American Salars Lithium Inc. (USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN) has entered into a share purchase agreement to acquire 1447377 BC Ltd., a company holding a 100% interest in the Jaguaribe Project, an 18,083-hectare hardrock lithium-cesium-tantalum (LCT) pegmatite property in northern Brazil. The acquisition expands American Salars' portfolio of lithium and critical mineral assets in both North and South America.
Located in the Jaguaribe/Solonópole region of Ceará, Brazil, the Jaguaribe Project has yielded high-grade lithium samples, including up to 3.72% Li₂O, alongside significant concentrations of rare earth elements. Initial exploration identified pegmatite dykes measuring up to 30 meters wide and 300 meters long, which remain largely unexplored. The company plans a second phase of exploration to map these pegmatite outcrops, expand sampling, and prepare for a follow-up drilling program.
In the acquisition, American Salars will issue 3.5 million units of its shares to 1447377 BC Ltd. shareholders. Each unit consists of one common share and one common share purchase warrant, exercisable at $0.20 for three years. The transaction is subject to approval by the Canadian Securities Exchange and includes a four-month hold period on issued shares.
CEO R. Nick Horsley, who is also a director and indirect shareholder of the vendor company, stated in the news release, "Brazil has been one of the global epicenters for lithium production, and American Salars' Jaguaribe project is located in a known pegmatite district and contains high-grade lithium samples and significant rare earth element values."
The acquisition falls under Multilateral Instrument 61-101 as a related-party transaction but qualifies for exemptions undervaluation and minority shareholder approval requirements. Independent board members reviewed the geological data before proceeding with the transaction.
Lithium Sector Outlook and Market Developments
The lithium sector saw shifting supply and demand dynamics in early 2025, with analysts projecting a potential end to the market's recent oversupply. According to a January 14 report from USA News Group, industry projections suggested a surplus of approximately 80,000 tonnes of lithium carbonate equivalent (LCE) in 2025, down from nearly 150,000 tonnes in 2024. Bank of America forecasted that a supply deficit could emerge by 2027, noting that the lithium market was entering a period of transition. Precedence Research estimated that the global lithium market would reach approximately US$28.45 billion by 2033, driven by an annual growth rate of 12.5%.
Supply constraints and shifting production strategies also shaped the sector's outlook. A February 6 analysis from Fastmarkets indicated that production cuts and stronger demand from energy storage projects were expected to tighten the lithium supply in 2025. Fastmarkets projected an oversupply of just 10,000 tonnes for the year, with a potential 1,500-tonne deficit emerging by 2026. "Lithium market conditions — particularly during the latter part of 2024 — led to growing producer restraint, both in China and elsewhere," said Paul Lusty, head of battery raw material analytics at Fastmarkets. He added that Australian production cuts had accelerated, with multiple miners suspending planned expansions due to market conditions.
On February 14, Business Insider highlighted a growing trend among lithium producers to expand processing capabilities to meet long-term demand for EV batteries and energy storage solutions. Companies in key lithium-producing regions such as Australia, Canada, and Latin America were increasing investment in refining capacity to support the global supply chain. Analysts pointed to rising demand for battery-grade lithium hydroxide and carbonate, which required specialized refining processes. Industry observers noted that these investments aimed to reduce dependency on Chinese refining and strengthen domestic supply chains in North America and Europe.
A February 16 report from Cosmos discussed advancements in lithium nickel oxide (LiNiO₂) battery technology, which has long been hindered by degradation issues during repeated charging cycles. Researchers at the University of Texas at Dallas (UTD) identified that chemical reactions involving oxygen atoms caused the LiNiO₂ cathodes to crack, limiting their commercial viability. The research, conducted within UTD's BEACONS (Batteries and Energy to Advance Commercialisation and National Security) Initiative, proposed a solution by reinforcing cathodes with positively charged ion ‘pillars' to increase structural strength. PhD student Matthew Bergschneider, lead author of the study, stated, "We'll make a small amount at first and refine the process. Then, we will scale up the material synthesis and manufacture hundreds of batteries per week at the BEACONS facility. These are all stepping stones to commercialization." If successful, this development could enhance battery energy density and reduce reliance on cobalt, a material that is both expensive and difficult to source.
American Salars Advances Lithium Exploration with Jaguaribe Acquisition
American Salars' acquisition of the Jaguaribe Project strengthens its position in the lithium sector by securing a foothold in a historically significant pegmatite province. As detailed in their investor presentation, the company plans to leverage its newly acquired asset by launching an extensive Phase 2 exploration program, with a focus on further mapping and drilling to define the lithium and rare earth element mineralization.
The project's location provides logistical advantages, with paved road access to the port city of Fortaleza, enabling efficient transportation of extracted minerals to North American and European battery markets. Additionally, the region's arid climate and sparse population create favorable conditions for exploration.
With an established team of field crews, a Brazil-focused senior geologist, and a Quebec-based lithium specialist overseeing operations, American Salars is positioned to advance its lithium exploration and development strategy. The company is working with local geological consultants to refine its exploration plans, which include a systematic sampling program and geophysical surveys to identify high-priority drilling targets.
Streetwise Ownership Overview*
American Salars Lithium Inc. (USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN)
This acquisition aligns with American Salars' broader growth strategy, which includes multiple lithium exploration assets across Argentina, the United States, and Brazil. As global demand for lithium continues to grow, the addition of Jaguaribe further enhances the company's exposure to the critical minerals market.
Ownership and Share Structure
American Salars said it has 28.8 million shares outstanding and 5.5 million warrants, according to the company.
As for insiders, the CEO Horsley owns about 1.83 million, or about 7.37%, with 4666,666 warrants. Strategic investor Hillcrest Merchant Partners owns 1 million shares or 4.03%. There are no institutional investors, and the rest is retail.
Its market cap is CA$2.01 million. It trades in a 52-week range of CA$0.45 and CA$0.06.
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Important Disclosures:
- American Salars Lithium has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Salars Lithium
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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