London-listed CleanTech Lithium is progressing the Laguna Verde project in Chile after completing a pre-feasibility study for a direct-lithium-extraction operation and appointing an adviser to pursue strategic investment and development financing.
The project is designed to produce 15,000 tonnes of battery-grade lithium carbonate annually for 25 years. The pre-feasibility study estimates initial capital expenditure at approximately US$748 million, with operating costs of US$5,768 per tonne and an after-tax net present value of about US$960 million.
Laguna Verde would employ direct lithium extraction rather than conventional evaporation ponds. The proposed process can reduce the physical footprint and processing time, while its commercial performance will depend on lithium recovery, water balance, reagent consumption and the reinjection of depleted brine.
Chilean lithium agreement advances regulatory process
CleanTech has agreed the principal terms of a special lithium operating contract with the Chilean government. The agreement represents a regulatory step for the project because lithium in Chile is treated as a strategic mineral under state control.
The company has appointed London-based Cutfield Freeman to identify a strategic investor and help structure development finance. Existing equity funding is intended to support licensing, environmental studies and further optimisation of the DLE process. That funding remains small relative to the estimated US$748 million initial capital requirement, leaving the project dependent on a substantially larger financing package before construction can proceed.
Financing requirements reflect project scale
The proposed development represents capital intensity of approximately US$50,000 per tonne of annual lithium carbonate capacity. Consequently, the project’s financing case is sensitive to lithium prices, the timing of production ramp-up and achievement of the projected US$5,768-per-tonne operating cost. A strategic investor could provide more than project equity. Potential participation from a battery producer, chemicals company or integrated mining group could include technical expertise, product qualification and an offtake agreement capable of supporting senior project debt.
Laguna Verde remains at the pre-construction stage, with the quantified development case established through its pre-feasibility study. The project is now seeking a strategic partner capable of supporting the majority of its US$748 million development financing requirement.
