Amperex Technology Limited (ATL), a leading producer of lithium-ion batteries, has entered into a joint venture deal with St George Mining for lithium exploration in Western Australia.
ATL has agreed to invest $3 million in Lithium Star, one of St George’s subsidiary companies, which has 100 per cent ownership of seven prospective hardrock lithium projects in Western Australia.
ATL will acquire a ten per cent direct equity stake in Lithium Star, with St George holding the remaining 90 per cent. ATL can increase its stake in Lithium Star with further investment on terms to be agreed.
The new funds will be used to accelerate exploration at Lithium Star’s highly prospective lithium projects in Western Australia, with field work expected to commence in October at the following priority projects:
- Split Rocks Project: located approximately 25km north-west of the Earl Grey lithium deposit, which has a resource of 189Mt at 1.50 per cent lithium oxide (Li₂O), owned in joint venture by Wesfarmers and SQM
- Buningonia and Buningonia North Projects: located in the same lithium province as Global Lithium’s Manna Project (32.7Mt at one per cent Li₂O) and the operating Bald Hill Mine (26Mt at one per cent Li₂O)
- Myuna Rocks Project: located along the lithium belt that also hosts Allkem’s operating Mt Cattlin Mine (12.1Mt at 1.3 per cent Li₂O)
In addition to the investment by ATL in Lithium Star, ATL and St George are continuing discussions to consider partnering on other lithium business opportunities.
St George Mining’s Executive Chairman, John Prineas, said that St George is delighted to welcome ATL as a partner for its lithium exploration in Western Australia.
“This strategic investment recognises the exciting potential of the seven prospective lithium projects secured by our subsidiary, Lithium Star,” Mr Prineas said.
“It also recognises the technical expertise and commitment of the St George team which has considerable experience in exploration for lithium, nickel and other battery metals as well as the development and operation of open-pit and underground mines in Western Australia.
“All the Lithium Star projects are located in Western Australia – the world’s best hard-rock lithium address. Five of the new projects are in the southern portion of the Yilgarn Craton, an area gaining a global reputation as a ‘super province’ for lithium and already hosting three spodumene-producing mines and five others in development.”
Mr Prineas said that exploration ground in this region is highly sought after with significant M&A activity already underway to secure strategic positions.
“The investment by ATL will strengthen our ability to advance the Lithium Star projects with minimal dilution to existing St George shareholders. We also look forward to potentially partnering with ATL on additional lithium exploration and other lithium business opportunities.
“The deal with ATL highlights St George’s strong success in developing key industry relationships with some of the largest and most important global players in lithium-ion batteries.
“The key downstream relationships formed by St George, including with Shanghai Jayson, SVOLT, Sunwoda Electronic and now ATL, underpin our capacity to grow in the lithium sector and validate our strategic decision to build out our portfolio of battery metals projects.”
