Markets & products
Lithium
Lithium is the lightest solid element at ambient temperature, indeed the lightest metal. It has numerous uses including in lithium-ion batteries, medical applications, ceramics, glass, lubricants and nuclear technology.
Driven by the growth of EVs lithium is a market forecast to be in sustained structural deficit. With a binding lithium offtake agreement in place, a Definitive Feasibility Study and Front End Engineering and Design complete, Lepidico is well positioned for the current cycle.
Tech businesses are rarely as reliant on the physical limitations of mining companies as the EV industry is right now.
With spot prices for battery grade lithium chemicals reaching over $70,000/t in 2022, the market’s biggest uncertainty is whether its structural supply deficit can be solved during the coming decades, as demand is predicted to soar.
Why? Because EVs are experiencing dramatic growth fuelled by government policy and the collective imperative to decarbonise and this is challenging mineral and chemical suppliers, like us at Lepidico, to develop assets at similar unprecedented rates. Demand for lithium is forecast by Benchmark Mineral Intelligence to double in just two years from around 500,000 tonnes in 2021 and triple by 2025. It forecasts this growth trajectory to continue through this and the next decade, with lithium “expected to be in a deficit position from 2027”. Lithium demand is forecast by BMI to grow tenfold over this decade and exceed 3.0 million tonnes LCE by 2030, with 94% being ascribed for battery manufacture.
Just where will all the required lithium come from? That is unclear, especially as there are barriers to the industry’s longer term scalability. Large lithium extraction projects take five to ten years or more to come
onstream from discovery. Meanwhile, ever more stringent ESG requirements are making mining permits more difficult to obtain, while also increasing the cost of production.
Push & pull policies are creating tailwinds for electric vehicles...
...driving significant ramp-up in EV penetration globally
Secular changes in EV adaptation will transform demand for battery materials
Lithium is critical ingredient
Lithium is the constant input across all types of EV batteries
Lepidico is set to capture an early-mover advantage in the current cycle.
With our permits issued, binding lithium offtake agreement signed and our expertise in risk management well-established, we are targeting for chemical plant commissioning to begin in 2025.
All of which means we are well-positioned to generate value and deliver chemical products with industry leading environmental and social credentials.
As a vertically-integrated producer, our patented L-Max® and LOH-Max® technologies extract lithium from lepidolite and other lithium micas, opening up a far more sustainable supply of chemicals than traditional lepidolite roasting or from spodumene and brine sources.
We will deliver lithium hydroxide or carbonate into the supply chain, as well as other in-demand strategic metal compounds (see below).
Part of our risk management strategy has been to ensure our first project is of moderate scale and therefore manageable capital while still providing attractive economic returns.
Production
With a target to produce up to 5,000 tonnes per annum, the binding offtake agreement secures Traxys as the purchaser of 35,000 tonnes of our lithium hydroxide production over seven years for supply into the rapidly growing EV market.
We are already planning our Phase 2 Project which could be up to 4x larger. Meanwhile we have begun licensing our proprietary technologies to partners and we also expect to process the output from third-party mines at our own future facilities, thereby developing a global market for lithium mica concentrates.
We expect both lines of business to generate additional revenue streams from lithium.
Caesium
Although stocks are running low, especially outside China, the industrialised world needs caesium. Caesium (or cesium) is designated as a Critical Mineral by the U.S. Government.
Caesium is a well-used specialist alkali metal with numerous compounds sold to the industrial chemical market. Lepidico will produce caesium sulphate, which can be converted to other saleable caesium-based products. Pricing for caesium compounds varies for different specifications. Future pricing of product to customers is confidential under individual sales agreements. Lepidico does not intend to provide a forward commentary of caesium products.
Our lithium offtake agreement with Traxys also extends to the supply of caesium sulphate. Traxys will act as principal and provide sales and marketing, logistics and trade finance services for seven years.
Click here to view the article: Unlocking the potential of caesium and rubidium in industrial catalysis – our work with Lepidico
Rubidium
Rubidium is designated as a Critical Mineral by the U.S. Government.
Rubidium pricing is opaque and historical spot prices for very small quantities are not indicative of pricing for offtake arrangements with Lepidico’s customers. Future pricing of product to customers is confidential under individual sales agreements. Lepidico does not intend to provide a forward commentary of rubidium sulphate pricing.
Potassium Sulphate (SOP)
SOP is a quality fertiliser, selling at premium prices.
Used mostly as a fertiliser, research we commissioned from Argus Media in 2022 suggests global demand for SOP is expected to reach 7.3 million tons by 2025. As population growth has driven an imbalance in supply and demand, the same study concluded the price may peak in 2022 at $775/ton, settling back to under $400/ton in the coming years as global production ramps up.
A premium potash, SOP is often preferred over muriate of potash (MOP) especially in chlorine-rich soil or with chlorine-sensitive crops. Which is why Argus expects it to trade at a premium to MOP of more than $200/ton.
Amorphous silica
Amorphous silica is a highly reactive form of silica with a moderate to high surface area when ground to a fine powder.
It has application as a supplementary cementitious material (SCM), which are added to concrete mixtures for various reasons including improving durability, decreasing permeability, aiding in pumpability and finishability, mitigating alkali reactivity and improving the overall hardened properties of concrete. Importantly, from an environmental standpoint SCMs also reduce the cement content in concrete and thereby lower the carbon footprint of the product.
Typical examples of SCMs are fly ashes, slag cement (ground, granulated blast-furnace slag), and silica fume. These can be used individually with Portland or blended cement or in different combinations.
Gypsum
Gypsum has multiple industrial applications, used as a soil amendment as well as in the production of plaster, drywall and chalk. It is also used to add hardness to water and to prevent soil clumping.
According to Grand View Research: ‘The global gypsum board market size was valued at USD 45.08 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 11.8% from 2021 to 2028. Growing demand from the residential construction sector coupled with increasing consumer spending on advanced construction materials is expected to drive the product demand. The rapidly growing construction industry across the major economies, such as China, India, Brazil, Mexico, South Africa, Russia (and the UAE), is expected to support the market growth.’