#VoltLithium #LithiumProduction #RainbowLakeProject #DirectLithiumExtraction #BatteryMetals #LithiumMarket #SustainableMining #EnergyTransition
Volt Lithium (TSXV: VLT) is making significant headway in the lithium production sector, announcing a drastic reduction in its production costs by nearly two-thirds. As the company gears up for the commencement of the Rainbow Lake brine project in northwest Alberta next year, this reduction in costs positions Volt Lithium advantageously in the market. In a notable achievement, testing conducted in February on brine from oil wells of Coterra Energy (NYSE: CTRA) and Cenovus Energy (TSX: CVE) – dating back to the 1960s – indicated a production cost of $2,885 per tonne of lithium carbonate equivalent (LCE), a sharp decrease from the $8,057 cost recorded in May.
A breakthrough in their proprietary direct lithium extraction process has enabled the company to achieve 90% LCE from a lithium brine concentration of just 34 parts per million (ppm). Alex Wylie, the president and CEO, highlighted the uniqueness of their extraction media which is unaffected by magnesium or other potential interfering minerals. This innovative approach allows Volt to achieve high purity levels without necessitating the final concentration steps typical of other processes.
Despite a significant downturn in lithium prices, Volt Lithium is committed to establishing a low-cost, scalable operation. A pivotal decision awaits by the end of the next year, determining whether it would be more cost-effective for the company to construct its own plant for processing lithium carbonate into battery-grade metal or to opt for shipping it to refiners based in the United States.
Volt aims to kickstart its initial plant by mid next year with an estimated budget of $20 million, aiming to produce approximately 1,000 tonnes of LCE annually. This will be facilitated through the utilization of brine from roughly 1,300 wells situated within Volt’s extensive 1,750-square-kilometer lithium rights agreements with Coterra and Cenovus.
Projected annual production is ambitiously set to exceed 23,000 tonnes of battery-grade lithium hydroxide monohydrate (LHM) over a 19-year operation span, drawing from a preliminary economic assessment released in December. Despite the fluctuating lithium market prices, Volt Lithium’s shares have seen a significant rise, evidencing investor confidence.
The journey ahead for Volt Lithium involves not only technological innovation but also strategic partnerships and funding avenues. Collaborations with large oil producers, government support, and working alongside the Dene Tha First Nation are pivotal to realizing its vision. The ambitious project at Rainbow Lake, with an estimated 4.3 million inferred tonnes LCE, showcases the potential for a sustainable and profitable venture within the lithium production landscape, championing the energy transition.
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