Lithium Industry Witnesses Significant Growth and Shifts in 2024
Despite a drop from the highs seen in 2022, the lithium industry has been undergoing major changes in 2024. In the first quarter of 2024, global lithium reserves and resources saw a remarkable increase, reaching 303.5 million metric tons—a 52.2% rise compared to the same period three years ago. As suppliers adapt, some have started holding auctions where buyers bid for cargoes, deviating from the traditional long-term contracts with fixed prices. With lithium demand expected to grow more than 40 times by 2030, miners are actively developing various projects, including Lithium South Development Corporation, Sigma Lithium Corporation, Lithium Ionic Corp., Albemarle Corporation, and Standard Lithium Ltd.
In late April, Lithium South Development Corporation filed a new Preliminary Economic Assessment (PEA) for its Hombre Muerto North Lithium Project. The PEA supports plans for a lithium carbonate production facility with an annual output of 15,600 tonnes. The financial outlook is promising, with an after-tax Net Present Value (NPV) of USD 938 million and an Internal Rate of Return (IRR) of 31.6%. The project has a payback period of 2.5 years.
"We are very pleased to have achieved this important milestone for the HMN Li Project," said Adrian F.C. Hobkirk, Founder, President, and CEO of Lithium South. "The robust economics and room for expansion indicate a promising future for Lithium South."
Since filing the PEA, Lithium South has updated on progress with its first pumping well on the largest claim block in the HMN Li package—the 2,089-hectare Alba Sabrina block. The well currently pumps at 25 liters per second, with an increase expected after maintenance.
Lithium South has also attracted expressions of interest from several companies in the lithium industry. Discussions are ongoing regarding financial support and/or project participation, which included a recent site visit by an unnamed lithium project developer.
Previously, Lithium South established a cooperative development agreement with Korean conglomerate POSCO for the HMN Li Project, marking a significant step toward lithium production. This followed an update to its NI 43-101 technical report for the HMN Li asset, revealing a 175% increase in lithium resources to over 1.58 million tonnes of lithium carbonate equivalent (LCE).
In Brazil, Sigma Lithium Corporation announced the commencement of its ninth shipment of Quintuple Zero Green Lithium, totaling 22,000 tonnes, destined for LX International. This follows a recent announcement of a 40% upgrade in proven and probable reserves at its Grota do Cirilo hard rock lithium mine.
Sigma Lithium states that it has made significant progress in monetizing a commercial premium for its Quintuple Zero Green Lithium product, achieving a fixed formula of 9% of lithium hydroxide quoted at the LME, representing an increase over previous prices.
