• Volkswagen is eyeing a potential battery manufacturing plant in the US
  • Forrestania ready to get the drill spinning at the ‘South Iron Cap East’ lithium prospect
  • Eastern Resources has formed a new JV to explore for lepidolite lithium projects

 

All your ASX lithium news for Friday, June 10

Electric vehicle (EV) makers are ramping up efforts to get involved in all aspects of the supply chain, and Volkswagen is no exception.

The company is looking at setting up an in-house battery cell manufacturing operation in North America – similar to its battery pilot line and recycling facility in Germany.

The idea is to ease a coming battery shortage by supplementing suppliers with its own production, Volkswagen America COO Johan De Nysschen told Bloomberg.

The company has been scouting sites to build its own cell-production facility, using third-party suppliers or entering into joint ventures.

This comes after an announcement in March to earmark $7.1bn over the next five years to improve its US offering battery research and manufacturing capabilities.

The carmaker has already invested $800 million to retool its Chattanooga assembly plant in Tennessee to make EVs – and just opened a new $22 million testing lab at the site this week.

A final decision on the battery facility is expected by the end of the year.

 

Here’s how ASX lithium stocks were tracking today:

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

 

 

Only 16 stocks were in the green today, a whopping 80 were in the red and 32 failed to move the needle.

 

Who’s got news out today?

FORRESTANIA RESOURCES (ASX:FRS)

FRS is approved and ready to go on a drilling program at the “high priority” ‘South Iron Cap East’ lithium prospect, part of the ‘Forrestania’ project in WA.

Several other program of work (POW) applications to drill other prospects are pending.

South Iron Cap East is ~1km from a 2016 drill result reported by Western Areas of 50.6m @ 0.95% Li2O “which is a significant result and demonstrates the prospectivity of the area”, FRS says.

 

EASTERN RESOURCES (ASX:EFE)

The company and Yongxing Special Materials Australia have incorporated a JV company – EFE Yongxing – to seek lepidolite lithium projects in Australia.

Eastern Resources has 60% interest by contributing $100,000 and YSMA has 40% interest by contributing $900,000.

EFE Yongxing will actively seek lepidolite opportunities from exploration stage through to projects with established resources, and also will investigate any potential opportunities regarding producing lepidolite concentrates/DSO by co-operating with operating lithium mines and lithium projects in advanced stage.

Meanwhile EFE will explore for lepidolite as well as spodumene in the existing Trigg Hill Lithium Tantalum Project and Taylor Lookout Lithium Tantalum Project.

 

GLOBAL LITHIUM RESOURCES (ASX:GL1)

The company has returned more “encouraging” assays from drilling at its Marble Bar project in WA, including 1m at 1.42% lithium, 9m at 1.09% and 7m at 1.82%.

GL1 says the wide intervals demonstrate the robustness of the project and “enhance the opportunities for increasing the resource base in proximity to the current Archer deposit and along strike further to the south and east.”

Ongoing drilling will target these lithium mineralised pegmatites to establish their prospectivity both along strike and down dip.

Plus, there are additional outcropping lithium targets which remain untested – and will form part of the ongoing focus for the CY2022 drilling program.

 

XANTIPPE RESOURCES (ASX:XTC)

XTC has expanding its footprint in the lithium triangle, executing a definitive agreement to acquire the “Luz Maria” tenement prospective for lithium brine deposits in Catamarca, Argentina – known as the Carachi Pampa Lithium Project.

“In executing the definitive agreement to acquire the Luz Maria tenement, Xantippe has increased its holding by 3,383 hectares in the Latin American lithium triangle,” MD Richard Henning says.

“Together with La Sofia, Rita and Rita I, XTC now holds almost 12,400 hectares.”

The company’s plan is to produce an ESG lithium product using direct lithium extraction (DLE) which requires a smaller environmental footprint, provides optimal yield and efficient use of water.

 

 FRS, EFE, GL1 and XTC share price today: