• Morgan Stanley says EV demand destruction is likely as lithium soars 
  • China’s largest battery recycling company looks to Europe
  • LRS raises $35mn to expedite its lithium business in Brazil 

 

American multinational investment bank, Morgan Stanley, has warned electric vehicle battery makers will need to lift their prices by roughly 25% to keep up with soaring lithium carbonate prices.

The firm says “demand destruction” is likely, especially considering Chinese prices for lithium carbonate (the key ingredient in many batteries) have jumped fivefold over the past year.

“Historically, the battery price cost curve had been declining at a pace of 3% to 7% annually for so many years in a row it almost seemed inevitable,” the analysts said.

“But molecules don’t play by the same rules as Moore’s Law – the world has changed, and along with it is a new paradigm of input costs.”

While most battery manufacturers in China buy the material on the spot market rather than though long-term contracts, Morgan Stanley says there’s scope for “profound” long-term changes in the battery industry.

“Tesla’s scale, technology and vertical integration make it best placed to address the challenges relative to other EV manufacturers,” it said.

 

China’s GEM Co eyes move into Europe’s battery recycling market

Benchmark Minerals says China’s largest battery recycling company, GEM Co plans to invest in Europe’s battery supply chain to help customers meet proposed European Union rules that will mandate the use of recycled battery raw materials.

The European Union is hoping to mandate the amount of recycled content in lithium ion batteries must use by the end of this decade.

These revisions to the European Union’s 2006 Battery Directive aim to encourage the development of battery recycling facilities across the European continent and reduce the region’s reliance on foreign suppliers of critical minerals.

GEM is a leading recycler of electronic waste and a large producer of nickel cathode battery materials with clients including Toyota, Samsung, CATL, and BYD.

According to Benchmark, the policy mandates by the European Union are attracting Chinese companies who have years of recycling experience.

“By 2030 the EU will require that lithium ion batteries in the bloc are made up of at least 12% recycled cobalt, 4% nickel, and 4% lithium,” it said.

“By 2035, that will rise to 20%, 12%, and 10% of the total amount of materials used.”

 

Here’s how ASX lithium stocks are tracking today:

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

 

CODE COMPANY PRICE % Month % Week % Today Market Cap
SHH Shree Minerals Ltd 0.016 -11% 0% 14% $17,111,316.49
MM1 Midasmineralsltd 0.34 113% 62% 13% $16,331,437.50
RDT Red Dirt Metals Ltd 0.6 15% -10% 13% $158,874,284.53
VMC Venus Metals Cor Ltd 0.2 5% 8% 11% $27,194,162.94
LRS Latin Resources Ltd 0.2025 382% -6% 9% $305,101,930.07
KZR Kalamazoo Resources 0.43 43% 26% 9% $57,351,777.73
LRV Larvottoresources 0.27 46% 15% 8% $10,301,875.00
ARN Aldoro Resources 0.275 -19% -7% 8% $22,953,465.20
ADV Ardiden Ltd 0.014 8% 0% 8% $34,588,350.63
RGL Riversgold 0.075 136% -20% 7% $36,855,292.11
LSR Lodestar Minerals 0.017 42% -15% 6% $27,814,997.57
THR Thor Mining PLC 0.017 21% 0% 6% $16,222,261.30
AM7 Arcadia Minerals 0.26 16% -5% 6% $8,573,162.50
SRI Sipa Resources Ltd 0.053 -2% 4% 6% $10,251,240.15
NWM Norwest Minerals 0.06 -10% -3% 5% $10,294,621.06
LRD Lordresourceslimited 0.21 0% 5% 5% $6,156,924.20
FFX Firefinch Ltd 1.115 40% 0% 5% $1,258,024,030.37
RAG Ragnar Metals Ltd 0.049 56% 44% 4% $17,516,189.78
WML Woomera Mining Ltd 0.026 44% 18% 4% $17,170,826.65
PAM Pan Asia Metals 0.55 7% 0% 4% $39,039,081.32
SRZ Stellar Resources 0.03 11% 11% 3% $24,281,776.15
AZI Altamin Limited 0.092 35% -1% 3% $34,609,603.73
PLL Piedmont Lithium Inc 0.95 -1% 4% 3% $485,365,136.00
INF Infinity Lithium 0.165 14% -6% 3% $66,372,710.56
WR1 Winsome Resources 0.495 39% -3% 3% $64,646,397.12
WCN White Cliff Min Ltd 0.034 31% -6% 3% $21,568,910.95
AML Aeon Metals Ltd. 0.072 50% -3% 3% $60,606,622.16
EPM Eclipse Metals 0.038 23% 0% 3% $71,081,677.28
AVZ AVZ Minerals Ltd 1.18 32% 3% 3% $4,058,039,210.20
ZNC Zenith Minerals Ltd 0.4 18% -4% 3% $134,122,620.45
DRE Dreadnought Resources Ltd 0.044 10% -2% 2% $122,063,392.69
LIT Lithium Australia NL 0.1125 7% 2% 2% $113,757,734.64
WMC Wiluna Mining Corp 0.92 -2% 4% 2% $190,183,450.50
MQR Marquee Resource Ltd 0.1175 19% 2% 2% $31,388,185.79
KGD Kula Gold Limited 0.05 14% 2% 2% $10,543,605.97
A8G Australasian Metals 0.505 7% -1% 2% $19,884,394.53
JRL Jindalee Resources 4.74 66% 17% 2% $264,952,191.90
AKE Allkem Limited 13.51 28% 4% 2% $8,455,346,220.36
AX8 Accelerate Resources 0.063 34% -3% 2% $15,714,451.74
G88 Golden Mile Res Ltd 0.064 3% 2% 2% $12,646,154.68
NMT Neometals Ltd 1.765 20% 1% 1% $954,174,929.04
MRR Minrex Resources Ltd 0.074 32% -6% 1% $65,747,522.49
MXR Maximus Resources 0.085 25% 13% 1% $26,704,084.51
LKE Lake Resources 2.04 58% -3% 1% $2,590,956,803.66
MIN Mineral Resources. 62.33 34% 3% 1% $11,670,943,039.80
IGO IGO Limited 13.91 9% -3% 1% $10,473,013,853.79
GT1 Greentechnology 0.96 28% 5% 1% $101,230,000.00
CXO Core Lithium 1.37 26% -1% 0% $2,343,407,330.36
PLS Pilbara Min Ltd 2.965 3% -11% 0% $8,811,429,211.28
RIO Rio Tinto Limited 120.68 8% 2% 0% $44,731,553,787.00
ASN Anson Resources Ltd 0.15 30% -6% 0% $153,217,733.25
GXY Galaxy Resources 0 -100% -100% 0% $2,715,139,305.12
INR Ioneer Ltd 0.715 40% -2% 0% $1,494,742,105.29
LPD Lepidico Ltd 0.039 22% -7% 0% $245,416,764.96
LTR Liontown Resources 1.66 3% -11% 0% $3,639,093,828.68
QPM Queensland Pacific 0.19 31% -7% 0% $293,191,494.89
RLC Reedy Lagoon Corp. 0.034 31% 0% 0% $18,644,145.82
TON Triton Min Ltd 0.031 7% -9% 0% $38,526,309.49
GL1 Globallith 2.28 43% -7% 0% $359,822,244.72
LEL Lithenergy 1.005 12% 0% 0% $45,225,000.00
DTM Dart Mining NL 0.081 1% -2% 0% $10,083,765.33
FG1 Flynngold 0.17 6% -11% 0% $10,890,378.50
IMI Infinitymining 0.185 3% 6% 0% $10,637,500.00
TMB Tambourahmetals 0.26 27% -7% 0% $10,710,075.48
TEM Tempest Minerals 0.1 355% -20% 0% $39,790,089.80
MTM Mtmongerresources 0.195 26% -5% 0% $6,758,706.44
QXR Qx Resources Limited 0.077 67% -11% 0% $63,976,398.72
STM Sunstone Metals Ltd 0.07 -9% -4% 0% $156,766,468.53
PGD Peregrine Gold 0.48 -6% -4% 0% $18,377,601.12
AVW Avira Resources Ltd 0.006 20% -14% 0% $12,712,740.00
EFE Eastern Resources 0.051 9% -12% 0% $50,716,268.18
VKA Viking Mines Ltd 0.011 -8% 0% 0% $11,277,842.74
IPT Impact Minerals 0.013 -7% -7% 0% $28,476,000.62
RAS Ragusa Minerals Ltd 0.088 60% 1% 0% $11,057,889.04
WC8 Wildcat Resources 0.035 17% 0% 0% $22,584,545.45
CZL Cons Zinc Ltd 0.03 7% -21% 0% $10,540,734.39
M2R Miramar 0.19 9% 9% 0% $9,464,853.80
AOU Auroch Minerals Ltd 0.13 13% -7% 0% $46,969,233.87
XTC Xantippe Res Ltd 0.014 100% -7% 0% $105,562,857.69
VUL Vulcan Energy 9.02 -4% -11% 0% $1,188,755,162.70
GLN Galan Lithium Ltd 2.02 43% -6% 0% $617,906,344.86
PNN PepinNini Minerals 0.84 100% 35% -1% $51,742,150.33
CHR Charger Metals 0.75 12% -6% -1% $24,586,097.84
MNS Magnis Energy Tech 0.47 7% -4% -1% $458,748,031.28
FRS Forrestaniaresources 0.345 3% -3% -1% $9,834,581.40
AS2 Askarimetalslimited 0.685 76% 5% -1% $26,977,316.69
EMH European Metals Hldg 1.325 16% -3% -1% $189,345,017.93
EVR Ev Resources Ltd 0.062 32% 0% -2% $58,336,996.47
BYH Bryah Resources Ltd 0.055 17% 8% -2% $12,667,601.80
ESS Essential Metals Ltd 0.54 44% 0% -2% $134,388,848.00
AGY Argosy Minerals Ltd 0.485 37% -8% -2% $670,131,277.20
GSM Golden State Mining 0.088 13% -20% -2% $7,477,918.65
EUR European Lithium Ltd 0.1075 8% -23% -2% $152,120,499.96
SCN Scorpion Minerals 0.081 25% 21% -2% $22,369,013.94
AZL Arizona Lithium Ltd 0.175 25% -8% -3% $399,938,253.66
SYA Sayona Mining Ltd 0.345 116% 1% -3% $2,536,619,522.28
1MC Morella Corporation 0.034 36% -8% -3% $181,167,489.51
CAI Calidus Resources 1.02 20% 6% -3% $422,411,858.40
LPI Lithium Pwr Int Ltd 0.83 37% -7% -3% $298,518,845.04
AAJ Aruma Resources Ltd 0.15 83% -9% -3% $24,329,032.97
KAI Kairos Minerals Ltd 0.03 25% 0% -3% $60,824,898.22
MMG Monger Gold Ltd 0.3 20% 15% -3% $7,750,000.00
CRR Critical Resources 0.084 17% -6% -3% $129,308,625.83
NVA Nova Minerals Ltd 0.825 29% -13% -4% $154,973,965.10
PSC Prospect Res Ltd 0.8725 3% -1% -4% $392,477,246.07
BNR Bulletin Res Ltd 0.22 47% -15% -4% $66,718,737.18
TKL Traka Resources 0.0105 5% -13% -5% $7,576,520.17
EMS Eastern Metals 0.2 8% -7% -5% $7,476,000.00
RMX Red Mount Min Ltd 0.009 13% 0% -5% $15,602,456.65
MLS Metals Australia 0.175 146% 35% -5% $67,326,697.58
BMM Balkanminingandmin 0.345 25% -7% -5% $11,953,750.00
AOA Ausmon Resorces 0.011 38% 22% -8% $10,287,472.12
ENT Enterprise Metals 0.021 50% 5% -9% $14,826,877.67
TSC Twenty Seven Co. Ltd 0.004 0% 0% -11% $11,973,662.57
MMC Mitremining 0.19 6% -5% -12% $5,823,296.50

 

A massive 64 companies finished in the red this week, while 15 flatlined and another 36 ending up in the green.

 

Who’s got news out today?

LATIN RESOURCES (ASX:LRS)

LRS says it has carried out a ‘transformational’ placement to expedite its lithium business in Brazil with plans in place to begin an “aggressive” resource definition program for the Bannal Valley prospect at the Salinas Project.

Anchored by Canadian cornerstone investor, Electrification and Decarbonisation AIE LP Fund (a 100% subsidiary of Toronto based Waratah Capital Advisers), the lithium explorer says demand for the placement was “strong” and was also supported by several institutional investors in Australia, North America, and Asia.

It hopes to secure a further two rigs to take the total fleet to four rigs in Brazil, with a focus on drilling at least 25,000 to drive that prospect towards a maiden JORC mineral resource estimate.

Another 5,000 metres of drilling will then be carried out at each of the Monte Alto and Salina South prospects.

Elsewhere, LRS is quickly advancing the Cloud Nine Halloysite-Kaolin Deposit in Western Australia, with key feasibility studies underway targeting delivery of an upgrade of the mineral resource, and in a parallel undertaking a fast-start Direct Shipping Ore (DSO) Study.

 

ALLKEM (ASX:AKE)

Global lithium chemicals company Allkem reported a record-breaking third quarter with its Mt Cattlin lithium operation in Ravensthorpe, WA having generated US$143.8mn in revenue.

In its latest quarterly update, AKE said Mt Cattlin produced 48,562 dmt of spodumene concentrate at 5.4% lithium oxide at a time when lithium carbonate and hydroxide spot continued to rally to new records.

“Spodumene concentrate spot prices also registered records during the quarter, roughly double the prices of the December quarter,” the company said.

“Demand for lithium carbonate in China remained strong during the March quarter in response to dominance of LFP battery formats (lithium, iron, phosphate) in the domestic market which represented more than 55% of battery chemistries.”

AKE affirmed its strategy to increase lithium production by three-fold by 2026 to maintain a 10% share of the global lithium market over the next decade.

It also intends to increase the Olaroz resource in northern Argentina by more than two times its current 6.4Mt lithium carbonate equivalent to 16.2Mt LCE.