Lithium is one of the hottest metals of the moment. As demand from the battery industry remains strong, lithium prices were close to an all-time high for much of last year. However, the high demand is offset by too little supply. Companies such as CleanTech Lithium are positioning themselves for the start of production.
One factor, alongside North America and the USA, is China. This is where the largest market for electric cars is located. The Chinese have to import more than two thirds of their requirements and also have the largest production capacities.
Ambitious electrification targets
The situation is even more dramatic in Europe and North America. There is practically no lithium production there, but there are plenty of battery factories planned or already under construction. And these also require lithium. The growth of the market is only just beginning, as many regions have set themselves ambitious targets for the electrification of transportation. The International Energy Agency (IEA) estimates that the demand for lithium will increase fivefold by 2023. This would require at least 50 new lithium mines.
The lithium market could become correspondingly large in the coming years, even if the electrification targets are not fully achieved. CleanTech Lithium has positioned itself in good time and with good prospects. The British company is developing three projects in Chile and aims to start commercial production as early as 2025.
In focus: deposits in Chile
The Laguna Verde project in Chile is expected to produce 1.5 million tons of lithium carbonate (Li2CO3) with a content of 206 mg/L. This quantity would enable production over several decades. The new drilling program for the project is scheduled to start at the end of winter in Chile, with an upgrade of the resource expected in early 2023. Construction of the planned pilot plant is also scheduled to begin in 2022. CleanTech Lithium hopes that construction can be completed in the first half of 2023. It will then be possible to produce one tonne of battery-grade lithium per month during the six-month pilot plant phase.
Lithium production near a huge mountain massif
In addition to this flagship project, CleanTech Lithium has two more irons in the fire. For the project in the Fransisco Basin, the company is already working towards the second JORC-compliant resource estimate, which is expected in the second quarter of 2023. The first resource already contained 0.5 million tons of Li2CO3 with an average grade of 305 mg/L. The third project, Llamara, is not quite as far along yet, but the first deposit is due to be drilled there in the coming months.
The advantage of lithium production in Chile is obvious. The country is already one of the largest producers of the white light metal. It also has the world's second largest producer, SQM, as the top dog. However, global market leader Albemarle also operates various plants in the Andean country. Accordingly, the country has the know-how and the right infrastructure. Chile is also fully committed to renewable energies from hydropower and solar power. The CleanTech Lithium processing plant planned for 2025 will therefore be supplied with clean electricity. CleanTech plans to produce battery-grade lithium with virtually no emissions, as sustainable extraction technology will be used.
