Australia sees its booming lithium sector matching thermal coal’s importance within five years as the world increasingly shifts from fossil fuels to clean energy.
Exports of the battery metal are seen at A$19 billion ($13 billion) in the year to June 2028, matching the record seen for the current financial year, according to government projections released Monday. Meanwhile, the value of power station coal shipments will drop 71% in the period.
With an insatiable demand for lithium around the world, new tax incentives unveiled in the 2023 federal budget could have big implications for Manitoba’s mining industry. Lithium – the rare earth material that is a critical component in electric car batteries – can be found here in Manitoba.
“The projections for electric vehicle demand are through the roof, and there’s not enough lithium supply on the planet right now to supply it,” Dave Peck, with Grid Metals Corporation, told CTV News. It’s working with Sagkeeng First Nation to develop the new mines which it estimates are about two years away from being able to extract the material.
Alberta may end up leading the world’s transition to lithium batteries
The most important date in 20th-century Canadian economic history took place on Feb. 13, 1947, on a farm near Edmonton, when Imperial Oil made one of the largest oil discoveries in the world.
A plume of oil and flames reached 15 metres toward the sky and Leduc No. 1 ushered in Alberta’s incredible oil industry. Within weeks, 500 oil companies were formed, launching Alberta and Canada into the energy big leagues and becoming a major contributor to the Canadian economy and our standard of living.
(Bloomberg) — A year and a half ago, China’s CATL put on a flashy event to make an announcement significant enough that Zeng Yuqun, the founder and chairman of the world’s biggest battery maker, served as emcee.
Zeng, who had just passed up Alibaba’s Jack Ma in the Bloomberg Billionaires Index, revealed that CATL was working on battery packs that would use lithium-ion and sodium-ion cells. While sodium is more abundant and offers potential safety benefits over lithium, the latter is dominant in EV batteries. Lithium-ion chemistries offer superior energy density, enabling drivers to travel further between charges.
In 1950, the authors of a federal government document entitled “The Miscellaneous Non-Metal Mining Industry” noted that Canada had little to no known use for lithium. “Thus, an outside market would have to be found for any production,” the authors concluded.
Such uses for lithium as lubricants, glass, ceramics and pharmaceuticals would subsequently open up niche markets for the white mineral, but over the decades lithium exploration and mining in Canada have remained sporadic, with mines being few and far between.
Lithium, the common ingredient in almost all electric-car batteries, has become so precious that it is often called white gold. But something surprising has happened recently: The metal’s price has fallen, helping to make electric vehicles more affordable.
Since January, the price of lithium has dropped nearly 20 percent, according to Benchmark Minerals, even as sales of electric vehicles have soared. Cobalt, another important battery material, has fallen by more than half. Copper, essential to electric motors and batteries, has slipped about 18 percent, even though U.S. mines and copper-rich countries like Peru are struggling to increase production.
Los Angeles, California, the US – Construction is under way at the Thacker Pass lithium mine in northern Nevada after a federal court denied opponents’ requests for an injunction. Lithium Americas, a mining company headquartered in Vancouver, Canada, said in a news release this month that workers were drilling at the site and building infrastructure, including water pipelines.
General Motors, which wants United States lithium for electric vehicle batteries, announced earlier this year that it would invest $650m in Lithium Americas if the mine cleared legal and regulatory hurdles.
Two activist shareholders with ‘substantial’ holdings in Azimut Exploration (TSXV: AZM) have accused the junior of “squatting” on some of Quebec’s most prospective lithium lands.
Coloured Ties Capital (TSXV: TIE) and privately held Bullrun Capital this week issued a second open letter to Azimut’s founder, president and CEO Jean-Marc Lulin, accusing the geologist of refusing to acknowledge or engage with them about its detailed exploration plans for its James Bay lithium portfolio.
(Bloomberg) — If it’s grown, drilled or dug up, chances are there’s not enough of it in China. Beijing’s ability to manage the mismatch between its scarce natural resources and vast industrial output is now playing out in the market for lithium, a mineral crucial to the world’s transition away from fossil fuels.
It’s an effort complicated by skyrocketing prices, geopolitical tensions and the environmental devastation that can be wrought by a pell-mell approach to extraction. China is the world’s biggest producer of new energy vehicles but holds only a modest slice of global reserves of lithium, used in the batteries that power electric cars.
(Bloomberg) — As automakers seek stakes in lithium miners to lock in supplies for electric-vehicle batteries, they’re following a path already forged by their shareholders.
Take Tesla Inc., which is reportedly interested in buying Toronto-listed Sigma Lithium Corp. If Tesla succeeds, it would follow prominent funds including Manulife Financial Corp., 1832 Asset Management, Maven Securities, DZ Bank and several others that have been snapping up Sigma shares, even as they cut exposure to the electric-vehicle maker.
Iran says it’s discovered a massive deposit of lithium — a key element in batteries for devices and electric vehicles — in one of its western provinces.
“For the first time in Iran, a lithium reserve has been discovered in Hamedan,” a mountainous province in the country’s west, Mohammad Hadi Ahmadi, an official at Iran’s Ministry of Industry, Mines and Trade, was quoted as saying on Iranian state television Saturday.
Argentina, Chile, Bolivia and Brazil are analyzing the creation of a lithium cartel of sorts in charge of expanding South America’s processing capacity, turning more of their mined lithium into batteries and tapping into the electric vehicles (EVs) manufacturing sector.
The group would emulate similar schemes, such as the Organization of the Petroleum Exporting Countries (OPEC), in terms of coordinating production flows, pricing and good practices, representatives of the Argentinean delegation said at the annual PDAC Convention, held this week in Toronto, Canada.
https://www.cbc.ca/news/canada/nova-scotia/
For as long as she has lived in New Ross, Nova Scotia, Ruth Veinotte has seen different prospectors come and go. What they seek has changed through time, says the woman who has lived in the Lunenburg County community for 67 years. From manganese, which was exploited until the 1930s, the region later drew exploration for tin, uranium and other minerals.
Veinotte looks across the rural landscape that has drawn such interest as she finishes refuelling her pickup truck on the community’s quiet main road.
(Bloomberg) — South American nations are stepping up efforts to propel themselves further down the electric-vehicle supply chain by leveraging their vast mineral wealth, expanding processing capacity, and targeting vehicle manufacturing.
Argentina, Chile, Bolivia and Brazil plan to coordinate action on turning more of the region’s mined lithium into battery chemicals, as well as moving into manufacturing of batteries and EVs, according to Argentina Mining Undersecretary Fernanda Avila.
Over the past few years, the lithium markets exploded as the electrification drive went into overdrive. EV makers like Tesla Inc. (NASDAQ:TSLA) have been scrambling to secure supplies amid rapid EV growth and tight lithium supplies, sending lithium carbonate prices up more than six-fold and spodumene up nearly tenfold in the space of a few years.
But as the old adage in the commodity markets goes, the cure for high prices is high prices, or in more common parlance, what goes up must come down: lithium prices have crashed spectacularly over the past four months, reversing years of gains.
