• Tianqi loses appeal to halt Chilean state run miner deal with SQM
  • SQM and Codelco pursue deal to extract lithium at Atacama salt flat
  • Rio and BYD in the running for Altoandinos salt flat project

 

Our High Voltage column wraps all the news driving ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths, and vanadium.

 

Major Chinese lithium producer Tianqi has lost its appeal to Chile’s top court to halt a deal between the world’s number two lithium producer Sociedad Química y Minera (SQM) and state-run Codelco.

The partnership would grant SQM the ability to extract lithium in the prized Atacama salt flat through 2060, while giving Codelco, the copper miner, a major role in the lithium industry in Chile – and making the state the majority shareholder.

Tianqi, who own around a fifth of SQM, argued that the agreement should have been approved by SQM shareholders, while CMF, Chile’s financial regulator, ruled that no such approval is required.

“The events surrounding the Codelco-SQM deal sets a major precedent of great gravity that has throughout the process exposed a lack of the most minimal transparency standards and respect for the rights of minority shareholders,” Tianqi said back in July.

However, according to Reuters, Chile’s top court said “the Supreme Court is not an appellate court”, and would only rule on such matters in exceptional circumstances, which wasn’t the case.

The country is certainly attracting the attention of major players like mining giant Rio Tinto (ASX:RIO) and Chinese EV-maker BYD in recent months, with another state-run mining company – ENAMI – announcing six companies had secured eligibility to proceed with proposals to develop a lithium project in Chile’s Altoandinos salt flats.

The salt flats in the northern region of Atacama are one of the areas where the Chilean government is aiming to boost lithium production in partnership with the state by kicking off new projects.

ENAMI launched its search in May, seeking a partner to offer either financial backing or operational support in Altoandinos, for an ownership stake that has yet to be determined.

Along with Rio and BYD, the other contenders include French miner Eramet, South Korea’s LG Energy and Posco, and China’s CNGR Advanced Material.

ENAMI plans to formalise a public-private partnership by March 2025.

 

 

Battery Metals Winners and Losers

 

Here’s how a basket of ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths, magnesium, manganese, and vanadium is performing>>>

Wordpress Table Plugin

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:

 

 

Weekly Small Cap Standouts

Lithium Australia (ASX:LIT)

The company has signed an exclusive battery recycling agreement with BYD automotive subsidiary, BYD Auto, to provide battery recycling services for all new energy vehicles end-of life batteries in Australia.

BYD Auto is a global leader in new energy vehicles, delivering a record ~3 million New Energy vehicles globally in 20232 and holds ~14% of Australia’s EV market share after entering the market in 2022.

Notably, BYD new energy vehicles are equipped with the revolutionary Blade battery, which uses lithium iron-phosphate (LFP) as the cathode material and offers a higher level of safety, durability, longevity and performance.

“This milestone achievement is expected to significantly increase our future collection volumes of large-format lithium-ion batteries (LIBs), further accelerating the company’s shift in battery collections mix to be primarily focused on the higher margin large-format LIBs,” CEO and MD Simon Linge said.