This Week (8.25-8.29) Overseas Lithium News [SMM New Energy Overseas Weekly Highlights]

[Australian Lithium Miner Stocks Plunge, Miners Report Losses]

Australian lithium mining company stocks plummeted after the country's two largest battery metal producers reported a combined loss of A$1.2 billion in H1 due to plunging prices.

IGO tumbled as much as 8.4% in Sydney, while Mineral Resources dropped up to 6.1%. Companies that did not report results that day were also dragged down: Pilbara Minerals fell as much as 4.3%, and Liontown Resources declined 5.4%.

Supply surplus and sluggish EV demand have led to frequent impairments and cost controls in the lithium industry. Lithium prices have plunged 86% from their historical peak at the end of 2022 and continued to decline in H1 this year; however, prices rebounded in recent weeks following the suspension of a major mine in China.

Mineral Resources reported a net loss of A$904 million (US$588 million) for the fiscal year ended June 30, compared to a profit of A$125 million a year earlier. IGO reported a net loss of A$954.6 million for the same period and took a full impairment on the assets of its Kwinana lithium hydroxide refinery in Australia.

Mineral Resources Managing Director Chris Ellison stated in a Thursday announcement: "We misjudged lithium prices, which severely impacted profitability and net debt levels. We are now focused on cost and performance to ensure stable operations throughout the cycle."

However, the worst may be over for lithium miners. UBS Group raised its spodumene price forecast this week by 9% to 32%, citing expectations of "broader and deeper" supply disruptions in China. UBS also raised its price target for IGO by 20%.

UBS stated that the possibility of supply disruptions in China in 2026 has increased, and "the market is almost in a deficit now"; it expects supply recovery and other idle or underutilized capacity to bring "some degree of relief" in 2027.

IGO CEO Ivan Vella noted that the long-term feasibility of the Kwinana lithium hydroxide refinery in Australia faces challenges, but he added that the company remains confident in positive market fundamentals.

Source: ming.com

[Galan Lithium Raises US$13 Million for Argentina Project]

Australian miner Galan Lithium announced on Monday that it will proceed as planned with a private placement of approximately A$20 million (about US$13 million) after The Clean Elements Fund completed due diligence, to fund its Hombre Muerto West (HMW) lithium project in Argentina.

According to the plan first disclosed on June 20, Clean Elements will subscribe to nearly 182 million new shares of Galan at A$0.11 per share, a 21% premium to the share price at that time. The subscription will be completed in two tranches of A$10 million each: the first tranche will settle within five business days, and the second tranche will be completed by November 22 at the latest.

At Monday's close, Galan's share price was A$0.14 per share, with a market capitalization of approximately A$135 million (about US$87.5 million).

The proceeds from the financing will be used for the Phase I construction of the HMW project. Located in Catamarca Province, Argentina, the project aims to build an annual production capacity of 4,000 mt LCE, yielding 6% lithium chloride concentrates. The first production is scheduled for H1 2026; the mine is expected to have a lifespan of 40 years and will be developed in four phases, with annual capacity increasing to 6,000 mt LCE upon reaching full production.

Phase I construction funding secured

Galan Managing Director Juan Pablo Vargas de la Vega stated in the press release: "With the support of Clean Elements, the company has now secured funding for Phase I construction, ensuring that the HMW project progresses according to the established timetable and will deliver the first lithium chloride concentrates in H1 2026."

As an existing shareholder, Clean Elements concluded after due diligence that HMW is "one of the world's premier lithium projects, with considerable scale, excellent grade, and outstanding enforcement."

Last month, the HMW project, with a total investment of US$217 million, was approved to join Argentina's latest Large Investment Incentive Regime (RIGI). The regime reduces the corporate income tax rate to 25% and provides 30 years of fiscal stability. HMW is the sixth project approved to enter the regime.

Source: ming.com

[Rock Tech Signs German Renewable Energy Agreement to Power Lithium Plant]

Canada's Rock Tech Lithium has signed a long-term renewable energy supply agreement with Germany's ENERTRAG to provide electricity for the company's planned lithium hydroxide conversion plant in Guben.

The signing ceremony took place this Tuesday, attended by high-level government officials including Canadian Prime Minister Mark Carney and German Federal Minister for Economic Affairs and Energy Katharina Reiche.

The signing occurred during the German-Canadian Critical Minerals Roundtable, where the two countries formally announced a partnership to jointly promote the development of critical minerals such as lithium, aiming to break China's monopoly in this supply chain.

Rock Tech's planned plant will have an annual production capacity of 24,000 mt of battery-grade lithium hydroxide. The site is located near the German-Polish border, approximately 60 kilometers from Tesla's Grünheide factory. The project is scheduled to commence commissioning this year, with the first batch of products expected to be produced in 2026.

The company noted that the project has been designated as a strategic initiative under the European Commission's Critical Raw Materials Act, serving as a model for European industry decarbonization through multinational cooperation and providing a template for building a resilient critical mineral supply chain in Canada.

Rock Tech's stock rose 7.4% to $1.02 per share at 1:50 PM Eastern Time, with its market capitalization increasing to $109.4 million.

Decarbonized Supply Chain

Regarding the collaboration with ENERTRAG, the Toronto-based lithium developer stated that the agreement will provide its conversion plant with a "sustainable and competitive power supply" and ensure planning security.

At the core of the renewable energy plan is direct power supply from newly constructed wind and PV power stations in the neighboring city of Gubin, Poland.

From the start of commissioning, a significant portion of the plant's electricity demand will be met by renewable energy; from 2030 onwards, at least 50% of the electricity consumed will come from renewable sources, which is expected to indirectly reduce CO₂ emissions by 25%.

Source: ming.com

[KoBold Metals Secures Lithium Exploration Rights in DRC]

KoBold Metals, a mining exploration company backed by US billionaires Jeff Bezos and Bill Gates, recently obtained seven new permits to search for lithium and other critical minerals in the Democratic Republic of the Congo (DRC).

Weeks ago, the Berkeley, California-based company signed an exploration agreement with the Congolese government as a key move to attract US capital into the country's mining sector. The DRC is the world's largest cobalt producer, the second-largest source of copper, and rich in lithium and tantalum resources.

Focus on Manono

The newly approved licenses are located in southeastern DRC, near the Manono lithium project, which KoBold intends to develop into a large-scale lithium mine. These rights allow the company to explore for lithium, manganese, tin, and tantalum in the region.

KoBold has informed the authorities in Kinshasa that it must first resolve a dispute with Australian company AVZ Minerals Limited. AVZ has contested the Congolese government's revocation of its rights to the Manono project and initiated arbitration proceedings, seeking an acceptable settlement or acquisition plan.

KoBold's shareholders also include BHP Group, Andreessen Horowitz, and Equinor ASA.

Against the backdrop of the US government's efforts to reduce reliance on China for critical minerals essential to clean energy and EVs, KoBold's entry into the DRC holds strategic significance.

KoBold stated that it is expected to deploy its AI-driven exploration technology in Manono, fund digital geological mapping, employ local labour, and support infrastructure development in the area.

Source: ming.com