South American Lithium Projects Set to Flourish in Battery Metal's Projected 2024 Rebound Year

USA News Group Commentary

VANCOUVER, BC, April 30, 2024 /PRNewswire/ -- Coming off a major market correction in 2023 down from 2-2022's record highs, the lithium market is primed for a rebound in 2024. Analysts at MorningStar using data shared from Platts, LME, Benchmarked Minerals, Fastmarkets, and MorningStar itself are forecasting lithium prices to stabilize and rise in 2024, and to nearly double from $17,000 to $30,000 per metric ton from 2023 to 2030. As the Electric Vehicle (EV) market moves towards a projected $1.66 trillion by 2030, lithium demand is expected to triple from 2022 levels over that time. Today with more than 65% of the world's lithium reserves, it's in Latin America where some of the most promising new projects are still under development, including from Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF), POSCO Holdings Inc. (NYSE: PKX), American Lithium Corp. (NASDAQ: AMLI) (TSXV: LI), Sigma Lithium Corporation (NASDAQ: SGML) (TSXV: SGML), and Atlas Lithium Corporation (NASDAQ: ATLX).

As an integral part of the prolific Lithium Triangle, Argentina is on pace to become a Top 3 Lithium Producer status by 2027. One of the more prominent developing stories within Argentina's Salta Province is the Hombre Muerto North Lithium (HMN Li) project, 100% owned by Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) which late last year produced a newly upgraded NI 43-101 technical report, revealing a remarkable 175% increase in its lithium resource to more than 1.58 million tonnes of lithium carbonate equivalent.

Based on this newly defined N.I. 43-101 lithium resource, Lithium South has just completed a Preliminary Economic Assessment (PEA). This technical and financial evaluation was based upon a potential 15,600 tonne per year lithium carbonate technical grade operation. The envisioned mining facility would use industry standard solar evaporation to extract the lithium. The financial model looked impressive with a after tax Net Present Value of US$938 million, an after-tax Internal Rate of Return of 31.6% and a short 2.5-year payback.

This year has started off with an interesting development between Lithium South and POSCO Argentina SAU, a wholly owned subsidiary of Korean giant, POSCO Holdings Inc. (NYSE: PKX). A key southern portion of the HMN Li Project, the Norma Edith and Viamonte contiguous claim group, is located in a zone of dual jurisdiction between Catamarca and Salta Provinces. POSCO has the Catamarca side and Lithium South has the Salta side. To facilitate development of the area, POSCO and Lithium South have agreed to share brine production from this area on a 50/50 basis. The area may offer the ability for Lithium South to substantially increase the overall potential size of the HMN Li Project. We are awaiting drilling to start in this area.