Eye on Lithium: BNEF says rising battery costs won’t derail uptake, EV sales to quintuple by 2025

BNEF says rising battery costs won’t derail EV uptake, with 21m expected to be sold in 2025
Alkem says price received for lithium carbonate in June quarter expected to be ~14% above prior guidance at US$40,000/t FOB
Liontown and Tesla have formalised their definitive full-form offtake agreement

All your ASX lithium news for Monday, June 6.

BloombergNEF’s (BNEF) latest Long-Term Electric Vehicle Outlook flags that passenger electric vehicle (EV) sales are set to grow rapidly in the next few years – from 6.6 million sold in 2021 to 21 million in 2025.

The report also highlighted that the fleet of EVs on the road hits 77 million by 2025 and 229 million by 2030, up from 16 million at the end of 2021.

But EV manufacturers are contemplating a market for battery raw materials that is very tight for the years ahead – and BNEF says the battery supply chain will require significant near-term investment to avoid a supply crunch.

“Yet, the rising cost of batteries will not derail near-term EV adoption,” the report said.

“Some of the factors that are driving high battery raw material costs – war, inflation, trade friction – are also pushing the price of gasoline and diesel to record highs, which in turn is driving more consumer interest in EVs.”

Net zero by 2050 still possible, just

Already EV uptake has displaced 1.5 million barrels of oil demand per day, but rising sales could push this to 2.5 million barrels per day by 2025.

To get on track for a net-zero global fleet by 2050, zero-emission vehicles need to represent 61% of global new passenger vehicle sales by 2030, 93% by 2035, and the last ICE vehicle of any segment needs to be sold by 2038, BNEF says.

Colin McKerracher, head of the advanced transport team at BNEF and lead author of the report, said there are “very positive signs that the market is moving in the right direction, but more action is needed – especially when it comes to heavy trucks.”

“Action also needs to focus on emerging markets, which need financial support to help enable and accelerate the transition to electric mobility of all types,” he said.

Here’s how ASX lithium stocks were tracking today:

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Code	Company	Price	% Month	% Week	% Today	Market Cap
FTL	Firetail Resources	0.36	-11%	9%	20%	$18,534,750.00
RMX	Red Mount Min Ltd	0.008	-11%	0%	14%	$11,496,547.01
VKA	Viking Mines Ltd	0.009	0%	13%	13%	$8,202,067.45
SRZ	Stellar Resources	0.023	-15%	0%	10%	$17,625,355.15
ASN	Anson Resources Ltd	0.1475	9%	13%	9%	$138,768,165.23
JRL	Jindalee Resources	3.65	-12%	14%	9%	$192,793,325.76
AUN	Aurumin	0.165	-15%	-6%	6%	$16,929,604.06
LSR	Lodestar Minerals	0.0085	-35%	-6%	6%	$13,907,498.78
AX8	Accelerate Resources	0.035	-22%	-10%	6%	$8,694,143.67
INF	Infinity Lithium	0.135	-18%	0%	4%	$53,951,698.58
KGD	Kula Gold Limited	0.031	-33%	-3%	3%	$6,455,268.96
AML	Aeon Metals Ltd.	0.032	-36%	-11%	3%	$30,725,071.01
IMI	Infinitymining	0.16	-20%	7%	3%	$8,912,500.00
EMH	European Metals Hldg	0.98	-14%	3%	3%	$133,738,116.75
SYA	Sayona Mining Ltd	0.175	-44%	-17%	3%	$1,401,221,626.52
RIO	Rio Tinto Limited	116.675	4%	3%	1%	$43,072,217,310.42
MIN	Mineral Resources.	60.68	8%	-1%	1%	$11,418,296,463.45
AVZ	AVZ Minerals Ltd	0.78	-21%	0%	0%	$2,752,409,203.44
LIT	Lithium Australia	0.084	-14%	-5%	0%	$86,974,042.76
LPD	Lepidico Ltd	0.029	-12%	0%	0%	$188,704,727.07
PSC	Prospect Res Ltd	0.965	1%	1%	0%	$430,068,258.39
TKL	Traka Resources	0.008	-27%	-6%	0%	$5,510,196.49
TON	Triton Min Ltd	0.027	-10%	0%	0%	$33,987,172.78
ARN	Aldoro Resources	0.205	-31%	-7%	0%	$20,338,785.75
EMS	Eastern Metals	0.165	-13%	-13%	0%	$5,874,000.00
FG1	Flynngold	0.13	-13%	-7%	0%	$8,327,936.50
FRS	Forrestaniaresources	0.185	-45%	-12%	0%	$5,198,278.74
GSM	Golden State Mining	0.062	-19%	-5%	0%	$7,218,121.78
MMC	Mitremining	0.135	-21%	-7%	0%	$3,656,488.50
SHH	Shree Minerals Ltd	0.0095	-21%	6%	0%	$11,611,250.47
TMB	Tambourahmetals	0.215	-16%	0%	0%	$8,856,408.57
TSC	Twenty Seven Co. Ltd	0.003	-25%	0%	0%	$7,982,441.72
WCN	White Cliff Min Ltd	0.019	-27%	-14%	0%	$12,418,463.88
WML	Woomera Mining Ltd	0.023	-4%	-4%	0%	$15,797,160.52
AZI	Altamin Limited	0.096	33%	-1%	0%	$37,604,808.19
ENT	Enterprise Metals	0.014	-18%	-7%	0%	$9,025,055.97
AVW	Avira Resources Ltd	0.005	0%	11%	0%	$10,593,950.00
A8G	Australasian Metals	0.365	-19%	-6%	0%	$15,027,230.31
NWM	Norwest Minerals	0.0415	-22%	-3%	0%	$7,495,206.56
AOA	Ausmon Resorces	0.008	-20%	0%	0%	$6,858,314.74
SRI	Sipa Resources Ltd	0.038	-22%	-3%	0%	$7,790,942.51
RGL	Riversgold	0.04	-39%	-2%	0%	$30,255,039.96
G88	Golden Mile Res Ltd	0.049	-25%	0%	0%	$9,982,898.09
WC8	Wildcat Resources	0.037	23%	12%	0%	$23,875,090.90
MNS	Magnis Energy Tech	0.38	-13%	-7%	0%	$367,264,425.02
CZL	Cons Zinc Ltd	0.024	-4%	0%	0%	$8,720,587.51
DRE	Dreadnought Resources Ltd	0.04	-7%	-9%	0%	$113,547,342.04
M2R	Miramar	0.115	-32%	-8%	0%	$7,347,642.68
AOU	Auroch Minerals Ltd	0.085	-19%	-8%	0%	$30,710,652.92
XTC	Xantippe Res Ltd	0.01	-23%	-9%	0%	$76,830,568.99
MMG	Monger Gold Ltd	0.31	-31%	2%	0%	$7,750,000.00
WMC	Wiluna Mining Corp	0.48251	-13%	0%	0%	$101,961,574.11
ZEO	Zeotech Limited	0.062	5%	17%	0%	$94,544,759.14
LNR	Lanthanein Resources	0.021	-32%	-13%	0%	$17,594,336.97
DAL	Dalaroometalsltd	0.11	-21%	-8%	0%	$3,286,250.00
TKM	Trek Metals Ltd	0.082	-7%	-4%	0%	$25,457,732.30
CY5	Cygnus Gold Limited	0.17	10%	3%	0%	$20,057,503.55
CXO	Core Lithium	1.21	-4%	-7%	0%	$2,104,809,045.66
PLL	Piedmont Lithium Inc	0.82	-13%	-5%	-1%	$435,245,910.00
CAI	Calidus Resources	0.82	-12%	-8%	-1%	$332,494,517.85
AKE	Allkem Limited	11.77	-2%	-16%	-1%	$7,569,001,480.82
IGO	IGO Limited	11.95	-5%	-1%	-1%	$9,132,649,824.78
LKE	Lake Resources	1.42	-19%	0%	-1%	$1,921,278,362.47
PLS	Pilbara Min Ltd	2.42	-9%	-17%	-1%	$7,293,243,772.85
IR1	Irismetals	0.345	-45%	-12%	-1%	$19,468,750.00
KZR	Kalamazoo Resources	0.34	-8%	0%	-1%	$50,092,059.03
PAM	Pan Asia Metals	0.54	6%	14%	-2%	$40,512,254.20
LRD	Lordresourceslimited	0.255	-32%	-22%	-2%	$8,004,001.46
CHR	Charger Metals	0.5	-24%	-9%	-2%	$16,616,327.85
ALY	Alchemy Resource Ltd	0.0235	-6%	-13%	-2%	$22,873,777.37
PGD	Peregrine Gold	0.46	-3%	-12%	-2%	$17,994,734.43
MQR	Marquee Resource Ltd	0.1025	-18%	-2%	-2%	$32,754,590.93
KTA	Krakatoa Resources	0.076	-28%	1%	-3%	$26,887,373.53
ZNC	Zenith Minerals Ltd	0.37	-5%	-3%	-3%	$130,683,578.90
NMT	Neometals Ltd	1.23	-15%	-6%	-3%	$693,696,140.94
EUR	European Lithium Ltd	0.07	-27%	-3%	-3%	$99,569,781.79
VMC	Venus Metals Cor Ltd	0.175	-5%	-8%	-3%	$27,194,162.94
LTR	Liontown Resources	1.2325	-13%	-7%	-3%	$2,784,126,001.46
ESS	Essential Metals Ltd	0.49	-20%	-13%	-3%	$124,457,116.68
NVA	Nova Minerals Ltd	0.65	-11%	4%	-3%	$120,735,530.95
SCN	Scorpion Minerals	0.093	9%	-4%	-3%	$31,855,794.43
AGY	Argosy Minerals Ltd	0.455	7%	1%	-3%	$636,835,727.04
GL1	Global Lithium Resources	1.575	-20%	-4%	-3%	$258,678,157.28
VUL	Vulcan Energy	7.43	-9%	-1%	-3%	$1,012,350,742.10
EFE	Eastern Resources	0.028	-39%	-20%	-3%	$28,838,662.30
GW1	Greenwing Resources	0.275	-41%	-10%	-4%	$35,125,494.47
FFX	Firefinch Ltd	0.3325	-69%	-69%	-4%	$407,528,911.25
GLN	Galan Lithium Ltd	1.32	-20%	-7%	-4%	$417,027,125.94
BMM	Balkanminingandmin	0.25	-32%	-7%	-4%	$8,515,000.00
AZL	Arizona Lithium Ltd	0.125	-29%	-17%	-4%	$290,253,497.56
WR1	Winsome Resources	0.375	-24%	-11%	-4%	$52,694,457.66
EPM	Eclipse Metals	0.025	-7%	-4%	-4%	$49,949,286.74
KAI	Kairos Minerals Ltd	0.024	-23%	-8%	-4%	$49,052,337.28
PNN	PepinNini Minerals	0.47	-47%	-5%	-4%	$30,136,713.04
RDT	Red Dirt Metals Ltd	0.47	0%	-18%	-4%	$149,231,668.74
1MC	Morella Corporation	0.023	-30%	-18%	-4%	$124,229,135.66
RLC	Reedy Lagoon Corp.	0.022	-24%	-15%	-4%	$12,820,818.98
AM7	Arcadia Minerals	0.22	-19%	0%	-4%	$8,048,275.00
RAG	Ragnar Metals Ltd	0.044	2%	-10%	-4%	$17,442,504.89
LEL	Lithenergy	1.085	-34%	-13%	-4%	$51,245,250.00
LIS	Lisenergylimited	0.54	-16%	-11%	-4%	$93,741,515.66
TEM	Tempest Minerals	0.0495	-44%	1%	-5%	$26,247,841.15
QPM	Queensland Pacific	0.1475	-20%	-16%	-5%	$242,360,035.31
LPI	Lithium Pwr Int Ltd	0.485	-36%	-14%	-5%	$178,063,872.48
AAJ	Aruma Resources Ltd	0.073	-25%	9%	-5%	$12,086,035.73
EVR	Ev Resources Ltd	0.036	-33%	-8%	-5%	$35,187,394.70
TYX	Tyranna Res Ltd	0.018	200%	80%	-5%	$29,114,852.67
DTM	Dart Mining NL	0.066	-10%	-4%	-6%	$9,468,211.20
STM	Sunstone Metals Ltd	0.049	-25%	-9%	-6%	$133,871,213.74
BNR	Bulletin Res Ltd	0.16	-16%	-6%	-6%	$49,315,487.00
MLS	Metals Australia	0.0705	-46%	-17%	-6%	$32,625,183.45
AS2	Askarimetalslimited	0.39	-36%	-20%	-6%	$17,255,533.59
GT1	Greentechnology	0.9025	-13%	-2%	-6%	$131,463,880.00
INR	Ioneer Ltd	0.495	-21%	-7%	-7%	$1,108,388,692.60
QXR	Qx Resources Limited	0.041	-36%	-27%	-7%	$37,811,942.12
MXR	Maximus Resources	0.066	-26%	2%	-7%	$22,571,309.53
LRS	Latin Resources Ltd	0.089	-29%	-23%	-7%	$185,205,873.22
RAS	Ragusa Minerals Ltd	0.12	41%	-37%	-8%	$16,335,517.90
THR	Thor Mining PLC	0.012	-14%	-14%	-8%	$13,874,912.65
MRR	Minrex Resources Ltd	0.047	-25%	-15%	-8%	$51,444,490.96
LRV	Larvottoresources	0.29	-21%	-12%	-8%	$12,980,362.50
CRR	Critical Resources	0.065	-32%	-18%	-8%	$105,628,679.69
BYH	Bryah Resources Ltd	0.043	-22%	-9%	-9%	$10,631,737.23
ADV	Ardiden Ltd	0.01	-29%	-9%	-9%	$29,351,688.92
IPT	Impact Minerals	0.01	-20%	-9%	-9%	$27,295,076.12
MTM	Mtmongerresources	0.19	3%	12%	-10%	$7,614,606.93
MM1	Midasmineralsltd	0.27	-21%	-17%	-13%	$16,875,818.75
DAF	Discovery Alaska Ltd	0.052	49%	-32%	-13%	$13,454,081.88

Only 17 stocks were in the green today, a massive 70 were in the red and 41 failed to move the needle.

Who’s got news out today?

ANSON RESOURCES (ASX:ASN)

Anson confirmed plans for a major increase in planned production capacity at its Paradox project in the US – with the DFS targeting Stage 1 production capacity of 10,000 tonnes per annum of battery grade lithium carbonate.

That’s a 275% increase in production capacity from the 2,674tpa from the project’s updated preliminary economic assessment last year.

The company says increase is driven by an anticipated significant JORC resource increase at the project, growing lithium demand and higher prices, along with enhanced recoveries and performance from its product.

Along with the rapid expansion in private sector investment in lithium-ion battery manufacturing facilities in the United States and increased offtake activity for sustainably produced Lithium Carbonate.

Anson also said that Bromine production capacity will be progressively added at the project, which will be aligned with the forecast demand growth for zinc- bromine batteries (for renewable energy storage) and other bromine derivative products.

CALIDUS RESOURCES (ASX:CAI)

Calidus’ 50 per cent owned Pirra Lithium has expanded the mapped lithium pegmatites at Spear Hill in WA, with outcropping pegmatites now established over total strike length of 4.3km.

Plus, a batch of 30 rock-chip samples yielded grades up to 2.35% lithium and 808ppm tantalum.

“This discovery of another significant pegmatite outcrop in the vicinity of the previously announced results confirms the presence of a significant lithium pegmatite system,” Calidus MD Dave Reeves said.

“These results have provided additional drill targets that demand to be tested.

“The expansion of the mineralised system at Spear Hill reinforces the substantial prospectivity across the large tenement package and rights owned by Pirra Lithium.

“As a result, the shareholders of Pirra Lithium have decided to commence a demerger process and IPO of Pirra Lithium later this year.”

ALLKEM (ASX:AKE)

The producer says continued strong market conditions have positively impacted the price the company received for lithium carbonate from the Olaroz Lithium Facility in Argentina.

“The June quarter FY22 average price received for lithium carbonate is expected to be approximately 14% above prior guidance at US$40,000/t FOB 1 on sales of approximately 3,500 tonnes,” Allkem says.

The company also said similarly, strong conditions continue in the spodumene market with realised spodumene concentrate pricing in the June quarter of approximately US$5,000/t SC6% CIF.

Shipped spodumene concentrate for the quarter is anticipated to be approximately 38,000 dry metric tonnes (dmt) at an average grade in line with customer requirements of 5.3% with a further 15,000 dmt to be shipped in early July 2022.

However, current estimated annual spodumene production for FY22 is anticipated to fall marginally short of guidance by approximately 2-4%, at between 192,000 – 196,000 dmt, due to production delays resulting from the highly competitive Western Australian resources labour market and COVID-19 related requirements due to the delayed re-opening of the Western Australian border – but that “strategies have been implemented to mitigate these temporary impacts on production.”

The company also addressed the recent move by Argentina’s Customs Agency to set a reference price for lithium carbonate of US$53,000/t, which is used when reviewing export sales of lithium chemicals to prevent under-invoicing and improve pricing transparency.

“This price is not used for calculation of taxes, royalties or duties and Allkem does not expect it will have any material impact on product exports, realised prices or profitability,” the company said.

KALAMAZOO (ASX:KZR)

The company has expanded its portfolio with the grant of the Jingellic lithium project exploration licence in NSW.

KZR says the project contains geology that is highly prospective for both pegmatite-hosted lithium-caesium-tantalum (LCT) mineralisation as well as hardrock tin mineralisation.

“The grant of the Jingellic Lithium Project is our first initiative into New South Wales, and we are thrilled to be able to take advantage of our first mover status in targeting lithium in the highly prospective southern Lachlan Fold Belt,” chairman and CEO Luke Reinehr said.

“Our recent lithium exploration activities in the Marble Bar area in JV with SQM, and at our 100% owned projects, has encouraged Kalamazoo to investigate new lithium projects and identifying such tenure close to our existing gold projects in Victoria is a real bonus.”

The company is planning an initial “low impact” exploration program involving a project-wide soil sampling program, in addition to detailed geological mapping and rock chip sampling.

LIONTOWN (ASX:LTR)

Liontown and Tesla have formalised their definitive full-form offtake agreement for the supply of spodumene concentrate from the Kathleen Valley Lithium Project in WA.

The agreement expands the detail on the material terms agreed in the binding terms sheet announced in February and specifies the operational and logistical requirements for the delivery of product.

The pricing will be determined using a formula-based mechanism referencing market prices for battery-grade Lithium Hydroxide Monohydrate.

Supply is expected to commence in 2024 with the agreement conditional on Liontown commencing commercial production at the project by no later than 1 December 2025.