Dirk Harbecke CEO ROCK TECH LITHIUM
Can you highlight the most significant developments at Rock Tech Lithium over the past year?
Rock Tech Lithium (Rock Tech) is a German-Canadian company on its way to becoming an integrated lithium producer. We are currently developing a mining project in Ontario, located near Thunder Bay. Additionally, we have obtained permits for a lithium hydroxide converter at the German-Polish border. Leveraging our converter knowledge from Europe, we have also initiated the development of a similar converter in Ontario. Our key partners in Germany include companies like Mercedes Benz. In Canada, we have announced that we are considering building a converter in Red Rock, together with the Red Rock Indian Band First Nation and the BMI Group. Could you provide an update on the recent developments of the Georgia Lake project in Ontario?
We released a PFS for Georgia Lake and our focus is now on advancing the FS and collaborations with neighboring properties. We recently announced discussions with Imagine Lithium, one of our neighbors, aiming for a consolidation of properties in the area. Our vision is to establish a concentrator and a large lithium converter, drawing on our extensive experience from European operations. The goal is to bring the mining property into production in alignment with our plans for our second converter in Canada. As for the Canadian project, we anticipate starting lithium chemicals production in the second half of 2027, positioning ourselves as a leading player in Canada. Despite the potential competition, we believe the industry will see more collaborations, as being an integrated lithium player involves distinct elements of mining and chemistry. What caused the recent drop in lithium spot prices?
We observed a moderation in the growth rate of the Chinese EV market, coupled with a notable increase in the production of lithium concentrate.This surge in production was prompted by the profitability of the industry, leading to a scenario of lower-than-expected demand and an overproduction situation, thereby exerting significant downward pressure on prices.
Zeeshan Syed President AVALON ADVANCED MATERIALS
Can you provide a detailed overview of Avalon's main highlights in 2023?
Our focus shifted towards implementation and production, departing from the traditional junior mining company model. Notable milestones include a strategic partnership with Sibelco for our upstream lithium assets through a new JV that now includes our flagship project, Separation Rapids.
The acquisition of a fully serviced industrial property in Thunder Bay was a pivotal move. This property serves as the cornerstone for our midstream lithium processing platform. Additionally, our partnership with Metso stands out as a major accomplishment. Metso's expertise brings innovative process technology solutions to Canada, accentuating environmentally sound practices and propelling the country into a leadership position on the global stage. Have you been supported by the federal and provincial governments?
I applaud the position taken by the federal and provincial governments. Canada’s boldness and support has attracted major players like Volkswagen and Stellantis. Focusing on downstream demand was the right initial step, followed by attention to midstream processing capacity, a capital-intensive aspect of the supply chain. Budget 2023 emphasized recycling and midstream processing, aligning with Avalon's thesis. By creating economic conditions for midstream capacity, we enable upstream players to regionalize the supply chain, reducing ESG footprint and catalyzing the entire region. What challenges does Avalon anticipate in 2024?
The futures market indicates potential growth in upstream supply, directly impacting pricing. This aligns with Avalon's move into advanced manufacturing, anticipating significant opportunities. The evolving battery technology adds complexity, but Avalon remains bullish on lithium's future. Our diversified portfolio, including a substantial asset in the Northwest Territories with heavy rare earths, positions us strategically. The rich zirconium content found there, crucial for military and defense applications, aligns with North American energy security initiatives.