With Arcadium being acquired by Rio Tinto, investor interest in lithium has been reignited. Money is flowing into the white metal. Energy major Equinor acquired 45% of two Standard Lithium projects for an investment of $130 million. Koch invested $100 million into Standard Lithium. Recently, Standard Lithium brought in a Koch executive with 28 years of experience. Connect the obvious dots.
The lithium market is recovering, with Arcadium Lithium's $6.7B takeover by Rio Tinto signaling rising future lithium prices due to increasing EV demand. Lithium Americas stock is undervalued, with positive developments at Thacker Pass and potential DOE funding, making it a strong investment opportunity. LAC's technical momentum is improving, with a long-term bottoming pattern and favorable risk-reward ratio, suggesting significant upside potential.
The new ownership structure of Thacker Pass, with Lithium Americas holding 62% and General Motors 38%, is a positive development for the company. GM's $625 million investment, including $430 million in cash and $195 million in letters of credit, provides crucial capital for Thacker Pass. Despite asset dilution, the GM partnership and DOE loan will help LAC complete Thacker Pass by 2028, unlocking significant future growth potential.
Lithium prices have likely bottomed, with improvements expected in 2025/2026 and potential deficits in 2027-2029, signaling a potential market recovery. Top lithium stocks to buy now include Albemarle, Sociedad Química y Minera, Lithium Americas Argentina, Chengxin Lithium Group, and Galan Lithium. Galan Lithium is a higher-risk/higher-reward junior on track to be a potential H2, 2025 low cost LiCl producer in Argentina.
The General Motors funding de-risks the project and triggers conditions to unlock a pending $2.3 billion DoE loan, expected to close in weeks. LAC has expansion capability beyond the initial mining phases being reported. The long-term outlook for Lithium Americas is strong, driven by increasing lithium adoption, be it transportation or fixed storage.
Lithium Americas president and CEO Jonathan Evans discusses the increased investment in the company's Thacker Pass mine in Nevada on ‘The Bottom Line.'
Shares of Lithium Americas (LAC) skyrocketed Wednesday after the mining company announced the creation of a joint venture with General Motors (GM) to extract lithium, the element used in electric vehicle (EV) batteries, from a key Nevada mine.
Canada's Lithium Americas said General Motors will boost investment in the miner's Thacker Pass project, which produces the critical ingredient for electric-vehicle batteries.
Lithium stocks are getting interest again, driven by acquisitions and the entry of a major miner into the industry. On October 9, 2024, the world's second-largest mining company in the basic materials sector, Rio Tinto Group NYSE: RIO, announced it would be acquiring Arcadium Lithium plc NYSE: ALTM for $5.85 per cash or $6.7 billion in an all-cash deal.
Bradda Head Announces Cancellation of Re-priced Options and TSXV Voluntary Delisting BRITISH VIRGIN ISLANDS / ACCESSWIRE / October 14, 2024 / Bradda Head Lithium Ltd (AIM:BHL)(TSX-V:BHLI), the North America-focused lithium development group, announces that further to its press release dated 3 September 2024 pursuant to which it announced that it had, subject to receipt of necessary approvals from the TSX Venture Exchange ("TSX-V") and disinterested shareholder approval, reduced the exercise price of 9,000,000 outstanding share options (the "Existing Share Options"). The TSX-V declined to provide the necessary approvals to the reduced share price of C$0.03 as these were below the minimum permitted prices under TSX-V rules.
Lithium Americas is a high-risk, high-reward investment, akin to a call option on lithium demand, especially with EV market growth projections. The company aims to finance Thacker Pass mine construction through a $2.26 billion DOE loan and $330 million investment from GM. Despite current lithium price weakness, Thacker Pass's low production costs ensure profitability, with significant upside potential if lithium prices rebound.
Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) executive chairman Neil Herbert explained to Proactive the importance of a mine operating permit for its Ewoyaa Lithium Project in Ghana. Neil Herbert: This is part of our ongoing efforts to complete the permitting on the project.