Hard rock lithium assets seem to be favourable from an...

Hard rock lithium assets seem to be favourable from an investment standpoint, but I would argue that we will see greater emphasis and focus on brine projects long term. The following reasons should provide a degree of confidence around investing in brine projects, in our case, one of the highest grades / lowest impurities:

Lithium brine production is more sustainable than hard rock concentrate production from an environmental perspective, including carbon emissions. This is because lithium brine production requires less water, produces less waste, and has a lower carbon footprint than hard rock concentrate production.

Water use:
Lithium brine production requires less water than hard rock concentrate production. This is because brine deposits are typically located in arid regions, where water is scarce. To extract lithium from hard rock, water is used to mine the ore, crush it, and then leach the lithium out of the crushed ore. This process can require a lot of water, especially in dry regions. In contrast, lithium brine production only requires water to pump the brine to the surface and then to evaporate the water to concentrate the lithium. This process uses much less water than hard rock concentrate production.

Waste production:
Lithium brine production produces less waste than hard rock concentrate production. This is because the brine is pumped to the surface and then evaporated to concentrate the lithium. The remaining brine can be disposed of in evaporation ponds, where it can be further processed to extract other minerals. In contrast, hard rock concentrate production produces a lot of waste rock, which must be disposed of in tailings dams. Tailings dams can be a source of pollution, as they can leak toxic chemicals into the environment.

Carbon emissions:
Lithium brine production has a lower carbon footprint than hard rock concentrate production. This is because lithium brine production requires less energy than hard rock concentrate production. The energy used to extract lithium from hard rock includes the energy used to mine the ore, crush it, and then leach the lithium out of the crushed ore. This process can be very energy-intensive, especially if the mining operation is located in a remote area with limited access to renewable energy. In contrast, lithium brine production only requires energy to pump the brine to the surface and then to evaporate the water to concentrate the lithium. This process requires much less energy than hard rock concentrate production.

According to a report by Benchmark Minerals Intelligence, lithium brine production is expected to account for 70% of global lithium production by 2030. This is up from 50% in 2020. The report also states that the average cost of lithium production from brine is around $4,000 per tonne, while the average cost of lithium production from hard rock is around $6,000 per tonne.

In addition to being more sustainable and having a lower cost, lithium brine production is also more scalable than hard rock concentrate production. This means that it is easier to increase the production of lithium from brine than it is to increase the production of lithium from hard rock. As the demand for lithium continues to grow, it is likely that lithium brine production will become the dominant source of lithium production.

Here are some additional factors that support the expectation that brine production will outweigh hard rock in the future:

- Lithium brine deposits are more abundant than hard rock deposits.
- The technology for extracting lithium from brine is becoming more efficient and cost-effective.
- The demand for lithium is expected to grow significantly in the coming years, due to the increasing adoption of electric vehicles and other lithium-ion battery-powered devices.

As a result of these factors, it is likely that lithium brine production will become the dominant source of lithium production in the future. This is good news for the environment, as lithium brine production is more sustainable than hard rock concentrate production.