After signing an agreement for a strategic shift, Snow Lake Resources Ltd. (Nasdaq: LITM) has jumped 11.30% to $2.56 in pre-market trading hours. LITM ended the trading day down -2.13% to $2.30.
LITM has made what move?
Applied Energy Solutions (LGES) and Snow Lake Resources (LITM), d/b/a Snow Lake Lithium, have signed a non-binding Memorandum of Understanding (MOU) to establish a domestic supply chain.
- In CentrePort, Winnipeg, Manitoba, Snow Lake Lithium, and LGES will collaborate to explore the possibility of building the first lithium hydroxide processing plant in Canada.
- As part of the MOU, LITM will provide LGES with lithium over a 10-year period after production begins in 2025.
- A number of conditions will apply to the MOU and proposed partnership, including completing due diligence on both sides.
- An initial scoping study is already underway with Primero to determine which technologies, innovations, and skills are necessary to build a world-class lithium hydroxide plant in Manitoba.
- As part of the North American electric vehicle market, Snow Lake Lithium will collaborate with the world-leading LG Energy Solution to develop a rock-to-road battery supply chain.
- Battery and electric vehicle manufacturers should consider local sourcing of crucial raw materials, such as lithium, as a logical step. LITM along with LG Energy Solution recognizes this importance.
- With 5 million electric vehicles that will run on lithium from LITM’s mine in Snow Lake Manitoba over the next 10 years, North American automobile manufacturers can look forward to a brighter future.
- This partnership serves as a crucial step towards securing a stable raw material supply chain in North America, the fastest growing EV market. LGES recently announced its long-term strategy to focus on the region in the mid-to long-term.
- Throughout the transition to electric vehicles and ultimately to a sustainable future, LGES maintained a steady supply of our top-quality products by constantly investing in upstream suppliers and establishing strategic partnerships with the major suppliers of critical minerals.
Mining potential at Snow Lake
As a result of LITM’s 55,000-acre site, 160,000 tons of lithium spodumene 6% will be produced every year over a 10-year period, enough to power 5 million electric cars. It has been estimated that Snow Lake Lithium will be able to increase estimates over the course of the next year after further exploration of approximately 1% of its site. The planned lithium mine at Snow Lake Lithium (LITM) will be powered almost entirely by renewable hydroelectric power, ensuring maximum sustainability.