This Week (8.18-8.22) Overseas Lithium News [SMM New Energy Overseas Weekly Highlights]

[Glencore's Recycling Business Head Set to Depart]

Kunal Sinha, Global Head of Recycling at Glencore Plc, is set to leave next month, following the company's gradual exit from partnerships with battery metal recycler Li-Cycle Holdings Corp.

While renowned for mining and commodity trading, Glencore has long been a key player in the recycling of metals such as copper and lead. In 2022, the company aggressively entered the battery recycling sector, investing in Li-Cycle and UK-based Britishvolt, with Sinha leading these initiatives.

Li-Cycle filed for bankruptcy protection in May; by that time, Glencore held $327.5 million in outstanding convertible notes, becoming one of its major creditors. In August, Glencore took over Li-Cycle's core industrial assets and technology portfolio. Li-Cycle co-founder Ajay Kochhar joined Glencore in August as the new head of battery recycling business, with his LinkedIn profile updated accordingly.

Li-Cycle was once a star startup in the battery recycling arena. In 2021, amid peak enthusiasm for the NEV concept, investors were optimistic about the company's plans to recover lithium, cobalt, and nickel from used power batteries, leading to a significant surge in its stock price.

Sinha is scheduled to depart next month. It was under his impetus that Glencore made a major foray into this emerging sector; at that time, competition among potential recyclers was intensifying as they raced to gain an early advantage in anticipation of the wave of used batteries expected from the 2030s.

Li-Cycle originally planned to build five plants, including converting Glencore's lead smelter in Italy into Europe's largest black mass production site (black mass is the metallic scrap extracted from old batteries), but this plan has yet to receive approval from local authorities.

In 2023, Li-Cycle was forced to halt construction of its flagship Rochester, New York plant due to soaring costs, and a cash crunch caused its stock to plummet. Glencore's investment in Britishvolt also ended in failure, as the UK company declared bankruptcy in 2023, an early casualty in Europe's crowded NEV battery production race.

Source: ming.com

[Atlas Lithium Announces Major Exploration Progress at Salinas Project]

Initial drilling at the Salinas project confirms high-grade lithium ore near the surface, positioning it as the next growth engine.

Boca Raton, Florida—Atlas Lithium Corporation, a leading lithium resource development company, is pleased to announce outstanding exploration results at its wholly-owned Salinas project in Brazil's Lithium Valley. The company has completed initial exploratory drilling, which confirms near-surface lithium mineralization rich in spodumene, marking the Salinas project as a new expansion frontier following its flagship Neves project, while the company remains fully committed to advancing the Neves project toward production.

Salinas Project Overview

The Salinas project spans 388 hectares (959 acres) in northern Minas Gerais, Brazil, located just 5 miles from the Colina project—the core asset that Pilbara Minerals acquired from Latin Resources for approximately $370 million in August 2024. Situated about 100 kilometers (60 miles) from the company's flagship Neves project, it lies within the proven lithium-rich region of Brazil's renowned Lithium Valley.

The company conducted systematic soil sampling, detailed geological mapping, LiDAR scanning, and high-resolution aerial photogrammetry at Salinas, successfully identifying and mapping multiple spodumene-rich pegmatite bodies.

Initial Drilling Results Exceed Expectations, Confirming Mineralization

Atlas Lithium announced that the first exploration drill holes at the Salinas project encountered significant spodumene mineralization at a shallow depth of just 23 meters.

"Initial drilling results from the Salinas project have exceeded expectations," said Marc Fogassa, Chairman and CEO of Atlas Lithium. "This indicates that Salinas has the potential to become another favorable site for open-pit mining and production. It is exciting to see organic growth opportunities within our extensive portfolio of mineral rights."

To date, the company has completed a cumulative 501 meters of diamond drilling, confirming the continuity of the pegmatite bodies. Authoritative laboratory analysis by SGS-Geosol shows Li₂O grades exceeding 2.0%, demonstrating strong geological potential. The near-surface nature of the lithium mineralization suggests favorable conditions for low-cost open-pit mining, similar to the company's Neves project.

Source: Junior of ming

[SQM Raises Lithium Supply Plan as Prices Increase]

SQM, the world's largest lithium producer by market value, raised its full-year sales guidance and expressed optimism about lithium price prospects after its core earnings fell 28% YoY in Q2.

The company stated that core attributable earnings, excluding special items, dropped to $307.9 million. However, the Chile-based battery metal producer continues to expand production, indicating that sales from its domestic operations will grow by 10% this year, while also raising sales guidance for its Australian operations.

The lithium market had previously experienced a sharp price decline due to a severe global surplus, but recent production cuts in China have led to a slight rebound—though prices remain down more than 80% from their peak. SQM maintains its forecast of approximately 17% growth in global demand this year.

SQM raised sales guidance for its international division to about 20,000 mt LCE but did not disclose specific figures to detail the 10% increase for its Chilean division. The company added that its Kwinana refinery in Australia, a joint venture with its partner, achieved commercial production for the first time in July. The facility is expected to reach its rated capacity of 50,000 mt/year of lithium hydroxide by the end of 2026, with half of the output attributable to SQM.

Due to the successive commissioning of new mines and a slowdown in demand growth, lithium prices have remained low for an extended period under supply surplus pressure. While some high-cost producers cut production, SQM adhered to a "volume over price" strategy. The company has a capital expenditure budget of $750 million this year to expand its lithium carbonate capacity in Chile to 240,000 mt/year by 2026 and increase its lithium hydroxide capacity to 100,000 mt/year by the end of 2025.

The company’s total revenue in Q2 was approximately $1 billion, down 19% YoY, as lithium spot prices hit multi-year lows; sales also fell below Q1 levels.

Source: ming.com

[Tianqi Lithium Willing to Renegotiate Lithium Refinery Deal with IGO]

Tianqi Lithium CEO Frank Ha said on Wednesday that the company is willing to renegotiate with joint venture partner IGO regarding the latter’s stake in the troubled Kwinana lithium refinery in Western Australia.

The refinery, Australia’s first lithium hydroxide plant, has faced operational challenges and commissioning delays due to plunging lithium prices.

IGO, which holds a 49% stake in the project, disclosed last month that it had impaired the loss-making plant and expressed "low confidence" in improving the asset’s prospects.

Ha stated at a media briefing, "I am open to discussing any proposal they bring forward, but so far we have not received any formal proposal."

"If they do not wish to continue the partnership, they will have to come to me, and I am open to that," he added.

The two companies also jointly own the Greenbushes lithium mine, one of the world’s premier lithium assets.

When asked whether Tianqi Lithium might allow IGO to exit the Kwinana refinery while retaining its investment in Greenbushes, Ha described the two assets as "bundled."

Tianqi Lithium is also not considering other partners for the Kwinana refinery.

Ha further noted that the operational efficiency of the Kwinana plant is gradually improving, and the company has no plans to shut it down. The facility has a rated capacity of 24,000 mt/year of lithium hydroxide and a clear path to reaching full production.

The company aims to achieve 65% capacity utilization in the coming year.

Source: ming.com