Eye on Lithium: 'EV sales have appeared inelastic' to high lithium prices, SFA Oxford analysts say

SFA (Oxford) analysts say lithium prices will reach a floor in 2024
As it stands, “EV sales appear inelastic to battery metal prices”
Lithium Energy raises $15m in heavily oversubscribed placement to accelerate Solaroz drilling

All your lithium news Thursday, September 15.

The lithium market is forecast to move to mounting deficits from 2023 onwards, but supply from ‘probable’ and ‘low-risk possible’ projects could potentially keep the market balanced through to 2025, according to a recent presentation by SFA (Oxford) and Sibanye-Stillwater.

Analysts from SFA (Oxford) noted while prices may have peaked, they remain at extremely high levels for both lithium carbonate and lithium hydroxide and are expected to reach a floor in 2024, before rising again to incentivise higher-risk projects.

The lithium market (crucial for electric vehicles) is forecast to move to mounting deficits from next year onwards, but supply from ‘probable’ and ‘low-risk possible’ projects could keep the market balanced through to 2025. – SFA (Oxford)

Battery recycling growing fast too.

— Nick Hedley (@nickhedley) September 14, 2022

“BEV sales in China doubled in H1 2022, capturing 61% of global sales over the period and almost all of the top 15 EV markets registered positive year on year growth in sales despite declining overall vehicle sales,” the analysts noted.

“So far in 2022, EV sales have appeared inelastic to battery metal prices which could be due to a number of factors including strong demand pull, OEMS not passing on rising production costs, boost in EV demand as a result of up pent-up savings post COVID, and OEMS prioritising EV production during chip shortages.”

Here’s how ASX lithium stocks are tracking:

CODE	COMPANY	PRICE	% TODAY	% WEEK	% MONTH	MARKET CAP
AOU	Auroch Minerals Ltd	0.073	26%	18%	6%	$21,524,484
IMI	Infinitymining	0.25	22%	25%	67%	$11,787,500
KAI	Kairos Minerals Ltd	0.046	21%	64%	44%	$74,635,553
WML	Woomera Mining Ltd	0.018	16%	13%	6%	$10,645,913
GL1	Globallith	2.85	16%	51%	52%	$390,397,710
LRS	Latin Resources Ltd	0.13	13%	18%	18%	$224,605,770
LEL	Lithenergy	1.35	13%	41%	21%	$54,180,000
AOA	Ausmon Resorces	0.009	13%	20%	64%	$6,858,315
FTL	Firetail Resources	0.27	13%	15%	6%	$14,827,800
SRI	Sipa Resources Ltd	0.046	12%	-2%	7%	$8,406,017
IR1	Irismetals	2.17	12%	42%	244%	$118,392,150
WR1	Winsome Resources	0.365	11%	35%	24%	$44,587,618
EVR	Ev Resources Ltd	0.033	10%	18%	3%	$27,779,522
ESS	Essential Metals Ltd	0.565	10%	15%	4%	$127,453,454
LLL	Leolithiumlimited	0.795	10%	36%	57%	$715,326,261
DRE	Dreadnought Resources Ltd	0.12	9%	4%	29%	$334,513,691
BMM	Balkanminingandmin	0.305	9%	65%	54%	$9,170,000
M2R	Miramar	0.125	9%	0%	26%	$7,381,466
GW1	Greenwing Resources	0.315	9%	15%	9%	$35,741,731
LSR	Lodestar Minerals	0.0065	8%	-7%	-19%	$10,430,624
WCN	White Cliff Min Ltd	0.027	8%	13%	93%	$18,690,084
MMG	Monger Gold Ltd	0.55	8%	38%	90%	$20,420,400
CRR	Critical Resources	0.084	8%	95%	45%	$116,065,189
AZL	Arizona Lithium Ltd	0.1	8%	22%	-5%	$224,123,077
LNR	Lanthanein Resources	0.058	7%	14%	100%	$51,992,581
TMB	Tambourahmetals	0.155	7%	7%	-14%	$5,972,927
EFE	Eastern Resources	0.032	7%	19%	-6%	$30,201,921
ADV	Ardiden Ltd	0.0085	6%	6%	-6%	$21,346,683
AGY	Argosy Minerals Ltd	0.56	6%	26%	38%	$724,525,445
OCN	Oceanalithiumlimited	0.75	6%	27%	46%	$23,802,750
1MC	Morella Corporation	0.0295	5%	13%	18%	$161,438,082
EUR	European Lithium Ltd	0.099	5%	22%	13%	$131,622,482
QXR	Qx Resources Limited	0.0315	5%	13%	-19%	$25,780,870
ZNC	Zenith Minerals Ltd	0.315	5%	2%	5%	$103,428,684
GLN	Galan Lithium Ltd	1.5	5%	22%	9%	$435,534,930
ALY	Alchemy Resource Ltd	0.022	5%	0%	22%	$20,014,595
LRV	Larvottoresources	0.225	5%	7%	-12%	$8,929,488
ZEO	Zeotech Limited	0.045	5%	-10%	-24%	$67,162,365
PLS	Pilbara Min Ltd	4.765	4%	21%	53%	$13,699,934,233
PAM	Pan Asia Metals	0.43	4%	-2%	-8%	$30,676,900
GT1	Greentechnology	0.86	4%	20%	17%	$158,312,866
AM7	Arcadia Minerals	0.3	3%	7%	107%	$13,542,389
BNR	Bulletin Res Ltd	0.15	3%	15%	-6%	$42,425,710
AKE	Allkem Limited	15.97	3%	13%	29%	$9,883,700,333
INF	Infinity Lithium	0.185	3%	-8%	19%	$74,882,352
MQR	Marquee Resource Ltd	0.074	3%	10%	-20%	$22,724,466
RGL	Riversgold	0.037	3%	6%	-5%	$27,906,838
LTR	Liontown Resources	1.75	3%	1%	3%	$3,744,922,272
JRL	Jindalee Resources	2.75	3%	13%	-5%	$153,775,629
KTA	Krakatoa Resources	0.061	3%	5%	-10%	$20,510,240
PNN	Power Minerals Ltd	0.735	2%	37%	31%	$44,337,678
EMH	European Metals Hldg	0.86	2%	19%	-9%	$100,879,664
TUL	Tulla Resources	0.505	2%	-2%	-5%	$79,307,352
LRD	Lordresourceslimited	0.265	2%	36%	15%	$8,654,001
TYX	Tyranna Res Ltd	0.054	2%	32%	50%	$124,860,615
MRR	Minrex Resources Ltd	0.055	2%	12%	-13%	$58,130,444
RAS	Ragusa Minerals Ltd	0.275	2%	20%	96%	$34,733,898
VUL	Vulcan Energy	8.26	2%	3%	-13%	$1,162,449,291
AML	Aeon Metals Ltd.	0.03	2%	0%	0%	$32,256,208
A8G	Australasian Metals	0.3	2%	11%	7%	$12,145,296
IGO	IGO Limited	14.77	1%	15%	23%	$11,025,819,357
PLL	Piedmont Lithium Inc	0.94	1%	9%	19%	$490,640,844
LIT	Lithium Australia	0.0605	1%	-1%	-29%	$73,178,593
RDT	Red Dirt Metals Ltd	0.68	1%	14%	51%	$205,574,238
RIO	Rio Tinto Limited	95.3	0%	7%	0%	$35,202,433,574
MIN	Mineral Resources.	71.74	0%	21%	21%	$13,532,698,663
ASN	Anson Resources Ltd	0.425	0%	44%	183%	$437,963,146
AVZ	AVZ Minerals Ltd	0.78	0%	0%	0%	$2,752,409,203
QPM	Queensland Pacific	0.17	0%	17%	17%	$265,814,232
PSC	Prospect Res Ltd	0.096	0%	2%	-20%	$44,376,908
RLC	Reedy Lagoon Corp.	0.016	0%	7%	-6%	$8,918,831
TKL	Traka Resources	0.007	0%	0%	0%	$4,821,422
CHR	Charger Metals	0.605	0%	30%	12%	$19,726,651
AAJ	Aruma Resources Ltd	0.067	0%	-4%	-15%	$10,516,421
BYH	Bryah Resources Ltd	0.027	0%	0%	-8%	$7,539,844
EMS	Eastern Metals	0.125	0%	0%	-24%	$4,832,031
FG1	Flynngold	0.105	0%	11%	18%	$6,726,410
FRS	Forrestaniaresources	0.25	0%	32%	52%	$8,340,326
GSM	Golden State Mining	0.048	0%	-4%	-20%	$5,616,682
MMC	Mitremining	0.18	0%	44%	57%	$4,875,318
SHH	Shree Minerals Ltd	0.009	0%	13%	-10%	$11,146,382
TEM	Tempest Minerals	0.039	0%	0%	-11%	$19,685,881
TSC	Twenty Seven Co. Ltd	0.002	0%	0%	-5%	$5,321,628
KGD	Kula Gold Limited	0.02	0%	-22%	-26%	$5,379,391
KZR	Kalamazoo Resources	0.255	0%	11%	-6%	$37,560,065
MTM	Mtmongerresources	0.155	0%	11%	29%	$5,814,055
ENT	Enterprise Metals	0.01	0%	-9%	-9%	$6,529,807
AVW	Avira Resources Ltd	0.004	0%	0%	14%	$8,475,160
NVA	Nova Minerals Ltd	0.845	0%	-6%	2%	$155,193,777
RMX	Red Mount Min Ltd	0.006	0%	-8%	-14%	$9,854,183
SRZ	Stellar Resources	0.0145	0%	-3%	-19%	$13,995,366
VKA	Viking Mines Ltd	0.008	0%	0%	0%	$8,202,067
IPT	Impact Minerals	0.007	0%	-7%	-13%	$17,369,594
VMC	Venus Metals Cor Ltd	0.16	0%	0%	-9%	$25,612,589
G88	Golden Mile Res Ltd	0.033	0%	-3%	10%	$6,751,462
EPM	Eclipse Metals	0.023	0%	5%	-4%	$46,557,908
MNS	Magnis Energy Tech	0.48	0%	-3%	4%	$465,759,112
THR	Thor Mining PLC	0.011	0%	10%	16%	$12,090,797
CZL	Cons Zinc Ltd	0.024	0%	9%	-4%	$9,296,588
MXR	Maximus Resources	0.05	0%	-7%	-21%	$15,945,288
MM1	Midasmineralsltd	0.2	0%	11%	-20%	$11,426,353
XTC	Xantippe Res Ltd	0.009	0%	0%	-10%	$73,307,069
WMC	Wiluna Mining Corp	0.205	0%	0%	0%	$74,238,031
AUN	Aurumin	0.11	0%	10%	-33%	$13,783,785
DAF	Discovery Alaska Ltd	0.079	0%	-1%	58%	$17,714,541
DAL	Dalaroometalsltd	0.115	0%	10%	16%	$3,435,625
CY5	Cygnus Gold Limited	0.27	0%	-10%	8%	$39,740,035
WES	Wesfarmers Limited	46.19	-1%	1%	-2%	$52,666,879,241
CAI	Calidus Resources	0.585	-1%	4%	-13%	$258,291,206
CXO	Core Lithium	1.58	-1%	4%	7%	$2,770,826,593
STM	Sunstone Metals Ltd	0.0415	-1%	-3%	-14%	$109,050,750
TKM	Trek Metals Ltd	0.073	-1%	14%	3%	$22,985,151
INR	Ioneer Ltd	0.68	-1%	7%	-3%	$1,447,712,512
MLS	Metals Australia	0.052	-2%	6%	-28%	$32,172,918
SYA	Sayona Mining Ltd	0.3325	-2%	21%	21%	$2,823,470,224
SCN	Scorpion Minerals	0.08	-2%	1%	21%	$27,210,158
LIS	Lisenergylimited	0.575	-3%	0%	-21%	$97,889,370
RAG	Ragnar Metals Ltd	0.038	-3%	6%	-21%	$14,788,211
LKE	Lake Resources	1.03	-3%	-15%	-25%	$1,473,372,132
WC8	Wildcat Resources	0.034	-3%	13%	13%	$22,584,545
PGD	Peregrine Gold	0.64	-3%	-6%	-29%	$25,556,227
LPD	Lepidico Ltd	0.029	-3%	-3%	-3%	$195,215,737
AZI	Altamin Limited	0.085	-3%	-11%	-4%	$34,471,074
AS2	Askarimetalslimited	0.4	-4%	18%	-6%	$18,703,747
TON	Triton Min Ltd	0.026	-4%	-7%	-4%	$33,987,173
ARN	Aldoro Resources	0.235	-4%	-13%	-15%	$24,398,893
LPI	Lithium Pwr Int Ltd	0.7	-4%	1%	10%	$254,875,739
DTM	Dart Mining NL	0.1	-5%	-5%	20%	$14,202,317
NMT	Neometals Ltd	1.365	-6%	-6%	0%	$803,664,169
NWM	Norwest Minerals	0.052	-7%	-13%	24%	$10,114,014
AX8	Accelerate Resources	0.035	-8%	0%	-5%	$10,277,438

64 ASX lithium companies finished in the green, 43 fell flat and 24 ended the day in the red.

Who’s got news out?

LITHIUM ENERGY (ASX:LEL)

Lithium Energy has raised $15m in a heavily oversubscribed placement to accelerate drilling at the Solaroz Lithium Brine Project in Argentina as well as fast-track development at the Burke Graphite Project in Queensland.

Solaroz is in the world renowned Lithium Triangle in Argentina and is surrounded by lithium majors Allkem (ASX:AKE) and Lithium Americas Corporation.

A high impact drilling program is underway, with the first hole in progress and being drilled adjacent to Allkem’s Olaroz Lithium Facility – around 10kms from its production bore field.

LEL hopes to validate the exploration target previously announced and establish a maiden JORC mineral resource of lithium at Solaroz.

The additional funding raised will allow for the acceleration of the current 5,000m drilling programme and for the drilling of additional holes at Solaroz through the engagement of multiple drilling rigs.

AUROCH MINERALS (ASX:AOU)

An experienced Nevada-based team including geologists, land management, and legal counsel has been established to set up to drive the Nevada Lithium Project (NLP) forward.

The NLP comprises a large area that is considered highly prospective for large sedimentary-hosted lithium deposits across four prospect areas – Traction Prospect, San Antone Prospect, Heller Prospect and Lone Mountain Prospect.

It is close to the mining town of Tonopah in the mining-friendly counties of Nye and Esmeralda in the State of Nevada and is home to some very large sedimentary-hosted lithium deposits including Ioneer Resources’ (ASX:INR) Rhyolite Ridge Project and American Lithium Corporation’s (TSX.V: LI) (US OTC: LIACF) (Frankfurt: 5LA1) TLC Lithium Project.

The in-country team has completed a thorough review of historic data as well as detailed mapping of the key prospect areas, confirming the high prospectivity for significant sedimentary-hosted lithium mineralisation.

An initial 1,000m reverse-circulation (RC) drill program has been designed to selectively test stratigraphic targets at the NLP.

Permitting has kicked off and the approvals process is expected to be completed within four to six weeks.

FIRETAIL RESOURCES (ASX:FTL)

Firetail has received further endorsement for the Yalgoo Project’s potential to host significant lithium-caesium-tantalum (LCT) pegmatites, by the confirmation of a large-scale +25 kilometre extensive “Goldilocks Zone” in regional geological datasets.

The “Goldilocks Zone” encompasses and is supported by historic high-grade rock chip samples of up to 3.75% Li2O, and Firetail’s recent mapping and geochemical sampling that has identified fertile LCT pegmatites.

FTL says the “Goldilocks Zone” is known as a defined corridor in which LCT pegmatites exist. This zone is outboard of the granitic terrain and within Greenstone belts.

Research indicates that all economic spodumene deposits, globally, lie within this “Goldilocks Zone”.

“Multi-element geochemical data from rock chip sampling at the Yalgoo Project has provided an insight into the potential for LCT pegmatites, with several targets defined from this work,” executive chairman Brett Grosvenor says.

“Preparations to undertake our maiden drilling campaign is now well advanced.”