Lithium Company Moves Closer to Production With Premium Processing Plant

1. Atlas Lithium Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Atlas Lithium Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

* Disclosure for the quote from the Clive Maund article published on December 18, 2024

1. For the quoted article (published on January 13, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,575.
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be  only be construed as a recommendation or solicitation to buy and sell securities.

Lithium exploration and development company Atlas Lithium Corp. (ATLX:NASDAQ) announced its modular dense media separation (DMS) lithium processing plant is ready for shipment from South Africa to Brazil.

According to the company, the milestone represents a key step toward lithium production and reduces project risk since it has been fully paid for.

"A mining company's capital expenditure (CAPEX) for production is one of its greatest risk factors," Chief Executive Officer Mark Fogassa said. "In our case, we have diminished this risk substantially, as our DMS plant is fully paid for and titled to Atlas Lithium. This is a significant advantage as we move closer to production."

The shipment carrying the plant consists of 141 containers and 10 bulk items, the company said. It is scheduled to leave on a chartered vessel on January 31.

Atlas said in a release that it will be the first modular DMS plant of its kind in Brazil, "positioning Atlas Lithium as a trailblazer in the country's lithium processing sector. Its novel design delivers multiple operational and environmental benefits, underscoring the company's leadership in sustainable and efficient lithium production."

"Our modular DMS plant is a testament to Atlas Lithium's commitment to innovation, efficiency, and sustainability," said the company's Project Management Officer and Vice President of Engineering Eduardo Queiroz. "By combining cutting-edge design with environmental responsibility, we are setting industry standards for operational performance and eco-conscious practices as we advance toward production."

In December, Technical Analyst Clive Maund wrote* that the company is "centrally positioned for great success going forward."

"It is an established lithium and other battery metals explorer with substantial 100% owned projects in favorable jurisdictions where year-round operations are possible, with the fully permitted flagship Minas Gerais Lithium Project set to go into production soon, and it even has important customers lined up for its product with offtake agreements already in place," Maund wrote. "All of this is against the background of a lithium price that has stabilized in a base pattern after a severe bear market and looks set to begin a new bull market."

'A Promising New Frontier for Lithium Production'

Atlas said the modular DMS plant has several design advantages over traditional processing facilities, including compact design, maximized water efficiency, streamlined logistics because of simplified transportation, and environmental sustainability, as its system of dry stacking tailings eliminates the need for tailings dams.

In December, Technical Analyst Clive Maund wrote* that the company is "centrally positioned for great success going forward."

"This cutting-edge facility has been engineered to achieve the lowest water usage in the industry due to its advanced recycling systems," the company noted. "By eliminating the need for tailings dams, the plant sets a new benchmark for environmentally responsible lithium production."

The company said the plant demonstrates that "responsible mining practices and environmental stewardship can coexist, paving the way for a greener and more efficient lithium industry."

"We are excited to bring this groundbreaking design to Brazil, which represents a promising new frontier for lithium production," said James Schloffer, a lithium processing expert and member of Atlas Lithium's Operations Committee. "Brazilian lithium concentrate is highly competitive globally due to its superior quality and low production costs. This plant reinforces Atlas Lithium's commitment to delivering a sustainable, high-quality product to the market."

The Catalyst: Demand 'Set to Soar'

In the December 12 edition of Battery Metals Flash from Goldman Sachs, Megan Kerwin reported that lithium market activity had slowed toward the end of 2024, overshadowed by movements in the precious and base metals markets.

Lithium hydroxide spot prices were on track to close in 2024, approximately 40% lower year-to-date, though prices had rebounded from multi-year lows of US$8.50 per kilogram. Excess supply and lower-than-expected demand in Western markets continued to weigh on prices, with limited production cuts further exacerbating market pressures.

Looking ahead to 2025, the sector is expected to focus on upstream responses to lower prices, the impact of potential U.S. tariffs on Chinese goods, and shifts in electric vehicle (EV) demand across China, the European Union, and the United States.

Notably, November 2024 data showed a 51% year-over-year increase in Chinese EV sales, though growth rates are projected to slow in the coming year. In contrast, U.S. EV sales grew 12% year-over-year, while the EU faced a decline of 23%, highlighting divergent trends across key markets. These factors underscore the complex dynamics shaping the lithium sector as it enters the new year.

In a report dated November 30 for Energy and Capital, Alex Koyfman discussed the resurgence of the lithium market after the 2023 bubble collapse. 

He characterized the sector as entering a phase of "rational, organic growth," supported by increasing demand for electric vehicles and energy storage. The report also emphasized the United States' potential to reduce global dependence on Chinese lithium production, further strengthening the sector's outlook.

"Clearly, if the basing action on the lithium chart leads to a new bull market, then it should have a highly beneficial effect on Atlas' stock price, especially given the progress being made by the company," technical analyst Maund noted.

"The first and perhaps most important point is that lithium demand is set to soar between now and 2050, while expected mine supply from announced projects (up to now) is set for only modest growth," wrote Maund, who rated the stock a Strong Buy. "Clearly, this is a recipe for a major and very possibly spectacular lithium bull market."

Ownership and Share Structure

About 33% of Atlas Lithium is owned by management and insiders. About 11% of the shareholders are institutional. Strategic partners hold another 12%. The rest, about 44%, is retail.

Top shareholders include Waratah Capital Advisors Ltd. with 4.34%, Mitsui & Co. Ltd. with 12.27%, and Candace Shira Associates LLC with 2.39%, according to recent SEC filings.

Its market cap is about US$106.37 million. It trades in a 52-week range of US$6.12–$24.99.