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Atlas Lithium (NASDAQ: ATLX) Secures Partnerships With Suppliers To Tesla, BYD And Secures Funding From Mitsui & Co. To Fuel Growth
--News Direct--
By Faith Ashmore, Benzinga
As global leaders are diligently working to keep global warming under the 2° Celsius mark, they are looking to embrace modernized technologies like renewable energy and electric vehicles (EVs). To do so, the global economy will need to transition away from resources like oil and instead ensure the supply chains for newer technologies like electric vehicle batteries and energy storage systems.
One of the key materials that is needed to ensure this future is lithium, which is a major component of modern lithium-ion batteries. In 2021, Australia had the highest lithium mine production in the world; however, Chile, China, Argentina and Brazil are also major contributors to global lithium production. With the increasing global demand for lithium – with the market size for the metal projected to grow at a CAGR of 20.4% from 2023-2028 – the development of new lithium projects in regions with large reserves is crucial for meeting the growing needs of the electric vehicle and renewable energy industries.
Atlas Lithium Corporation (NASDAQ: ATLX) is one of the companies looking to develop Brazil’s Lithium Valley and become a major supplier of the resource. For many investors, Brazil’s Lithium Valley is shaping up to be a promising target in the coming years, given that Brazil holds the fifth-largest lithium reserves in the world.
Atlas Lithium Is Garnering The Attention Of Global Companies Like Mitsui And Some of The World’s Largest Lithium Chemical Producers
Atlas Lithium has recently secured direct investments and offtake agreements with two leading lithium chemical companies, Chengxin Lithium Group and Yahua Industrial Group. These companies are notable suppliers of lithium hydroxide and lithium carbonate to industry giants including Tesla (NASDAQ: TSLA), BYD (OTCPK: BYDDY), and LG. To note, BYD and Tesla are the two largest EV makers in the world. With these partnerships, Atlas Lithium achieved the financing for its projected CAPEX to reach initial production, estimated at $49.5 million.
Atlas Lithium plans to expedite production timelines by utilizing modular DMS technology and outsourcing initial crushing and mining activities to local third parties. The DMS plant for phase 1 has already been acquired and is undergoing construction at a specialized facility, with plans for transportation to Brazil in mid-2024, with production expected to commence in Q4 2024.
On March 28, 2024, the company also secured significant investment and offtake agreements with Mitsui & Co., Ltd. (OTC: MITSF), representing a strong endorsement of its project and team. Mitsui purchased $30 million in common shares of Atlas Lithium at a 10% premium and has also entered into an Offtake Agreement for a substantial amount of lithium concentrate from Atlas Lithium’s Neves Project in Brazil’s Lithium Valley. This strategic partnership will provide immediate funding for the development of the project, with a focus on the production and sale of high-quality, low-cost and environmentally friendly lithium concentrate.
Mitsui's significant presence and extensive history of profitable mining investments in Brazil since the 1960s is an exciting opportunity for Atlas Lithium as it expands its operations.
"Although we are a relatively small and lesser-known company, we are forming partnerships with a global footprint," Atlas Chairman and Chief Executive Officer Marc Fogassa shared in an interview with Streetwise Reports. "It's not often that a company with our market capitalization accomplishes this."
Featured photo by Rafaela Biazi on Unsplash.
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View source version on newsdirect.com: https://newsdirect.com/news/atlas-lithium-nasdaq-atlx-secures-partnerships-with-suppliers-to-tesla-byd-and-secures-funding-from-mitsui-and-co-to-fuel-growth-711131343
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