Compass Minerals Jumps to Discovery of 2.4 Million Metric Tons of Lithium Resources, Auto News, ET Auto

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New Delhi: Compass Minerals shares rose nearly 20% in pre-market trading on Wednesday after the mineral producer said it found around 2.4 million metric tonnes of lithium carbonate equivalent (LCE) on its solar evaporation site in Utah.

The announcement, released Tuesday after market hours, comes as demand and prices for the battery metal rose due to aggressive electric vehicle production plans from automakers.

The company, which produces salt, plant nutrients and magnesium chloride, said it has identified a lithium resource indicated in ambient brine from the Great Salt Lake.

Much of the lithium is extracted from brine or seawater.

Electric vehicle batteries can use lithium carbonate or lithium hydroxide, but industry typically uses lithium carbonate equivalent (LCE) which contains both.

The company said it was evaluating ways to extract the lithium, which accumulates through its current solar evaporation process and is accessible through its existing leases and permits, adding that it was in talks at an advanced stage. to select a direct lithium mining technology supplier.

Compass said an initial assessment estimated the combined total indicated and inferred lithium resources of approximately 127,000 metric tonnes of LCE at its active site in Ogden. The assessment also identified an additional indicated lithium resource of approximately 2.32 million metric tonnes of LCE.

The company said it is aiming for an annual production capacity in the range of 20,000 to 25,000 metric tonnes of LCE, with up to 65% of future production derived from brine that has already been extracted from the Grand Lac. Dirty.

Shares of the company, which are trading at $ 17.19 before the bell, have fallen 2% this year.

Automakers around the world are fighting for access to lithium, a key ingredient used to make electric vehicle (EV) batteries. They also want the metal to be produced with the least possible carbon footprint.

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