Eye on Lithium: 'Securing raw material is more important than the price' - Battery giant LG Chem is desperate for EV metals

LG Chem says it is prioritising prioritising efforts to secure raw materials
Patriot Battery Metals hits significant intervals of spodumene pegmatite at the CV13 pegmatite cluster
New assays from Winsome’s Adina project have returned lithium mineralisation up to 1.28% Li2O

All your lithium news, Tuesday February 14.

South Korea’s LG Chem, one of the largest chemical companies in the world, has told Bloomberg it is looking into securing its own raw materials through potential partnerships and investments in mining companies in a bid to establish a self-sufficient supply chain.

It’s a big move and one which could reduce China’s battery dominance.

WATCH: “Securing raw material is more important than the price.”

Battery giant LG Chem CEO Shin Hak-cheol says the company is ramping up efforts to win the electric vehicle battery market. Watch the full interview on @BloombergTV https://t.co/rI0a4ZwY9U pic.twitter.com/oKaeZbYaZH

— Bloomberg TV (@BloombergTV) February 13, 2023

As it stands, China dominates battery production from the mining and refining of raw materials with estimates out of Benchmark Mineral Intelligence suggesting China has 75% of the world’s cobalt refining capacity and 59% of its lithium processing capacity.

For a company like LG Chem, the parent company of the world’s second largest battery cell maker (LG Energy Solution), to come out and attempt to lock in raw materials supply highlights just how important securing supply chains has become.

The battery raw material land grab is just getting started as urgency filters through to battery and EV makers.

Priorities: Supply first, price second, everything else thereafter. https://t.co/PNivtJIhmS

— Simon Moores (@sdmoores) February 13, 2023

Here’s how ASX lithium stocks are tracking:

CODE	COMPANY	PRICE	% TODAY	MARKET CAP
CAI	Calidus Resources	0.26	16%	$98,854,993
ZEO	Zeotech Limited	0.045	10%	$67,268,932
AOA	Ausmon Resorces	0.006	9%	$4,852,591
RAS	Ragusa Minerals Ltd	0.12	9%	$15,685,866
SRI	Sipa Resources Ltd	0.03	7%	$6,388,428
WML	Woomera Mining Ltd	0.016	7%	$14,342,418
MMC	Mitremining	0.29	5%	$9,895,903
TMB	Tambourahmetals	0.11	5%	$4,325,223
G88	Golden Mile Res Ltd	0.022	5%	$4,296,385
TEM	Tempest Minerals	0.025	4%	$12,114,393
TYX	Tyranna Res Ltd	0.025	4%	$57,730,208
MQR	Marquee Resource Ltd	0.03	3%	$9,489,018
TKM	Trek Metals Ltd	0.069	3%	$24,384,321
NMT	Neometals Ltd	0.865	3%	$464,302,588
MRR	Minrex Resources Ltd	0.035	3%	$36,885,495
EFE	Eastern Resources	0.0185	3%	$22,355,036
IMI	Infinitymining	0.215	2%	$16,060,447
A11	Atlantic Lithium	0.67	2%	$396,760,787
VSR	Voltaic Strategic	0.0225	2%	$6,760,605
GLN	Galan Lithium Ltd	1.1425	2%	$343,745,254
INF	Infinity Lithium	0.1275	2%	$57,824,012
JRL	Jindalee Resources	2.63	2%	$148,037,732
AUN	Aurumin	0.059	2%	$10,337,976
WR1	Winsome Resources	2.03	2%	$321,563,034
INR	Ioneer Ltd	0.39	1%	$807,860,233
PLL	Piedmont Lithium Inc	0.945	1%	$395,935,100
AS2	Askarimetalslimited	0.6	1%	$29,429,610
NVA	Nova Minerals Ltd	0.62	1%	$129,183,291
PLS	Pilbara Min Ltd	4.86	0%	$14,540,152,027
WES	Wesfarmers Limited	48.855	0%	$55,350,170,459
ADV	Ardiden Ltd	0.0075	0%	$20,162,515
1MC	Morella Corporation	0.013	0%	$79,281,546
AML	Aeon Metals Ltd.	0.029	0%	$31,795,618
ASN	Anson Resources Ltd	0.205	0%	$241,542,259
AVZ	AVZ Minerals Ltd	0.78	0%	$2,752,409,203
EMH	European Metals Hldg	0.685	0%	$86,308,227
MLS	Metals Australia	0.054	0%	$32,779,954
QPM	Queensland Pacific	0.105	0%	$183,366,532
PSC	Prospect Res Ltd	0.215	0%	$99,385,784
RLC	Reedy Lagoon Corp.	0.009	0%	$5,100,476
TKL	Traka Resources	0.008	0%	$5,782,196
CHR	Charger Metals	0.395	0%	$17,267,175
PAM	Pan Asia Metals	0.36	0%	$52,868,012
AX8	Accelerate Resources	0.026	0%	$9,817,646
AM7	Arcadia Minerals	0.23	0%	$10,740,515
BYH	Bryah Resources Ltd	0.025	0%	$7,031,337
EMS	Eastern Metals	0.079	0%	$3,086,089
GSM	Golden State Mining	0.044	0%	$5,148,625
LRV	Larvottoresources	0.16	0%	$10,760,756
RAG	Ragnar Metals Ltd	0.016	0%	$6,066,958
EMC	Everest Metals Corp	0.09	0%	$9,578,980
WCN	White Cliff Min Ltd	0.011	0%	$8,624,599
LRS	Latin Resources Ltd	0.12	0%	$264,198,590
PNN	Power Minerals Ltd	0.48	0%	$34,678,005
MTM	Mtmongerresources	0.076	0%	$4,333,841
SCN	Scorpion Minerals	0.075	0%	$25,927,964
ENT	Enterprise Metals	0.009	0%	$6,345,726
KAI	Kairos Minerals Ltd	0.023	0%	$45,174,150
AVW	Avira Resources Ltd	0.0025	0%	$5,334,475
RMX	Red Mount Min Ltd	0.006	0%	$12,554,183
A8G	Australasian Metals	0.19	0%	$7,822,394
SRZ	Stellar Resources	0.012	0%	$12,055,571
LSR	Lodestar Minerals	0.0045	0%	$7,822,968
VKA	Viking Mines Ltd	0.011	0%	$11,277,843
IPT	Impact Minerals	0.01	0%	$24,813,706
VMC	Venus Metals Cor Ltd	0.135	0%	$24,040,622
ZNC	Zenith Minerals Ltd	0.225	0%	$79,133,860
EPM	Eclipse Metals	0.021	0%	$42,589,256
THR	Thor Energy PLC	0.006	0%	$8,853,677
DRE	Dreadnought Resources Ltd	0.094	0%	$309,610,453
XTC	Xantippe Res Ltd	0.006	0%	$62,070,208
LRD	Lordresourceslimited	0.17	0%	$5,659,661
WMC	Wiluna Mining Corp	0.205	0%	$74,238,031
ALY	Alchemy Resource Ltd	0.017	0%	$20,027,296
FTL	Firetail Resources	0.13	0%	$8,450,000
IR1	Irismetals	1.16	0%	$74,506,800
DAL	Dalaroometalsltd	0.09	0%	$2,688,750
TUL	Tulla Resources	0.35	0%	$74,496,958
OCN	Oceanalithiumlimited	0.35	0%	$12,744,900
CMD	Cassius Mining Ltd	0.035	0%	$14,297,252
LLO	Lion One Metals Ltd	0.9	0%	$10,611,417
IGO	IGO Limited	14.5	0%	$10,987,955,967
LTR	Liontown Resources	1.3975	0%	$3,077,836,486
AKE	Allkem Limited	12.59	0%	$8,053,621,626
LLL	Leolithiumlimited	0.5925	0%	$587,060,863
RIO	Rio Tinto Limited	121.655	-1%	$45,407,167,296
AZL	Arizona Lithium Ltd	0.0685	-1%	$168,532,820
CXO	Core Lithium	1.015	-1%	$1,896,435,042
GW1	Greenwing Resources	0.2525	-1%	$37,806,011
ESS	Essential Metals Ltd	0.5	-1%	$135,121,180
FG1	Flynngold	0.09	-1%	$9,361,492
MNS	Magnis Energy Tech	0.435	-1%	$426,945,853
PAT	Patriot Lithium	0.405	-1%	$24,861,376
EUR	European Lithium Ltd	0.073	-1%	$107,243,699
AAJ	Aruma Resources Ltd	0.072	-1%	$11,458,190
CRR	Critical Resources	0.054	-2%	$87,468,294
RDT	Red Dirt Metals Ltd	0.465	-2%	$211,331,058
LIT	Lithium Australia	0.045	-2%	$56,174,817
DTM	Dart Mining NL	0.045	-2%	$7,158,546
QXR	Qx Resources Limited	0.044	-2%	$40,358,804
KTA	Krakatoa Resources	0.043	-2%	$15,167,236
AOU	Auroch Minerals Ltd	0.0605	-2%	$26,526,398
LKE	Lake Resources	0.6875	-2%	$1,001,061,016
LPI	Lithium Pwr Int Ltd	0.39	-3%	$251,639,024
MXR	Maximus Resources	0.037	-3%	$12,124,119
AZI	Altamin Limited	0.073	-3%	$29,378,756
MIN	Mineral Resources.	88.31	-3%	$17,258,756,827
KZR	Kalamazoo Resources	0.165	-3%	$25,299,294
STM	Sunstone Metals Ltd	0.033	-3%	$89,095,178
GT1	Greentechnology	0.775	-3%	$152,590,714
WC8	Wildcat Resources	0.028	-3%	$19,198,659
LIS	Lisenergylimited	0.3375	-4%	$58,069,965
DAF	Discovery Alaska Ltd	0.027	-4%	$6,278,572
LLI	Loyal Lithium Ltd	0.4	-4%	$21,783,350
SGQ	St George Min Ltd	0.079	-4%	$68,665,615
RGL	Riversgold	0.025	-4%	$24,582,161
AGY	Argosy Minerals Ltd	0.715	-4%	$1,046,283,586
SYA	Sayona Mining Ltd	0.235	-4%	$2,128,957,971
BMM	Balkanminingandmin	0.43	-4%	$20,147,406
LEL	Lithenergy	0.86	-4%	$54,135,000
EVR	Ev Resources Ltd	0.019	-5%	$18,719,681
GL1	Globallith	1.975	-6%	$445,532,105
PGD	Peregrine Gold	0.48	-6%	$19,769,073
NWM	Norwest Minerals	0.064	-6%	$15,103,302
LPD	Lepidico Ltd	0.015	-6%	$122,204,348
LNR	Lanthanein Resources	0.0215	-7%	$25,796,238
ARN	Aldoro Resources	0.21	-7%	$25,405,271
FRS	Forrestaniaresources	0.13	-7%	$8,524,782
TON	Triton Min Ltd	0.037	-8%	$55,311,367
M2R	Miramar	0.073	-8%	$5,583,858
BNR	Bulletin Res Ltd	0.11	-8%	$35,230,932
VUL	Vulcan Energy	6.07	-9%	$952,410,399
CZL	Cons Zinc Ltd	0.019	-10%	$10,129,514
MM1	Midasmineralsltd	0.19	-10%	$11,997,670
CTN	Catalina Resources	0.009	-10%	$12,384,869
KGD	Kula Gold Limited	0.023	-15%	$9,752,722
CY5	Cygnus Metals Ltd	0.335	-27%	$84,582,138

A total of 28 lithium stocks finished in the green while another 52 tumbled into the red zone.

Who’s got news out?

PATRIOT BATTERY METALS (ASX:PMT)

Patriot has hit significant intervals of spodumene pegmatite near-surface in ten of 14 holes at the CV13 pegmatite cluster at the Corvette property in Canada, with results returning up to 22.6m at 1.56% Li2O and 6m at 3.19% Li2O.

These are the first holes testing the newly discovered CV13 cluster, a grassroots discovery from 2022.

The company is now evaluating infill and step out drilling during the current winter program to support an initial mineral resource estimate at CV13 scheduled for 2023.

WINSOME RESOURCES (ASX:WR1)

New assays at Winsome’s Adina project have returned lithium mineralisation up to 1.28% Li2O over 93.5m from 3m, 1.52% Li2O over 23.9m from 4.6m, and 1.56% Li2O over 17m from 88.6m.

Importantly, these intersections include exceptionally high-grade zones such as 2.16% Li2O over 16m from 23m, 2.37% Li2O over 5.7m from 60.4m, and 4.19% Li2O over 4.1m from 73.1m.

Results have now been received from six of 32 holes in addition to the recent identification of a potential extension to the strike length of the Adina pegmatite body to 1,600m.

GLOBAL LITHIUM RESOURCES (ASX:GL1)

Global Lithium believes the financial metrics from its Manna Scoping Study are ‘compelling’ with the board pushing the project directly to a definitive feasibility study.

GL1 says the project demonstrates it is resilient to capital escalation with a 20% increase in the total project capital cost to $522M, only reducing the NPV8% from A$2.8B to A$2.7B and the payback period increasing slightly to 18 months after first production.

A further mineral resource update incorporating an additional ~30,000m of drilling at Manna is expected to be announced sometime this year, which will form the basis of the DFS.

TREK METALS (ASX:TKM)

An independent evaluation of surface geochemical data from the Tambourah lithium project in WA confirms that the Eastern prospect is the spodumene-dominant zone and hosts a greenfields lithium discovery.

“As anticipated, the majority of rock chips taken in the Eastern Prospect, where spodumene bearing high-grade lithium (up to 3.07% Li2O) was discovered late in 2022 have been classified as LCT pegmatite and therefore this area remains a high-priority drill target area for the upcoming maiden drill program,” the company says.

AURORA ENERGY METALS (ASX:1AE)

Further uranium and lithium assays from last year’s 3,414m drill program have been received with wide zones of lithium bearing clays identified over 1km from previous intersections, extending the known area of lithium mineralisation.

Results include 20.6m at 1,212ppm Li (0.26% Li2O) from 20.7m, 16.8m at 1,356 ppm Li (0.29% Li2O) from 62.5m and 15.0m at 1,221 ppm Li (0.26% Li2O) from 56.1m.

WIDGIE NICKEL (ASX:WIN)

A recently completed reverse circulation drill program has outlined the potential for direct shipping ore at Widgie’s Faraday lithium deposit.

Drilling over 90m of strike around previously announced high grade shallow intercepts returned assays such as 10m at 1.04% Li2O from 15m (23MERC006), 15m at 0.84% Li2O from 19m including 10m at 1% Li2O from 23m (23MERC019), and 16m at 0.74% Li2O including 7m at 1.02% Li2O from 13m (23MERC013).

As such, the company has started engaging with potential offtake partners and will continue metallurgical testwork to investigate the potential for rudimentary upgrading of medium grade ore to a premium DSO grade.

Initial step-out drilling has also intersected lithium, increasing the strike of the drill tested pegmatite up to about 300m.

INFINITY MINERALS (ASX:IMI)

Infinity is preparing to carry out further exploration at its Tamborah South Exploration Licence E45/4848 in WA’s Pilbara region after a five-year extension was granted.

The tenement has been the focus of exploration since the discovery of pegmatites in 2021 with rock chips returning up to 2.635% Li2O and 0.724% rubidium while lag samples have defined two geochemical anomaly zones of over 0.1% Li2O in the northwest part of the licence.

Additionally, 21 drill holes totalling 1,812m have been drilled to date with visible spodumene observed in both rock and drill chips.

Ground geophysics is planned to assist below surface exploration and drill planning.

POWER MINERALS (ASX:PNN)

Drilling at Power Minerals’ Incahuasi salar within its Salta lithium brine project in Argentina has been expanded by up to three holes to maximise mineral resource potential and test for the presence of water.

This follows the second hole at the salar intersecting an interval of about 300m that has the potential to host lithium in brines in lithologies similar to those encountered in the first hole, which had assayed brines averaging 210 parts per million lithium.

It also delivered a static brine flow of about 2,500 litres per hour using a 5 1/2 inch diameter hole, which indicates that the aquifer has suitable drainable porosity for brine extraction from a larger diameter production well.

Brine and drill core samples from the second hole have been sent for analysis to confirm detailed brine chemistry and density, drainable porosity, and lithium grades.