Eye on Lithium: ‘Rein in soaring lithium prices,’ China tells electric vehicle industry

• China summons industry players to discuss rising lithium costs
• Riversgold finds rock chips grading up to 2% lithium at the ‘Tambourah’ project
• MTM wraps up acquisition of three new projects in the Ravensthorpe district

 All your ASX lithium news for Tuesday, March 22.

China’s Government has told its electric-car battery supply chain that it wants lithium prices to return to sustainable levels.

Lithium producers, cathode companies, EV-battery firms and the country’s main carmakers’ association were gathered late last week to discuss “a rational return” for lithium prices, according to a statement from the Ministry of Industry and Information Technology, Bloomberg reported.

The seminar also addressed supply bottlenecks, how lithium is priced, as well as measures to steady prices and secure supply.

But it’s unclear how the push to manage soaring commodity prices will pan out.

Lithium has soared nearly 500% in the past year, adding to cost pressures for EV producers as demand outstrips supply.

As a result, some carmakers are even raising their price tags, with EV maker Xpeng increasing the price of its vehiclesfrom 10, 000 YUAN to 20,000 (around A$2125 to $4251).

Here’s how ASX lithium stocks are tracking today:

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A total of 51 stocks were in the green today, with 24 flatlining and 24 in the red.

Who’s got news out today?

RIVERSGOLD (ASX:RGL)

The mini cap gold explorer is pivoting to lithium, like everyone else and today flagged that it had picked up rock chips grading up to 2% lithium at the ‘Tambourah’ project.

Ore grade for hard rock mines is usually around 1-1.5% lithium.

Plus, CEO Julian Ford said the finds are only from a 200m section of what is potentially a 26km-long mineralised corridor within the tenement.

“We are fortunate to have access to a substantial database of modern geophysical data for the Tambourah Project and our strategy is to fast-track exploration by leveraging this knowledge base and the easy access afforded by the gazetted Marble Bar road,” he said.

A follow up reconnaissance trip will commence next week targeting along strike extension and additional priority target areas.

RGL only announced the acquisition of Tambourah earlier his month as part of an all share, 4 project deal with private co EV Minerals.

Tambourah is the project RGL seems most excited about.

“The exciting thing about these pegmatites [at Tambourah] are that they remain untested by drilling as historical exploration focused on gold and copper albeit never followed up,” Ford says.

The pivot to lithium from gold has paid off for RGL, which is now up 140% year-to-date.

The $18m market cap stock had $469,000 in the bank at the end of December, and recently launched a ~$2m cap raise at 1.7c per share.

Riversgold (ASX:RGL) share price today

MT MONGER RESOURCES (ASX:MTM)

The company has finalised the acquisition of three new projects in the Ravensthorpe district of WA which it says are “highly prospective for lithium, graphite, nickel- copper-PGE and gold mineralisation have also been recognised as having potential for ionic rare earth element (REE) deposits.”

MTM nabbed 8 granted exploration licences in three main areas; Young River, Dalyup and Bremer collectively cover an area of approximately 1,000km2.

The projects are strategically positioned near Allkem’S (ASX:AKE) Mt Cattlin lithium mine,  First Quantum Minerals’ Ravensthorpe Nickel Operation, Mineral Commodities’ (ASX:MRC) Munglinup graphite/graphene development and Medallion Metals’ (ASX:MM8) Ravensthorpe Gold Project.

“Lithium, graphite, nickel and REE are all critical inputs into the renewable energy, electric vehicles, technology and defence sectors,” MD Lachlan Reynolds said.

“Unprecedented focus by governments and the private sector to decarbonise and increase renewable energy uptake is driving a demand surge, market tightness and significant price appreciation in these commodities.”

The $6.5 market cap company says its assessing the opportunities to acquire addition prospective areas that will complement the current tenement areas – and had $2,646,693 cash at bank at 31 December if it chooses to do so.

Mt Monger Resources (ASX:MTM) share price today

GLOBAL LITHIUM RESOURCES (ASX:GL1)

The $442 market cap company says its moving “full steam ahead” with RC drilling at its Marble Bar project in the Pilbara and with the appointment of a contractor for the upcoming RC program at the Mana project near Kalgoorlie.

“At the MBLP, the ongoing RC program is progressing well with initial drill samples now being processed at a laboratory in Perth and we anticipate first results in Q2 2022,” Head of Geology Stuart Peterson said.

“In addition, our diamond drilling program is on track to commence early in Q3 2022.

“Over at Manna, planning for our 20,000m RC drill program continues, and we anticipate drilling to commence in early April, following the establishment of the mobile camp to house both the geology and drilling teams.

“It is our intention to follow this up with 6,000m diamond drilling prior to the release of an updated Mineral Resource later this year.”

The Marble Bar project contains a maiden Inferred Mineral Resource of 10.5Mt at 1.0% Li2O and the Manna Project hosts a maiden Inferred Mineral Resource of 9.9Mt at 1.14% Li2O.

Last week the company attracted Chris Ellison’s Mineral Resources (ASX:MIN) who will take a 5% stake in the fast rising lithium explorer after joining a ~$30 million capital in the junior as a cornerstone investor.

Iron ore and lithium miner MinRes operates the Wodgina and Mt Marion JVs in the Pilbara and Goldfields, respectively, not far from GL1’s Marble Bar and Manna projects.

Global Lithium Resources (ASX:GL1) share price today