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Highlights
- Lithium is a crucial ingredient in creating rechargeable batteries used in electric vehicles.
- Australia is a major exporter of lithium.
- Spodumene concentrate, the most frequently used source of lithium minerals, is predominantly extracted from pegmatite in Australian lithium mines.
Lithium has experienced a sharp increase in demand in the past few years. Lithium is a crucial ingredient used in rechargeable batteries for electric vehicles (EVs), renewable energy storage, and consumer electronics like cell phones, computers, and cameras due to its lightweight characteristics.
Image Source: © 2022 Kalkine Media ®
However, several Australian lithium mines have started to produce lithium hydroxide as demand increased worldwide.
From the June quarter of 2021 to June 2022, Australia's lithium exports climbed by AU$2,318 million (737%). Western Australia has provided more than 99% of all Australian lithium exports on a monthly basis since January 2021.
In June 2022, Australia shipped lithium to China for AU$1,128 million, accounting for 97% of total lithium exports that month.
In this article, we at Kalkine Media® will discuss the performance of three lithium shares in 2022.
Sayona Mining Limited
Sayona Mining Limited (ASX:SYA) is a lithium producer with projects in Western Australia and Québec, Canada.
Image Source: © 2022 Kalkine Media ®
Sayona revealed on Wednesday (5 October 2022) that it has started a pre-feasibility study for its upcoming Moblan Lithium Project in northern Quebec, intending to significantly expand its Québec lithium resource base.
The PFS will be carried out by the Quebec firm InnovExplo, keeping with Sayona's focus on maximising economic benefits for regional stakeholders and aiming for completion by May 2023. A final feasibility study is anticipated to come after this, with a completion date of September 2023.
Stock performance: At 3.27 PM AEDT, Sayona Mining's shares were trading at AU$0.22 each, up 3.26% on ASX. The company's shares have grown more than 58% on a year-to-date (YTD) basis, while they have fallen around 38% in the last six months.
Core Lithium Limited
Core Lithium (ASX:CXO) is developing the Finniss Project in the Northern Territory. The initial production is expected to be delivered by the end of 2022.
Finniss has been granted Major Project Status by the Australian Federal Government.
On Monday this week (10 October), Core announced the official opening of the Finniss Lithium mine.
By the end of the year, Finniss plans to export lithium from Direct Shipping Ore (DSO). This comes after the Spodumene DSO product's first sale, which was announced on 3 October 2022.
Stock performance: At 3.28 PM AEDT, Core Lithium's shares were trading at AU$1.18 each, up 3.07% on ASX. The company's shares have grown more than 86% on a YTD basis, while they have fallen over 14% in the last six months.
Allkem Limited
Allkem Limited (ASX:AKE) produces and sells lithium and boron in Argentina. The company's major project is the Olaroz Lithium Facility, which is located in the Jujuy province of northern Argentina. Allkem was established in 2005 and has its headquarters in Brisbane, Australia.
Allkem announced last week (7 October 2022) that it has signed an agreement with the International Finance Corporation (IFC) for a project financing facility (IFC loan) for the Sal de Vida Project, which is owned entirely by Allkem and is situated in Catamarca Province, Argentina.
The investment that IFC is recommending consists of a US$200 million debt package, with up to US$100 million coming from IFC for a maximum tenor of nine years and the remaining sum being funded by a syndicate of commercial banks.
Image Source: © 2022 Kalkine Media ®
Data Source - Company's announcement dated 07 October 2022
Stock performance: At 3.30 PM AEDT, Allkem's shares were trading at AU$14.84 per share, up 0.24% on ASX. The company's shares have jumped over 32% on a YTD basis and around 12% in the last six months.
