Lithium demand could accelerate to higher highs – and fast. All after the U.S. Treasury Department announced it would change the definition of an “SUV” to make more EVs eligible for tax credits of up to $7,500. In fact, according to the TheHill.com, “The department has updated the classification standards used to determine eligibility, expanding the definition of an SUV. The $7,500 tax credit applies to SUVs costing up to $80,000, but there is no such benefit for passenger cars more expensive than $55,000. The update, retroactive to Jan. 1, will use the standard set by the Environmental Protection Agency’s (EPA) fuel economy standards.” That move is expected to increase lithium demand, boost prices, and be a major catalyst for companies such as Infinity Stone Ventures Corp. (CSE: GEMS) (OTC: GEMSF), Sigma Lithium (NASDAQ: SGML) (TSXV: SGML) Lithium Ionic Inc. (TSXV: LTH) (OTCQB: LTHCF), Oceana Lithium Ltd. (ASX: OCN), and auto companies, such as Tesla (NASDAQ: TSLA).
Look at Infinity Stone Ventures Corp. (CSE: GEMS) (OTC: GEMSF), For Example
Infinity Stone Ventures Corp. optioned the 38,441-hectare Sugar Loaf and Little Dipper Lithium Projects. The Sugar Loaf Project is located 15 kilometres from both Sigma Lithium Resources’ Grota do Cirilo Project and Lithium Ionic Inc.’s Itinga Project in the state of Minas Gerais, Brazil. The Little Dipper Project is located in the state of Ceará, approximately 10 kilometres from Oceana Lithium Ltd.’s Solonopole Lithium Project. The Sugar Loaf Project comprises 13 exploration permits, while the Little Dipper Project comprises 9 exploration permits.
The Sugar Loaf and Little Dipper Projects were optioned on the basis of perceived geological potential from known mineralized trends. Both Minas Gerais and Ceará have become regions of interest for hard rock lithium exploration, with a number of early and later stage exploration companies active in the region, as well as companies much closer to production such as Sigma Lithium. Brazil has been recognized as one of the world's major high-grade lithium producers. For example, LG Energy Solutions recently secured a 6-year offtake agreement with Sigma’s subsidiary Brazilian Sigma Mineração SA. LG is a battery supplier to multiple EV companies, including Tesla Inc. (NASDAQ:TSLA).
Sigma’s properties are located in the municipalities of Araçuaí and Itinga, in Brazil’s mining-friendly Minas Gerais State, approximately 450 kilometres northeast of the state capital of Belo Horizonte. Sigma holds 27 mineral rights in four properties spread over 191 square kilometres (19,100 hectares), which include nine past-producing lithium mines.
Other related developments from around the markets include:
Sigma Lithium, dedicated to powering the next generation of electric vehicles with environmentally and socially sustainable high-purity lithium, announced initiation of commissioning of its dense medium separation processing plant, one month ahead of schedule. It also announces certain leadership changes as it evolves with commissioning and operational readiness for commercial production of Battery Grade Sustainable Lithium expected to commence this April on schedule and within budget. Brian Talbot will continue to lead operations as Chief Operating Officer of Sigma Lithium. Mr. Talbot has been working with the Company since 2021, leading the operating team on site playing an instrumental role in the execution of project commissioning. He also serves on the Company’s Technical Committee. Ana Cabral-Gardner, previously Co-CEO, continues as CEO of Sigma Lithium. She will also continue as Co-Chair of the Company’s Board of Directors. Ms. Cabral-Gardner has been at the helm of Sigma Lithium since 2018, leading it to become a global pioneer in environmental and social sustainability within the battery supply chain.
Lithium Ionic Inc. announced that its Brazilian-based wholly owned subsidiary, MGLIT Empreendimentos Ltda., has entered into a binding share purchase agreement with Exotic Mineração Ltda. pursuant to which MGLIT has the option to acquire up to a 100% equity interest in Vale Do Lítio Mineração Ltda. Vale Litio has a 100% beneficial ownership interest in three lithium mining claims in Minas Gerais, Brazil that cover a total of 3,140 hectares. The first of three claims cover 1,738 hectares and is located adjacent to the recently acquired Galvani target. Spodumene-rich pegmatites have already been identified in old workings and outcrops at this property. The other two claims, covering 879 hectares and 523 hectares, are located in the northeastern portion of the prospective Araçuai-Itinga Pegmatite region
Oceana Lithium Ltd. has increased the lithium prospectivity of its Solono´pole project in Brazil after entering into an agreement to acquire two advanced exploration permits in the area. The two new permits cover 928 hectares and include multiple high-grade rock chip results across 500 metres of outcropping pegmatite, which indicates potential lithium mineralisation of significant scale. Notably, they also have high priority drilling targets which warrant immediate drill testing.
Tesla just noted that, “In the fourth quarter, we produced over 439,000 vehicles and delivered over 405,000 vehicles. In 2022, vehicle deliveries grew 40% YoY to 1.31 million while production grew 47% YoY to 1.37 million. We continued to transition towards a more even regional mix of vehicle builds which again led to a further increase in cars in transit at the end of the quarter.”
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