Western Australia is the world’s leading hard rock lithium producer. That commanding position is set to become stronger, driven by unfathomable growth from electric vehicles bell curbing the displacement of fossil fuel-powered engines.
It’s a modern-day frontier rush in the West with small and large explorers furiously pegging once overlooked lands in search of the next Mt Holland or Pilgangoora lithium project.
New reports say 74 per cent of the current lithium will be used in batteries.
Spare a thought for other end users!
A US Geological Survey highlights alarming data suggesting lithium will be needed in escalating quantities for an array of electronic gadgets, power tools and the nascent energy storage solutions industry.
That places Australia, and Western Australia in particular, in a powerful position as a critical player in the global, new energy race.
THE NUMBERS
Statista says Australia produced 55,000 metric tons of lithium last year, leaving Chile and China a far second and third with lithium production totalling 26,000 and 14,000 metric tons, respectively.
GlobalData like Australia for an additional ≈ 13.5 million (24.5mt) this year as mines expand production to meet demand.
The Office of Australia’s Chief Economist backs this with its forecast that lithium exports are expected to triple.
The numbers are outstanding considering that in 2022–23 Australia’s export earnings will grow from AU$4.9 billion to AU$16.1 billion and to AU$17 for the following 2023–24 financial year.
The December version of the Australian Government’s Resources and Energy Quarterly suggests that the strong growth in spodumene prices that saw Australia’s export revenue reach a record A$4.9 billion in 2021–22 – up from A$1.1 billion in 2020–21 — is expected to drive a further tripling in annual export earnings in the near term.
Production from lithium hydroxide refineries is forecast to build steadily, lifting total annual lithium export revenue to an estimated A$16 billion in 2022–23 and A$17 billion in 2023–24.
While much of the forecast export growth is price-driven, Australia’s production capacity is also forecast to grow strongly over the outlook.
The expected annual average growth of over 18 per cent a year will see production rise from 335,000 tonnes of LCE in 2021–22 to 399,000 tonnes in 2022–23 and 470,000 tonnes in 2023–24.
Export volumes of spodumene concentrate are forecast to grow by more than one-third from 2021–22 levels over the forecast period: spodumene concentrate exports are forecast to rise to 3.2 million tonnes in 2023–24 from 2.3 million tonnes in 2021–22.
The report forecasts that by 2024, Australia could have up to 10% of global lithium hydroxide refining capacity, rising to about 20% of global lithium refining by 2027.
COMMANDING POSITION
Western is already benefiting as one of the world’s leading gold and iron ore producers, and now it stands well positioned to play a significant role in the global energy transition.
Australia’s largest state in the sheer area alone has become a key location for battery minerals and lithium players supplying all but 1 per cent of the nation’s current output.
The Australian Bureau of Statistics forecasts the state’s lithium production will increase from 335,000mt LCE to 399,000mt in 2022–23 and 470,000mt in 2023–24.
Analysts say this is more than just good geology, highlighting the attractiveness of the proven resources sector.
FRONTIER STAMPEDE
Australia’s ASX is filled with hopefuls looking to inspire investors with material details of the next likely lithium discovery.
Many are making serious headway with programmes covering old and new tenements once overlooked for their lithium prospectivity.
Voltaic Strategic Strategic Resources Limited (ASX:VSR) and Forrestannia Resources (ASX:FRS) are aggressively hunting lithium in some emerging hotspots in Western Australia.
Voltaic has built a significant land holding in potentially lithium-rich areas, now attracting strong exploration spending.
The Company recently announced promising results from its Ti Tree project, located in WA’s Gascoyne region, another emerging lithium province.
Following the prior identification of multiple priority target areas with analogous ASTER signatures to the adjacent Red Dirt Metals (ASX:RDT) Yinnietharra lithium discovery, Voltaic has found a high density of pegmatite occurrences at one of its priority targets, “Morpheus”, as well as several other aster targets within granted tenement E09/2503 during the latest field survey.
“The latest discovery and field observations from Ti Tree have significantly increased the prospectivity for lithium-tantalum mineralisation within the Volta corridor,” Voltaic CEO Michael Walshe says.
“Priority ASTER target areas were found to strongly correlate with outcropping pegmatite occurrences, many of which displayed the same structural orientation and degree of fractionation as the Yinnietharra pegmatites.
“To date, less than 10% of the 21 priority ASTER targets have been tested. The density of pegmatites observed thus far alludes to substantial scale potential across the 22km Volta corridor.”
FRONTIER STAMPEDE
Australia’s ASX is filled with hopefuls looking to inspire investors with material details of the next likely lithium discovery.
Many are making serious headway with programmes covering old and new tenements once overlooked for their lithium prospectivity.
Voltaic Strategic Strategic Resources Limited (ASX:VSR) and Forrestannia Resources (ASX:FRS) are aggressively hunting lithium in some emerging hotspots in Western Australia.
Voltaic has built a significant land holding in potentially lithium-rich areas, now attracting strong exploration spending.
The Company recently announced promising results from its Ti Tree project, located in WA’s Gascoyne region, another emerging lithium province.
Following the prior identification of multiple priority target areas with analogous ASTER signatures to the adjacent Red Dirt Metals (ASX:RDT) Yinnietharra lithium discovery, Voltaic has found a high density of pegmatite occurrences at one of its priority targets, “Morpheus”, as well as several other aster targets within granted tenement E09/2503 during the latest field survey.
“The latest discovery and field observations from Ti Tree have significantly increased the prospectivity for lithium-tantalum mineralisation within the Volta corridor,” Voltaic CEO Michael Walshe says.
“Priority ASTER target areas were found to strongly correlate with outcropping pegmatite occurrences, many of which displayed the same structural orientation and degree of fractionation as the Yinnietharra pegmatites.
“To date, less than 10% of the 21 priority ASTER targets have been tested. The density of pegmatites observed thus far alludes to substantial scale potential across the 22km Volta corridor.”
The width, depth extent and tenor of drill intercepts at the neighbouring Yinnietharra discovery have prompted the Company to commence exploration of its untested targets as soon as possible.
Walshe adds his Company believes the number of pegmatoid occurrences has the potential to run into the hundreds at Ti Tree.
“The most effective next steps would be detailed mapping with UAV imagery capture and direct outcrop sampling to aid target generation, vectoring and ranking,” he says.
FORRESTANIA FOLLOWS GOLDILOCKS
Meanwhile, Forrestania Resources Limited (ASX: FRS) has begun over 100kms drilling of high-priority targets across 100km of ‘Goldilocks Zone’ at its flagship Forrestania Project.
APPROVED WORKS
- Giant Pegmatite, targeting extensions of a previous discovery of 34m @ 3.1% Li2O from 68m
- Gemcutter, targeting extensions to historic pegmatite and lithium intercepts beneath the Gem Mine
- Bounty East, drilling across the central tantalum anomaly zone on a line that has not previously been drilled, only 6km east of the world-class Mt Holland lithium mine.
- South Iron Cap East, testing the prospect identified in April, which includes an anomalous tantalum in a soil zone of over 2.5km in length with a pegmatite outcrop, located less than one km the east of IGO’s South Iron Cap drill intercept where 50.6m @ 0.95% Li2O was recorded from a nickel focussed drill hole.
- “We are planning to drill test other high-quality prospects, including South Iron Cap East, which is a significant, undrilled target given its proximity to IGO’s South Iron Cap lithium discovery,” Chairman and Interim CEO John Hannaford said.
- “Along with other planned drill targets, the company will have a very active drilling programme to start in 2023,” he adds.
