LIT subsequently completed a 12-line-km ground geophysical survey at the property and mobilized a diamond drill rig to site. The field team is currently executing the second hole of a 6-hole exploration program.

Argentina Lithium VP Exploration Miles Rideout commented via press release:

“The Rinconcita II property extends our holdings eastwards over the salt flat and has not previously been explored. The new CSAMT geophysics demonstrate that all parts of this block exhibit extremely low electrical resistivities at depth, consistent with the presence of brine-saturated formations. The current drill program is intended to verify the presence and lithium grades of these brines, in order to incorporate them into the resource model we are building for Rincon West.”

Argentina Lithium CEO Niko Cacos added:

“The US$90M equivalent investment in our company by automotive giant Stellantis comes with the mandate to accelerate exploration at our core projects, with the aim of advancing to the assessment of development potential as quickly as possible. We anticipate increasing the scale and number of our exploration programs as permits are received for our projects. This is a big undertaking, and we are now well financed to aggressively move forward with this work.”

The recently completed 12-line-km CSAMT survey demonstrated the presence of extremely conductive strata (low resistivity) at less than 100 meters below surface, consistent with formations saturated with lithium-bearing brines.

With the geophysical survey results in-hand, LIT has engaged AGV Falcon Drilling to drill-test the property to confirm the presence of enriched lithium brines at depth. The program calls for six diamond drill holes (with the second hole underway as mentioned) and one rotary drill well for pump testing.

Further, the northern Paso de Sico concession block, which is presently undrilled, is currently in the permitting process for exploration geophysics and drilling.

The ongoing Phase-1 drill program and 3D modeling will support a future Mineral Resource Estimate (MRE) for the property.

 

Antofalla North Lithium Project

The Antofalla North project is situated 25 km west of Argentina's largest lithium producing operation at Salar de Hombre Muerto, Salta Province.

In the last year, the company has expanded the Antofalla North project with the acquisition of four additional mine concessions. With the new concessions, the project now spans over 16,000 hectares of mining leases in the Antofalla Salar distributed between the adjacent provinces of Salta and Catamarca.

Argentina Lithium CEO Niko Cacos said of the salar, the project, and the newly acquired mineral claims:

“Our team has identified the Antofalla Salar as one of the most prospective undeveloped lithium brine basins in Argentina, and we are aggressively consolidating our land position in Antofalla North. With these new acquisitions, Argentina Lithium’s properties extend from a half kilometer north of Albemarle concessions, towards the north for approximately 27 kilometers. We have begun the permitting process, in order to explore this salt flat with advanced geophysical imaging and drill testing.”

The southern boundary of the Antofalla North project is situated approximately 500 meters north of properties controlled by global lithium producer Albemarle Inc. (NYSE: ALB).

Preliminary high-conductivity targets have been identified through geophysical surveying.

The LIT team is planning a follow-up 110-line-km TEM geophysical survey across the property to further delineate targets for an initial drill program (up to 6 holes) starting in Q1 2024, followed by up to 24 infill holes, pending permitting.

 

Pocitos Lithium Project

Situated proximal to other lithium-bearing salars in Salta Province, the 26,000-hectare Pocitos project has seen limited exploration by previous operators, presenting an opportunity for new discoveries.

Argentina Lithium is planning detailed work to detect and delineate brine concentrations for testing at Pocitos.

The upcoming work program is slated to include a planned 170-line-km survey to potentially be followed by Phase-1 drilling of up to 4 drill holes in 2024.

 

Incahuasi Lithium Project

Situated in the Incahuasi Salar, Catamarca Province, the Incahuasi project is considered a highly underexplored property with potential for quality lithium brines at depth.

Previous fieldwork produced maximum values of 409 mg/liter lithium and 1.56% potassium recovered in near-surface sampling to 8 meters of depth.

Historical drilling (4 holes) confirmed lithium bearing brines averaging 109 mg/liter Li and 6,718 mg/liter potassium.

An upcoming work program is slated to include a planned 90-line-km survey designed to detect and delineate new brine concentrations for testing.

In all, LIT is advancing its four Argentina-based lithium projects through exploration with the goal of delineating multiple economically viable lithium deposits.

All four projects are considered early-stage exploration with designated work programs (see flow chart below) for each project — meaning plenty of news flow ahead.

 

Lithium Boom

The global electric vehicle (EV) megatrend is driving demand for a key element in battery power generation — LITHIUM.

Global EV sales are sharply on the rise, surpassing 10 million units last year and up 55% from 2021 according to the International Energy Agency (IEA)_[5].

Total EV sales are expected to rise to a record 14 million units for full year 2023_[6].

Bloomberg projects that, by 2040, two-thirds of all global vehicle sales will be electric_[7].

That’s over 55 million EVs being sold annually — a nearly 4-fold increase from the 14 million being sold today.

Tesla founder Elon Musk goes a step further, proclaiming that all transportation on Earth will eventually go electric_[8].

Benchmark Minerals — some of the smartest guys and gals in the room when it comes to critical metals research — estimates that the industry needs to invest $116B by 2030_[9] if global economies are to achieve the lofty targets governments and automakers have set for themselves.

The bottom line is that there aren’t enough mines coming online to supply the lithium necessary to make this happen. Plus, lithium projects can take a full decade or more to go from discovery to production.

Benchmark puts it this way,

“Even if every asset in the pipeline came online on time and hit their projected lithium production capacities, the world would still need 1.8 million tonnes on top of that to meet the high case demand_[9].”

“It’s almost impossible, and definitely a race against time,” Cameron Perks, an analyst at Benchmark, said. “The big money that needs to be spent takes time to get approval for and to deploy_[9].”

BMI, a Fitch Solutions research unit, is predicting a lithium supply deficit by 2025. In a recently published report, BMI largely attributed the deficit to China’s lithium demand exceeding that of its supply:

“We expect an average of 20.4% year-on-year annual growth for China’s lithium demand for EVs alone over 2023-2032_[10].”

It all points to potential for a growing lithium supply deficit coupled with rising lithium spot prices going forward.

To illustrate further, the world produced only around 130,000 tonnes of lithium in 2022_[11] with demand coming in much higher than that at around 300,000 tonnes_[12]. By 2030, the World Economic Forum projects that global lithium demand will reach over 3 million tonnes_[10].

That’s a projected 10-fold demand increase in just the next 6 years.

And with few new large-scale lithium projects scheduled to enter production over that span_[10], that already massive lithium supply deficit could prove even larger.

Even the giant oil companies are now acknowledging that lithium is indeed the “New Oil.”

Reuters recently reported that Exxon is in talks with Tesla, Samsung, and Ford, among others, to supply lithium_[13], which is really interesting considering Exxon doesn’t produce any lithium — YET.

And it’s not just Exxon that’s entering the lithium fray.

Saudi Arabia has decided it wants a seat at the global lithium mining table with a $2.6B deal to acquire a 10% stake in Vale SA’s base metals division_[14]. Vale plans to invest up to $30B on new projects in its home country of Brazil, as well as in Canada and Indonesia_[14].

Initial investments will focus on minority equity positions in iron ore, copper, nickel, and, or course, lithium.

This is the first such deal for Saudi Arabia and it certainly won’t be the last. The country is planning to develop a $2B EV battery metals plant in partnership with EV Metals Group_[14]. Likewise, EVM Arabia is set to commence construction of a $905M battery chemicals complex in the Arab country later this year_[15].

 

Lithium Demand: On the Rise

With global EV sales on a powerful uptrend that’s showing no signs of slowing down, escalating demand for lithium-ion batteries is going to require tons and tons of new lithium supply.

Because of its high-energy-per-unit-mass relative to other electrical energy storage systems, lithium is ideal for use in car batteries as well as in laptops, cell phones, and a host of consumer electronic devices.

Lithium-ion batteries have become the front-running rechargeable energy storage medium — particularly for the rapidly growing EV industry — creating a strong demand forecast for lithium.

There is also no current replacement for lithium_[16].

New technologies that could potentially replace lithium-ion batteries are likely a minimum of a decade or two away_[16]. And lithium production from the recycling of old, end-of-life lithium-ion batteries represents little more than a drop in the bucket of what’s needed to satisfy growing demand_[17].

And the global EV megatrend is being fueled by $Billions in investment not just by Tesla but by the world’s largest “traditional” automakers as well.

That includes billions of dollars in investment and innovation from the likes of Volkswagen, Stellantis, Mercedes, BMW, Toyota, Nissan, Hyundai, GM, and Ford — to name just a few_[18].

In all, vehicle manufacturers and battery makers plan to invest US$860 billion globally by 2030 in the transition to EVs_[19]. Nearly a quarter, US$210 billion, is expected to be invested in the United States, more than in any other country_[19].

President Biden has announced that the US is now aiming for HALF of all new vehicles sold by 2030 to be electric powered_[20] in an effort to fight climate change and to keep pace with Europe and China, who are surging ahead in terms of EV market share.

The United States currently stands at just 4.5% of new vehicles sold being electric — lagging behind both Europe and China, which stand at 16% and 14%, respectively_[21].

Thus, the goal to reach 50% market share in the US by 2030 is a lofty one indeed… but one that US automakers are firmly behind.

That’s great news for global climate initiatives. Yet, because of surging demand in the EV space, experts are unsure whether enough lithium will be available to keep pace.

Global lithium demand is expected to rise from roughly 300,000 tonnes per annum_[12], currently, to upwards of 3 million tonnes per annum by 2030_[10] — a 10-fold increase.

Lithium mines, as noted earlier, produce only around 130,000 tonnes worldwide per annum_[11] — a far cry from what’s needed even by today’s demand level.

And while the supply of lithium from mining is indeed increasing, it’s happening at a far slower rate than the rise in demand. That means an escalating supply gap is a near certainty going forward as millions of drivers make the switch to electric-powered cars and trucks.

 

Argentina: An Optimal Mining Address

There’s a lot of talk about Argentina potentially becoming the “Next Chile” in terms of global lithium production.

Mariano Machado, principal analyst for the Americas at Verisk Maplecroft, says, “Argentina has infinite untapped resources when it comes to mining. We’re talking about a new Chile, if not more, with the key ingredient being time_[22].”

Remember, the Lithium Triangle of Chile, Argentina, and Bolivia holds more than HALF of the world’s known lithium reserves_[1].

The region also produces about one-third of global lithium supply_[2] with Chile currently leading the way at 26%_[23] and Argentina still a ways behind (yet, with more than enough potential to catch up) at roughly 6%_[23].

Another key reason why resource investors are so excited about the growth potential of Argentina is that it provides an alternative to Chile, which, in April 2023, made the surprise move to nationalize its lithium industry_[23].

Argentina, on the other hand, has no such issues and remains pro-mining and pro-Western investment_[23].

 

Lithium Brines: A Simple Mining Process

Lithium — aka, “the white petroleum” — is the lightest metal on Earth. And it’s not just EVs that are driving its demand.

Lithium-ion batteries power the lives of millions of people each day from the EVs and hybrids we drive to the laptops and cell phones we use to connect to an ever-connected world.

Lithium power has gained massive popularity in recent years due to its ultra-light weight, high energy density, and ability to recharge.

And although lithium is commonly mined from hard rock sources, the vast majority of the world’s lithium reserves are contained in brine formations_[24] such as what’s found in the Lithium Triangle.

In the Argentinean portion of the Lithium Triangle — where Argentina Lithium & Energy has its operations — mineral-rich brines are mined from vast salt flats or salars.

The lithium-rich brine is pumped to the surface and recovered using one or a combination of several methods including evaporation and chemical precipitation, ion exchange, solvent extraction, and membrane filtration. The end result is lithium materials suitable for use in batteries: lithium hydroxide and lithium carbonate.

And while it’s true that lithium is abundant on Earth — there’s even 180 billion tonnes of it in our oceans but at uneconomic grades by way of current technology_[25] — it’s becoming increasingly difficult to find large new deposits of high-quality lithium at high enough grades to be mined at a profit.

Elon Musk has called for investment into lithium production to ease shortages… saying those who seized the opportunity would be basically printing money_[26].

With demand on the rise and supply uncertain, major automakers are racing to secure a stable supply of lithium to meet their growing needs.

And that, of course, includes Stellantis, which, as noted, has invested US$90M in equivalent Argentina pesos into LIT’s subsidiary to help the company advance its portfolio of lithium assets in Argentina’s Salta Province, including an offtake agreement for up to 15K tonnes of lithium per annum_[27].

For more on the immense opportunity at hand, we turn to our own Gerardo Del Real who caught up with Argentina Lithium & Energy CEO Niko Cacos.

 

Exclusive Interview with
Argentina Lithium & Energy CEO Niko Cacos

Gerardo Del Real of Resource Stock Digest and Junior Resource Monthly sat down with Argentina Lithium president & CEO Niko Cacos for an in-depth discussion on all-things LIT, including the newly-inked agreement with Stellantis and the start of drilling at the flagship Rincon West Lithium Project in Salta Province, Argentina. Please enjoy!

 

The Opportunity

Vancouver-based Argentina Lithium & Energy Corp. (TSX-V: LIT)(OTC: LILIF) is advancing its portfolio of four high-potential lithium exploration projects in the Argentinean portion of the prolific Lithium Triangle: Rincon West, Antofalla North, Pocitos, and Incahuasi.

As a member of the prestigious Grosso Group, a number of key catalysts are converging for LIT, including the start of drilling at the flagship Rincon West project along with the receipt of an environmental permit allowing for exploration of the contiguous Rinconcita II concession.

We covered the game-changing ARS$ equivalent US$90M Stellantis deal, and you heard directly from Argentina Lithium CEO, Niko Cacos, who said:

“We’ve actually already begun revising our exploration plans in that we're doubling up and tripling up on our drill rigs. I believe we're going to see our projects advance very, very quickly to the prefeasibility level. We're funded now for the next three years at a minimum. It's at that point that we're going to make production decisions. This is a very, very exciting time for Argentina Lithium.”

In other words, plenty of near-term catalysts ahead for LIT in a high-demand lithium market, including current and forthcoming drilling at multiple targets with which to potentially move the needle higher.

With an ARS$ equivalent US$90M investment from a global automaker and a market cap below C$50 million at the time of the production of this Special Report, Argentina Lithium is well-funded to carry out its near-term exploration objectives.

In other words, now is an ideal time to begin conducting your own due diligence on Argentina Lithium & Energy as it advances multiple lithium exploration projects in the Argentinean portion of the prolific Lithium Triangle.

A great place to start is the LIT corporate website where you can learn more about the properties and the team, view the most recent corporate presentation, and sign up to receive updates directly from the company’s IR department.

Also, click here for more of our ongoing coverage of Argentina Lithium, including additional late-breaking interviews with upper management as developments arise.

Argentina Lithium & Energy Corp. trades on the Toronto Venture Exchange under the symbol LIT and on the US OTC Bulletin Board Exchange under the symbol LILIF.

For more information on Vancouver-based Argentina Lithium, be sure to contact the company’s IR department at 604-687-1828 or via email at info@argentinalithium.com.

— Resource Stock Digest Research