Analysts at Noble Capital pointed out that Century Lithium Corp (TSX-V:LCE, OTCQX:CYDVF), formerly Cypress Development, is experiencing a “watershed moment” thanks to its collaboration with Koch Technology Solutions (KTS) in the application of its proprietary Li-Pro direct lithium extraction process (DLE) at the company’s lithium extraction facility in Nevada.
The Vancouver-based advanced-stage lithium company has revealed that KTS will provide engineering design and costs for the full-scale DLE portion of the processing plant for Century Lithium's project. Moreover, the firms have executed an agreement to test KTS equipment and evaluate features of the Li-Pro process at Century’s pilot plant.
“Koch is a potential strategic investor,” Noble analysts said in a note to clients.
READ: Century Lithium to collaborate with Koch Technology Solutions
In 2021, Koch Strategic Platforms (KSP), executed a collaborative agreement with Standard Lithium and invested US$100 million through a private placement.
“Through its KSP subsidiary, Koch Industries has invested actively across the battery supply chain. We would not be surprised if Koch were to make a strategic investment in Century Lithium although we believe Century will likely have multiple avenues for funding to consider,” the analysts added.
Currently, Noble has a an “Outperform” rating and US$2.95 price target on Century Lithium’s shares.
“Nevada lithium projects have been gaining traction. In our view, Lithium Americas’ offtake agreement with General Motors Company (NYSE:GM) pursuant to which GM will make a two-tranche equity investment totaling $650 million in Lithium Americas, to advance the Thacker Pass lithium project in Nevada, validates the commercialization potential of similar projects,” said the analysts.
The analysts noted that Century Lithium expects to complete its feasibility study by the end of the first half of 2023.
The Canadian advanced stage lithium company, is focused on developing its 100%-owned Clayton Valley Lithium project in Nevada. It is currently in the pilot stage of testing on material from its lithium-bearing claystone deposit at its Lithium Extraction Facility in Amargosa Valley, Nevada and progressing towards completing a Feasibility Study and permitting, with the goal of becoming a domestic producer of lithium for the growing electric vehicle and battery storage market.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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