Atlas Lithium announces plans to develop two further lithium projects in Brazil

NASDAQ-listed Atlas Lithium Corporation, owner and developer of the Neves project in Brazil's so-called Lithium Valley, announced Nov. 25 a plan to develop two further Brazilian prospects in the area.

With Neves, Atlas Lithium's flagship development, permitted and advancing toward production, Atlas now aims to move its Salinas and Clear spodumene exploration projects to production.

Lithium Valley, also known as Jequitinhonha River Valley, has emerged as a premier hard-rock lithium jurisdiction. Companhia Brasileira de Lítio is an established producer in the area. Last year, TSX-listed Sigma Lithium started producing what it describes as "green" lithium in the valley, where Australia's Pilbara Minerals acquired Latin Resources, an exploration company, for $370 million in August.

Lithium prices have been falling since hitting a peak in early 2023. Platts, part of S&P Global Commodity Insights, most recently assessed seaborn lithium carbonate at $10,500/mt CIF North Asia, down 30% on the year.

Atlas said it is poised to become the next lithium concentrate producer in Lithium Valley with its Neves project.

Neves' phase 1 targets production of up to 150,000 mt of battery-grade spodumene concentrate within the coming months, with offtake agreements in place with lithium chemical companies Chengxin Lithium Group and Yahua Industrial Group for 60,000 mt/year each, as well as with trader Mitsui & Co. for 15,000 mt/year.

Neves' planned phase 2 aims to increase capacity to 300,000 mt/year spodumene concentrate, with an offtake agreement in place for Mitsui to take 60,000 mt/year for five years.

Atlas' Salinas project in the northern part of Lithium Valley, which spans 2,070 acres with natural spodumene outcrops, is located 4.7 miles from Latin Resources' site. Assay results from parts of Salinas have shown lithium content in the ore in a range of 2.31%-4.97% lithium oxide, Atlas said.

The 470-acre Clear project in the central part of the valley is situated 3.8 miles from Sigma Lithium's mine and also has potential for spodumene deposits.

The company expects to expand its exploration budget in 2025 to accommodate drilling in both the Salinas and Clear projects, it said.