To accelerate access by the electric vehicle (EV) industry to desperately needed battery minerals, QX Resources is directly linking the end users to multiple ‘upstream’ high-quality exploration and development projects across Australia.
Numerous well informed lithium battery and EV industry forecasters have constantly highlighted the rapidly increasing demand for the battery minerals, to feed the demand not just for electric vehicles, but also for energy storage solutions (ESS) for the rapidly increasing supply of renewable energy.
A leader in the industry’s forecasting is Benchmark Mineral Intelligence, who have indicated a six times increase in lithium supply is required in 12 years’ time versus the expected supply in 2022. This is a forecast increase required from 670,000 tonnes lithium carbonate equivalent (LCE) in 2022 to four million tonnes LCE in 2035 (Source: Benchmark Mineral Intelligence Sept 2022).
To put this in context, one of the largest new lithium producing projects in Western Australia is the Pilgangoora hard rock lithium mine. Eighteen more projects this size would be required by 2040.
New lithium projects are being developed in Western Australia, Argentina, and progressively in the USA, Canada, and parts of Africa. However, the development time to production and the financing mean that the supply of lithium products will remain constrained with high pricing for years to come, despite the looming clouds of global recession, due in part to many government’s net-zero commitments worldwide.
Bringing developers and end users together earlier in project development
One approach to resolving the supply issue is to bring explorers and developers together with the end users earlier in project development. This includes battery makers, cathode makers and EV makers. However, these end users don’t want to be miners or explorers, and are generally unfamiliar with the approach required and the risk profile.
QX Resources (ASX:QXR) is an experienced explorer and developer of battery minerals, with an expanding portfolio and solid financial support and hard rock lithium assets in a prime location in Western Australia (WA). One example is the company’s Turner River project, 15km south of the Wodgina Project, held by Mineral Resources, one of largest hard rock lithium deposits globally.
Hard rock lithium projects, with early financial support from end users, can come to market more quickly, potentially in less than three years, which is the timeline that end users demand.
Making QXR a major player in the battery minerals industry
QX Resources recently announced the appointment of Steve Promnitz as Managing Director, following his resignation as Managing Director from Lake Resources NL, a lithium brine developer. He successfully secured the lithium assets for Lake Resources in 2016, and developed the previously untested Kachi Lithium Brine Project in Argentina, with new technologies to a stage where most project financing is indicatively in place for its development. In the process, he took a $1m market value private company, using new exploration models and ESG friendly extraction techniques, to form an ASX 200 Company with a strong balance sheet and a market capitalisation of $2.1 billion at the time of his departure.
He brings global relationships with end users to an early stage developer in QX Resources. QX Resources’ projects will enable a steady supply of minerals for high-quality EV batteries, while also establishing working relationships between suppliers and end users.
By drawing on Mr Promnitz’ extensive networks and skills from the past six years in the battery minerals sector, he is confident in scaling up QXR into a major player in the sector with the right foundation to realise much greater value for shareholders and end users.
The growth in EVs and renewable energy storage will drive more end users to strategic alliances with successful explorers and developers, to gain early access to critical materials.