Subiaco-based Infinity Lithium Corporation’s bid to join the burgeoning green energy revolution sweeping through Europe has gained further momentum after it was granted another important permit for its ambitious San José project in western Spain.
The government of the autonomous Extremadura region has granted Infinity a new exploration permit, which the company regards as a milestone on its lithium journey and one that reinforces stakeholder commitment to San José. The permit relates to Infinity’s wholly-owned subsidiary, Extremadura New Energies.
Last October, the Extremadura government ratified a “lithium decree law” that declared lithium extraction and processing to be of regional and general interest. In part, that decree enables the accelerated administrative processing of projects and better access to public funding.
The news sparked Infinity’s biggest share trading frenzy for more than a year, in a blitz that sent its share price soaring from yesterday’s close of 10.5 cents to an intraday high of 18.5c – a massive hike of more than 76 per cent. Nearly 15 million of its shares changed hands during the day.
The San José project was also boosted in January when a local court ruling confirmed that extraction activity and industrial development would be allowed in key project areas. The exploration permit will now allow Infinity to move forward towards another milestone – its mining permit application.
Infinity Lithium Corporation chief executive officer and managing director Ryan Parkin said: “The award of this key permit validates Infinity’s administrative rights to advance San José, and provides the momentum to accelerate towards the next stages of the Project in concert with the Extremadura Lithium Decree Law.”
Infinity’s plan centres on the mining and downstream processing of its huge lithium resource at San José – a massive 111 million tonnes going 0.61 per cent lithium oxide – into battery-grade lithium compounds at a nearby chemical conversion plant. The finished product would then be delivered into the European lithium-ion battery supply chain and would give battery makers a much-needed alternative supply source to China.
The original plan outlined the project as an open-pit mine, but consultation with regional authorities resulted in a change to an underground mining operation with a nearby processing hub.
The company says the lithium deposit will be accessed through an underground tunnel at the beneficiation plant and will create no visual, audible or vibration effects for the people of Cáceres – a medieval-walled Spanish city and a UNESCO World Heritage Site.
Extremadura New Energies chief executive officer Ramon Jimenez said: “The granting of the Exploration Permit is a major milestone for the project, providing clarity on the permitting and administrative process for a fully-integrated lithium project in the heart of Cáceres. The Regional Government of Extremadura has pre-empted Europe’s move to accelerate the permitting process through the adoption of the Lithium Decree Law and we will continue to collaborate with major stakeholders to deliver a strategically essential project for the local and regional community, Spain and broader Europe.”
Clearly, there is still a way to go for Infinity before it can contemplate delivering its maiden consignment of lithium chemicals to a German or Dutch electric vehicle battery maker. But with analysts at Macquarie and UBS respectively forecasting a bounce-back from current soft lithium carbonate prices to US$57,500 (AU$86,000) and US$54,750 (AU$82,000) a tonne in 2024, Infinity will be one of many lithium players striving hard to get its own slice of the green energy cake.
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By Mark Irving
