Lepidico says it has adjusted its approach to the Karibib Lithium Mica Project in Namibia due to disruptions in its prospective partner’s European lithium-ion battery supply chain plans.
The company will now implement a lower-risk, staged approach instead of the original Phase 1 Project timeline.
According to the chairperson of the board, Gary Johnson, the revised strategy prioritises the development of lepidolite concentrate at Karibib ahead of constructing the downstream chemical plant, mitigating risks while maintaining momentum.
“The prospective partner for the integrated Phase 1 Project that Lepidico was engaged with this time last year had its lithium-ion battery supply chain development plans in Europe undermined, necessitating a recasting of its strategy, which no longer aligned with the Phase 1 Project timeline,” he said.
He further explained that in this challenging market, Lepidico remains steadfast, securing Jefferies International Ltd under a new advisory agreement to attract a strategic partner for the Karibib project.
The company aims to finalise a deal in the first half of 2025 and has made progress in securing institutional bridge financing to provide necessary working capital for this effort.
“Lepidico is now well advanced in securing an institutional investment for bridge finance to provide the working capital needed for Jefferies to conclude its mandate,” he said.
Johnson also said that chemical and concentrate prices have hit cyclical lows, declining almost monthly since their peak in 2022.
However, there are signs of stabilisation as electric vehicle supply chain inventories begin to reduce.
Notably, Albemarle, the world’s largest lithium producer, recently highlighted that “25% of [the] global resource cost curve [is] estimated to be unprofitable,” with prices well below the levels needed to incentivise greenfield lithium projects.
These dynamics are unsustainable and hint at the potential for higher prices in the future.
“Clearly, such a dynamic is unsustainable and supportive of higher future prices. Within this environment, Lepidico has continued to implement its strategy to secure a strategic partner for the development of the Karibib Lithium Mica Project in Namibia and also advance its proprietary process technologies to commercialisation,” he said.
