This Week (6.16-6.2): Overseas Lithium News [SMM Weekly Overseas New Energy News]

[Chevron Joins US Lithium Production Boom]

Chevron USA Inc., a subsidiary of Chevron Corp., became the latest major oil company to enter the US lithium market on Tuesday, gaining access to the sector by acquiring leaseholds covering approximately 125,000 net acres in northeastern Texas and southwestern Arkansas.

The company obtained lithium-rich properties from TerraVolta Resources and East Texas Natural Resources but did not disclose financial details.

Jeff Gustavson, president of Chevron New Energies, stated in a release, "This acquisition is a strategic investment aimed at supporting the growth of the energy manufacturing sector and expanding the supply of critical minerals within the United States."

Chevron follows in the footsteps of other major oil companies, such as ExxonMobil, which entered the lithium sector last year by acquiring 485 square kilometers of brine-rich properties in the Smackover Formation in Arkansas for $100 million. Subsequently, ExxonMobil launched a pilot project and signed a preliminary agreement with South Korean battery manufacturer SK On to supply it with lithium. SK On is constructing a factory in the US to serve Hyundai and Ford.

Occidental Petroleum is collaborating with a subsidiary of Berkshire Hathaway to test a joint venture for extracting battery-grade lithium from geothermal brine at 10 power plants in California. Norway's Energinor has partnered with Standard Lithium, which commenced operations at a commercial-scale demonstration plant in Arkansas last December.

Source: mining.com

[Lithium Startup Plans to Build Factory in US to Avoid Trump Tariffs]

US startup Pure Lithium Corp. is constructing a testing facility to produce a new type of lithium battery that is entirely manufactured domestically.

The company has developed a lithium metal battery, which CEO Emilie Bodoin says will replace lithium-ion batteries. Pure Lithium has been conducting R&D on this technology for the past four years, which can be applied to EVs, utility-scale energy storage, and other applications.

"We are doing everything we can to build a prototype pilot plant," Bodoin said in an interview with Bloomberg Television on Tuesday. She added that the company is scaling up its lithium production process and integrating it into a manufacturing facility, "and once we have that up and running, we will start delivering these batteries to US customers who need them."

The Boston-based company's plan to build a pilot plant comes as the administration of President Donald Trump prepares to impose tariffs on critical battery components imported from China. Pure Lithium stated that it extracts lithium from brine to produce a battery that does not contain graphite, nickel, cobalt, or manganese, thereby eliminating the need to import any raw materials from China during the production process.

The company received a letter of intent from the US Export-Import Bank in April, potentially securing financing of up to $300 million.

Source: mining.com

[The New York Times Reports: Ukraine Advances Lithium Mining, Implements Mineral Agreement with the US]

According to The New York Times (NYT), citing two government officials, more than a month after Ukraine signed a landmark agreement granting the US participation in its mineral resource reserves, Kyiv has approved preliminary measures to open one of the country's largest lithium mines to private investors.

On June 16, the Ukrainian government agreed to begin drafting recommendations for tender procedures to develop the Dobra lithium mine located in central Ukraine. According to the officials, who requested anonymity, this will be the first project advanced under the US-Ukraine mineral agreement.

The Dobra lithium mine is located in the Novoukrainsky district of the Kirovohrad region, approximately 300 kilometers southeast of Kyiv.

The agreement was signed by President Volodymyr Zelenskyy on May 12, aiming to deepen economic ties, facilitate Ukraine's reconstruction, and position the country as a supplier of strategic resources to the US.

Potential consortia bidding for the Dobra mine include TechMet, an energy investment company partially owned by the US government, and billionaire Ronald S. Lauder, a close friend of former US President Donald Trump. The group has long been interested in the Dobra mine and encouraged Zelenskyy to open it for bidding last year.

Under the broader agreement, half of the revenue from mineral extraction will go into a joint US-Ukraine investment fund. The Ukrainian government will reinvest its share in the domestic economy, while the US will receive a portion of the profits—an arrangement Mr. Trump views as partial repayment for US aid to Ukraine.

Brian Menell, CEO of TechMet, stated that investors are pushing for production-sharing agreements, which offer long-term stability and tax incentives. According to the media, the step taken on Monday towards opening the Dobra mine is based on such an arrangement.

Source: kyivindependent.com

[MinRes and Ganfeng Lithium Attempt to Maintain Lithium Joint Venture]

Australian Mineral Resources Limited (ASX: MIN) is expected to inject A$150 million ($98 million) into its struggling Mount Marion lithium mine operation to cope with the prolonged downturn in lithium prices.

Its Chinese joint venture partner, Ganfeng Lithium, announced last week in a filing to the Hong Kong Stock Exchange that it would match a cash injection with an unsecured loan of AUD 150 million.

Previously, the Mt Marion lithium mine incurred a loss of AUD 44.6 million (equivalent to USD 29 million) in 2024, and as of the first quarter of this year, its operations remained unprofitable. Ganfeng Lithium stated that the joint decision was aimed at sustaining its business operations in Western Australia, given the lack of signs of recovery in lithium prices.

In a statement to The Australian Financial Review, MinRes said, "We are taking decisive action to reduce costs and ensure that our two largest lithium mines can continue to operate throughout the cycle and benefit when prices rebound."

At the time of the cash injection into Mt Marion, MinRes was mired in AUD 5.8 billion (USD 3.8 billion) of debt, and its market capitalization had fallen to AUD 4.6 billion (USD 3 billion).

Lithium has experienced the most significant price decline among battery metals. In May, the price of spodumene in China fell by 19.1% to USD 612.50 per mt, having already dropped by 30% since January. The price of lithium carbonate fell by 10.3% in May and has declined by more than 20% year-to-date. According to S&P Global data, the spot price of spodumene has now fallen below USD 580 per mt.

Despite robust EV sales, the supply surplus has placed significant pressure on the lithium market. William Adams, head of base metals research at Fastmarkets, stated in a recent report, "The weakness in lithium prices is due to the supply surplus."

MinRes also operates the Wodgina mine in partnership with Albemarle and recently closed the Bald Hill mine. The company's setbacks extend beyond commodity prices. Its founder and former CEO, Chris Ellison, was recently found to have engaged in "deeply disappointing" behavior, further tarnishing the company's governance record.

Source: mining.com