Lithium stocks on ASX- What should you know about ASX:LLL & ASX:GL1? - Kalkine Media

January 23, 2023 04:29 PM AEDT | By Sukriti
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Highlights

  • Rising demand for electric vehicle batteries saw global lithium demand grow strongly.
  • As per Resources and energy quarterly December 2022, world demand for lithium is expected to increase from 592,000 tonnes of lithium carbonate equivalent (LCE) in 2021 to 745,000 tonnes in 2022.
  • ASX:LLL and ASX:GL1 are developing projects to take advantage of this opportunity .

Despite deteriorating global economic conditions, sales and production of electric vehicles has continued their rapid growth trend, as per Australian Government’s Resources and energy quarterly December 2022. Consequently, global lithium demand continues to grow strongly, as the metal is a necessary component of electric vehicle batteries.

Do you know these lithium facts?

The robust demand outlook for lithium chemicals is appealing capital to build global supply. Several expansions and new projects were announced last year, with exploration and drilling activities picking up in many countries. Below are some interesting facts, as per Resources and energy quarterly December 2022-

  • Lithium is an extremely light metal and can float on water.
  • World demand for lithium is estimated to increase from 592,000 tonnes of LCE in 2021 to 745,000 tonnes in 2022.
  • Demand is projected to rise by over 40% in the next couple of years, reaching 1,091,000 tonnes by 2024.
  • Asia remains the major source of demand for lithium.
  • World output was 551,000 tonnes LCE in 2021 and is anticipated to reach 691,000 tonnes in 2022 and 1,087,000 tonnes in 2024.

Image source- Finnrich | Pixabay

In this backdrop, let us skim through the recent developments of two ASX listed lithium companies- Global Lithium Resources Limited (ASX:GL1) and Leo Lithium Limited (ASX:LLL)-

Global Lithium Resources Limited (ASX:GL1)

A diversified West Australian focussed mining exploration company, GL1 has multiple assets in key lithium branded jurisdictions.

The company recently reported Combined Mineral Resource increases from 20.4Mt to 50.7Mt across two 100%-owned hard rock lithium projects in WA- Manna Lithium Project and Marble Bar Lithium Project.

In December 2022, the company notified that Scoping Study is underway at Manna Lithium Project. The Project hosts a Mineral Resource Estimate (MRE) of 32.7Mt @ 1.0% Li2O. Results are expected in Q1 CY2023. Outcomes are likely to set the foundation for Manna Feasibility Study and outline key risks and opportunities.

Mid-day on January 2023, GL1 traded at AU$2.13 on the ASX, up 1.4%.

Leo Lithium Limited (ASX:LLL)

This company is developing the Goulamina Lithium Project (Goulamina) in Mali, in 50/50 partnership with Ganfeng, the world’s largest lithium chemical producer by production capacity. LLL claims that the hard rock lithium project will be the first of its kind in West Africa. Construction is underway and the first production is targeted for H1 2024.

Recently, LLL revealed that the Total Goulamina Resource increased by 31% to 142.3 Mt @ 1.38% Li2O. An increase in Danaya (Domain Resource), of 33.8 Mt from a drilling campaign of roughly 12,700 metres, is a fantastic outcome, says Managing Director, Simon Hay.

Mid-day on January 2023, LLL traded at AU$0.54 on the ASX, up 1.8%.

As the global lithium project pipeline continues to grow, it will be interesting to see how GL1 and LLL progress with their projects and benefit from the rising opportunities.


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