Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
European Energy Metals (TSXV: FIN) announced Thursday it has submitted applications for five new exploration licences (ELs) that would significantly boosts its land holding in Finland.
The applications cover approximately 102 sq. km. of geological terrane considered highly prospective for lithium-cesium-tantalum (LCT) pegmatites in the Kaustinen region of central Finland. These would augment the company’s existing Nabba and Nabba 2 licences, bringing its total licensed holdings to 157.7 sq. km.
The new licences are largely contiguous with those held by Sibanye-Stillwater at the Keliber project, which hosts several LCT spodumene-pegmatite deposits with published resources of approximately 17 million tonnes grading 1% Li2O (lithium oxide).
Sibanye is currently constructing a complete lithium supply chain complex including a centrally located spodumene concentrator mill near Kaustinen, which it intends to truck ore to from several different deposits.
The South African mining group, which is investing as much as €600 million in partnership with the Finnish Minerals Group on building the mining complex, is eyeing first production in the second half of 2025.
European Energy Metals noted that its concessions are within 1 km of some of the known lithium-rich spodumene-pegmatite deposits at Keliber, and also within 1 km of Sibanye’s proposed spodumene concentrator plant.
At present, the company is conducting a field program on its concessions to identify targets to drill later this year. The program serves as a follow-up on the 2023 exploration program, during which its team identified multiple occurrences of lithium-bearing pegmatite mineralization at the Nabba licence. The highlight was the discovery of the Kyrola prospect, an 850m long by 110m wide spodumene-bearing pegmatite boulder field where rock chip grab samples assayed up to 3.84% Li2O.
“The expansion of our exploration licences allowed for more significant exploration to test and define the subsurface extent of widespread mineralization identified on surface,” CEO Jeremy Poirier said in a news release.
“In conjunction, our 2024 exploration program is designed to advance these projects and areas to a drill definition stage,” he said. “The prospectivity of our tenements is highlighted by the proximity to other significant known deposits in addition to Keliber’s lithium concentrator currently under construction.”
