Lithium Americas, Green Technology Metals ink deal for North American chemical supply chain

Lithium Americas (TSX: LAC; NYSE: LAC) and Australian exploration and development company Green Technology Metals (ASX: GT1) have entered into a strategic partnership to advance an integrated lithium chemical supply chain in North America. 

The collaboration agreement, announced by Lithium Americas in a news release on Tuesday, builds on the Vancouver-headquartered miner’s $10-million investment in Green Technology for a 5.2% stake in April. At that time, the two signed a non-binding deal to cooperate on all aspects of the lithium processing and production value chain, from spodumene processing through to the production of battery-grade lithium chemicals. 

The deal provides for non-exclusive rights for the companies to work together and sets up a strategic management committee for joint exploration and development work in Canada and the U.S. 
 
Lithium Americas’ president and CEO Jonathan Evans said the company sees the agreement as a way to strengthen its role in the North American lithium supply chain, just as the miner prepares to start construction later this year at its Thacker Pass lithium mine about 100 km northwest of Winnemucca, northwest Nevada. (While the 2021 approval of the project by the Bureau of Land Management is being challenged in a federal court, a decision is expected shortly.)

A drill rig at Lithium Americas’ Thacker Pass project in Nevada. Credit: Lithium Americas.

“On the back of the passing of the Inflation Reduction Act (IRA) by [the] U.S. Congress, we are having increased engagement with potential partners and customers focused on North America,” he said. “Working with [Green Technology] allows us to leverage our chemicals focused team based in the U.S. and [Green Technology]’s extensive experience in hard rock exploration and development.” 
 
Lithium Americas is also advancing towards first production at its 44.8%-owned  Cauchari-Olaroz lithium brine project in Jujuy province of northern Argentina.  
 
Green Technology Metals director Cameron Henry said both companies seek to build the “pre-eminent” vertically integrated lithium business in North America.   
 
“With the recent passing of the IRA, and the substantial domestic battery minerals sourcing requirements this imposes on car manufacturers seeking to attract consumer tax credits for their vehicles, the value of this end goal has increased further again,” he said. 
 
Green Technology has 407.9 sq. km of claims that host lithium minerals and lithium-cesium-tantalum pegmatites to the north, west and northwest of Thunder Bay, Ont., where the company also has its Canadian office. Those deposits include the high-grade, hard rock spodumene assets of Seymour, Root and Wisa, with which the company holds an 80% interest under a joint venture with Ardiden (ASX: ADV); as well as and the lithium exploration claims of Allison and Solstice, all located in the Archean greenstone belt of northwestern Ontario.  

Most are in the exploration stage, though in June, the company released an updated JORC-compliant mineral resource estimate for Seymour, which showed it contains 9.9 million tonnes grading 1.04% lithium oxide and 137 parts per million tantalum pentoxide with about 53% of the resource in the indicated category. 

Lithium Americas equity was trading at $39.11 at noon in Toronto on Tuesday. Its shares have traded in a 52-week window of $24.65 and $53.09. It has a market cap of $5.2 billion. 
 
Green Technology Metals’ shares were trading at A78¢ (70¢), within a 52-week range of A33¢ and A$1.24. It has a market cap of A$192.9 ($172 million).