Macro

ABAT Gets DOE Boost, US Gold's CK Gold Advances, Tredegar Sale in CADE Review

American Battery Technology and Canter Resources advance in green energy metals, with significant federal support and strategic Nevada projects.

By Max Weldon

5/16, 16:53 EDT
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Key Takeaway

  • ABAT receives significant DOE support, enhancing its lithium recycling and refinery projects, with improved economics for its Tonopah Flats Lithium Project.
  • U.S. Gold advances CK Gold Project with new permit, targeting prefeasibility completion by Q3 2024 and progressing on environmental permits.
  • Tredegar's sale of Terphane under scrutiny by Brazil's CADE, with the company working to address regulatory concerns.

Green Energy Metals in Focus

American Battery Technology and Canter Resources are making significant strides in the green energy sector, with both companies advancing projects critical to the U.S.'s green energy and technology future. American Battery Technology has received substantial support from the U.S. Department of Energy, including a $60 million tax credit and grants totaling $67.5 million for its recycling and lithium hydroxide refinery projects. This financial backing underscores the federal government's commitment to fostering domestic capabilities in battery recycling and lithium production, essential for the burgeoning electric vehicle (EV) market.

Canter Resources, on the other hand, is expanding its exploration efforts in Nevada, targeting lithium and boron—two metals crucial for green energy technologies. The company's Columbus project, near Tesla's gigafactory, is poised to benefit from the growing demand for lithium, used in lithium-ion batteries, and boron, used in neodymium-iron-boron permanent magnets for EV motors. Canter's aggressive exploration strategy and the strategic location of its project highlight the potential market impact of its endeavors.

Regulatory and Market Dynamics

The exploration and development activities of these companies are set against a backdrop of regulatory scrutiny and market anticipation. Tredegar's proposed sale of its flexible packaging films market operation in Brazil faces challenges from the country's Administrative Council for Economic Defense, illustrating the complex regulatory environment that companies must navigate. Meanwhile, the mining sector is closely watching BHP's potential bid for Anglo American, signaling consolidation trends in the industry that could reshape market dynamics and influence strategic decisions for companies like Ivanhoe Electric, which is focusing on empowering Tribal communities and creating opportunities in the mining sector.

Lithium and Boron: Critical for Green Energy

The global demand for lithium and boron is on the rise, driven by their critical roles in green energy technologies. The U.S. Inflation Reduction Act, mandating significant percentages of critical minerals in EV batteries to be sourced domestically or from free trade partners, further emphasizes the strategic importance of domestic lithium and boron production. Canter Resources' exploration efforts at the Columbus project aim to capitalize on these market dynamics, with the potential for significant boron concentrations adding to the project's appeal. The company's exploration for lithium-boron brine mineralization offers a more rapid path to resource estimation compared to hardrock mineralization, highlighting the efficiency and strategic significance of its efforts.

Management Quotes

  • John Steitz, CEO of Tredegar:

    "Remains confident in the sale’s benefits for Brazil’s flexible packaging films market and will continue to cooperate with the CADE Tribunal to address any concerns."

  • Robert Friedland, Executive Chairman of Ivanhoe Electric, and Taylor Melvin, CEO of Ivanhoe Electric:

    "Expressed excitement about supporting the initiative’s mission to empower Tribal communities and create more opportunities in the mining sector."