Energy transition metals have never been as critical as they are today. Here’s a look at four more companies seeking to reduce North America’s reliance on critical minerals from China by building domestic supply chains.
Lithium Americas
Lithium Americas (TSX, NYSE: LAC) is building the first stage of its fully funded Thacker Pass project in northern Nevada targeting production of 40,000 tonnes of battery-quality LCE per year.
The project hosts the largest known lithium resource in the world with 3.79 billion measured and indicated tonnes grading 2,230 parts per million (ppm) lithium for 44.5 million tonnes of LCE and another 1,98 billion inferred tonnes at 2,070 ppm lithium for 21.6 million tonnes of LCE.
In late October Lithium Americas was allowed to draw down $435 million from its $2.23 billion guaranteed loan from the DOE after it agreed to sell minority stakes in the company and the project to the DOE. In return, the DOE deferred $182 million of debt service over the loan’s first five years.
The 5% stake in Lithium Americas comes with a direct 5% economic interest in the Thacker Pass joint venture that the company has with General Motors (NYSE: GM).
The equity stakes in the company and JV come through warrants to buy common shares at 1¢ each. Under the arrangement, Lithium Americas agreed to post an additional $120 million to DOE loan reserve accounts that will be funded within 12 months of the first loan draw. Once the warrants are exercised fully, the JV will be owned by Lithium Americas (59%), General Motors (36%) and the DOE (5%).
GM also amended its lithium offtake agreement to allow the JV to enter into third-party offtakes for remaining production volumes that the auto maker wouldn’t buy. Its earlier offtake deal permitted it to buy 100% of production from the project’s first stage for 20 years and 38% of production for 20 years during the second stage.
In April, Lithium Americas closed a $250-million investment from funds managed by Orion Resource Partners.
Thacker Pass is forecast to produce 160,000 tonnes per year of battery quality LCE in five stages over 85 years.
Lithium Americas has a market cap of about C$2 billion.
Nouveau Monde Graphite
Nouveau Monde Graphite (TSX: NOU; NYSE: NMG) is advancing the Matawinie graphite mine and Bécancour battery material plant, both of which are within 150 km northeast of Montreal.
The graphite ore-to-anode project was one of several critical minerals projects that Prime Minister Mark Carney referred to the Major Projects Office (MPO) for consideration in November. The federal government formed the MPO in August to speed nation-building ventures and develop critical mineral supply chains outside of Chinese and Russian control.
The Matawinie open pit mine is expected to produce 105,882 tonnes of graphite concentrate a year over 25 years. The mine is to be integrated with the company’s battery material plant to produce spherical graphite used in the production of electric vehicle batteries and energy storage systems.
In October, the company said it was ready to advance project financing discussions towards a final investment decision after announcing a commercial offtake agreement with the Canadian government and updating existing offtake agreements with Panasonic Energy and Traxys North America. It also has an offtake agreement with GM for 18,000 tonnes annually of anode material over six years, tied to a $150 million equity investment in Nouveau Monde
The company estimates that after a positive investment decision, both the mine and plant could be built and enter commercial production within three years.
An updated feasibility study of the integrated mine and battery material plant from last March outlined a post-tax NPV (at an 8% discount rate) of $1.05 billion ($252 million for the mine and $801 million for the battery material plant) and an IRR of 17.5%. Initial capex was pegged at $1.33 billion with an after-tax payback of five years.
The open-pit mine hosts 130.3 million measured and indicated tonnes grading 4.26% graphitic carbon (Cg) for 5.55 million tonnes of contained graphite. Inferred resources add 23 million tonnes of 4.28% Cg for 980,000 tonnes of graphite.
Nouveau Monde has a market cap of C$584 million.
PMET Resources
PMET Resources (TSX: PMET; US-OTC: PMETF), formerly known as Patriot Battery Metals, is advancing its district-scale Shaakichiuwaanaan hard-rock lithium project in Quebec’s Eeyou Istchee James Bay region to a final investment decision in the second half of 2027.
Shaakichiuwaanaan contains one of the largest pegmatite resources in the Americas. The company is focused on the project’s main CV5 deposit, where a feasibility study from last October outlined a hybrid mining model combining a first stage open pit and second stage underground operation over 20 years.
The study envisioned production of spodumene concentrate at a rate of up to about 800,000 tonnes per year, which would rank the company as potentially the fourth largest spodumene producer globally.
The feasibility study outlined a post-tax NPV (at an 8% discount rate) of $1.19 billion and post-tax IRR of about 18.1% using a long-term spodumene concentrate price of $1,221 per tonne. Total development capital is pegged at $1.98 billion, or $1.51 billion net of anticipated pre-production credits.
The study was based on CV5’s lithium content only, which measures 101.8 million indicated tonnes grading 1.38% lithium oxide (Li2O) and 13.9 million inferred tonnes at 1.21% Li2O.
The project’s CV5 and CV13 pegmatites together host 108 million indicated tonnes grading 1.4% Li2O, 0.11% caesium oxide (Cs2O), 166 ppm tantalum oxide (Ta2O5) and 66 ppm gallium for 3.74 million tonnes of contained LCE. Inferred resources add 33.4 million tonnes grading 1.33% Li2O, 0.21% Cs2O, 155 ppm Ta2O5 and 65 ppm gallium for 1.09 million tonnes LCE.
The company plans to finalize and file the Environmental and Social Impact Assessment to support final mine authorizations for the project and its planned processing facilities of up to 5.1 million tonnes per year and start detailed engineering work. It is also considering developing a 2,300-metre exploration ramp for a bulk sample.
The 237-sq.-km project, about 240 km northeast of Nemaska, Que., is just 30 km northeast of the La Grande hydroelectric dam complex.
PMET Resources has a market cap of about C$919 million.
Talon Metals
Talon Metals (TSX: TLO; US-OTC: TLOFF), best known for its Tamarack nickel-copper-cobalt project in central Minnesota, moved beyond a single-asset company in December with the acquisition of Lundin Mining’s (TSX: LUN) Eagle nickel-copper mine and Humboldt mill in Michigan in a share-based deal valued at almost $84 million.
The Eagle mine is the only primary nickel mine currently operating in the U.S. and transforms Talon into a pure-play nickel-copper producer. In exchange, Lundin Mining will receive roughly 275 million shares in Talon giving it a 20% non-diluted stake in the company.
The transaction also unlocks synergies including the opportunity to leverage the Humboldt mill as a shared, centralized processing facility. Talon’s Boulderdash discovery is just 13 km from the Eagle mine.
The integration also will allow the combined team to advance four strategic priorities at the same time: extending the Eagle mine life, accelerating exploration in Michigan and Minnesota; advancing permitting at the Tamarack project and Talon’s proposed Beulah Minerals Processing Facility in North Dakota; and progressing engineering towards feasibility and construction, Talon says.
Through a joint venture with Rio Tinto (ASX, LSE, NYSE: RIO) at Tamarack, Talon is working on a feasibility study and is focused on expanding and infilling its resource to shape a mine plan to submit to regulators. Talon currently owns 51% of the project with an earn-in right to acquire up to 60%.
The Tamarack Intrusive Complex is one of the world’s highest-grade undeveloped nickel deposits. The complex hosts about 8.6 million indicated tonnes grading 1.73% nickel, 0.92% copper, 0.05% cobalt, 0.34 gram platinum per tonne, 0.21 gram palladium, and 0.17 gram gold. Inferred resources add about 8.5 million tonnes grading 0.83% nickel, 0.55% copper, 0.02% cobalt, 0.23 gram platinum, 0.13 gram palladium and 0.13 gram gold.
Talon already has an agreement with Tesla to supply it with 75,000 tonnes (165 million lb.) of nickel in concentrate (and certain by-products including cobalt and iron) from Tamarack over an estimated six years once in commercial production.
The company has benefited from government support as Washington prioritizes securing supply of critical minerals like nickel for the battery manufacturing and defence industries.
In 2023, the US Department of War awarded Talon a $20.6 million grant for exploration in Minnesota and Michigan. A year earlier the DOE extended a $114.8 million grant for the Beulah processing facility.
Talon Metals has a market cap of about C$727 million.
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