Tue, April 16, 2024

$30M Mitsui Boost for Atlas Lithium’s Neves Project

The government aspires to make Portugal Europe's top producer of prime lithium for electric car batteries.

Quick Look:

  • Atlas Lithium signs investment and offtake agreements with Mitsui.
  • Mitsui invests $30 million in Atlas Lithium, enhancing the Neves Project’s progress.
  • The partnership aims to make Atlas a pivotal lithium supplier for global EV batteries.

Atlas Lithium Corporation (NASDAQ: ATLX) has sealed a pivotal investment and offtake agreement with Mitsui & Co., Ltd. (“Mitsui”). The company made a strategic leap to become a leading global electric vehicle (EV) battery materials supply chain player. A substantial $30,000,000 investment from Mitsui into Atlas Lithium’s common shares at a 10% premium over the 5-day Volume Weighted Average Price (VWAP) bolstered this partnership. The move signifies more than just financial infusion. It is a testament to the burgeoning confidence in lithium’s critical role in the energy transition. Besides, it expresses the Neves Project’s potential in Brazil.

This investment will expedite Atlas Lithium’s journey towards revenue generation. Therefore underpinning the rapid development of its lithium concentrate production and sale. The offtake agreement further cements this trajectory. It outlines the future acquisition of 15,000 tons of lithium concentrate from Phase 1. Besides, an impressive 60,000 tons annually for five years from Phase 2 is a significant milestone. With these agreements, Mitsui proceeds with financial investments. Moreover, it demonstrates its long-term commitment to Atlas Lithium and the broader lithium market, recognizing the Neves Project’s strategic importance in meeting the growing demand for lithium.

Atlas & Mitsui Deepen Ties, Boost Neves Project Speed

The roots of this partnership trace back to a Memorandum of Understanding initiated in January 2023, which blossomed into a robust relationship through multiple due diligence visits. Atlas Lithium’s ambition to operationalize an open-pit lithium mine and spodumene concentrating facility by the fourth quarter of 2024 has gained significant momentum, bolstered by Mitsui’s deep-rooted history of profitable mining investments in Brazil since 1960.

Marc Fogassa, CEO and Chairman of Atlas Lithium lauded the partnership as a milestone in positioning the company as a key supplier in the global EV battery materials supply chain. The investment’s impending closure, expected within ten days, has Goldman Sachs & Co. as the advisor, with DLA Piper U.S. as the legal counsel, ensuring a smooth and efficient process.

Market Eyes Atlas & Mitsui Amid Lithium Demand Surge

Despite recent price fluctuations, the lithium market remains a beacon of stability and growth potential. Lithium Royalty has noted the market’s resilience, attributed to positive demand trends, decreasing inventories, and industry-wide operation curtailment. Ganfeng Lithium’s Chairman, Li Liangbin, echoed this sentiment, emphasizing the long-term uptrend in lithium prices driven by the global energy transition. He suggested an optimal price range for lithium, advocating for measures to stabilize prices amidst geopolitical challenges and investment risks, notably highlighted by Ganfeng’s delayed mining operations in Mexico.

This strategic investment and offtake agreement between Atlas Lithium and Mitsui signifies a critical step towards securing the lithium supply for the burgeoning EV market. It reflects the broader industry’s optimism and strategic efforts to navigate the challenges and opportunities within the lithium landscape.

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