{"id":26816,"date":"2022-11-01T08:53:56","date_gmt":"2022-11-01T08:53:56","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=26816"},"modified":"2022-11-01T08:53:56","modified_gmt":"2022-11-01T08:53:56","slug":"meeting-increasing-lithium-demand-with-bougouni-project","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/meeting-increasing-lithium-demand-with-bougouni-project\/26816\/","title":{"rendered":"Bougouni: The lithium spodumene project gaining pace in West Africa"},"content":{"rendered":"

To support a huge increase in lithium demand, Kodal Minerals<\/a> are advancing the Bougoni Lithium Project.<\/h2>\n

Global resource markets have been exceptionally turbulent over the course of 2022. However, one metal has continued its meteoric rise \u2013 lithium. Driven by the critical need and appetite for electric vehicles (EVs), and efficient battery storage, lithium prices continue to extend gains as supply concerns regain market focus.<\/p>\n

In September 2022, we saw lithium carbonate prices of $71,315\/t in China (a new record), and lithium hydroxide prices are again nearing April 2002\u2019s all-time high levels.<\/p>\n

Demand remains strong for electric vehicles, with China\u2019s Passenger Car Association expecting EV sales to double 2021\u2019s total of six million vehicles. Statements such as these have prompted supply concerns amongst producers, with SQM, one of the largest producers globally, predicting a \u2018very tight market\u2019 going forward. Projects such as the Bougouni Lithium project are expected to cater to a rising lithium demand.<\/p>\n

\"Lithium
\u00a9 iStock\/choochart choochaikupt<\/figcaption><\/figure>\n

Whilst some commentators have recently asserted that these price rises are unsustainable in the long term, it remains widely accepted that demand is going to continue to increase rapidly over the next decade, and new sources of supply may not materialise within this critical timeframe. While a market like copper typically grows by 2-4% a year, providing producers and developers with a degree of confidence as to the demand fundamentals, analysts are anticipating annual lithium demand growth of more than 20% between 2021 and 2025.<\/p>\n

Taking advantage of the growing lithium demand<\/h3>\n

Bernard Aylward, CEO of Kodal Minerals, explained that this market dynamic \u201cpresents late-stage developers and pre-production companies such as Kodal with a unique advantage, with the ability and agility to rapidly move projects through the construction phase and into production in order to fulfil this potential supply deficit.\u201d<\/p>\n

Indeed, the backdrop of the lithium market over recent months has provided a significant tailwind, supporting Kodal\u2019s commercial and financing discussions. Kodal is now reviewing and discussing potential opportunities for collaboration with third parties, including major mining groups, to support the development of its flagship Bougouni Project, providing Kodal with multiple routes through which to capitalise on the inherent value of this top 15 asset.<\/p>\n

Major producers, such as ASX listed Pilbara Minerals Limited, reported record sales prices for 5.5% Li2O spodumene concentrate of $6,350\/t FOB in June, and later of $6,988\/t FOB in September, demonstrating that appetite for concentrate feedstock available to converters is experiencing particular market tightness. When compared with Kodal\u2019s initial selling price input of $680\/t SC6 reported in the feasibility study published in 2020, it is apparent just how far the industry has moved on over the past 24 months.<\/p>\n

Market progression for Kodal Minerals<\/h3>\n

Due to the shift in lithium demand over the past two years, Kodal set out to update its feasibility study and presented the revised numbers in June. This report confirmed the robust development metrics at Bougouni, including:<\/p>\n