Tesla will be paying more for the lithium that powers its cars after Piedmont Lithium amended their deal amid ongoing price rally. Piedmont will now supply the EV giant with an additional 125,000 metric tonnes of lithium concentrate beginning in the second half of this year. According to Cowen & Co. analyst David Deckelbaum, the change in the supply agreement between the two companies is “significant” because Telsa typically has fixed prices for the materials it requires for batteries. Meanwhile, prices have more than doubled since 2020, reaching nearly $80,000 per tonne, a level they have maintained throughout 2022, which is raising concerns that carmakers will struggle to secure lithium supplies for the rest of the decade. According to Fastmarkets NewGen analysis, approximately 40 lithium projects are undergoing or have completed definitive feasibility studies globally, representing a 166% increase over 2019. Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) and its Zeus Lithium Project are right next to the only lithium producer in the United States, Albemarle‘s (NYSE:ALB) Silver Peak Operation. Lithium Americas (NYSE:LAC), Livent Corp. (NYSE:LTHM), and Sociedad Quimica y Minera de Chile (NYSE:SQM) are other miners with undergoing lithium projects.
Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) is a well-funded advanced lithium development company aggressively advancing the Zeus lithium project in Nevada’s Clayton Valley from the development-stage level through the completion of a Pre-Feasibility Study. The company’s flagship Zeus project contains a current 43-101 measured and indicated resource estimate of 363 million tonnes with 923 ppm lithium and 827 million tonnes with 884 ppm lithium using a cut-off of 400 ppm Li.
The December 2021 PEA of the Zeus project indicated an After-Tax NPV (8) of US$1.3 billion and IRR of 31% using US$9,500/tonne Lithium Carbonate Equivalent (LCE). Using the LCE long term forecast of US$14,250/tonne, the PEA indicates an After-Tax NPV (8%) of approximately US$2.67 Billion and an IRR of 52%.
On January 4, Noram Lithium bolstered its management team with the appointment of Greg McCunn as Chief Executive Officer to lead the company through the next stages of development at Zeus. McCunn has 30 years of experience in the mining industry, serving as CEO for several TSX and NYSE-listed companies including Alio Gold and Galiano Gold, raising over $600 million in equity and debt financing from the Canadian and US capital markets, completing over $1 billion in M&A transactions, and putting three mines into production on three different continents.
The company also recently highlighted milestones from 2022, including the completion of the Phase VI exploration program of 12 holes for the Zeus Lithium Project and closing a US$14 million strategic financing with Waratah Capital Advisors and Lithium Royalty Corp. Noram is currently advancing to the completion of a Pre-Feasibility Study.
The goal of the Phase VI exploration program was to convert existing inferred resources into measured indicated categories for use in the PFS. All 12 drill holes intersected high-grade lithium at significant lengths.
The company anticipates that an updated sixth resource model will be completed soon, which may align Noram with its peers in terms of total contained measured and indicated lithium carbonate equivalent resources (LCE).
For more information about Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF), click here.
Lithium Miners are Getting Into Strategic Collaborations and Partnerships
On December 13, Albemarle (NYSE:ALB) announced the acquisition of a site in Charlotte, North Carolina, where it will invest at least $180 million to establish the Albemarle Technology Park (ATP), a world-class facility designed for novel materials research, advanced process development, and the acceleration of next-generation lithium product development. The Company anticipates that the new site’s innovations will improve lithium recovery, improve production methods, and introduce new forms of lithium to enable breakthrough levels of battery performance. The State of North Carolina awarded Albemarle a nearly $13 million incentive package to develop the advanced lithium materials research, process development, and product innovation facility in Mecklenburg County, North Carolina. Albemarle anticipates that the new facility will be operational by early 2025, with the ATP campus completed by late 2026.
Lithium Americas (NYSE:LAC) and Arena Minerals Inc. announced on December 20 that they have entered into a definitive arrangement agreement under which Lithium Americas has agreed to acquire all of Arena’s issued and outstanding common shares not already owned by Lithium Americas through a plan of arrangement. Arena’s shareholders will receive 0.0226 of a Lithium Americas common share for each Arena Share held, under the arrangement agreement. Based on the closing price on December 19, 2022, the Consideration to Arena represents a total equity transaction value (on a 100% basis) of US$227 million (C$311 million), giving Arena Shareholders a 5.7% ownership stake in Lithium Americas.
Livent Corp. (NYSE:LTHM) and Nanyang Technological University, Singapore (NTU Singapore) announced in November a research collaboration to advance sustainable lithium battery technologies. The collaborative project will be led by Professor Madhavi Srinivasan, who is the Executive Director of the Energy Research Institute at NTU (ERI@N) and the Co-Director of the NTU-Singapore CEA Alliance for Research in Circular Economy (SCARCE). SCARCE is a center of excellence for finding new ways to recycle e-waste and get valuable materials out of it. Professor Srinivasan is a well-known researcher whose work is mostly about the circular economy.
Sociedad Quimica y Minera de Chile (NYSE:SQM) announced on December 20 that five of its subsidiaries (SQM S.A., SQM Salar, SQM Nitratos, SQM Industrial, and SIT) have begun the mediation process for the regulated bargaining negotiations with the Interempresas de Supervisores Union, which represents approximately 1,000 supervisors from the five subsidiaries mentioned. Meetings were held between representatives of SQM subsidiaries and the union over the next five days following the announcement, in accordance with current regulations.
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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Noram Lithium Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Noram Lithium Corp.’s industry; (b) market opportunity; (c) Noram Lithium Corp.s business plans and strategies; (d) services that Noram Lithium Corp. intends to offer; (e) Noram Lithium Corp.’s milestone projections and targets; (f) Noram Lithium Corp.’s expectations regarding receipt of approval for regulatory applications; (g) Noram Lithium Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Noram Lithium Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Noram Lithium Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Noram Lithium Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Noram Lithium Corp.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) Noram Lithium Corp.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Noram Lithium Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Noram Lithium Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Noram Lithium Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Noram Lithium Corp.’s business operations (e) Noram Lithium Corp. may be unable to implement its growth strategy; and (f) increased competition.
Except as required by law, Noram Lithium Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Noram Lithium Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Noram Lithium Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Noram Lithium Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Noram Lithium Corp. or such entities and are not necessarily indicative of future performance of Noram Lithium Corp. or such entities.
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