American Lithium Races to Supply EV Boom from Projects in Nevada and Peru

• American Lithium has two major projects: the TLC project in Nevada, which focuses on a sedimentary deposit, and the Falcani project in Peru. The estimated development cost for the Nevada project is around $750 million U.S.
• The company is considering spinning off a significant uranium asset called Macusani, as they believe it will perform better as a separate entity and currently don't see value for it within the lithium developer.
• Regarding politics and potential Chinese deals, Clarke emphasized American Lithium's goal of supporting the domestic supply chain. While Chinese partnerships might be lucrative, the recent stance by the Canadian government might make such collaborations challenging. Clarke also called for more active involvement from the U.S. and Canada in supporting projects.

American Lithium is actively engaged in the development of large-scale lithium projects within mining-friendly jurisdictions throughout the Americas. The company is currently focused on advancing its TLC Lithium Claystone Project in Nevada, its Falchani Hard-rock Lithium Project in Peru, and its Macusani Uranium Project, also in Peru. All three projects have undergone robust preliminary economic assessments, exhibit significant expansion potential, and enjoy strong community support. Pre-feasibility work is well underway at the Falchani lithium project and has recently commenced for the TLC deposit in Nevada.

CEO Simon Clarke recently spoke with Andrew Bell, reporter and host of BNN Bloomberg's Commodities show.

Nevada Lithium Project Targets Domestic Supply Chain

The company's TLC project in Nevada sits along the same lithium-rich geological trend being targeted by other miners. With estimated capital costs of $750 million, TLC could help American Lithium supply lithium from within the United States. "It's 15 minutes outside the town of Tonopah in a great mining district in Nevada," said Clarke regarding TLC's prime location.

Peruvian Flagship Key to Boosting Production

However, American Lithium's largest project is Macusani in Peru, which CEO Simon Clarke believes could become one of the world's biggest lithium mines once in production. The estimated $575-600 million price tag for this project reflects rising input costs. As Clarke stated, "We think it's got the potential to be one of the biggest producers in the world. It's high purity, high grade - a fantastic asset."

Geopolitics Complicate Potential Chinese Deals

While Chinese companies have been active investors in South American lithium projects, recent policy moves by the Canadian government have created barriers to potential deals with China. American Lithium aims to supply North American battery makers but China remains an important source of capital. "The latest pronouncements from the Canadian government will obviously make that more difficult," remarked Clarke on the increasing geopolitical complexity.

Uranium Spin-Out to Capture Hidden Value

Beyond its lithium assets, American Lithium acquired the Macusani uranium project in Peru. The company plans to spin out this asset to unlock its full value for shareholders. As Clarke explained, "We think if it's in its own its own vehicle trading separately, it'll do very well and benefit all our shareholders if we spin it out."

Fast-Growing EV Industry Fuels Lithium Rush

The urgent need for new lithium production to supply electric vehicle and battery manufacturers has sparked a staking rush by miners like American Lithium. With assets in key mining jurisdictions, the company hopes to be at the forefront of new lithium supply to feed booming demand.