This Week (11.17-11.21) Overseas Lithium Highlights [SMM New Energy Overseas Weekly Highlights]

[IGO Sees Uncertain Future for Western Australia's Kwinana Lithium Refinery]

IGO Limited expressed a lack of confidence in the future prospects of its Kwinana lithium refinery located in Western Australia.

The Kwinana plant, situated south of Perth, is jointly owned by IGO and its joint venture partner. In January this year, the joint venture announced the suspension of construction for the plant's second production line, as the first line continued to struggle to reach its designed capacity.

IGO's Chief Executive Officer, Ivan Vella, addressed the challenges faced by the plant at the company's annual general meeting held in Perth. He stated that the company is continuing negotiations with its joint venture partner regarding the plant's future, acknowledging differing views between the parties, but also emphasized the importance of the partnership.

Regarding the second production line, Vella said, "We see no path forward, hence the decision was made on the second line." He confirmed that discussions concerning the first line are still ongoing.

The company reported a significant impairment on its Kwinana investment in its full-year results.

Official operational data for the September quarter was provided: the plant operated at 46% of its nameplate capacity, producing 2,775 mt of lithium hydroxide. Production increased by 31% compared to the previous period. Meanwhile, processing costs decreased by 18% to A$14,177 per mt. Despite these improvements, the operation recorded an EBITDA loss of A$19.6 million.

In contrast, IGO highlighted the strong performance of its stake in the Greenbushes lithium mine. In the 12 months ended June 30, Greenbushes produced 1.48 million mt of spodumene concentrates. The operation generated significant cash flow and maintained highly competitive low unit costs. A new chemical-grade plant at Greenbushes remains scheduled for commissioning before the end of the year, which is expected to add a further 500,000 mt of capacity annually.

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[Rebounding Lithium Prices Boost SQM's Profitability and Demand Outlook]

Chilean lithium producer SQM reported on Wednesday that lithium demand this year could grow by 25% compared to 2024. The company posted its highest battery metal prices in two years and attributed this growth to developments in the EV and ESS sectors.

Rising prices drove SQM's Q3 net profit to $178.4 million, up 36% YoY from $131.4 million. Revenue also increased by 8.9% YoY to $1.17 billion ($1.08 billion).

SQM stated that market demand during the July-September period was stronger than expectations.

CEO Ricardo Ramos expressed cautious optimism during the earnings call. "Despite the market remaining highly volatile, we are cautiously optimistic," he stated, expecting this trend to continue into Q4. "The fundamental demand remains strong, not only from EVs but also from energy storage systems."

Meanwhile, SQM announced a significant narrowing of its investment outlook for 2025-2027. The company revised its capital expenditure estimate down to $2.7 billion from the previous range of $3.1 billion to $3.8 billion.

The company confirmed that some investment decisions have been delayed but reaffirmed its existing production and sales targets. According to the company, the revised capital expenditure will be averaged over the coming years, with approximately one-quarter allocated to maintenance.

Looking ahead, Pablo Hernandez, Vice President of Strategy and Development for SQM's Chilean lithium business, forecast that lithium demand will exceed 1.5 million mt this year and is expected to reach 1.7 million mt by 2026.

Discussing the outlook for the coming year, Hernandez noted: "We are still evaluating demand growth expectations and maintain a relatively conservative view."

SQM also confirmed that its planned collaboration with state mining company Codelco to increase lithium production at the Atacama Salt Flat is expected to be finalised by the end of this year. The company stated that only approval from Chile's Comptroller General is currently pending.

Regarding the timetable for this collaboration, Ramos said: "We will complete it this year, that is certain."

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[Sigma Lithium's Strong Q3 Results and Rumored EV Collaboration Spark 33.2% Stock Surge – What's Next for the Share Price?]

Over the past week, Sigma Lithium Corporation released its Q3 2025 financial report, with key highlights including sales increasing to $28.55 million and a significantly narrowed net loss compared to the previous year.

Continued market speculation about a potential collaboration with a leading EV manufacturer, coupled with a positive global lithium demand outlook, further boosted investor optimism regarding Sigma Lithium's growth trajectory and sustainable development capabilities.

Sigma Lithium Investment Thesis Recap

Investing in Sigma Lithium requires belief that global lithium demand, particularly from the EV sector, will continue to surge, and recognition that the company can capitalize on this opportunity through its ESG reputation and growth plans. The latest quarterly report shows sales growth and a narrowed net loss, but the short-term most critical catalyst – finalising an EV collaboration – remains unconfirmed; simultaneously, the company still faces lithium price volatility risks, with recent news not bringing substantial change.

In recent announcements, Sigma Lithium's ongoing operational upgrade plan has garnered significant attention, aiming to reduce plant gate costs by 20%. This initiative directly impacts short-term profitability, helping the company withstand price fluctuations, while efficient production remains a key catalyst for ensuring profit margins in a rapidly changing market.

However, investors should note that even with these operational improvements, the downside risk of short-term lithium price declines remains an important influencing factor, potentially leading to...

Sigma Lithium's performance expectations indicate that by 2028, revenue is expected to reach $600.1 million, with a net profit of $57.4 million. Achieving this goal requires maintaining an annual revenue growth rate of 64.6% and improving the current net profit level of -$47.7 million by $105.1 million.

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[Canada Discovers Six New High-Grade Lithium-Enriched Zones]

Six new lithium-bearing rock zones have been discovered in the Jackpot mine area in Northern Ontario, Canada, marking an important step in understanding the scale of the region's lithium resource potential.

These target zones are concentrated near an existing open-pit minable body, suggesting that future development could potentially share infrastructure and logistics resources, reducing costs.

Located approximately 87 miles northeast of Thunder Bay, the discovery site boasts favorable geological conditions and a mature transportation network, making it one of Canada's most accessible lithium ore exploration sites.

This discovery adds a new growth area for battery raw material exploration in Canada, further solidifying the country's important role in supplying critical minerals for the EV and renewable energy ESS sectors.

Progress in Canadian Lithium Resource Mapping

The newly discovered lithium-bearing zones are located within the Georgia Lake Rare Elements mineral property, an area widely distributed with pegmatite—a very coarse-grained granite that can host lithium minerals, often occurring as dikes and swarms. The property covers a forested ridge area with good road access and ample power supply nearby.

This exploration work was led by the Canadian geological engineering firm P&E Mining Consultants Inc., which is also responsible for preparing the project's mineral resource estimate.

Their team focuses on mineral resource modeling and project evaluation, with related results incorporated into provincial archives.

According to Canadian mineral disclosure rules, the project's initial mineral resource estimate shows indicated resources of approximately 3.4 million short tons (1 short ton ≈ 0.907 mt) grading 0.85% Li₂O, and inferred resources of approximately 5.8 million short tons grading 0.91% Li₂O.

Geologists have classified the "Jackpot" mining area within the mature rare-element mineral belt already mapped by researchers in Ontario. The Georgia Lake mineral belt has a history of spodumene discoveries in several sub-regions, providing a solid foundation for exploration.

Core Criteria for Resource Estimation

The cut-off grade for open-pit mining at the Jackpot property is set at 0.30% lithium oxide.

Conversion from Lithium-Bearing Ore to Lithium Concentrates

The lithium mineral at the Jackpot property is spodumene, a lithium aluminum silicate mineral and the primary source of battery-grade lithium chemicals from hard rock, occurring as pale green crystals in pegmatite.

Laboratory tests indicate the ore can be upgraded to produce lithium concentrates with a 6% lithium oxide grade; the recovery rate used in the company's technical page resource cut-off grade assumption is 81.5%. Heavy liquid separation and related processes are common techniques in early-stage testing.

In the laboratory, heavy liquid separation uses high-density liquids to separate minerals based on density differences, allowing for a quick assessment of the feasibility of simple gravity separation processes.

Industry guidelines for hard-rock lithium ore processing note that initial heavy liquid separation test results typically guide subsequent heavy medium separation tests.

In industrial-scale production, enterprises often employ heavy medium separation—where crushed ore is placed in a high-density slurry for sink-float separation—followed by flotation to purify the product. This combined process increases lithium recovery while maintaining low iron content.

Current Significance of the Discovery

The battery sector is the largest consumer of lithium; the U.S. Geological Survey (USGS) 2025 summary report estimated that approximately 87% of global lithium production is used in battery manufacturing.

Canada is focusing on shortening the supply chain between mines, processing plants, and battery factories. The Jackpot property's proximity to highways and a deep-water port can reduce transportation time and enhance future sales flexibility.

The property covers a total area of approximately 72.6 square miles, providing ample space for extensional exploration beyond the two currently modeled open pits. Six newly identified surface target areas are located near roads, facilitating follow-up exploration work.

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[Sigma Lithium's Strong Q3 Results and EV Collaboration Rumors Drive a 33.2% Stock Surge – What's Next for the Share Price?]

Over the past week, Sigma Lithium Corporation released its Q3 2025 financial report, with key highlights including sales increasing to $28.55 million and a significantly narrowed net loss compared to the previous year.

Market speculation about the company's potential collaboration with a leading EV manufacturer, combined with a positive global lithium demand outlook, has further boosted investor optimism regarding Sigma Lithium's growth trajectory and sustainable development capabilities.

Review of Sigma Lithium's Investment Thesis

Investing in Sigma Lithium requires belief that global lithium demand (particularly from the EV sector) will continue to surge, and confidence that the company can capitalize on this opportunity through its environmental, social, and governance (ESG) reputation and growth plans. The latest quarterly report showed sales growth and a narrowed net loss, but the most critical short-term catalyst—finalising an EV partnership—remains unconfirmed; meanwhile, the company still faces lithium price volatility risks, and recent news has not brought substantial changes.

Among recent announcements, Sigma Lithium's ongoing operational upgrade plan, which aims to reduce plant gate costs by 20%, has drawn significant attention. This initiative directly impacts short-term profitability, helping the company withstand price fluctuations, while efficient production remains a key catalyst for protecting profit margins in a rapidly changing market.

However, investors should note that even with these operational improvements, short-term lithium price downside risk remains a significant factor, potentially leading to...

Sigma Lithium's performance expectations indicate that revenue could reach $600.1 million by 2028, with a net profit of $57.4 million. Achieving this target requires maintaining an annual revenue growth rate of 64.6% and improving the net profit by $105.1 million from the current level of -$47.7 million.

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