Snow Lake Lithium Enters MOU With LG Energy Solutions For Supply Of Lithium
Snow Lake Lithium (NASDAQ: LITM) appears to have the hot news of the day, announcing this morning that the lithium explorer has entered into a non-binding memorandum of understanding with that of LG Energy Solutions, a major global producer of electric vehicle batteries.
The memorandum of understanding is being billed as a next step in developing a domestic supply chain for the electric vehicle market, with the agreement outlining a collaboration for the development of a lithium hydroxide processing plant in Winnipeg, Manitoba. The arrangement would see Snow Lake supply the required lithium for the plant for a ten year period beginning in 2025, when production is currently estimated to commence.
A scoping study for the project is already reportedly underway, which is focused on identifying the required tech to develop the plant within the province.
“Our all-electric lithium mine in Snow Lake Manitoba will power 5 million electric vehicles over the next 10 years, helping to secure the future of the North American automobile market. We are grateful for the commitment of Prime Minister Justin Trudeau, Premier of Manitoba, Heather Stefanson and Invest Canada to support the development of a sustainable mining industry in Canada which has helped to facilitate our partnership with LG Energy Solution,” commented Snow Lake CEO Philip Gross.
READ: Snow Lake Yields To Special Shareholder Meeting Request By Convicted Former Director To Discuss Removing The Board
Snow Lake is currently targeting production from its Manitoba-based mine to begin in 2025, with an engineering evaluation as well as further drilling said to be currently ongoing. The property currently consists of 55,000 acres of claims and contains 11.1 million tonnes of indicated and inferred resources at 1% Li2O. The company however is anticipating to produce 160,000 tonnes of 6% lithium over a ten year period, which it claims is “enough to power 5 million electric vehicles.”
Snow Lake Lithium last traded at $2.30 on the Nasdaq.
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