US Lithium Play Positioned for Near-Term Production

• Iris Metals has immediate production capability. Already licensed and permitted with outcropping lithium that could be shipped today as direct ship ore (DSO)
• Hard rock spodumene project using proven Western Australian technology, not experimental DLE or clay extraction
• Positioned in Black Hills, South Dakota, minutes from infrastructure with 100% import-dependent market within hundreds of miles
• Former Cold War-era producer with existing infrastructure, adits, and access roads, dramatically reducing capex requirements
• Targeting production by end of 2026 with potential bottom-quartile cost position and built-in tariff protection

Introduction to Iris Metals

Iris Metals presents a compelling investment opportunity in the critical minerals space through its unique hard rock lithium project in South Dakota. Led by non-executive director Kevin Smith, who brings over 20 years of energy metals trading experience having traded lithium "from $3 a kg to $90,000 a kg," the company is advancing what may be the most advanced near-term lithium production opportunity in the United States.

Unlike the typical Western Australian development timeline requiring years of drilling, billion-dollar capex, and lengthy permitting processes, Iris Metals is restarting a brownfield operation that produced lithium during the Cold War era from the 1950s through 1970s. Smith emphasizes the project's immediate accessibility:

"We have outcropping pegmatite, lithium... you walk into the pit and you see lithium all around you, spodumene that you can access right away. But uniquely, we're already licensed and permitted. So we could direct ship ore this afternoon if we wanted to."

The company controls three primary mine sites: Beecher (with a recently released resource statement), Tin Mountain, and Edison (formerly owned by Thomas Edison when he searched for lithium a century ago). This hub-and-spoke model will feed multiple mine faces into a central processing plant, creating a scalable and modular operation that can expand throughout the Black Hills region.

Interview with Non-Executive Director, Kevin Smith

The Unique Position of Lithium in the US Market

The lithium market is experiencing significant bifurcation along geopolitical lines, and Iris Metals is uniquely positioned to capitalize on this trend. Smith notes, "There's essentially zero production in the US of lithium right now," creating a massive supply gap that the company can address without competing against established large-scale operations.

This jurisdictional advantage is compounded by the current trade environment. With tariff barriers protecting against Canadian imports and other foreign competition, Iris Metals enjoys a protected market position. "Being in the US unique, we're uniquely situated to benefit from that. The Canadian projects in Quebec and Ontario are on the other side of that tariff wall. They're going to have a cost disadvantage," Smith explains.

The company also benefits from proximity to end users, with "battery plants, cell plants, cathode plants within a few hundred miles of us" and excellent rail and road access. This eliminates the logistics challenges facing remote projects that require building roads, power infrastructure, and camps hundreds of kilometers from civilization.

Market demand is already materializing, with Smith noting:

"We have people putting their hands up now saying please call us when you can deliver us units. We're happy to engage with you."

This early customer interest provides confidence in the commercial viability of the project even in current market conditions.

Production Strategy & Cost Management

Iris Metals' production strategy focuses on minimizing risk while maximizing speed to market. The company will initially produce spodumene concentrate (SC6) comparable to Western Australian output, leveraging proven, off-the-shelf technology rather than experimental processes.

A critical advantage is the company's low strip ratio expectations, potentially as low as 1:1, combined with existing infrastructure that requires minimal preparation. Smith emphasizes, "There's almost nothing needed to be done here" in terms of infrastructure development, positioning the company for bottom-quartile costs.

The company has already identified a downstream processing partner in Re-Element, based in Indiana, which has proprietary technology to convert spodumene into battery-grade lithium carbonate. Trial samples have produced 99.5% lithium carbonate with very low impurities, and the timing of Re-Element's commercial ramp-up aligns with Iris's production schedule.

To validate cost assumptions, Iris is conducting a trial mining campaign and bulk sampling in the coming weeks. This will provide definitive cost parameters and confirm the company's ability to operate profitably even in the current price environment. Smith states they're modeling off "a thousand dollars per ton spodumene, which is not too far away from where things are right now. And we think we've got really good margins and a good NPV that we can deliver."

Navigating the US Market & Political Landscape

Operating as an Australian-listed company with American management provides Iris Metals with unique advantages in navigating both jurisdictions. Smith and another American director, along with an American operations president, ensure strong US market connections while maintaining access to Australian capital markets.

The company is actively engaging with the new Trump administration, particularly regarding its extensive land package of over 2,000 BLM (Bureau of Land Management) claims on forestry land. Smith sees potential for the current administration to "unlock that in a timely fashion, which would allow us to essentially supersize the company and increase our footprint radically from where we are right now."

Beyond the immediate production from private land, this government land represents a significant expansion opportunity that could transform Iris from a mid-sized producer into a major US lithium supplier. The company is working to "fast track that and unblock that permitting process and bring additional ground into production in the near term."

From a regulatory perspective, the company benefits from being "largely a US company at heart, just listed on the ASX," with friendly US-Australia relations providing additional diplomatic and trade advantages under existing minerals agreements.

Future Plans & Market Positioning

Iris Metals is executing an aggressive drilling program through the 2025 summer season, designed to complete mineral resource estimates (MREs) for all production centers by fall. This will provide the foundation for a final investment decision (FID) with confidence in a 20-year mine life.

The company is also evaluating an OTC listing to expand its investor base and improve US market access. This could provide additional liquidity and attract institutional investors focused on US-based critical minerals projects.

Smith's background as a trader, not an explorer, shapes the company's execution-focused approach:

"I'm not an explorer. I didn't come here to drill holes. I came here to execute on a business plan and deliver units to the market and satisfy customers and monetize this production in the best way possible."

The timeline is aggressive but achievable, with production targeted for "as soon as the end of 2026." This puts Iris Metals years ahead of competing projects and positions it to capture first-mover advantages in the nascent US lithium market.

Key upcoming milestones include completion of the trial mining campaign, updated resource statements across all projects, cost modeling validation, and potential off-take agreements that could provide bankable financing for the final production phase.

The Investment Thesis for Iris Metals

• Immediate Production Ready: Licensed and permitted with ability to ship DSO today, eliminating regulatory delays that plague competitors
• Zero Technology Risk: Proven hard rock spodumene technology from Western Australia removes technical uncertainty of DLE or clay extraction
• Brownfield Restart Advantage: Existing Cold War-era infrastructure, adits, and access roads drastically reduce capex versus greenfield projects
• Protected US Market Position: Strategic location near battery manufacturers with 100% import-dependent market and tariff barriers against Canadian competition
• Bottom-Quartile Cost Structure: Low 1:1 strip ratio potential and minimal infrastructure needs position company in lowest cost quartile
• Current Market Profitability: Profitable at today's $1,000/ton spodumene prices, not requiring lithium price recovery for success
• Complete Supply Chain Control: Domestic processing partnership with Re-Element for battery-grade lithium carbonate production in the US
• Experienced Trading Management: Kevin Smith's 20+ years energy metals trading experience provides unique market insight and customer relationships
• Scalable Hub-and-Spoke Model: Multiple production centers feeding central plant allows modular expansion across Black Hills region
• Multi-Decade Resource Base: Three projects (Beecher, Tin Mountain, Edison) targeting 20-year mine life with proven historical production
• Government Land Upside: 2,000+ BLM claims represent massive expansion potential under supportive Trump administration policies
• First-Mover Advantage: Production by end-2026 gives years of lead time over competing US lithium projects still in development
• Strategic Timing: Positioned perfectly for US critical minerals reshoring imperative and energy transition infrastructure buildout

Iris Metals represents a rare combination of advanced-stage development, minimal execution risk, and exceptional market positioning in the critical lithium sector. With production just 18 months away and a clear competitive moat, the company offers investors exposure to the energy transition with significantly lower risk than typical mining exploration plays.

The confluence of geopolitical tailwinds, market demand, existing infrastructure, and experienced management creates a compelling investment case for those seeking exposure to US-based critical minerals production. As Smith concludes, "Our business case is already permitted Brownfield's restart close to a market 100% dependency on imports right now, tariff holding back competition from outside the US and a quick path to production."

Macro Thematic Analysis: The US Critical Minerals Imperative

The United States faces a critical minerals supply crisis that has become a matter of national security. Currently importing nearly 100% of its lithium requirements, the US is dangerously dependent on foreign suppliers, particularly China, for materials essential to the energy transition and defense applications.

This dependency has prompted unprecedented government action. The Infrastructure Investment and Jobs Act allocated billions for critical minerals processing, while the Inflation Reduction Act provides production tax credits for domestic mining operations. Recent executive orders have expedited permitting for strategic mineral projects, and new tariff structures protect domestic producers from unfair foreign competition.

The geopolitical landscape has fundamentally shifted, with supply chain resilience taking precedence over pure cost optimization. Companies like Tesla, Ford, and GM are actively seeking domestic lithium suppliers to qualify for federal EV tax credits and reduce exposure to supply chain disruptions. This creates a premium market for US-produced lithium that extends beyond mere commodity pricing.

The timing couldn't be more favorable for projects like Iris Metals. By 2030, US lithium demand is projected to exceed 200,000 tons annually, while current domestic production remains near zero. This supply-demand imbalance, combined with "Buy American" provisions in federal procurement and incentives for domestic sourcing, creates a protected market environment rarely seen in commodity sectors.

For investors, this represents a structural shift from cyclical commodity exposure to strategic resource positioning. Companies with near-term US production capabilities are not just mining plays—they're infrastructure investments in America's energy independence and national security. The convergence of policy support, market demand, and geopolitical necessity creates a once-in-a-generation investment opportunity for those positioned to capitalize on America's critical minerals reshoring imperative.