the neighborhood and tailored our plans to maximise the challenge’s many financial advantages whereas minimizing oblique impacts to the neighborhood and surroundings. Rhyolite Ridge is stronger due to the intensive collaboration and enter from all concerned stakeholders,” stated Bernard Rowe, managing director at Ioneer.
2. Vulcan Vitality Sources (ASX:VUL)
Yr-to-date acquire: 63.45 p.c
Market cap: AU$920.24 million
Share worth: AU$4.74
Europe-focused Vulcan Vitality Sources goals to help a carbon-neutral future by producing lithium and renewable vitality from geothermal brine. The corporate is at the moment creating the Zero Carbon lithium challenge in Germany’s Higher Rhine Valley. Vulcan is utilising a proprietary alumina-based adsorbent-type direct lithium extraction course of to provide lithium with an finish purpose of supplying sustainable lithium for the European EV market.
On April 11, Vulcan introduced the graduation of lithium chloride manufacturing at its lithium extraction optimisation plant in Germany. In line with the corporate, the milestone marks the primary lithium chemical manufacturing in Europe utilizing native provide. The plant constantly exhibited over 90 p.c lithium extraction effectivity.
Vulcan will now put together the 40 million euro facility for business manufacturing. The corporate already has binding lithium offtake agreements in place with main automakers and battery producers, and expects to produce sufficient lithium for 500,000 EVs through the first section of manufacturing.
Through the third quarter, Vulcan obtained its first licenses for lithium and geothermal exploration in Alsace, France. The permits cowl 463 sq. kilometres, increasing Vulcan’s whole licensed space within the Higher Rhine Valley to 2,234 sq. kilometres throughout France and Germany.
In early August, Vulcan started commissioning its downstream lithium hydroxide optimisation plant (CLEOP) close to Frankfurt.
“Within the coming months, Vulcan will start to move the primary LiCl parcels from our upstream facility via to CLEOP for manufacturing of the primary battery-grade lithium hydroxide merchandise in Europe, all from a European lithium useful resource,” Vulcan CEO and Managing Director Cris Moreno stated.
A mid-October launch from Vulcan outlined a memorandum of understanding with industrial software program designer AVEVA. The partnership will see AVEVA construct a digital framework for Vulcan’s Zero Carbon lithium challenge.
3. Cygnus (ASX:CY5)
Yr-to-date acquire: 3.7 p.c
Market cap: AU$53.17 million
Share worth: AU$0.14
Cygnus Metals is an exploration firm centered on advancing its Pontax, Auclair and Sakami lithium tasks within the Eeyou Istchee James Bay lithium district of Québec, Canada. The corporate additionally owns uncommon earth factor, lithium and base metallic tasks in Western Australia.
In July, Cygnus reported the completion of geophysical survey work on the Auclair lithium challenge. The ensuing information “recognized important potential for development” within the Pegasus zone.
Most not too long ago, Cygnus entered into an settlement to a merger of equals with Canadian copper firm Doré Copper Mining (TSXV:DCMC,OTCQB:DRCMF), which owns a number of copper belongings in Québec. The assertion says the merger creates “a Québec-focused essential minerals explorer and developer with high-grade copper and lithium assets.”
“By combining the confirmed exploration and administration abilities of the Cygnus group with the high-grade copper assets and immense upside potential on the Chibougamau properties, we’ve got the potential to unlock substantial worth,” stated David Southam, Cygnus’ government chairman.
FAQs for investing in lithium
What’s lithium?
Lithium is the lightest metallic on the periodic desk, and it’s utilized in all kinds of functions, together with lithium-ion batteries, prescription drugs and industrial functions like glass and metal.
How do lithium-ion batteries work?
Rechargeable lithium-ion batteries work by utilizing the movement of lithium ions within the battery’s cell to energy a tool.
A lithium-ion battery has a number of cells, relying on the quantity of vitality storage it’s able to, and every cell has a constructive electrode and damaging electrode with an electrolyte separating them. When the battery is in use, lithium ions movement from the damaging electrode to the constructive electrode, operating out of energy as soon as all have transferred. When the battery is charging, ions movement the alternative manner.
The place is lithium mined?
Lithium is mined from two varieties of deposits, onerous rock and evaporated brines. Many of the world’s lithium manufacturing comes out of Australia, which hosts the Greenbushes hard-rock lithium mine. The subsequent-largest producing nation is Chile, which like Argentina and Bolivia is situated in South America’s Lithium Triangle.
Lithium on this famed space comes from evaporated brines, together with the Salar de Atacama. Lithium will also be present in sedimentary deposits, however at the moment none are producing.
The place is lithium present in Australia?
Australia is the world’s prime producer of lithium, and its lithium mines are all situated in Western Australia apart from one, which is Core Lithium’s (ASX:CXO,OTC Pink:CXOXF) Finniss mine within the Northern Territory. Western Australia accounts for round half of world lithium manufacturing, and the state is trying to turn out to be a hub for essential parts.
Who owns lithium mines in Australia?
A number of firms personal lithium mines in Australia, together with a number of the greatest ASX lithium shares. Along with the entities mentioned above, others embody: Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) with its Pilgangoora operations; Arcadium Lithium with the Mount Cattlin mine; Jiangxi Ganfeng Lithium (HKEX:0358), which owns the Mount Marion mine alongside Mineral Sources (ASX:MIN,OTC Pink:MALRF); and Tianqi Lithium (SZSE:002466), which is a partial proprietor of Greenbushes by way of its stake in operator Talison Lithium.
Who’s Australia’s largest lithium producer?
Australia’s largest lithium producer is Albemarle (NYSE:ALB), which has pursuits in each the Greenbushes and Wodgina hard-rock lithium mines. Greenbushes is the world’s largest lithium mine, and Albemarle holds 49 p.c possession of operator Talison Lithium’s mum or dad firm.
Albermarle additionally has 60 p.c possession of Mineral Sources’ Wodgina mine, and owns the Kemerton lithium manufacturing facility as a part of a 60/40 three way partnership with Mineral Sources.
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Securities Disclosure: I, Georgia Williams, at the moment maintain no direct funding curiosity in any firm talked about on this article.
