Sayona Mining in $30 billion race for lithium battery market
Sayona Mining Limited (ASX: SYA) “Sayona” reported on its exploration programs in support of its Updated Pre-Feasibility Study of the Authier project, its flagship project situated 45 kilometers northwest of the city of Val d’Or, a major mining service centre in the Province of Quebec.
Authier mineralization is hosted in a spodumene-bearing pegmatite intrusion with more than 18,000 meters of drilling in 139 holes. The deposit is amenable to simple open-cut mining and processing methods.
Sayona believes Authier is one of the most advanced new hard-rock spodumene development projects in the world. Sanoya’s strategy is to move into production quickly by constructing a relatively low capital expenditure operation and capitalizing on the projected high price environment for spodumene concentrates over the next five to ten years. Cash flows from concentrate sales could then be used for funding the equity required to construct the downstream processing plant or an expansion of the concentrate operations
Sayona Mining Limited is an Australian, ASX-listed (SYA), company focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors.
Taiyou Research published an analysis of the Global Market for Lithium-Ion Batteries.
The global market for lithium ion batteries is a fast growing one and is expected to cross $30 billion by 2020. It continues to advance as high power and high capacity cells increase penetration into large-format applications. Vying for market adoption, the lithium-ion chemistry competes heavily with established energy storage technologies, such as lead acid, in many of these applications. However, key performance characteristics have enabled lithium-ion to increase market penetration, resulting in growth opportunities.
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Currently most lithium-ion batteries are used in consumer electronic devices like mobile phones and notebook PCs. However, moving forward expansion is likely for automotive products used in Electric Vehicles and in storage applications.
Lithium-ion batteries for storage have come into the spotlight due to the electricity supply issues resulting from the eastern Japan earthquake and the global efforts to embrace smart grids. With domestic and overseas lithium-ion battery makers entering the markets for storage systems, the market for lithium-ion batteries for storage is beginning to take off. However, currently the storage market is in its infancy, so market growth will take time.
Sanoya expects to incorporate the current results into the PFS Update to be completed in September. The aim of the Updated PFS, includes:
- Testing modifications to the process flowsheet to improve the metallurgical parameters;
- Undertake a value engineering review of the PFS concentrator design to identify which opportunities will be implemented into the upcoming Definitive Feasibility Study;
- Incorporating the new JORC Resource announced in May 2017. In addition, the Company will incorporate a planned resource from Authier North in the new optimized mine plan;
- Incorporating new geotechnical data into the mine optimizations and improve the overall economics of the project; and
- Assess the current spodumene concentrate supply and demand environment, and long-term pricing for the Authier financial model.
Finalization of the UPFS including the new process flowsheet is aimed at unlocking value in the Authier project and forming the foundations for the commencement of the Definitive Feasibility Study, and pilot scale metallurgical testing programs.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>