Last Week's (12.1-12.5) Overseas Lithium News [SMM New Energy Overseas Weekly News]

[Kodal Ships First Spodumene Concentrates to China]

Kodal Minerals announced that its Bougouni mine in southern Mali has completed the shipment of its first batch of spodumene concentrates, which will be delivered to its offtake partner in China.

The lithium miner stated in a press release on Monday that a bulk carrier loaded 28,950 mt of spodumene concentrates over the weekend and subsequently set sail heading to the destination port in Hainan Province, China.

In late October, Kodal had transported approximately 30,000 mt of spodumene concentrates to storage facilities at the Port of San Pedro in the Republic of Côte d'Ivoire, in preparation for subsequent shipments. The company revealed that the 45,000 mt of concentrate inventory already produced by the Bougouni mine's processing plant will be gradually transferred to the Port of San Pedro.

First Revenue Realized

Kodal Minerals CEO Bernard Aylward said the selling price for this concentrate sale will reflect the "significant improvement in the lithium price environment" in recent weeks.

He noted, "The final selling price for the spodumene product will be adjusted based on the actual grade and quality of the delivered product, net of sea freight costs," adding that the company expects the price to exceed $930 per dmt.

Following the loading of the first shipment, Kodal's Malian subsidiary LMLB will issue an invoice to its Chinese offtake partner Hainan Mining Co., Ltd., covering an initial 95% of the cargo value. The company anticipates total proceeds from this transaction to reach $24 million, which will also represent the first revenue realized by LMLB.

Despite political instability in Mali, Canadian investment bank Canaccord Genuity views this shipment as a positive development for the company.

A relevant practitioner stated, "Current lithium prices have shown strong signs of recovery, making Kodal's revenue realization at this time particularly significant."

He added, "With the Bougouni project having produced 45,000 mt of concentrate, this implies an additional 16,000 mt of concentrate remains to be exported in the short term. This progress aligns closely with our revenue expectations of $65 million for the company in H2 of the 2024 fiscal year (ending March)."

New Lithium Mine Commissioned in Mali

In February of this year, the Bougouni mine commenced production of spodumene concentrates, processing ore from the Ngoualana deposit through a dense media separation facility, becoming the second lithium mine in Mali.

The Phase 1 project utilizes conventional processes to maximize spodumene recovery from the Ngoualana deposit, with an expected annual capacity exceeding 125,000 mt. The Phase II project will add a flotation plant to process ore from the Boumou and Sogola-Baoulé deposits. These three deposits together hold total resources of 31.9 million mt, with an average lithium oxide (Li₂O) grade of 1.06%.

LMLB, as the operator of the Bougouni mine, has the following equity structure: Kodal Mining UK holds 65% (this joint venture is 49% owned by Kodal and 51% by Hainan Mining), and the Mali government holds 35%.

Source: mining.com

[Trump Administration Pressures to Accelerate Critical Minerals Sector in Latin America]

The Inter-American Development Bank (IDB) stated that, against the backdrop of the Trump administration's push for "near-US production" of critical minerals, Latin American countries are intensifying efforts to build critical mineral supply chains while striving to enhance local value-added.

IDB President Ilan Goldfajn pointed out that countries in the region are focusing on improving refining and processing capacities for lithium, copper, and other critical minerals, rather than merely exporting raw materials to Asia.

Last year, the IDB and the European Union jointly launched an initiative aimed at promoting responsible investment and value chain development in the critical minerals sector in Latin America and the Caribbean. Under this plan, the EU provided a grant of nearly €6.3 million (approximately $7.3 million), which is expected to leverage about €120 million (approximately $140 million) from the IDB to support mineral-related projects in Argentina, Bolivia, Brazil, Chile, Ecuador, and other countries.

This funding prioritizes downstream activities such as processing, refining, and value chain construction.

Through the project named "Mining for Energy Transition (MET)", the IDB also provides technical assistance to Latin American countries, with core objectives including: strengthening regulatory and investment frameworks, improving geological knowledge and data systems, supporting low-carbon sustainable mining production practices, and upgrading infrastructure.

In an interview with the Financial Times, Goldfajn stated that the US government has clearly expressed a preference for resource procurement and processing within the Western Hemisphere, and Latin American countries, regardless of political affiliation, see this as a rare opportunity to capture higher value-added.

Latin America holds about 60% of the world's proven lithium reserves and accounts for approximately 46% of global copper production, with Peru also being a leading producer of this "red metal".

Brazil possesses the world's second-largest rare earth reserves, but due to technological and commercial barriers, production remains low. China dominates the global critical minerals processing sector, and its low processing prices have long hindered resource-rich countries' efforts to move beyond mere extraction and advance down the industry chain.

Source: mining.com

[Vulcan Energy Secures $2.6 Billion Financing to Advance German Lithium Project]

Vulcan Energy Resources announced on Wednesday that it successfully obtained a €2.2 billion (approximately $2.56 billion) financing package. The funds will support the commencement of construction this week for its Lionheart lithium and renewable energy project located in Germany.

The Australian-listed enterprise plans to supply lithium products and provide renewable energy to companies including Stellantis Group, LG Corp, Umicore, and Glencore for a period of 10 years starting from 2028.

"The board has made the final investment decision (FID), project funding is fully secured, and we will break ground on Friday," Executive Chairman Francis Wedin told Reuters, emphasizing that the project received strong support from government-backed institutions in Europe and Australia.

"The project construction period is two and a half years, and the clock starts now."

As part of the financing package, Vulcan will raise up to €603 million in equity through an institutional placement and rights issue, with new shares issued at a fixed price of €2.24 per share.

The project received support from European and German government agencies, along with a syndicate of 13 financial institutions, including the European Investment Bank, five export credit agencies, and seven commercial banks.

Wedin stated that although lithium prices are currently in a downward cycle, Vulcan is "very optimistic" about the future trend of the lithium market.

"There is a gap in new projects that have received final investment decision approval currently, so at some period, this gap will have a significant impact," he said.

He noted that approximately 72% of the contract sales volume for the first ten years of the project has been secured through floor price or fixed pricing mechanisms, providing downside risk protection, and the pricing is "significantly higher than the current spot price."

In July this year, Vulcan received €104 million in subsidies from the German government for producing clean lithium products. This move by the German government aims to increase EV production and reduce dependence on raw material imports.

Vulcan's shares were suspended from trading on Wednesday; the stock has accumulated a 14.6% increase since the beginning of the year. (Exchange rate reference: $1 = €0.8604)

Source: mining.com

[Europe's First Commercial-Scale Direct Lithium Extraction Plant Commences Operation in the UK, Marking a Global Milestone in Critical Minerals]

Watercycle Technologies has commissioned its first commercially operated direct lithium extraction (DLE) plant in Runcorn, UK, marking the technology's first commercial application in Europe.

The company has scaled up its proprietary DLEC™ technology, enabling the profitable and continuous production of several hundred kilograms of lithium carbonate from domestic UK resources, with production volumes far exceeding those achievable with current comparable direct lithium extraction technologies.

Unlike traditional ion exchange or adsorption processes, this technology represents a new category of direct lithium extraction. After extensive testing on various lithium resources worldwide, including in the UK, WaterCycle Technologies has introduced a long-awaited solution capable of simultaneously processing subsurface brine and industrial wastewater, including effluents from chemical production and battery recycling. This provides a fully circular and commercially feasible pathway to access this globally critical mineral.

Dr. Seb Leaper, CEO of WaterCycle Technologies, stated, "Direct lithium extraction has long been viewed as a breakthrough solution to the growing lithium supply crisis, but until now, no technology has been able to simultaneously address the three core challenges: water consumption, energy use, and cost. Over the past three years, we have refined the extraction process for various brine types, including low-lithium geothermal brine, high-concentration South American brine, and industrial wastewater with high organic content. This not only allows us to offer lithium resource owners a highly profitable, low-risk technological solution but also supports the emerging battery recycling industry in achieving zero-waste processes with higher lithium recovery rates."

Currently, the monthly lithium carbonate production from WaterCycle Technologies' Renfrew facility can meet the production needs for 50 mid-sized EV units. With the deployment of more modular systems in the UK and globally starting in 2026, production is expected to increase significantly. This progress will support the UK in achieving its Critical Minerals Strategy goal: by 2035, to meet at least 10% of the UK's annual critical mineral demand through domestic production and 20% through recycling.

"Our goal is clear," Seb stated, "to secure access to critical resources for all. We achieve this through a 'supply cycle' mindset rather than a 'supply chain' approach, which aligns with our core principles of low environmental impact and circular design. Although resources like lithium are finite, with the right technology, they can be recycled infinitely. I am proud that, with the support of our investors, our team has successfully developed technology that transforms finite resources into infinite ones, and it is now being scaled in the UK."

Dr. Ahmed Abdelkarim, Chief Technology Officer of WaterCycle Technologies, commented, "Our DLEC™ technology is designed to deliver scalable and sustainable solutions. By launching the UK's first commercial-scale direct lithium extraction plant, we are not only contributing to the achievement of the national target of 50,000 mt LCE by 2035, but also positioning the UK as one of the earliest leaders in this field in Europe. This is not just about lithium resources themselves, but also about building economic resilience, creating skilled jobs, and ensuring that the UK and Europe can confidently meet the demands of the energy transition.

Source: https://www.azocleantech.com