World demand for lithium-based energy presents a big alternative for Australia, the world’s prime lithium-producing nation.
Australia’s ample lithium reserves and powerful output place it as a key participant in shaping the battery worth chain into the 2030s. Nevertheless, fast EV market development has pushed elevated mining, resulting in a world lithium surplus.
The lithium market skilled vital upheaval in 2024, with oversupply and weaker-than-expected EV demand driving a 22 p.c drop in lithium carbonate costs.
The 12 months started with a provide glut weighing closely on costs, which briefly rose in March earlier than resuming their decline. Analysts challenge a continued surplus into 2025, regardless of manufacturing cuts and challenge delays.
Whereas Chinese language EV gross sales hit file highs late within the 12 months, geopolitical tensions — together with tariffs and potential US coverage modifications — added uncertainty to the worldwide lithium panorama, leaving the market in a protracted low-price surroundings.
Right here the Investing Information Community appears on the prime three ASX-listed lithium corporations by year-to-date good points. The listing beneath was generated utilizing TradingView’s inventory screener on December 31, 2024, and consists of corporations that had market caps above AU$10 million at the moment. Learn on to study extra about their actions over the previous 12 months.
1. Vulcan Power Sources (ASX:VUL)
Yr-to-date acquire: 84.48 p.c
Market cap: AU$1.19 billion
Share worth: AU$5.35
Europe-focused Vulcan Power Sources goals to help a carbon-neutral future by producing lithium and renewable power from geothermal brine. The corporate is at present growing the Zero Carbon lithium challenge in Germany’s Higher Rhine Valley. Vulcan is utilising a proprietary alumina-based adsorbent-type direct lithium extraction (DLE) course of to provide lithium with an finish objective of supplying sustainable lithium for the European EV market.
On April 11, Vulcan introduced the graduation of lithium chloride manufacturing at its lithium extraction optimisation plant in Germany. In line with the corporate, the milestone marks the primary lithium chemical manufacturing in Europe utilizing native provide. The plant constantly exhibited over 90 p.c lithium extraction effectivity.
The corporate already has binding lithium offtake agreements in place with main automakers and battery producers, and expects to produce sufficient lithium for 500,000 EVs through the first part of manufacturing.
Throughout the third quarter, Vulcan obtained its first licences for lithium and geothermal exploration in Alsace, France. The permits cowl 463 sq. kilometres, increasing Vulcan’s complete licenced space within the Higher Rhine Valley to 2,234 sq. kilometres throughout France and Germany.
In early August, Vulcan started commissioning its downstream lithium hydroxide optimisation plant (CLEOP) close to Frankfurt, Germany, which is able to course of the lithium chloride focus from its DLE plant.
A mid-October launch from Vulcan outlines a memorandum of understanding with industrial software program designer AVEVA. The partnership will see AVEVA construct a digital framework for Vulcan’s Zero Carbon lithium challenge.
Additionally in October, the corporate earned S&P World’s highest “darkish inexperienced” sustainability score, a primary for the mining sector, beneath its Inexperienced Financing Framework.
On November 8, Vulcan introduced it had commenced lithium hydroxide manufacturing at CLEOP. The milestone coincided with an AU$162 million funding infusion from Germany’s Federal Ministry of Economics and Local weather Safety and the European Restoration and Resilience Facility.
To finish the 12 months, Vulcan introduced the signing of a AU$1.45 billion conditional debt dedication letter with Export Finance Australia and a gaggle of seven industrial banks.
Yr-to-date acquire: 6.67 p.c
Market cap: AU$353.35 million
Share worth: AU$0.16
Australia-listed Ioneer owns the Rhyolite Ridge lithium-boron challenge in Nevada, US. The challenge is taken into account the “sole lithium-boron deposit in North America.”
As a part of the allowing course of for the Rhyolite Ridge challenge, Ioneer accomplished and submitted the executive draft environmental influence assertion (EIS) to the US Bureau of Land Administration (BLM) in mid-January. In mid-September, Ioneer introduced that the BLM printed the ultimate EIS, shifting the corporate nearer to building.
The excellent overview course of addressed environmental issues, notably relating to the safety of the endangered Tiehm’s buckwheat plant discovered on the web site. Ioneer has dedicated to measures geared toward safeguarding the plant’s habitat.
In October, Ioneer securedfinal federal approval for its Rhyolite Ridge challenge, marking the primary US lithium mine licensed beneath the Biden administration.
Rhyolite Ridge is projected to provide ample lithium for roughly 370,000 electrical automobile batteries yearly. Building is slated to begin in 2025, with manufacturing anticipated by 2028.
Yr-to-date acquire: 2.25 p.c
Market cap: AU$52.03 million
Share worth: AU$0.09
Africa-focused exploration firm Prospect Sources holds a diversified portfolio of property in Zimbabwe, Zambia and Namibia. The corporate’s lithium prospects, Omaruru and Step Apart, are in Namibia and Zimbabwe respectively.
In late June, Prospect launched an replace on its exploration actions, reporting robust assay outcomes from Part 4 diamond drilling on the Step Apart lithium challenge in Zimbabwe and follow-up Part 2 drilling on the Omaruru lithium challenge.
Within the assertion, Managing Director Sam Hosack highlighted the numerous mineralization potential at each tasks.
Shifting ahead, Prospect plans to decelerate spending at its lithium tasks because it turns to its newly acquired Mumbezhi copper challenge in Zambia. The corporate believes it will probably monetize Step Apart within the close to time period to help on this objective.
In its June quarterly outcomes, Prospect famous the completion of drilling and fieldwork for the Part 4 diamond drilling program on the Step Apart lithium challenge in Zimbabwe, with no additional exploration deliberate. The challenge is being ready on the market to assist fund the Mumbezhi copper challenge.
In the meantime, Part 2 drilling on the Omaruru lithium challenge is full, and the corporate has lowered spending to holding prices as focus shifts to the Mumbezhi challenge.
In its September quarterly report, the corporate famous it was discontinuing its Bikita Gem earn-in challenge in Southeastern Zimbabwe after drilling outcomes did not determine economically viable volumes of petalite-rich lithium mineralization.
FAQs for investing in lithium
What’s lithium?
Lithium is the lightest metallic on the periodic desk, and it’s utilized in all kinds of functions, together with lithium-ion batteries, prescribed drugs and industrial functions like glass and metal.
How do lithium-ion batteries work?
Rechargeable lithium-ion batteries work through the use of the stream of lithium ions within the battery’s cell to energy a tool.
A lithium-ion battery has a number of cells, relying on the quantity of power storage it’s able to, and every cell has a optimistic electrode and destructive electrode with an electrolyte separating them. When the battery is in use, lithium ions stream from the destructive electrode to the optimistic electrode, working out of energy as soon as all have transferred. When the battery is charging, ions stream the other manner.
The place is lithium mined?
Lithium is mined from two kinds of deposits, laborious rock and evaporated brines. Many of the world’s lithium manufacturing comes out of Australia, which hosts the Greenbushes hard-rock lithium mine. The next-largest producing nation is Chile, which like Argentina and Bolivia is situated in South America’s Lithium Triangle.
Lithium on this famed space comes from evaporated brines, together with the Salar de Atacama. Lithium may also be present in sedimentary deposits, however at present none are producing.
The place is lithium present in Australia?
Australia is the world’s prime producer of lithium, and its lithium mines are all situated in Western Australia aside from one, which is Core Lithium’s (ASX:CXO,OTC Pink:CXOXF) Finniss mine within the Northern Territory. Western Australia accounts for round half of worldwide lithium manufacturing, and the state is trying to develop into a hub for essential parts.
Who owns lithium mines in Australia?
A number of corporations personal lithium mines in Australia, together with among the largest ASX lithium shares. Along with the entities mentioned above, others embrace: Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) with its Pilgangoora operations; Arcadium Lithium with the Mount Cattlin mine; Jiangxi Ganfeng Lithium (HKEX:0358), which owns the Mount Marion mine alongside Mineral Sources (ASX:MIN,OTC Pink:MALRF); and Tianqi Lithium (SZSE:002466), which is a partial proprietor of Greenbushes through its stake in operator Talison Lithium.
Who’s Australia’s largest lithium producer?
Australia’s largest lithium producer is Albemarle (NYSE:ALB), which has pursuits in each the Greenbushes and Wodgina hard-rock lithium mines. Greenbushes is the world’s largest lithium mine, and Albemarle holds 49 p.c possession of operator Talison Lithium’s father or mother firm.
Albermarle additionally has 60 p.c possession of Mineral Sources’ Wodgina mine, and owns the Kemerton lithium manufacturing facility as a part of a 60/40 three way partnership with Mineral Sources.
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Securities Disclosure: I, Georgia Williams, at present maintain no direct funding curiosity in any firm talked about on this article.
