Lithium Energy (ASX:LEL) is one step closer to pawning off its Solaroz lithium project in Argentina.
The buyer of the Solaroz project is Hollywood status, as far as lithium markets go. CNGR, a Chinese battery giant, is willing to pay just short of A$100M for it.
LEL’S decision to sell Solaroz ultimately paints a picture of a company left to make tough decisions given the downfall in lithium prices through 2023.
Only in September, the company was still spruiking Solaroz at conferences, that project boasting a 3.3Mt lithium carbonate equivalent resource in brine.
With the Chinese government having tickboxed CNGR’s buyout on its own end, the government of Argentina must do the same – so too must LEL shareholders.
A meeting to that end will be held in late July of 2024, suggesting the company expects to have all regulatory approvals out of the way by then.
So what next for Lithium Energy? The answer is a different battery metal.
In April this year, LEL teamed up with ASX-listed NOVONIX (ASX:NVX) to merge two projects together; the QLD-based Burke and Mt Dromedary graphite projects. Both were adjoining.
The two companies are now moving ahead as Axon Graphite, and the company intend to list on the ASX by way of IPO.
That deal, of course, depends on the completion of the Solaroz sale.
LEL last traded at 41cps.