Energy Metals News – The world’s largest automakers continue their hunt to secure new supplies of lithium for their anticipated transition into building more and more electric vehicles (EVs). Now even Exxon Mobil Corporation (NYSE:XOM) is getting into the mix, with Reuters reporting that the oil giant is in talks to supply lithium to big league automakers. Under the US Government’s in the Inflation Reduction Act, North American supplies of lithium present a higher incentive to buyers, as lithium developers such as Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF), Patriot Battery Metals Inc. (TSXV:PMET) (OTC:PMETF), Albemarle Corporation (NYSE:ALB), and TETRA Technologies, Inc. (NYSE:TTI) who are all working on high-potential lithium plays in both the USA and Canada alike.
In the case of Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF), the Vancouver-based miner recently announced the discovery of a second lithium-cesium-tantalum pegmatite swarm, “Bingo”, at its White Willow lithium project in Ontario, Canada. At the close of a 3-week site visit where 287 samples were collected and submitted for lab analysis, Usha declared that the discovery effectively tripled the project’s potential strike length to more than 25km that is open at both ends.
"We are thrilled with the findings from the initial programs at White Willow," said Deepak Varshney, CEO of Usha Resources. "As seen at Patriot Battery Metals' Corvette Project, which has over 20 kilometres of trend, lithium pegmatite swarms occur in clusters, each of which has the potential to become a deposit. With the discovery of the highly evolved pegmatite system at Bingo, we now have four primary target areas in our 25 kilometre plus trend, with significant ground remaining between Bingo and Maple Leaf for further exploration and follow-up on the initial LCT-pegmatites identified in between. With numerous potential spodumene-bearing targets, we believe Willow to be a flagship asset where Ontario's next major lithium discovery will occur."
Prior to the recent developments at White Willow, USHA had been touting its Nevada-based lithium project Jackpot Lake, as the company’s flagship asset. That designation is likely still in place to date, as the company also announced it had expanded the basal sand and conglomerate zone at the asset to a depth of approximately 1,950 feet through drilling, thus increasing the previously identified zone from an interval of 273 feet to a total of 423 feet. For reference, coarse-grained basal units are the primary focus for expansion at the Silver Peak lithium brine mine of Albemarle Corporation (NYSE:ALB), which is the only domestic supplier of lithium within the USA at this time.
USHA is now working towards completing and developing a well for sampling at Jackpot Lake, where it also reported in June 2023 the commencement of drilling on a third hole.
"We are thrilled to return to Jackpot Lake and resume drilling." said Varshney. "The work to-date has demonstrated that Jackpot contains the right system for a major lithium discovery and by exploring to a depth of 2,000 feet, we aim to gather a more comprehensive understanding of the mineral potential within our project area, further enhancing the overall resource estimation and project feasibility of Jackpot Lake."
As mentioned above, the Corvette Project of Patriot Battery Metals Inc. (TSXV:PMET) (OTC:PMETF) continues draw attention in the lithium space. Recently, Patriot Battery Metals announced the closing of a C$109 million strategic investment from Albemarle.
Albermarle’s investment came very quickly on the heels of an announcement of Corvette containing the largest lithium pegmatite resource in the Americas at CV5. According to Patrio Battery Metals, the CV5 Spodumene Pegmatite is the 8th largest lithium pegmatite mineral resource globally, with 109.2 Mt at 1.42% Li2O and 160 ppm Ta2O5.
“We could not be happier with the result of this maiden mineral resource estimate at CV5, which will be the first of multiple resource estimates for the Corvette Property over the coming years,” said Blair Way, Patriot Battery Metals President and CEO. “This Property is now officially host to at least one deposit that is definitely a world class asset with respect to the size, grade, and metallurgy when compared to its peers.”
Now with a new influx of capital into the project, development of the Corvette is primed to accelerate.
“We look forward to collaborating with Patriot to better understand the Corvette property and the opportunities this project represents for the North American battery materials supply chain,” said Alexander Thompson, VP Lithium Resources at Albemarle.
Albemarle is now boosting its profit forecast on surging lithium demand, as the lithium giant already sells to automakers such as Tesla and Ford. Now it’s building a new facility in Arkansas to test its own version of what’s called direct lithium extraction or ‘DLE’, with the goal of eventually filtering the EV battery metal from existing bromine operations. Albemarle has developed its own DLE process and plans to test it in Arkansas, where for years it has extracted bromine, a chemical used to make flame retardants, from a geological formation known as the Smackover.
Now even oil giant Exxon Mobil Corporation (NYSE:XOM) is getting into the mix, having also come to an agreement with TETRA Technologies, Inc. (NYSE:TTI) to develop more than 6,100 lithium-rich acres in Arkansas. TETRA already produces chemicals for water treatment and recycling, and has also signed an agreement with a company known as Saltwerx to develop 6,138 acres of salty brine deposits in Arkansas that are filled with lithium and bromine, although it provided few additional details.
And much like Albemarle, Exxon too is reportedly targeting supplying automakers with the EV metal, in congruence with its rapid expansion into the lithium sector. The move comes amid growing interest from traditional energy companies and others into emerging technologies that aim to boost global supply of the ultralight metal.
Their foray into lithium doesn’t stop with just the TETRA deal. ExxonMobil also shelled out $100 million for the drilling and production rights of an expansive lithium brine reservoir in southern Arkansas’s Smackover formation. The Smackover’s location in the south central US puts ExxonMobil in a position to potentially become a key supplier to the nation’s growing domestic electric vehicle (EV) manufacturing base which requires lithium to make batteries.
Article Source: https://energymetalnews.com/2023/02/28/charging-along-the-highway-towards-domestic-lithium-dominance/
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