2024 South America Lithium Resources Field Trip - Ninth Stop: CleanTech Lithium

In recent years, the dramatic fluctuations in lithium prices have made the industry chain experience the "bittersweet" of the market. Although current lithium prices are far from their past highs, the prospects of the new energy industry chain remain bright under the global advocacy for a low-carbon economy, and the importance of lithium resources is becoming increasingly prominent.

As one of the regions with the richest lithium resources globally, South America, especially the "Lithium Triangle" (Bolivia, Argentina, Chile), holds over 55% of the world's proven lithium resources. Therefore, South America's lithium resources play a crucial role in the global energy transition.

Against this backdrop, SMM organized the 2024 South America Lithium Resources Field Trip. Led by SMM Customer Manager Siyu Chen, the delegation visited lithium-related enterprises in South America from November 26 to December 7, 2024, toured local lithium mines and material companies, and held discussions with company executives to explore potential opportunities in lithium ore resources development, technical exchanges, and investment cooperation. On December 4, SMM and the delegation headed to CleanTech Lithium for in-depth exchanges.

Corporate Voices

SMM and the delegation visited CleanTech Lithium, where they were warmly received by Ms. Marcela Sepúlveda, Community Relations Manager; Mr. Alvaro Florez, Legal Manager; and Mr. Jason Baverstock, Executive Strategy & Development. The company representatives provided a detailed introduction to their business development.

CleanTech Lithium holds exploration and development licenses in four major regions in Chile, covering a total area of over 1,250 square kilometers. CTL's flagship project, Laguna Verde, is considered highly commercially valuable based on the provided JORC resource estimates, with reserves of 1.8 million mt, equivalent to decades of production potential.

Technical Exchange

SMM and the delegation engaged in in-depth discussions with CleanTech Lithium on the progress of its projects, lithium carbonate, and future development trends in the lithium battery industry.

CleanTech Lithium is committed to producing battery-grade lithium with a unique ESG approach embedded throughout the process: from sustainable extraction without mining, no evaporation ponds, to complete return-to-state water replenishment. CTL's DLE pilot plant is being assembled at its R&D center in Copiapó, Chile. The government aims to accelerate commercial production, targeting the launch of new lithium projects by 2026.

Regarding the company's lithium projects in Chile, it was noted that two of its projects are located near mining areas in Chile. Both projects have completed scoping studies. The PFS of the fast-progressing project will be completed within a few months, with the goal of achieving full production by 2027. The second project is in the exploration phase, with plans to build a nearby substation, though progress has yet to be made.

According to previous data, the total operating cost of the company's Chilean projects was approximately $4,000/mt. However, since 2023, inflation may have led to an increase in operating costs.

Group Photo

After the factory visit, SMM and the delegation took a group photo with CleanTech Lithium, strengthening their cooperative friendship and paving the way for deeper exchanges and collaboration in the future.

Through this field trip, SMM and the delegation gained a deeper understanding of CleanTech Lithium's development status and a more profound insight into the market conditions, development trends, and challenges of the lithium battery industry in South America. They will continue to deepen cooperation with major enterprises to achieve complementary advantages and promote the development of the lithium battery industry.