Australian Mining Company Is Investing R$ 22 Million in Lithium Extraction Project in Ceará

Oceana Lithium Announces Plans to Make a Multi-Million-Dollar Investment in Ceará. The Investment Aims to Focus on Lithium Mining, a Mineral Abundant in the Region.

The Australian mining company, Oceana Lithium, is investing 6 million Australian dollars, around R$ 22 million, in a project for lithium extraction in Solonópole, in the central hinterland of Ceará. The amount was raised after an IPO conducted on the Australian stock exchange. The licenses obtained by the company cover historical sites of artisanal lithium mining previously extracted for lithium, niobium, tantalum, and tin.

Lithium Mining Is Essential for the Energy Transition

According to reports from Oceana Lithium, more than 20 historical small-scale mines have been found in exploring the field in Ceará. Lithium mining has only been conducted at depths of less than 10 meters due to the restrictions of hard pegmatitic material that requires blasting. Research will further indicate whether there will be economic viability for the exploration of the mineral.

According to the former director of the National Mining Agency (ANM) and a member of the OAB Mining Law Commission, Tomás de Paula Pessoa, the Ceará region has a very high incidence of lithium.

The material is essential during this energy transition period, which is experiencing a rapidly growing global demand for batteries, especially with the increasing presence of the electric vehicle industry. According to Tomás, a major challenge in the commercial extraction of the material is separating other minerals present that are not of interest to the market.

Investment in Ceará Will Change the Lives of Residents by Creating Jobs and Income

There are already lithium-focused projects in the country, notably Sigma Lithium’s activities in Minas Gerais. Oceana Lithium has another mining venture in Australia, called the Napperby Lithium Project.

According to Ana Vládia Nogueira, mayor of the Municipality of Ceará, Solonópole is a city that potentially has a large concentration of stones, minerals, and metals such as clay, tantalum, beryl, fluorite, and ambligonite, and attempted, about 30 or 40 years ago, to engage in artisanal mining by small groups at that time.

As mentioned by the mayor, for a municipality that bases its economy on livestock and agriculture, the estimated investments in a new activity, such as lithium mining, would be a great opportunity, capable of generating much more investment, jobs, and income for residents of the region, in addition to greater economic and social development for the population.

Lithium Suffered a 900% Increase in Just 2 Years

Lithium is not a special or rare material, but its production is rather complex, presenting a real issue when a large part of the vehicle industry wishes to be electrified. Prices soared to absurd levels a few years ago, and estimates suggest they won’t drop in the foreseeable future.

According to studies by Benchmark Mineral Intelligence, lithium prices have increased by 900% since January 2020. In line with data obtained from the market, the value of the product expanded over a little more than two years due to increased demand for electric cars in the global market, where sales continue to grow every month.

The Chinese government has mandated that companies cease mining due to low electricity production generated in recent months. Benchmark indicates that this situation will not change in the short term, which could affect the future of electric cars. According to data, the demand for lithium batteries will increase by another 36%, but the production of the material will only expand by 33%.