LITHIUM ENERGY (ASX:LEL)
The newly listed Strike Resources (ASX:SRK) spinout has two key projects: the ‘Solaroz’ lithium brines project in Argentina and the Burke Graphite Project in Queensland.
The graphite at Burke – one of the world’s highest grade graphite deposits – will be optimised by the CSIRO for lithium-ion battery applications over four months.
Lithium Energy will re-engage with potential Chinese and Japanese customers after the testing is complete, it says.
“Based upon the positive reception and strong interest in the Burke project, and with the benefit of the further test work, Lithium Energy will pursue discussions with these previous parties (and other interested parties) with a view to eventually forming binding commercial off-take and development agreements,” the company says.
“Lithium Energy notes that China itself is the world’s largest producer and consumer of graphite.
“However, average graphite grades in China are typically much lower than that of the Burke Deposit and increasing environmental concerns in China are causing companies to look outside of China for stable supplies of high-quality graphite concentrate.”
The $47m market cap explorer is up 245% on its IPO price of 20c per share.