Zinnwald Lithium Reports 50% Increase in Potential Production at German Project

Zinnwald Lithium PLC has announced new resource estimates for its project in Saxony, Germany, indicating a potential 50% increase in possible production. The lithium producer had previously forecasted an initial first phase production of 12,000 tonnes per annum (tpa). The updated estimates now anticipate production between 16,000 tpa and 18,000 tpa of battery-grade lithium, reflecting a significant increase at the higher end of the range.

Chief Executive Officer Anton du Plessis stated, "Our strategy is focused on developing a low-risk, scalable project. We have already completed many workstreams, with several more underway or nearing completion. Key upcoming milestones include ongoing metallurgical testwork, detailed mine planning, permitting, and commercial activities."

In light of the revised estimates, Zinnwald will conduct a pre-feasibility study to optimize the enlarged project and evaluate the potential for a second phase of production. This study will also assess ways to minimize environmental and community impact while examining technical test work and trade-offs.

With a current cash position of EUR 9.3 million, Zinnwald remains well financed. The company is also seeking support from the German federal and state governments after receiving an invitation in June to apply for grant funding as part of a new program to support the development of climate-neutral and strategically important technologies. If successful, 70% of the grant will be provided by the federal government, with the remaining 30% from the State of Saxony, which has already expressed support for the battery-chain project. The extent of the funding is yet to be disclosed, and the invitation does not guarantee that financing will be secured.

Zinnwald Lithium shares were down 1.9% to 7.70 pence each in London on Friday morning.