• EV production has been hamstrung in China as the countries COVID lockdowns continue
  • Scorpion raises $3m to explore Pharos lithium project in WA
  • Viking releases March quarterly report

 All your ASX lithium news for Wednesday, April 13.

 

Bloomberg says that lithium prices are showing signs of losing momentum , in China at least.

Chinese lithium carbonate prices have gained almost 500% in the past year but slipped slightly on Monday as the nation’s worsening coronavirus outbreak began impacting the electric-vehicle supply chain.

“Downstream demand is weakening as the pandemic hinders carmakers’ production in China and inventory levels remain high at battery manufacturers,” Shanghai Metals Market analyst Maria Ma says.

“Companies are also pressured by the elevated lithium prices and there’s strong price resistance.”

A bunch of global automakers including Tesla and Volkswagen have been forced to suspend production at their factories in Shanghai after a citywide lockdown, while Chinese EV player Nio halted production and delayed deliveries.

Contemporary Amperex Technology Co. – the world’s largest battery manufacturer – is isolating workers in a so-called “closed loop” at its main factory in Ningde.

S&P Global Commodity Insights senior metals analyst Alice Yu said that a prolonged lockdown in Shanghai could damp overall EV sales this year and ease a forecast deficit for the lithium market.

Still, prices in China could find support in the short-term as logistical delays might prevent feedstock imports from reaching refineries and downstream users, she added.

 

Here’s how ASX lithium stocks are tracking today:

Lithium stocks missing from our list? Shoot a friendly mail to [email protected]

 

 

A solid 69 stocks were in the green today, with 25 flatlining and 21 in the red.

 

Who’s got news out today?

SCORPION MINERALS (ASX:SCN)

Scorpion has raised $3.18m to advance lithium and base metals exploration, after a recent technical review highlighted strong lithium potential with 50km zone of pegmatite intrusion within the Pharos Project in WA.

Several drill ready lithium and base metals targets have been identified – and drilling is planned to commence in the June quarter.

 

VIKING MINES (ASX:VKA)

In its March quarterly, the company rehashed its lithium pegmatite find at the First Hit Project in WA.

Whilst the company’s primary focus is targeting high-grade narrow vein gold, the identification of these minerals highlights the potential for lithium on the First Hit Project tenure.

Multielement analysis is being undertaken to determine the chemistry of the pegmatites and ascertain if any vectoring can be determined to decide if further follow up exploration activity is warranted.

Viking also picked up 60km2 of new exploration tenure and ended the quarter with cash of $4.56 million.

SCN, VKA share prices today

 

RIVERSGOLD (ASX:RGL)

Initial mapping at Riversgold’s new Tambourah project has confirmed two mineralised orientations both parallel to Archaean greenstone stratigraphy at the Bengal and Ragdoll Prospects.

Plus, a recently acquired high definition airborne geophysics dataset over the project is expected to significantly aid in the fast-tracking of the exploration program at Tambourah.

And the company has applied for a new tenement to the east to extend its tenure at the project.

“We view this tenement as being of strategic interest, while we continue our evaluation of the best geological environment for lithium occurrences up at Tambourah and any new ground that can be secured in this new lithium province is of paramount interest,” CEO Julian Ford said.

 

ALDORO RESOURCES (ASX:ARN)

The company is planning a placement to raise $2.3 million to fund the maiden drill program at its Wyemandoo rubidium and lithium project.

The Program of Works (POW) has been granted by the Mines Department for drilling, with drill tracks and pads cleared and drilling expected to commence by early next month.

 

VENUS METALS (ASX:VMC)

Geochemical surveys at the company’s Youanmi project has delineated a 4km long zone with lithium anomalies – which are located along strike from thick Intersections of lithium-bearing pegmatite at Metals Australia’s (ASX:MLS) Manindi project.

Reverse Circulation drilling is planned asap and aimed at testing potential lithium mineralization at depth beneath previous shallow drill intersections of Li-bearing pegmatite, and exploring new geochemical anomalies for LCT Pegmatites under cover.

Infill and regional soil geochem surveys are ongoing.

RGL, VMC & ARN share prices today