Recap of the 2024 South America Lithium Resource Field Trip: Visits to 10 Lithium Miners in the Lithium Triangle!

In recent years, the dramatic fluctuations in lithium prices have brought a mix of "sweet and bitter" experiences to companies across the industry chain. Although current lithium prices are far from their previous highs, the development prospects of the new energy industry chain remain promising under the global advocacy for a low-carbon economy, further highlighting the importance of lithium resources.

As one of the world's most lithium-rich regions, South America, particularly the "Lithium Triangle" (Bolivia, Argentina, Chile), holds over 55% of the world's proven lithium resources. Thus, South America's lithium resources play a critical role in the global energy transition.

Against this backdrop, SMM organized the 2024 South America Lithium Resource Field Trip. Led by SMM Client Manager Siyu Chen, the delegation visited lithium-related companies in South America from November 26 to December 7, 2024, touring local lithium mines and material companies and holding discussions with company executives to explore potential opportunities in lithium resource development, technical exchange, and investment cooperation. On December 7, the 2024 South America Lithium Resource Field Trip concluded successfully! SMM has reviewed and summarized this trip as follows:

First Stop

NOA Lithium Brines

NOA Lithium Brines Inc. ("NOA") is a lithium exploration and development company established to acquire assets with significant resource potential. All of NOA's projects are located in the lithium triangle of Salta, a mining-friendly province in Argentina, near numerous projects and operations owned by some of the largest players in the lithium industry. NOA has rapidly assembled an extensive and impressive portfolio of lithium brine mining rights, strategically positioned across three potential salars (Rio Grande, Arizaro, Salinas Grandes) with a total area exceeding 120,000 hectares. The company's recent mineral resource estimate for the Rio Grande project (July 2024) totals 4.7 million mt LCE (measured, indicated, and inferred), with an average lithium concentration of 525 mg/L. NOA is committed to sustainable and responsible exploration and business activities in line with industry best practices, supporting all stakeholders, including the local communities where the company operates.

Click for details: 2024 South America Lithium Resource Field Trip—First Stop NOA Lithium Brines

Second Stop

Integra Lithium

Integra Lithium is dedicated to advancing cutting-edge power technologies to support global sustainable development. As a high-performing company, Integra Lithium focuses on diversifying the development of brine and hard rock lithium resources to solidify its position as a leading global lithium supplier at competitive costs. Integra Lithium is Argentina's largest private lithium company, holding 243,000 hectares of lithium resources in Jujuy and Catamarca provinces. The company has entered a joint venture with Latin Resources to advance the Catamarca spodumene project. Additionally, the Jama salar project plans to extract 20,000 mt LCE annually and collaborates with the state-owned JEMSE to promote local economic and resource development. Currently, the company holds a total of 573,000 hectares of mining rights, including 496,000 hectares of brine resources across Jujuy, Catamarca, and La Rioja. The joint venture project with Latin Resources is expected to have a mine life of at least 20 years, with potential lithium reserves of 200,000 mt and a lithium grade of 6% Li2O. Drilling is planned to commence in H1 2024.

Click for details: 2024 South America Lithium Resource Field Trip—Second Stop Integra Lithium

Third Stop

EKEKO S.A.

EKEKO S.A. is an Argentine company focused on lithium resource development. The company not only develops its own projects but also undertakes third-party projects, covering the entire process from initial stages to feasibility, aiming to add value to projects and promote further production of lithium products such as lithium carbonate or lithium hydroxide. The Arizaro Sur project includes the company's mining concessions and three additional applications, with a total area of 18,840 hectares. These mineral resources are part of a larger resource portfolio, which includes nine mining concessions and four applications within the Salar de Arizaro region. The project is located in the southern part of the salt lake, adjacent to lithium projects developed by both public and private companies, including Lithium Chile and Hanaq, and benefits from proximity to existing infrastructure and freshwater resources.

Click for details: 2024 South America Lithium Resource Field Trip—Third Stop EKEKO S.A.

Fourth Stop

Ministry of Mining and Secretariat of Energy, Salta Province, Argentina

The Ministry of Mining and Secretariat of Energy of Salta Province introduced that Salta boasts a favorable institutional framework, clear legal policies, and significant geological advantages, making it an ideal location for mining investment due to its high safety, predictability, and abundant geological resources. Salta's lithium resources are primarily in brine form, offering cost advantages. Additionally, the province contains other minerals such as borates, gold, silver, copper, and uranium. Currently, Salta has six approved lithium projects, three under construction, and 28 in advanced exploration stages, with initial production expected by the end of 2024 or 2025. Among the six projects, five produce lithium carbonate, while one starts with lithium chloride but also aims to produce lithium carbonate. Some mining projects in Salta are expected to commence production in H1 next year following environmental assessments, while others have been in operation for four years. In terms of collaboration, Salta has partnered with Jujuy and Catamarca to form a committee to address challenges in the lithium industry, with each province working together under provincial plans.

Click for details: 2024 South America Lithium Resource Field Trip—Fourth Stop Ministry of Mining and Secretariat of Energy, Salta Province, Argentina

Fifth Stop

Tibet Summit Resources

Tibet Summit focuses on the upstream sector of the non-ferrous metal resources industry, leveraging its lead-zinc polymetallic mine in Tajikistan to become a benchmark project for Chinese investment along the Belt and Road Initiative. The company has also begun investing in upstream new energy industries, including lithium salt lake development projects in Argentina. In South America, Tibet Summit indirectly controls Argentina Lithium & Potassium Co., whose Angeles lithium salt lake project holds 2.05 million mt LCE. The Arizaro lithium salt lake project, owned by Argentina Tosa Co., is currently under advanced exploration, with no resource estimate report completed yet. According to an independent third party, Golder Associates, the Arizaro project features high resource quality and favorable development conditions, meeting the company's requirements for 30,000 mt from the Angeles project and 50,000-100,000 mt from the Arizaro project in lithium salt capacity.

Click for details: 2024 South America Lithium Resource Field Trip—Fifth Stop Tibet Summit Resources

Sixth Stop

Tsingshan Group

Tsingshan Group, established in the 1980s and officially registered in June 2003 as Tsingshan Holding Group Co., Ltd., operates across manufacturing, sales, warehousing, investment, and import-export trade. The company primarily produces stainless steel ingots, rods, sheets & plates, wires, and seamless pipes, widely used in industries such as petroleum, chemicals, machinery, power, automotive, shipbuilding, food, pharmaceuticals, and decoration. Additionally, Tsingshan produces raw materials, intermediate products, and batteries for the new energy sector, mainly applied in energy storage systems and EVs.

Click for details: 2024 South America Lithium Resource Field Trip—Sixth Stop Tsingshan Group

Seventh Stop

Ganfeng Lithium

As a leading lithium giant in China, Ganfeng Lithium Group operates across the entire industry chain, from resource extraction and refining to battery manufacturing and recycling. Its products are widely used in EVs, energy storage, 3C products, chemicals, and pharmaceuticals. The group has lithium resources worldwide and possesses industrialisation technologies for "brine lithium extraction," "ore lithium extraction," and "recycled lithium extraction." With sufficient capacity for lithium compounds and lithium metal, Ganfeng has multiple production sites domestically and internationally. It also offers sustainable value-added solutions for battery producers and EV manufacturers. MineraExar, an Argentine mining and exploration company established in 2006, is jointly owned by Ganfeng Lithium (46.66%), Lithium Americas (43.04%), and Jujuy's state-owned mining investment company JEMSE (10%). It focuses on developing and producing lithium carbonate at the Cauchari-Olaroz salt lake in Jujuy Province.

The Cauchari-Olaroz project, located in Jujuy Province, north-west Argentina, uses clean solar energy as its primary lithium extraction source, with a resource volume of 24.58 million mt LCE. Construction was completed in June 2023, producing approximately 6,000 mt of lithium carbonate in 2023. Production is expected to reach 20,000-25,000 mt in 2024. The project's capacity ramp-up is progressing smoothly, thanks to the efforts of the local team and close collaboration with Lithium Americas (LAAC). The project's second phase is also under planning.

Click for details: 2024 South America Lithium Resource Field Trip—Seventh Stop Ganfeng Lithium

Eighth Stop

Zijin Mining

Zijin Mining Group Co., Ltd. is a large multinational mining group engaged in the exploration, development, engineering design, and technical research of copper, gold, zinc, lithium, silver, molybdenum, and other metal mineral resources. It is listed on the Hong Kong H-share (2899.HK) and Shanghai A-share (601899.SH) markets. The company has significant mining investment projects in 17 provinces (regions) in China and 15 countries abroad, including the Julong Copper Mine and Juno Copper Mine in Tibet, Duobaoshan Copper Mine in Heilongjiang, Zijinshan Gold and Copper Mine in Fujian, and overseas projects such as the Čukaru Peki Copper and Gold Mine in Serbia, Kamoa Copper Mine and Kolwezi Copper Mine in the DRC, and the Rosebel Gold Mine in Suriname. Zijin is accelerating its entry into the new energy and materials industry, owning the 3Q Salt Lake Lithium Mine in Argentina, the Lagoco Salt Lake Lithium Mine in Tibet, and the Xiangyuan Hard Rock Lithium Polymetallic Mine in Hunan. It has also been invited to lead the development of the Manono Lithium Mine Northeast Project in the DRC. As of June 2024, the company holds proven, controlled, and inferred total resources of 104.67 million mt of copper, 3,528 mt of gold, 12.12 million mt of zinc (lead), 28,380 mt of silver, and 14.11 million mt of lithium (LCE).

During discussions on Zijin Mining's 3Q Salt Lake project, Zijin stated that the first phase of the 20,000 mt/year battery-grade lithium carbonate project is nearly complete, with a second phase expected to add 30,000 mt/year of battery-grade lithium carbonate. The salt field project is progressing in an orderly manner. Once fully completed and reaching full production, the project is expected to achieve a capacity of 40,000-60,000 mt/year of lithium carbonate.

Click to View Details: 2024 South America Lithium Resource Field Trip - Stop 8 Zijin Mining

Stop 9

CleanTech Lithium

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 estimate, with reserves of 1.8 million mt, equivalent to decades of production potential. CTL is committed to producing battery-grade lithium while incorporating a unique ESG approach throughout the process: sustainable extraction without mining, no evaporation ponds, and full water replenishment to its original state. 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 operation of new lithium projects by 2026.

Regarding the company's lithium projects in Chile, it stated that it has two lithium projects located near mining areas in Chile. Both projects have completed scoping studies. The more advanced project is expected to complete its PFS within a few months. The company aims to achieve full production by 2027; the second project is in the exploration stage, with plans to build a nearby substation, though progress has not yet been made. According to previous data, the total operating cost of the company's Chilean projects is approximately $4,000/mt, but since 2023, inflation may have led to an increase in operating costs.

Click to View Details: 2024 South America Lithium Resource Field Trip - Stop 9 CleanTech Lithium

Stop 10

SQM

SQM is a global mining company operating in northern Chile, engaged in industries of strategic importance to sustainable development, such as healthcare, food, technology, and clean energy driving global progress. SQM is a global leader in its five business areas: specialty plant nutrition, iodine and its derivatives, lithium and its derivatives, potassium, and solar salts. On its 52nd anniversary, SQM remains committed to corporate values of excellence, safety, integrity, and sustainability, while actively advancing innovation and technological progress. The company has optimized its production, commercial, logistics, and management processes to adapt to the changing demands of global markets, ensuring business continuity under high sustainability standards. As a result, SQM has achieved outstanding performance and created greater value for its customers, shareholders, and local communities.

SQM expressed strong confidence in the future of the EV market, believing that as the potential demand for EVs in China continues to be unleashed, lithium market demand will keep rising. Global lithium demand is expected to reach approximately 1.2 million mt by 2024, showing significant growth. By 2030, the market share of EVs could reach 70%, driving a 90% increase in lithium demand, with China contributing 78% of global lithium demand. In terms of supply, SQM expects lithium supply to increase to approximately 1.4 million mt in 2024, up 19% YoY. Additionally, by the end of the next decade, it is anticipated that half of the global lithium supply will come from recycling. Supply conditions will be influenced by various factors and competitors.

Click to View Details: 2024 South America Lithium Resource Field Trip - Stop 10 SQM

Through this field trip and survey, SMM and the delegation members gained a deeper understanding of the development status of the aforementioned companies and the progress of South American lithium projects. They also developed a more profound insight into the current market situation, development trends, and existing issues in the South American lithium battery industry. SMM will continue to deepen cooperation with major enterprises to achieve complementary advantages and promote the development of the lithium battery industry.