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Tempest Minerals (ASX:TEM) in high spirits with derisked lithium exposure amid EV race

Image Source: Tempest Minerals

Highlights

  • As per the Resource and Energy quarterly December version, global lithium demand is anticipated to grow to 724,000 tonnes by 2023, almost 1.5 times the demand of 305,000 tonnes in 2020.
  • The global EV sales figures had reached the 3-million milestone mark in 2020.
  • Tempest maintains a strong de-risked position across premium lithium projects in Western Australia, Africa and the United States.

Did you know –

As many as 2.65 million Electric Vehicles (EV) were sold in the first half of 2021 alone, recording a staggering ~170% growth as per the data released by the EV-Volumes website. Witnessing rapid growth in the last decade, as many as 10 million electric vehicles globally now run on roads, as per the International Energy Agency. global EV sales figures had reached the 3 million mark in 2020.

The IEA estimates that as many as 300 million electric cars will run on roads globally by 2030 accounting for over 60% of new vehicles sales. The recent growth in EV sales stands in conflict with the current automotive market sluggishness across the globe with the overall car sales down by ~16% due to the ongoing pandemic. The significant growth in the EV sales is not just limited to 2020 or 2021, in fact, the EV sales figures have consistently increased during the past decade.

The rising EV sales would require a reliable and ethical supply of battery metals, most prominently lithium. This has sparked off major interests in lithium mining projects in Australia, Africa, Latin America and prominent EV markets, including the United States, Europe and Asia.

As per the Resource and Energy quarterly December version, global lithium demand is anticipated to grow to 724,000 tonnes by 2023, almost 1.5 times the demand of 305,000 tonnes in 2020. The EV sales growth may be approaching the inflection point of the curve beyond which, exceptionally high growth will be witnessed similar to what has been experienced in case of disruptive technologies such as mobile phones and many others. The strong proportionality between the EV sales and lithium demand means a potentially higher-than-anticipated opportunity for the battery metal in the upcoming years.

Read Here: Tempest Minerals (ASX:TEM) follows robust approach across Lithium and Gold Projects, streak of exploration activities planned

In a latest, automotive giants and battery manufacturers are collaborating with lithium exploration and mining companies through equity investments or long-term offtake agreements to secure reliable, ethical and cost-effective supplies of the silvery-white metal.

A diversified minerals player with substantial lithium exposure

Tempest Minerals Limited (ASX:TEM) is a diversified minerals exploration with a data-centric approach to build up and maintain a strong de-risked position across premium lithium projects in Western Australia, Africa and the United States. Tempest has been developing a strong lithium portfolio since 2017.

Image source: Company Website

Must Read: How is Tempest Minerals Limited (ASX:TEM) placed on the lithium front?

The company enjoys potentially large lithium exposure across both brine and hard rock projects empowering the company with an edge over its peers. Let’s have a glance at TEM’s lithium assets –

Yilgarn Lithium Project – Tempest progress on three lithium project areas in the renowned Yilgarn Craton of Western Australia. Cumulatively, the project spans 108km2.

  • Carraning – Prospective for lithium and gold.
  • Rocky Hill - Prospective for lithium, Magnesium and High Purity Alumina (HPA).
  • Windarling – Known pegmatite occurrence which is interpreted to be prospective for lithium.

The company intends to conduct a UAV (drone) survey, reconnaissance mapping and a targeting study at the Rocky Hill project.

African lithium assets - Despite the liquidation of its equity interest in the East African Lithium Projects owned by Premier African Minerals Ltd (AIM: PREM), Tempest retains significant holding (~74.5 million shares) of Premier African. Premier operates a wide portfolio of mineral projects, including the Zimbabwe and Mozambique lithium projects.

US lithium Brine project – The Tonopah Lithium Project is strategically located in the centre of the US EV industry and only 300km from Tesla’s Gigafactory. Albemarle, the world’s largest lithium producer, operates its Silver Peak lithium brine operations, just 4km from the project with strong geological similarities. The strong de-risked exposure to the US project includes milestones payments.


 


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