Global Geoscience’s (ASX:GSC) Chairman James D Calaway says the general trend for lithium is “definitely up” and sees Global Geoscience’s Rhyolite Project as potentially driving supply in the coming years.
Speaking with The Capital Network’s Lelde Smits recently, Calaway discussed the supply, demand and outlook for lithium.
An experienced executive, Calaway has played significant roles in the development of both public and private companies carrying out lithium, oil, gas and solar energy operations.
Prior to joining Global Geoscience as Chairman in April of this year, Calaway spent eight years as Chairman of Orocobre (ASX:ORE; TSX:ORL), an Australian company which has gone on to become a major producer of lithium. After leaving Orocobre, Calaway says he searched the world for a “real opportunity” which wasn’t overvalued, ultimately deciding that Global Geoscience was the one.
Regarding supply, Calaway believes that although shortages may come up on a short-term basis, there is enough lithium in the world and that the industry will ultimately respond to the growing demand. The real question is, “At what cost? At what price do people need to pay in order to stimulate the supply?” he says.
Calaway became involved with lithium through his interest in electric propulsion and believes the growing demand for electric vehicles (EV) and resulting investment has been “really staggering.”
“The public policy that is developing around the world to support it is also remarkable,” he says. “And so, I think that everyone that’s involved is having to increase their projections of demand coming from this and we’re certainly seeing a scramble around the world by people involved in battery making for the automobile industry, seeking out secure and affordable supply.”
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Calaway sees Global Geoscience as having a good chance of becoming a producer through its 100%-owned Lithium-Boron Project at Rhyolite Ridge in Nevada. Rhyolite Ridge is located close to infrastructure and the Tesla Gigafactory and has the advantage of being a large, shallow deposit with low costs for mining and processing. Although the resource was initially characterised as a clay project, it was later discovered to contain minerals that can be easily processed into lithium carbonate and boric at a cost basis which should be very competitive.
Calaway calls Rhyolite Ridge a “big surprise” due to it being a unique sedimentary deposit. He believes that in coming years we will see additional lithium production from both brines and spodumene deposits. “But, there is an issue about spodumene conversion capacity and I think it’s definitely going to be at a much higher price.
And then projects like Rhyolite Ridge are going to be the things that drive the supply,” he adds.
In recent months, Global Geoscience has secured long-term water rights, raised $AUD 30 million and is in the midst of conducting a pre-feasibility study on the Rhyolite Ridge Lithium-Boron Project.