2025 SMM South American Lithium Resources Field Trip – 10th Stop: Lithium Ionic Corp.

In recent years, the significant fluctuations in lithium prices have subjected enterprises across the industry chain to a rollercoaster of experiences, encompassing both the highs and lows of the market. Although lithium prices have long since lost their former glory, the development prospects of the new energy industry chain remain bright amid the global advocacy for a low-carbon economy, with the importance of lithium resources becoming increasingly prominent.

As one of the regions with the most abundant lithium resources globally, South America, particularly the "Lithium Triangle" region (comprising Bolivia, Argentina, and Chile), boasts over 55% of the world's measured lithium resources. Consequently, South America's lithium resources play a pivotal role in the global energy transition.

Against this backdrop, SMM organized the 2025 SMM South American Lithium Resources Field Trip activity. Led by Chen Siyu, the project manager of SMM's overseas South American lithium resources field trip, and Zhou Zhicheng, a senior analyst in new energy and lithium batteries, the delegation visited lithium-related enterprises in South America from May 15 to May 26, 2025. They toured local lithium ore and material enterprises, held discussions with company executives, and explored potential opportunities in lithium ore resource development, technological exchanges, and investment cooperation. On May 23, SMM and delegation members headed to Lithium Ionic Corp. for in-depth exchanges.

Company Profile

Upon arriving at Lithium Ionic Corp., the delegation was warmly received by a team including Carlos Costa, the company's Deputy Director of Exploration, and Renato Costa, the Head of Engineering, who provided a detailed introduction to the company's business development.

Lithium Ionic is one of the most promising lithium ore developers in the Aracuai lithium valley in southeastern Brazil, specializing in the development of high-grade spodumene resources. This region, which contains over 90% of Brazil's lithium resources, serves as the core area for the domestic lithium industry and is adjacent to the renowned Sigma and CBL projects. The main ore bodies are spodumene pegmatites, characterized by high grade and consistency, making them suitable for efficient processing.

The company boasts a total resource base of 68 million mt of spodumene ore (with an average grade of 1.25%), equivalent to approximately 2.1 million mt of LCE (lithium carbonate equivalent). Among these, the Bandeira project has ore reserves of 46 million mt, with an average grade of 1.34%, and measured and indicated resources of 27 million mt, containing approximately 900,000 mt of LCE.

Furthermore, the company anticipates that the future lithium market will grow in tandem with the rapid development of the EV market. It is projected that by 2025, global EV sales will reach 42 million units, maintaining an annual growth rate of 40%, which will subsequently drive up lithium demand.

Leveraging its high-grade, abundant spodumene resources, efficient processing technology design, and strategic geographical location, Lithium Ionic is rapidly emerging as a significant force in the global lithium resource supply. Through continuous engineering optimization, market alignment, and capital investment, the company is expected to become one of the competitive lithium ore producers in Brazil and globally by around 2026.

The Bandeira project, the flagship asset of Lithium Ionic, is accelerating construction and will commence production in the near future. Located in Brazil's world-class mineral resources valley, the project benefits from a mining-friendly jurisdiction, streamlined permitting processes, and excellent infrastructure support. In May 2024, Lithium Ionic completed the feasibility study for the Bandeira project, providing a solid economic basis for advancing production. The mine is expected to have an operational life of 14 years, with an average annual output of 178,000 mt of high-grade spodumene concentrates (containing 5.5% lithium oxide).

After the visit, SMM and the field trip members took a group photo together with Lithium Ionic Corp. to strengthen their cooperative friendship, believing that there will be deeper exchanges and cooperation in the future!

Through this field trip and survey, SMM and the field trip members gained a deeper understanding of the development of Lithium Ionic Corp., as well as a more profound insight into the market status, development trends, and existing issues in the South American lithium battery industry. They will continue to deepen cooperation with major enterprises to achieve complementary advantages and promote the development of the lithium battery industry.