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Atlas Lithium Corp. (ATLX:NASDAQ) has announced the successful shipment of its modular dense media separation (DMS) lithium processing plant from South Africa to Brazil. This milestone marks a significant step in the company's efforts to advance lithium production in Brazil's Lithium Valley, a resource-rich region known for its high-quality spodumene deposits.

The DMS plant, an integral component of Atlas Lithium's Neves Project, is designed to produce high-quality lithium concentrate for the global market, particularly for electric vehicle (EV) batteries and renewable energy storage. The shipment, consisting of 141 containers and 10 bulk items, departed the Port of Durban, South Africa, on February 2, 2025, aboard the cargo vessel Irene's Wisdom and is expected to arrive at the Port of Santos, Brazil, on March 2, 2025.

According to the company, the processing facility is fully paid for and owned by Atlas Lithium. Additionally, two more containers carrying spare parts are scheduled to be shipped in March 2025.

"This development is transformational for Atlas Lithium as our fully paid processing plant significantly reduces project risk," said Eduardo Queiroz, the company's Project Management Officer and Vice President of Engineering, in the press release. "From securing our operational permit in October 2024 to completing fabrication of our optimized DMS plant in South Africa, and now executing its careful shipment to Brazil, we have firmly delivered several critical milestones."

The modular DMS plant incorporates advanced water conservation measures, sustainable tailings management through dry-stacking technology, and a compact design to minimize environmental impact. The company has emphasized its commitment to sustainability, aligning with broader industry efforts to enhance lithium extraction efficiency while reducing environmental footprints.

Atlas Lithium has positioned itself as a key player in Brazil's lithium sector, holding the largest lithium exploration footprint among publicly listed companies in the country, covering approximately 539 square kilometers. The Neves Project secured its operational permit in October 2024, paving the way for future lithium concentrate production.

Global Lithium Market Poised for Shift as Supply Tightens and Investments Surge

According to a January 14 report from USA News Group, analysts suggested that 2025 could be a pivotal year for the lithium market following two years of decline. The global lithium surplus was projected to shrink from nearly 150,000 tonnes in 2024 to approximately 80,000 tonnes in 2025. Benchmark analysts noted that US$116 billion in investment would be required by 2030 to meet the anticipated demand for electric vehicle (EV) battery production. Bank of America forecasted that lithium supply could shift into a deficit by 2027, with 2025 marking the peak of the current oversupply.

H.C. Wainwright & Co. analyst Heiko F. Ihle maintained a Buy rating on Atlas Lithium with a US$19.00 target price.

On January 15, Mining.com reported that Saudi Arabia announced a joint venture between Aramco and Ma'aden to extract lithium from high-concentration deposits, aligning with the country's Vision 2030 plan to diversify its economy beyond oil. Aramco's president of exploration and production, Nasser al-Naimi, stated that the partnership was aimed at "meeting the kingdom and potentially the world's projected lithium demand." The report highlighted that Saudi Arabia was investing in lithium and other transition minerals to support a projected twentyfold increase in domestic lithium demand between 2024 and 2030.

Also, on February 1, Business Today reported that India's Union Budget 2025-26 introduced tax exemptions on lithium battery production, removing basic customs duties on key materials such as cobalt and lithium-ion battery scrap. The report stated that these exemptions were intended to "enhance local manufacturing, reduce dependence on imports, and make electric vehicles and electronics more affordable." Sachidanand Upadhyay, managing director of Lord's Mark Industries, commented that this initiative would "reduce dependency on imports and strengthen India's position in the global renewable energy supply chain." The government also expanded duty-free status to over 60 additional battery-related components to support domestic production efforts.

Third-Party Expert Analysis of Atlas

According to a January 28 research note from H.C. Wainwright & Co., analyst Heiko F. Ihle maintained a Buy rating on Atlas Lithium with a US$19.00 target price. Ihle highlighted the company's low-cost operations in Brazil and its potential to create significant long-term profits while offering geopolitical diversity to major lithium buyers.

The report emphasized the strategic advantages of Atlas Lithium's modular Dense Media Separation (DMS) lithium processing plant, noting its compact design, water-efficient recycling systems, and streamlined logistics. Ihle stated, "We expect [the plant] to reduce operating and installation expenses significantly." The first phase of production aimed to reach 150,000 tonnes of battery-grade spodumene concentrate annually, with a second phase expected to double capacity.

Ihle also pointed to strategic investments supporting the company's growth, citing a combined US$50 million commitment from Chengxin and Yahua, which included US$10 million in equity investment and a US$40 million non-dilutive prepayment for 80% of Phase 1 lithium concentrate production. Additionally, Mitsui & Co. invested US$30 million in Atlas Lithium in exchange for an offtake agreement securing 15,000 tonnes of lithium concentrate from Phase 1 and 60,000 tonnes annually for five years from Phase 2.

The report further noted that recent mergers and acquisitions in the lithium sector underscored a market focus on securing long-term supply from geopolitically stable regions. Ihle stated, "The low availability of low-cost lithium producers (such as ATLX) should ultimately warrant a strong buyout multiple, even as we currently see a short-term oversupply of lithium pressuring the commodity price."

At the time of the report, Atlas Lithium's share price was US$6.55, representing a potential return of 190% to the firm's US$19.00 target price. The report acknowledged risks, including commodity price fluctuations, resource definition uncertainties, and potential cost overruns in the construction of the Neves Project. However, Ihle concluded that Atlas Lithium's strategic positioning, financial backing, and production scalability positioned it favorably within the lithium sector.

Atlas Lithium Advances Toward Production with Strategic Partnerships and Cost Advantages

As per the company investor presentation, Atlas Lithium's progress toward production aligns with broader trends in the lithium market, where global demand for battery-grade lithium remains strong due to increasing EV adoption and renewable energy storage requirements. The company has outlined several strategic advantages, including competitive production costs and access to high-quality spodumene resources. 

The shipment of the DMS processing plant represents a critical step in Atlas Lithium's expedited production timeline. The company has highlighted its modular plant design as a key efficiency driver, allowing for rapid assembly and operational readiness upon arrival in Brazil. Additionally, Atlas Lithium has secured strategic offtake agreements with major industry players, including Tier 1 lithium supply chain buyers, which may provide revenue stability once production commences.

Analysts have noted Atlas Lithium's potential as a low-cost lithium producer, with estimates suggesting production costs in the mid-US$400 per tonne range. The company has also formed strategic partnerships with global firms, including Mitsui & Co. and Chengxin/Yahua, which have invested in Atlas Lithium and secured offtake agreements for future production. According to analyst reports, Atlas Lithium's stock has received positive coverage, with price targets ranging from US$19 to US$45.

With all necessary permits secured for the Neves Project, Atlas Lithium remains focused on commissioning its processing plant and initiating production. The company's positioning in Brazil's Lithium Valley, combined with its modular plant approach and strong partnerships, supports its strategy to become a competitive lithium producer in the global market.

Ownership and Share Structure

About 32% of Atlas Lithium is owned by management and insiders. About 12% of the shareholders are institutional. Strategic partners hold another 12%. The rest, about 44%, is retail.

Its market cap is roughly US$100 million. It trades in a 52-week range of US$5.71–$20.50.