CleanTech pegs Chile lithium project value at $1.37B

CleanTech Lithium (AIM: CTL) has delivered a pre-feasibility study for its Laguna Verde project in Chile outlining a $1.37 billion pre-tax net present value and a 25-year mine life.

The study confirms planned production of 15,000 tonnes per year of battery-grade lithium carbonate, with a pre-tax internal rate of return of 24% and a payback period of about four years. Initial capital costs are estimated at $748 million, while operating costs are projected at $5,768 per tonne, placing the project in the lower cost quartile globally.

“These results demonstrate the strong economic potential of Laguna Verde and position the project as a significant future supplier of battery-grade lithium,” the company said in a presentation, pointing to stable long-term production and competitive costs.

Laguna Verde benefits from established infrastructure and proximity to ports and processing facilities, supporting a streamlined route to export, according to the latest investors’ presentation. The project is also supported by rising lithium demand driven by the global energy transition and the fact that Chile is a known, leading jurisdiction. 

Shares in CleanTech Lithium gained 2.4% on Tuesday to close at 8.6 pence apiece, valuing the company at £18.2 million. 

Permit milestone

CleanTech recently secured a 40-year Special Lithium Operation Contract (CEOL) with the Chilean state, covering the full project lifecycle from exploration to production, a milestone the company says de-risks development and opens the door to strategic partnerships.

The probable reserve stands at 378,000 tonnes of lithium carbonate equivalent (LCE) at an average grade of 186 mg/L, supporting steady-state production over the mine’s life following a short ramp-up period.

Annual cash flow projections indicate strong returns over the life of the project, with cumulative cash flow rising steadily after initial capital investment.

Betting on DLE

Laguna Verde will use direct lithium extraction (DLE) technology, producing lithium chloride at Laguna Verde before conversion to lithium carbonate at a downstream plant in Copiapó to reduce the site footprint and leverage existing infrastructure.

CleanTech is now advancing discussions with potential strategic partners across battery manufacturing, automotive and financial sectors, aiming to secure funding and move the project toward production.

The completion of the study and the operating contract also allows CleanTech to advance environmental approvals and move toward a definitive feasibility study as it aims to become the next lithium producer to come online in Chile after more than three decades.