ALL CAPITALI$M IS STATE CAPITALI$M
Reuters | October 28, 2024 |
Thacker Pass is projected to begin lithium production in the second half of 2026.
Reuters | October 28, 2024 |
Thacker Pass is projected to begin lithium production in the second half of 2026.
(Image courtesy of Lithium Americas.)
The US Department of Energy finalized a $2.26 billion loan for Lithium Americas on Monday to build Nevada’s Thacker Pass lithium mine, one of Washington’s largest mining industry investments and part of a broader push to boost critical minerals production.
The loan, provisionally approved in March, is a key part of US President Joe Biden’s efforts to reduce dependence on lithium supplies from China, the world’s largest processor of the electric vehicle battery metal. Biden officials permitted a similar lithium project under development by ioneer last week.
The Thacker Pass project is slated to open later this decade and be a key supplier to General Motors, which earlier this month boosted its investment in the mine to nearly $1 billion.
“The Biden-Harris Administration recognizes mineral security is essential to winning the global clean energy race,” said Ali Zaidi, the White House national climate advisor.
Former President Donald Trump had permitted the mine just before leaving office. Initial construction at the site, just south of Nevada’s border with Oregon, started last year after the company won a long-running and complex court case brought by conservationists, ranchers and Indigenous communities.
With the loan now closed, Vancouver-based Lithium Americas plans to start major construction, a process that could take three years or longer. The mine’s first phase is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year, enough for up to 800,000 EVs.
The project is expected to employ about 1,800 people during construction, and provide 360 full-time jobs once the mine is operational. The loan will have a 24-year term, with interest rates based on the US Treasury rate as each tranche is drawn.
“This essential loan helps us reduce dependence on foreign suppliers and secure America’s energy future,” said Lithium Americas CEO Jon Evans.
The mine’s cost had been increased from a previous estimate of $2.27 billion to nearly $2.93 billion due to higher engineering costs, an agreement to use union labor, and the company’s decision to build a housing facility for workers and their families in the remote region.
(By Ernest Scheyder; Editing by Richard Chang)
The US Department of Energy finalized a $2.26 billion loan for Lithium Americas on Monday to build Nevada’s Thacker Pass lithium mine, one of Washington’s largest mining industry investments and part of a broader push to boost critical minerals production.
The loan, provisionally approved in March, is a key part of US President Joe Biden’s efforts to reduce dependence on lithium supplies from China, the world’s largest processor of the electric vehicle battery metal. Biden officials permitted a similar lithium project under development by ioneer last week.
The Thacker Pass project is slated to open later this decade and be a key supplier to General Motors, which earlier this month boosted its investment in the mine to nearly $1 billion.
“The Biden-Harris Administration recognizes mineral security is essential to winning the global clean energy race,” said Ali Zaidi, the White House national climate advisor.
Former President Donald Trump had permitted the mine just before leaving office. Initial construction at the site, just south of Nevada’s border with Oregon, started last year after the company won a long-running and complex court case brought by conservationists, ranchers and Indigenous communities.
With the loan now closed, Vancouver-based Lithium Americas plans to start major construction, a process that could take three years or longer. The mine’s first phase is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year, enough for up to 800,000 EVs.
The project is expected to employ about 1,800 people during construction, and provide 360 full-time jobs once the mine is operational. The loan will have a 24-year term, with interest rates based on the US Treasury rate as each tranche is drawn.
“This essential loan helps us reduce dependence on foreign suppliers and secure America’s energy future,” said Lithium Americas CEO Jon Evans.
The mine’s cost had been increased from a previous estimate of $2.27 billion to nearly $2.93 billion due to higher engineering costs, an agreement to use union labor, and the company’s decision to build a housing facility for workers and their families in the remote region.
(By Ernest Scheyder; Editing by Richard Chang)
Biden administration approves ioneer’s Nevada lithium mine
Reuters | October 24, 2024 |
Rhyolite Ridge lithium project in Nevada. (Image courtesy of ioneer.)
The US Interior Department on Thursday gave final approval to ioneer’s Rhyolite Ridge lithium mine in Nevada, the first domestic source of the battery metal to be permitted by President Joe Biden’s administration and one that will become a key supplier to Ford and other electric vehicle manufacturers.
Shares of the Australia-based critical minerals miner jumped more than 20% in New York trading on Thursday afternoon before easing down.
The approval ends a more-than six-year review process during which regulators, ioneer and conservationists tussled over the fate of a rare flower found at the mine site, a tension that exposed the sometimes competing priorities between climate change mitigation efforts and biodiversity protection.
The permit, which had been expected by the end of the year, comes amid a flurry of recent moves by Biden officials to support critical minerals production and offset China’s market dominance.
It also unlocks a $700 million loan from the US Department of Energy, as well as a $490 million equity investment from Sibanye Stillwater to fund the project.
“This is a science-based decision,” Laura Daniel-Davis, the Interior Department’s acting deputy secretary, told Reuters. “We’re trying to send a signal that there’s no topic with greater importance than addressing climate change.”
The US Bureau of Land Management, which is controlled by the Interior Department, on Thursday issued the Rhyolite Ridge project’s record of decision – essentially the mine’s permit – and said the project will “include significant protections for the local ecosystem” and help create hundreds of jobs in the rural region.
The project, roughly 225 miles (362 km) north of Las Vegas, contains enough lithium to power roughly 370,000 EVs each year. Construction is slated to begin next year, with production commencing by 2028, a timeline that would make Rhyolite Ridge one of the largest US lithium producers alongside Albemarle and Lithium Americas.
The US Geological Survey has labeled lithium a critical mineral vital for the US economy and national security.
“We’re proud to be the first US lithium mine permitted by the Biden administration,” James Calaway, ioneer’s chairman, told Reuters.
The project will extract lithium as well as boron – a chemical used to make ceramics and soaps – from a clay-like deposit. The lithium will be processed on site into two main derivatives used to make batteries, and the company said it plans to recycle half of all the water used at the site, higher than the industry average.
Ford and a joint venture between Toyota and Panasonic have agreed to buy lithium from the mine.
Endangered flower
In addition to the lithium and boron deposits, Rhyolite Ridge is home to the Tiehm’s buckwheat flower, which is found nowhere else on the planet and was declared an endangered species in 2022.
The Center for Biological Diversity (CBD) and some other conservation groups thus oppose ioneer’s project, saying it would push the flower to the brink of extinction.
After the permit was announced on Thursday, the CBD said it plans to sue the federal government to block the project.
“By greenlighting this mine, the Bureau of Land Management is abandoning its duty to protect endangered species like Tiehm’s buckwheat and it’s making a mockery of the Endangered Species Act,” said the CBD’s Patrick Donnelly.
The Interior Department’s Daniel-Davis declined to comment on the potential litigation, but noted the changes made to the mine’s operating plan as a result of the permit review process, including new design plans and propagation efforts that included construction of a greenhouse. Department officials also released an opinion stating their belief that the mine would not harm the flower.
“We have run a transparent process,” said Daniel-Davis. “The company was willing to reconfigure its entire project to take into account Tiehm’s buckwheat.”
The death of more than 17,000 flowers near the mine site in 2020 sparked allegations of a “premeditated” attack. Ioneer denied harming the flowers. The government later blamed thirsty squirrels.
(By Ernest Scheyder; Editing by Marguerita Choy)
Reuters | October 24, 2024 |
Rhyolite Ridge lithium project in Nevada. (Image courtesy of ioneer.)
The US Interior Department on Thursday gave final approval to ioneer’s Rhyolite Ridge lithium mine in Nevada, the first domestic source of the battery metal to be permitted by President Joe Biden’s administration and one that will become a key supplier to Ford and other electric vehicle manufacturers.
Shares of the Australia-based critical minerals miner jumped more than 20% in New York trading on Thursday afternoon before easing down.
The approval ends a more-than six-year review process during which regulators, ioneer and conservationists tussled over the fate of a rare flower found at the mine site, a tension that exposed the sometimes competing priorities between climate change mitigation efforts and biodiversity protection.
The permit, which had been expected by the end of the year, comes amid a flurry of recent moves by Biden officials to support critical minerals production and offset China’s market dominance.
It also unlocks a $700 million loan from the US Department of Energy, as well as a $490 million equity investment from Sibanye Stillwater to fund the project.
“This is a science-based decision,” Laura Daniel-Davis, the Interior Department’s acting deputy secretary, told Reuters. “We’re trying to send a signal that there’s no topic with greater importance than addressing climate change.”
The US Bureau of Land Management, which is controlled by the Interior Department, on Thursday issued the Rhyolite Ridge project’s record of decision – essentially the mine’s permit – and said the project will “include significant protections for the local ecosystem” and help create hundreds of jobs in the rural region.
The project, roughly 225 miles (362 km) north of Las Vegas, contains enough lithium to power roughly 370,000 EVs each year. Construction is slated to begin next year, with production commencing by 2028, a timeline that would make Rhyolite Ridge one of the largest US lithium producers alongside Albemarle and Lithium Americas.
The US Geological Survey has labeled lithium a critical mineral vital for the US economy and national security.
“We’re proud to be the first US lithium mine permitted by the Biden administration,” James Calaway, ioneer’s chairman, told Reuters.
The project will extract lithium as well as boron – a chemical used to make ceramics and soaps – from a clay-like deposit. The lithium will be processed on site into two main derivatives used to make batteries, and the company said it plans to recycle half of all the water used at the site, higher than the industry average.
Ford and a joint venture between Toyota and Panasonic have agreed to buy lithium from the mine.
Endangered flower
In addition to the lithium and boron deposits, Rhyolite Ridge is home to the Tiehm’s buckwheat flower, which is found nowhere else on the planet and was declared an endangered species in 2022.
The Center for Biological Diversity (CBD) and some other conservation groups thus oppose ioneer’s project, saying it would push the flower to the brink of extinction.
After the permit was announced on Thursday, the CBD said it plans to sue the federal government to block the project.
“By greenlighting this mine, the Bureau of Land Management is abandoning its duty to protect endangered species like Tiehm’s buckwheat and it’s making a mockery of the Endangered Species Act,” said the CBD’s Patrick Donnelly.
The Interior Department’s Daniel-Davis declined to comment on the potential litigation, but noted the changes made to the mine’s operating plan as a result of the permit review process, including new design plans and propagation efforts that included construction of a greenhouse. Department officials also released an opinion stating their belief that the mine would not harm the flower.
“We have run a transparent process,” said Daniel-Davis. “The company was willing to reconfigure its entire project to take into account Tiehm’s buckwheat.”
The death of more than 17,000 flowers near the mine site in 2020 sparked allegations of a “premeditated” attack. Ioneer denied harming the flowers. The government later blamed thirsty squirrels.
(By Ernest Scheyder; Editing by Marguerita Choy)
USGS Finds Enough Lithium to Meet Annual Demand Nine Times Over
The USGS reported a lithium discovery the size of nine times the global lithium demand by 2030.
The U.S. relies on imports for more than 25% of its lithium.
The deposits are mostly concentrated in one spot, limiting the area impacted by mining.
The United States Geological Survey (USGS) and the Arkansas Department of Energy and Environment's Office of the State Geologist have discovered a vast lithium reserve containing more than nine times the International Energy Agency's projection of global lithium demand for electric vehicles in 2030. A relic of an ancient sea that left an extensive, porous, and permeable limestone geologic, the Smackover Formation extends under parts of Arkansas, Louisiana, Texas, Alabama, Mississippi, and Florida, and could contain between 5 and 19 million tons of lithium reserves.
"Our research was able to estimate the total lithium present in the southwestern portion of the Smackover in Arkansas for the first time. We estimate there is enough dissolved lithium present in that region to replace U.S. imports of lithium and more. It is important to caution that these estimates are an in-place assessment. We have not estimated what is technically recoverable based on newer methods to extract lithium from brines," said Katherine Knierim, a hydrologist and the study's principal researcher.
The USGS estimates there is enough lithium brought to the surface in the oil and brine waste streams in southern Arkansas to cover current estimated U.S. lithium consumption. The U.S. relies on imports for more than 25% of its lithium.
Source: USGS
The Smackover Formation is the latest among a series of large lithium discoveries made by the USGS in recent years. Last year, USGS fortuitously discovered lithium deposits bigger than Bolivia's salt flats, home to the world's biggest lithium reserves. While the discovery itself was not news, a new study published in the journal Science Advances estimates that the McDermitt Caldera, a volcanic crater on the Nevada-Oregon border, harbors 20 to 40 million metric tons of lithium deposits, nearly double Bolivia's 23 million metric tonnes at the upper range.
"If you believe their back-of-the-envelope estimation, this is a very, very significant deposit of lithium. It could change the dynamics of lithium globally, in terms of price, security of supply and geopolitics," Anouk Borst, a geologist at KU Leuven University who was not involved in the study, has told Chemistry World.
The caldera is estimated to have formed approximately 16.4 million years ago after a massive magma eruption. The lithium is deposited in a uniquely lithium-rich illite over 600 feet deep. To sweeten the deal further, the deposits are mostly concentrated in one spot, limiting the area impacted by mining.
"They seem to have hit the sweet spot where the clays are preserved close to the surface, so they won't have to extract as much rock, yet it hasn't been weathered away yet," Borst has told Chemistry World.
One small conundrum for the burgeoning U.S. lithium industry: although the McDermitt Caldera's lithium is locked up in clay, meaning mining costs are likely to be cheaper compared to mining spodumene deposits, extracting lithium from clay has never been done commercially. Bolivia has tried unsuccessfully for years to commercially produce lithium using its state-owned firm. It's the reason why industry experts remain skeptical about the real value of Mexico's newly nationalized vast lithium deposits because the country's lithium is found mostly in clay.
A few months later, the U.S. Department of Energy discovered a massive lithium deposit beneath California's Salton Sea, holding an estimated 18 million tons of lithium. According to the DoE, with expected technology advances, the Salton Sea region's total resources could produce more than 3,400 kilotons of lithium, worth up to $540 billion and enough to support over 375 million batteries for electric vehicles (EV)—more than the total number of vehicles currently on U.S. roads.
"Lithium is vital to decarbonizing the economy and meeting President Biden's goals of 50% electric vehicle adoption by 2030," said Jeff Marootian, Principal Deputy Assistant Secretary for Energy Efficiency and Renewable Energy.
"This report confirms the once-in-a-generation opportunity to build a domestic lithium industry at home while also expanding clean, flexible electricity generation. Using American innovation, we can lead the clean energy future, create jobs and a strong domestic supply chain, and boost our national energy security," the DoE declared.
The Salton Sea lithium deposit appears to be a real goldmine. After all, the DoE has revealed its Known Geothermal Resource Area (KGRA) has about 400 megawatts (MW) of geothermal electricity-generation capacity currently installed but has the potential for up to 2,950 MW. The DoE notes that the combined subsurface geology and geothermal activity in the Salton Sea's KGRA result in high concentrations of lithium, among the highest concentrations of lithium contained in geothermal brines across the globe.
However, the DoE acknowledged that the United States currently has limited capabilities to extract, refine, and produce domestically sourced lithium. Indeed, the country typically imports nearly half of the lithium it consumes, almost all coming from Chile and Argentina.
Lithium Bear Market
These massive lithium finds are probably not the kind of news that lithium bulls will be celebrating, with the lithium price selloff showing no signs of abating. Lithium carbonate prices fell to CNY 71,500 ($10,042) per tonne in October, the lowest level since March 2021, as the overcapacity for electric vehicle batteries in China continues to drive lower asking prices for inputs across the supply chain. Aggressive subsidies by the Chinese government have not been helping matters, helping trigger a large wave of oversupply of EV batteries and driving carbonate prices 23% lower so far in the current year after an 80% plunge in 2023. Market players have predicted that global supply will soar by nearly 50% in 2024. Chile has already signaled it will double output over the next decade, while China is expanding lithium projects in Africa.
Recently, mining giant Rio Tinto Group (NYSE:RIO) announced an all-cash $6.7 billion deal for Arcadium Lithium Plc (NYSE:ALTM), good for a hefty 90% premium to the Oct. 4 closing price. Both company boards unanimously approved the merger, with the deal expected to close mid-2025. Arcadium Lithium was formed in January 2024 following the US$10.6 billion merger of equals between U.S.-based Livent and Australia's Alkem. The acquisition is seen as a major win for Rio Tinto, with the company having struggled to get traction in the lithium market after its Jadar project in Serbia ran into local opposition. This means that Rio Tinto now owns the world's third-largest lithium reserves, behind only Corporacion Minera de Bolivia, also known as COMIBOL, and SQM (NYSE:SQM).
Alex Kimani for Oilprice.com
By Alex Kimani - Oct 27, 2024
The USGS reported a lithium discovery the size of nine times the global lithium demand by 2030.
The U.S. relies on imports for more than 25% of its lithium.
The deposits are mostly concentrated in one spot, limiting the area impacted by mining.
The United States Geological Survey (USGS) and the Arkansas Department of Energy and Environment's Office of the State Geologist have discovered a vast lithium reserve containing more than nine times the International Energy Agency's projection of global lithium demand for electric vehicles in 2030. A relic of an ancient sea that left an extensive, porous, and permeable limestone geologic, the Smackover Formation extends under parts of Arkansas, Louisiana, Texas, Alabama, Mississippi, and Florida, and could contain between 5 and 19 million tons of lithium reserves.
"Our research was able to estimate the total lithium present in the southwestern portion of the Smackover in Arkansas for the first time. We estimate there is enough dissolved lithium present in that region to replace U.S. imports of lithium and more. It is important to caution that these estimates are an in-place assessment. We have not estimated what is technically recoverable based on newer methods to extract lithium from brines," said Katherine Knierim, a hydrologist and the study's principal researcher.
The USGS estimates there is enough lithium brought to the surface in the oil and brine waste streams in southern Arkansas to cover current estimated U.S. lithium consumption. The U.S. relies on imports for more than 25% of its lithium.
Source: USGS
The Smackover Formation is the latest among a series of large lithium discoveries made by the USGS in recent years. Last year, USGS fortuitously discovered lithium deposits bigger than Bolivia's salt flats, home to the world's biggest lithium reserves. While the discovery itself was not news, a new study published in the journal Science Advances estimates that the McDermitt Caldera, a volcanic crater on the Nevada-Oregon border, harbors 20 to 40 million metric tons of lithium deposits, nearly double Bolivia's 23 million metric tonnes at the upper range.
"If you believe their back-of-the-envelope estimation, this is a very, very significant deposit of lithium. It could change the dynamics of lithium globally, in terms of price, security of supply and geopolitics," Anouk Borst, a geologist at KU Leuven University who was not involved in the study, has told Chemistry World.
The caldera is estimated to have formed approximately 16.4 million years ago after a massive magma eruption. The lithium is deposited in a uniquely lithium-rich illite over 600 feet deep. To sweeten the deal further, the deposits are mostly concentrated in one spot, limiting the area impacted by mining.
"They seem to have hit the sweet spot where the clays are preserved close to the surface, so they won't have to extract as much rock, yet it hasn't been weathered away yet," Borst has told Chemistry World.
One small conundrum for the burgeoning U.S. lithium industry: although the McDermitt Caldera's lithium is locked up in clay, meaning mining costs are likely to be cheaper compared to mining spodumene deposits, extracting lithium from clay has never been done commercially. Bolivia has tried unsuccessfully for years to commercially produce lithium using its state-owned firm. It's the reason why industry experts remain skeptical about the real value of Mexico's newly nationalized vast lithium deposits because the country's lithium is found mostly in clay.
A few months later, the U.S. Department of Energy discovered a massive lithium deposit beneath California's Salton Sea, holding an estimated 18 million tons of lithium. According to the DoE, with expected technology advances, the Salton Sea region's total resources could produce more than 3,400 kilotons of lithium, worth up to $540 billion and enough to support over 375 million batteries for electric vehicles (EV)—more than the total number of vehicles currently on U.S. roads.
"Lithium is vital to decarbonizing the economy and meeting President Biden's goals of 50% electric vehicle adoption by 2030," said Jeff Marootian, Principal Deputy Assistant Secretary for Energy Efficiency and Renewable Energy.
"This report confirms the once-in-a-generation opportunity to build a domestic lithium industry at home while also expanding clean, flexible electricity generation. Using American innovation, we can lead the clean energy future, create jobs and a strong domestic supply chain, and boost our national energy security," the DoE declared.
The Salton Sea lithium deposit appears to be a real goldmine. After all, the DoE has revealed its Known Geothermal Resource Area (KGRA) has about 400 megawatts (MW) of geothermal electricity-generation capacity currently installed but has the potential for up to 2,950 MW. The DoE notes that the combined subsurface geology and geothermal activity in the Salton Sea's KGRA result in high concentrations of lithium, among the highest concentrations of lithium contained in geothermal brines across the globe.
However, the DoE acknowledged that the United States currently has limited capabilities to extract, refine, and produce domestically sourced lithium. Indeed, the country typically imports nearly half of the lithium it consumes, almost all coming from Chile and Argentina.
Lithium Bear Market
These massive lithium finds are probably not the kind of news that lithium bulls will be celebrating, with the lithium price selloff showing no signs of abating. Lithium carbonate prices fell to CNY 71,500 ($10,042) per tonne in October, the lowest level since March 2021, as the overcapacity for electric vehicle batteries in China continues to drive lower asking prices for inputs across the supply chain. Aggressive subsidies by the Chinese government have not been helping matters, helping trigger a large wave of oversupply of EV batteries and driving carbonate prices 23% lower so far in the current year after an 80% plunge in 2023. Market players have predicted that global supply will soar by nearly 50% in 2024. Chile has already signaled it will double output over the next decade, while China is expanding lithium projects in Africa.
Recently, mining giant Rio Tinto Group (NYSE:RIO) announced an all-cash $6.7 billion deal for Arcadium Lithium Plc (NYSE:ALTM), good for a hefty 90% premium to the Oct. 4 closing price. Both company boards unanimously approved the merger, with the deal expected to close mid-2025. Arcadium Lithium was formed in January 2024 following the US$10.6 billion merger of equals between U.S.-based Livent and Australia's Alkem. The acquisition is seen as a major win for Rio Tinto, with the company having struggled to get traction in the lithium market after its Jadar project in Serbia ran into local opposition. This means that Rio Tinto now owns the world's third-largest lithium reserves, behind only Corporacion Minera de Bolivia, also known as COMIBOL, and SQM (NYSE:SQM).
Alex Kimani for Oilprice.com
