US president Joe Biden signed an executive order in late February calling for a review of supply chains for critical materials, including lithium, a soft white metal that is crucial to energy and the electric car industry.
Just about 1% of global lithium output is both mined and processed in the US. China, with a huge chemical industry and low-cost labor market, unearths about 10% of global lithium but processes about two-thirds of it.
However, US companies such as ACME Lithium Inc. are at the leading edge of efforts to build an American supply chain for the highly conductive, ultralight metal. Working in the epicenter of lithium exploration and development in the US, ACME Lithium’s Clayton Valley and neighboring Fish Lake Valley projects are both in the highly prospective Clayton Valley region of Esmeralda County, in Nevada.
“A massive tail wind is strongly behind us with the current administration’s new focus on securing a domestic supply of lithium,” ACME Lithium CEO and director Stephen Hanson commented as Proactive sat down with him to discover how the Vancouver, British Columbia-based company is advancing its projects and lithium exploration efforts.
With over 28 years of finance and corporate development experience across four continents, Hanson provides ACME with a direct line to financiers. He has been involved in several successful M&A transactions including exit strategies with major corporations. A resource and alternative energy industry veteran, Hanson has an extensive track record of working on early-stage and development projects around the world.
Proactive: Nevada Governor Steve Sisolak has said he wants his state to become to energy what Wall Street is to finance, or what Silicon Valley is to technology. Given Nevada’s potential for lithium mining, is it part of ACME Lithium’s strategic philosophy to have a strong footprint in the Silver State?
Stephen Hanson: Nevada is the epicenter of lithium exploration and development in the United States. And in particular, the desert sands of Esmeralda County, Nevada – located halfway between Reno and Las Vegas. In fact, the heart of this region, Clayton Valley, is the only place in North America where lithium has been continuously extracted and produced since 1966. Our projects in this lithium-rich region are in the right place to power the energy revolution. With Nevada’s long history in resource development, there is year-round access to expertise, infrastructure, rail and roads, power and water.
Please give us an overview of your flagship Clayton Valley project in Nevada which is located directly south of the only lithium brine production operation in North America, Albemarle Corporation’s Silver Peak Lithium mine which has been in production since 1966.
ACME Lithium owns, and is under option to acquire, a combined 100% interest in 122 claims totaling 2,440 acres in Clayton Valley. Historic drill information and geophysical surveys suggest the claims cover basin-fill sediments and aquifers similar to the sediments currently producing lithium brines in the region. There is evidence that the extensive valley growth faults provide an adequate plumbing system to foster brine reservoir accumulation for moving fluids around. We are currently completing a Phase 2 geophysical survey and expect to drill this project in early 2022.
What is the potential of ACME’s neighboring Fish Lake Valley project which is also in Esmeralda County, Nevada?
ACME Lithium owns 100% interest in 81 lode mining claims totaling 1,620 acres in Fish Lake Valley (FLV) which is only 25 miles away from nearby Clayton Valley, an area historically known as the center of Nevada lithium production from brines within tertiary age sediments in the basin. The continued success and development in Clayton Valley shows great promise for the future and the FLV project. Initial mapping and sampling on the FLV Property has shown values to 600 ppm (parts per million) lithium in mudstones. Common geochemical values in mudstones and the anomalous results suggest the same geological processes as at Clayton Valley may have operated there.
Is ACME Lithium well-funded to follow an aggressive growth strategy and exploration program?
ACME completed an oversubscribed financing in July 2021 and is well funded for its current programs at Clayton and Fish Lake Valleys.
Is ACME Lithium eyeing any other projects?
As part of ACME’s growth strategy, we continue to search for and evaluate accretive projects as well as joint venture partners. With our team’s track record of developing projects around the world, we are an ideal candidate to bring new projects to fruition.
Since ACME is in expansion mode does it help that you have nearly three decades of finance and corporate development experience?
My team and I have developed resource projects on all four continents working with key stakeholders including government, community, strategic partners, and technology service providers. We have a proven track record to succeed, even under challenging circumstances, to deliver on key milestones.
Is ACME poised to become a significant player in the US lithium market where booming electric-vehicle demand is supercharging lithium prices?
Certainly, that is our goal, and we will actively pursue this vision on behalf of our shareholders.
The Biden administration came out with the national blueprint to guide investments and spur a domestic lithium battery manufacturing value chain. Are there tangible benefits for the industry from the US government being actively focused on building a domestic lithium supply chain?
Americans have experienced what it is like to depend on foreign oil supplies to power our vehicles. As we transition to electric vehicles, the United States would benefit tremendously from having its own secure lithium supply chain. This is considered critical to achieving the nation’s clean energy initiatives.
Having a US-based lithium supply chain also supports long-term US economic competitiveness and national security requirements. ACME Lithium will ensure that our domestic lithium supplies are obtained sustainably and in an environmentally sensitive way while following best-practice labor conditions.
A massive tail wind is strongly behind us with the current administration’s new focus on securing a domestic supply of lithium.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive