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Highlights
- CleanTech Lithium is planning to go for an AIM listing and raise funds of around £6 million.
- The Chile-based company aims to use the process of direct lithium extraction (DLE) for producing battery-grade lithium.
Chile-based lithium producer CleanTech Lithium recently expressed its intention to float on the Alternative Investment Market (AIM) of the London Stock Exchange soon. The company aims to raise funds worth around £6 million through the IPO.
CleanTech and its IPO plans
CleanTech Lithium aims at using new and advanced technology to sustainably extract lithium while minimising and reducing its carbon footprint. The funds raised through IPO would be channelized towards the up-gradation of its resources, construction of its pilot plant, feasibility studies, as well as acquiring environmental approvals.
The company has two highly strategic projects in Chile, which include the Laguna Verde project, carrying 1.2 million tons of lithium according to a JORC compliant estimate, and the Francisco Basin project.
CleanTech is reportedly planning to start producing lithium on Laguna Verde by 2024 after the completion of the scoping and pre-feasibility study (PFS). For the Francisco Basin, the second PFS is anticipated by somewhere around the mid of 2024. Both these projects hold a dominant license position in the salar basin, which is quite rare in the Lithium Triangle, and thus they have no competitors as such.
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Lithium: The defining material of the decade
With the world moving towards decarbonisation and sustainability to tackle the menace of climate change, the demand for lithium has been significantly increasing. This increase in demand is being witnessed not just in the UK but in the EU, the US, and China as well, as all of them are rushing towards a complete transition to electric vehicles (EVs). By 2030, the UK has planned to completely stop sale of new petrol and diesel cars and shift to EVs to meet its net-zero emissions target of 2050.
CleanTech Lithium has the potential to support this transition to EVs by providing the pale grey metal for the production of lithium-based batteries. These batteries are used in EVs as they have the minimum discharge rate along with the maximum energy density. Lithium is used in smartphone batteries and other such devices too.
There are certain sustainability-related issues associated with the mining of lithium, such as excessive usage of water and depletion of aquifers in already dry areas, and high carbon emissions. However, CleanTech is going to make life easier with better and more sustainable options for lithium production. It aims to use the process of direct lithium extraction (DLE) for producing battery-grade lithium, which re-injects brine that obtains just lithium in the process, thus saving ponds and aquifers from depleting. Additionally, the company plans to use solar power for all its projects, further reducing its carbon footprint.
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Bottomline
CleanTech Lithium is planning to launch an IPO in London at a time when the price of lithium is touching record highs due to excessive demand in the majority of the key markets.
No official announcements have been made by the company about the listing date and the price band yet, hence more details are awaited, and the company’s website can be referred for further details.
(Note: IPO information provided here are, as of 10 February 2022)
