[Australian Lithium Miner Stocks Plunge as Miners Report Losses]
Australian lithium mining 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 plunged as much as 8.4% in Sydney, while Mineral Resources dropped up to 6.1%. Companies that did not announce results that day were also dragged down: Pilbara Minerals fell as much as 4.3%, and Liontown Resources declined 5.4%.
Amid supply surplus and hindered EV demand, the lithium industry has seen frequent impairments and cost controls. 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 Chinese mine.
Mineral Resources reported a net loss of A$904 million (US$588 million) for the fiscal year ended June 30, compared to a net profit of A$125 million a year earlier. IGO reported a net loss of A$954.6 million for the same period and recorded a full impairment of assets at its Kwinana lithium hydroxide refinery in Australia.
Mineral Resources Managing Director Chris Ellison stated in a declaration on Thursday, "We misjudged lithium prices, which severely impacted profitability and net debt levels. Recently, we have focused on costs and performance to ensure stable operations throughout the cycle."
However, the worst appears to 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. Simultaneously, UBS increased IGO's share price target by 20%.
UBS stated that the likelihood 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 provide "some degree of relief" in 2027.
IGO CEO Ivan Vella said the long-term feasibility of the Kwinana lithium hydroxide refinery in Australia faces challenges, but he added that the company believes market fundamentals remain positive.
Source: mining.com
[Galan Lithium Secures US$13 Million Funding for Argentina Project]
Australian firm Galan Lithium announced on Monday that it will proceed as planned with a private placement totaling approximately A$20 million (about US$13 million), following the completion of due diligence by The Clean Elements Fund, to fund its Hombre Muerto West (HMW) lithium project in Argentina.
According to the plan first disclosed on June 20, Clean Elements will subscribe for 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 be settled within five business days, and the second tranche is to be completed by November 22 at the latest.
At Monday's close, Galan's share price was A$0.14 per share, giving the company a market capitalization of approximately A$135 million (about US$87.5 million).
The proceeds from the financing will be used for the Phase 1 construction of the HMW project. Located in Catamarca Province, Argentina, the project aims to build an annual production capacity of 4,000 mt of LCE, yielding 6% lithium chloride concentrate. The first production is scheduled for H1 2026; the mine is expected to have a life of 40 years and will be developed in four phases. Upon reaching full production, the annual capacity is expected to increase to 6,000 mt of LCE.
Funding Secured for Phase 1 Construction
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 1 construction, ensuring the HMW project advances according to the established timetable and will produce the first lithium chloride concentrate in H1 2026."
As an existing shareholder, Clean Elements, after due diligence, believes that HMW is "a project of significant scale, excellent grade, and exceptional enforcement, making it one of the world's premier lithium projects."
Last month, the HMW project, with a total investment of US$217 million, was approved to join Argentina's new Large Investment Incentive Regime (RIGI). This regime reduces the corporate income tax rate to 25% and provides 30 years of fiscal stability. HMW is the sixth project approved under this regime.
Source: mining.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 its planned lithium hydroxide conversion plant in Guben.
The signing ceremony took place this past Tuesday, with senior government officials including Canadian Prime Minister Mark Carney and German Federal Minister for Economic Affairs and Energy Katharina Reiche in attendance.
The signing occurred during a 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. Commissioning of the project is planned to commence 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 to achieve decarbonization through cross-border cooperation and providing a template for Canada to build a resilient critical mineral supply chain.
Rock Tech's stock price rose 7.4% to $1.02 per share at 1:50 p.m. ET, 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: mining.com
[KoBold Metals Secures Lithium Exploration Rights in DRC]
KoBold Metals, a mineral 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, 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 possesses abundant lithium and tantalum resources.
Focus on Manono
The newly approved licenses are located in southeastern DRC, near the Manono lithium project. KoBold intends to develop the project into a large-scale lithium mine. These rights permit the company to explore for lithium, manganese, tin, and tantalum in the region.
KoBold has informed authorities in Kinshasa that it must first resolve a dispute with Australia's AVZ Minerals Ltd. AVZ has contested the DRC government's revocation of its Manono project interests 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 US government 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 plans to deploy its AI-driven exploration technology at Manono, fund digital geological mapping, hire local labour, and support infrastructure construction at the site.
Source: mining.com
