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As Tesla builds its own lithium refinery, Canadian lithium mining companies stand to gain from the rising demand for battery-grade lithium.
With the aim to produce enough battery metal for one million electric vehicles (EVs) by 2025, Tesla’s ambitious project will increase the demand for lithium, especially from domestic suppliers. In this article, we introduce five Canadian lithium stocks that are poised to benefit from Tesla’s expanding ambitions.
“We can bring in the spodumene which is the rock input to this refinery from all over North America“
Elon Musk
Critical Elements Lithium (TSX-V:CRE) focuses on their permitted, construction-ready flagship project, the Rose Lithium-Tantalum deposit. Located in Québec, a high-purity spodumene hard rock project expected to produce battery-quality lithium hydroxide for the EV sector. With strong support from the Québec government, First Nations, and local communities, the project offers a sustainable lithium supply from Québec’s low-carbon, 93% hydroelectric grid. The experienced management team includes key members from Rockwood Lithium.
The project’s robust after-tax NPV8% of $1.9B, an IRR of 82.4%, and a payback period of 1.4 years present significant re-rating potential and fundamental upside from new discoveries and large exploration mining claims. The company is currently evaluating financing options and JV options from potential blue-chip strategic partners while exploring its large exploration mining claim landscape.
Patriot Battery Metals (TSX-V:PMET) has raised C$50 million to accelerate exploration at their Corvette Lithium Project, with an initial mineral resource for CV5 targeted for June 2023. The company extended the strike length of the CV5 Pegmatite to 3.15 km and surpassed the initial 20,000 m target for the winter drill program. With these developments, Patriot’s project has the potential to represent one of the largest hardrock lithium deposits in North America and the world.
Environmental baseline data collection continues for the CV5 Pegmatite, and a Phase I hydrogeological program is underway. Construction of an all-season road and camp is planned, with completion expected in H2 2023 and operations starting by early summer, respectively.
Sayona Mining (ASX:SYA) and Piedmont Lithium (NASDAQ:PLL) have successfully restarted the North American Lithium (NAL) project in Quebec, part of the Sayona Quebec joint venture. The Moblan Lithium Project has seen a significant resource increase, positioning it among North America’s largest lithium resources.
Additionally, a definitive feasibility study (DFS) for Sayona’s NAL operation and nearby Authier Lithium Project demonstrates the Abitibi lithium hub’s long-term financial and technical viability, with an estimated pre-tax net present value (NPV) of A$2.2 billion (C$2B).
Winsome Resources (ASX:WR1) has announced positive assay results from the Adina East Prospect, confirming high-grade lithium mineralization 1.9 km east of the Adina Main Zone. With these results, mineralization at Adina now spans 3 km, and remains open to both the east and west.
Winsome’s expanded drilling program aims to determine the scale of mineralization and the link between Adina East, Adina Main, and previous drilling by MetalsTech. The company’s progress at the Adina project positions it as a valuable contributor to Canada’s growing lithium production landscape.
Frontier Lithium (TSX-V:FL) is a Canadian lithium developer, with its flagship PAK Lithium Project located in northwestern Ontario. The project hosts one of the highest-grade lithium deposits in North America, with a large resource base and strong potential for expansion. Frontier Lithium’s commitment to sustainable development and its strategic partnership with the local Indigenous community have positioned the company as a significant contributor to Canada’s lithium production ambitions.
