Eye on Lithium: Hungary solidifies position as key player in Europe automotive space

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• Infinity Lithium receives a key exploration permit (PESE) over the flagship ‘San Jose’ project
• Pilbara Minerals approves a $560 million expansion to 1Mtpa at Pilgangoora
• St George mining hits a “very wide” interval of pegmatite in the first drill hole to test the ‘Manta’ seismic reflector at Mt Alexander

All your lithium news, Wednesday March 29.

State incentives and the opportunity for automakers and battery suppliers to work side by side is the lure that Hungary has set in its bid to become a global centre for electric vehicles.

With tier 1 battery producers like CATL and SK Innovation (SKI) ramping up expansions plans in the landlocked country to meet demand from Europe’s automakers, Benchmark Mineral Intelligence (BMI) says Hungary is set to emerge as the second-largest producer of electric vehicle batteries after Germany this decade.

At Benchmark’s Gigafactories Europe conference in Budapest this week, an energy official told delegates Hungary plans to invest “up to ten billion euros this decade” in clean energy as it transitions away from fossil fuels.

“This will be the biggest investment in Hungary in the last 50 years,” Viktor Horvath, the Deputy State Secretary for Hungary’s Ministry of Energy said.

In total, Hungary has already received over 14 billion euros in foreign direct investment into its battery sector alone in the past six years.

Here’s how ASX lithium stocks are tracking:

A total of 49 stocks finished in the green, 51 fell flat, and 37 tumbled into the red.

WHO’S GOT NEWS OUT?

INFINITY LITHIUM (ASX:INF)

Spain lithium play INF has received a key exploration permit (PESE) over the flagship ‘San Jose’ project, reinforcing government and stakeholder commitment to the project.

“The granting of the Exploration Permit is a major milestone for the project, providing clarity on the permitting and administrative process for a fully integrated lithium project in the heart of Cáceres,” INF subsidiary Extremadura New Energies boss Ramón Jiménez says.

PILBARA MINERALS (ASX:PLS)

Pilbara Minerals has approved a $560 million expansion to 1Mtpa at the flagship Pilgangoora lithium mine this morning.

The final investment decision to boost production by 47% from its already approved 680,000tpa expansion project has come as little surprise, given the remarkable war chest built up by the miner in recent times.

PLS plans to have the first concentrate from its expanded Pilgangoora plant out by March 2025, with the ramp up to full production completed by September 2025.

ST GEORGE (ASX:SGQ)

SGQ has hit a “very wide” interval of pegmatite in the first drill hole to test the ‘Manta’ seismic reflector at the company’s Mt Alexander project.

Further drilling in April is planned to test this large target at shallower depth, initially where the pegmatite is interpreted to intersect, or underly, the outcropping greenstone sequence.

CORAZON MINING (ASX:CZN)

Corazon has expanded its lithium footprint at the Miriam project in Western Australia following a soil sampling program designed to define the extents of the spodumene-rich pegmatite for first pass drill testing.

The program has identified a large lithium geochemical anomaly of around 1.6km in strike up to 300m in width with a second trend of 600m.

Corazon plans to conduct a shallow drilling program to test the lithium anomalism, in parallel with its aggressive, ongoing nickel sulphide exploration program at the Miriam nickel sulphide trend to the west.

LATIN RESOURCES (ASX:LRS)

Latin Resources has signed a non-binding Memorandum of Understanding (MoU) with the Minas Gerais State Economic Development Department (SEDE) and the Minas Gerais Integrated Development Institute (INDI) together referred to as Invest Minas.

Invest Minas’ purpose is to attract, regulate and promote economic activity in the State of Minas Gerais, Brazil that increases employment and growth in the region.

This includes the facilitation of cooperation between private companies, investors and the public administration.

The purpose of the MoU is to provide mutual support between the parties to support the battery materials sector and supply chain investment in the region, including two-way introductions and investment partnerships in the region.

On behalf of the Government of Minas Gerais, the document was signed by the Secretary of State for Economic Development, Fernando Passalio Avelar, in a ceremony held in Perth, Western Australia.

POWER MINEARLS (ASX:PNN)

Drilling continues to enhance Power Minerals’ lithium resource potential at Incahuasi Salar in an ongoing resource expansion drill program.
Assay results from four packer brines samples taken from selected intervals have returned consistent lithium grades, ranging between 165ppm Li and 196ppm Li, along with excellent brine density, of up to 1.21g/ml.

The drill rig and crew have demobilised from Incahuasi in preparation for the commencement of drilling at the next priority target, the Rincon salar.

ENTERPRISE METALS (ASX:ENT)

Six reverse circulation holes have been completed at the Mandilla prospect near Widgiemooltha in Western Australia after defining a cluster of three steeply dipping pegmatites.

These pegmatites, which are covered by 20m of alluvium and saprolitic clay, are open with further RC drilling planned to the north and south of the current east-west section.

FIRST AU (ASX:FAU)

FAU has agreed with the owners (shareholders) of PG Exploration to vary the terms upon which FAU proposes acquiring 100% of the issued capital of PG Exploration.

The terms of the Transaction were initially announced to ASX on February 13, with the milestones for issue of shares and options under the Transaction set out in that announcement being subject to refinement required by ASX.

FAU has consulted with ASX specifically on the milestones under the Transaction and the agreed variations are a result of input from the ASX on the terms of the milestones, including the circumstances and timeframe within which milestones may be satisfied.

At Stockhead we tell it like it is. While Corazon Mining, Latin Resources, and St George Mining are Stockhead clients, they did not sponsor this article.

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