Mangrove Lithium has announced the securing of $35 million in financing to commence construction on its electrochemical lithium refining plant situated in Delta, British Columbia. Noteworthy investors such as Mitsubishi, Orion Industrial Ventures, and Export Development Canada have come on board, along with returning investors including Breakthrough Energy Ventures and BMW i Ventures. The construction is already underway, with the facility expected to be operational by late 2025.
Once completed, the plant will have the capacity to produce enough battery-grade materials to power approximately 25,000 electric vehicles (EVs) annually. Notably, Mangrove’s innovative production process eliminates the harmful reagents commonly used in lithium extraction and refining. This improvement not only reduces waste but also cuts costs for the company. The plant will support the production of both lithium hydroxide and lithium carbonate, catering to the shifting preferences within battery chemistry.
Saad Dara, CEO of Mangrove Lithium, stated, “Our Delta plant will help meet the growing demand for battery-grade lithium whilst enhancing energy independence amid rising geopolitical uncertainties.” This facility is part of the broader trend among lithium producers responding to increased demand for EVs and associated battery components.
Meanwhile, Nevada Lithium Resources Inc. has provided updates on its metallurgical program at its Bonnie Claire lithium project located in Nye County, Nevada. The company is collaborating with Fluor Enterprises and Kemetco Research to advance the project’s testing and design aspects. Their efforts focus on developing a process plant suitable for inclusion in the updated Preliminary Economic Assessment (PEA), which is set to be completed by April 2025.
The initial findings from the metallurgical tests are promising, indicating high lithium recovery rates exceeding 95% with manageable levels of sulfuric acid consumption. Stephen Rentschler, CEO of Nevada Lithium, expressed confidence, stating, “We are tremendously impressed by the quality of work produced by Fluor and Kemetco. The initial lithium and boron recovery factors are very high.”
These advancements are significant not only for Nevada Lithium but also for global lithium supply chains as they highlight the potential for the Bonnie Claire project to contribute significantly to North America's lithium output, particularly amid increasing demand.
On the other hand, Sibanye Stillwater, the South African mining group, has made headlines for deciding to withdraw from the Rhyolite Ridge lithium-boron project due to declining lithium prices. Originally, Sibanye intended to invest $490 million for a 50% stake as part of its joint venture with Ioneer Ltd. The decision was announced after the company reviewed updated studies which did not meet the expected return on investment based on current market pricing.
Despite Sibanye’s exit from the project, Ioneer remains optimistic. The company confirmed it has secured $996 million through loans from the U.S. Department of Energy, contingent on perquisites being met. Rhyolite Ridge, projected to produce 22,000 tonnes of lithium carbonate annually, is seen as pivotal to U.S. efforts to bolster domestic production of key minerals and reduce reliance on foreign supplies.
Ioneer emphasized the importance of the project, which is expected to secure the U.S. lithium supply chain and compliment the move toward electric vehicles. Currently, lithium prices have significantly weakened, plummeting over 80% from their peak noted in 2022, which has led to some companies shelving their mining plans. “Ioneer’s focus remains on bringing this world-class project online,” the company stated, highlighting its determination to move forward with its operations, irrespective of Sibanye’s withdrawal.
The volatility of lithium prices has created unease within the industry, causing many companies to reassess the viability of their mining projects. Investors are facing uncertainty as the lithium boom appears to be adjusting to market realities. With both Northern and Western Hemisphere companies pushing forward with investment and development, the competition for lithium resources is intensifying as demand for batteries surges globally.
This trend indicates not just the evolution of the lithium industry, but also signals larger economic shifts driven by the electrification of transportation and broader renewable energy ambitions. With projects like Mangrove Lithium’s and Nevada Lithium’s seeing fresh investments, the path to sustainable practices coupled with competitive pricing is more important than ever.
Overall, these developments reflect the complex dynamics of the lithium mining sector, where investment, technological advancement, and market conditions are constantly at play. Stakeholders will need to navigate these challenges judiciously as they strive to meet the burgeoning demand for lithium, which is indispensable for the future of electric vehicles and sustainable energy solutions.