Company Interview / Is there a new lithium player in town?

Key points:

• CleanTech Lithium targeting ASX listing soon to capitalise on the Australian investors' pool.

• Company plans to utilise proceeds to advance lithium brine projects in Chile with a more ecologically friendly strategy.

• Future high demand for lithium anticipated owing to increased electric vehicle adoption.

Steve Kesler expresses his excitement for CleanTech Lithium's prospective listing on the ASX next month. Steve explains that about 25% of CleanTech's existing shareholders are Australian based, with their largest shareholder being Regal that holds 15%. The move is expected to widen the understanding of the company's dealings in natural resources. Additionally, he identifies a deeper pool of experienced investors in the natural resources sector in Australia, as compared to the UK.

Steve further sketches on the plans for the proceeds from the IPO, which he indicates will be utilised to advance their lithium brine projects in Chile. Their most advanced project, Laguna Verde, is targeted to move into a pre-feasibility study, whose outcomes are expected to be robust. Additionally, a pilot plant is already producing up to one tonne per month of battery-grade lithium carbonate. as the company prepare for discussions with possible off takers, strategic partners, and funding institutions.

According to Steve, CleanTech Lithium is taking an eco-friendlier approach to the production of lithium, known as 'green lithium'. This procedure utilises DLA technology which is quite efficient and environment-friendly. Alongside the production, the firm plans to directly provide battery green materials to the European and North American markets. Furthermore, Steve sees a higher demand for lithium due to the increasing adoption of electric vehicles, as manufacturers target the mass market to make electric vehicles more affordable.

Full unedited transcript below:

0:11

Well. Chile focused explorer and developer clean tech Lithium is planning to list on the ASX next month, targeting to raise up to $20 million in capital. The company is already listed on Aim, a specialised unit of the London Stock Exchange catering to smaller, higher risk profile companies to tell us why they're now eyeing the ASX. We are going to head straight to the source and join Steve Kessler. Steve, thanks so much for joining us. Um, what are you planning on doing here?

0:40

Well, first of all, it's a pleasure to to join you. Yes. Uh, we've been talking for a while about, uh, dual listing on the ASX. We have probably 25% of our existing shareholders are Australian based, um, including our largest shareholder, Regal, which holds a 15%. They've been very supportive of the company, but the view has always been, uh, we would do much better to duelist on the ASX. Uh, there's a much broader knowledge of the natural resources sector in Australia than in the UK, and particularly in the lithium sector. In the UK, there's maybe three lithium companies, including US listed, whereas there's over 30, uh, in in Australia. Um, and in terms of financing for natural resources, uh, companies, there's deeper pools of, of experienced investors in the natural resources space. So we are on our way. We've lodged the prospectus

1:40

and we expect to be listed, uh, towards the end of September. What are you going to use the proceeds from the IPO for?

1:49

Well, to advance our project. We have a portfolio of lithium brine projects in Chile, two advanced ones, Laguna Verde and Viento and Dino. We've done scoping studies with very robust economics on both of those at a potential 20,000 tonnes a year lithium carbonate production rate. And both studies showed that we'll be in the lowest quartile of of operating of operating costs. We're taking Laguna Verde as the most advanced into pre-feasibility study. We expect to finish that at the end of of this year. Demonstrate robust economics. We have a pilot plant now which is up and running. We'll be producing up to one tonne a month of battery grade lithium carbonate to provide to potential off takers and and strategic partners to start their product qualification process. So the funds will be used to get us beyond pre-feasibility study and into discussions with the off takers, strategic partners and potential

2:49

financing.

2:50

When we talk about though the environment that we're in at the moment, I mean, lithium producers have been fluctuating a lot given what's happening to the underlying commodity. Why do you think or why did you choose to list now?

3:06

Well, no. Clearly no. No funding requirements. No. To get us into the the next stage. The market is what the market is now. We expect that investors will see the long term no potential of of of clean tech lithium now bringing in DLA technology which is much more efficient and environmentally friendly to produce what we call, uh, green lithium, uh, low carbon footprint, low uh, water usage, uh, directly into the European and the North American markets. Uh, Chile has a free trade agreement with the United States, preferential agreement with the, uh, Europe. And, uh, having battery green materials directly into those markets without having to go through. No, through China. Uh, also no plays. Well, no know geopolitically where North America and Europe, Europe want to lessen their dependence now on the the Chinese supply chain. So we think

4:06

it's a it's a good moment. The market is low. But we're looking at getting into production no end of 2027. So we're really looking at at long term investors recognizing that the price will be lifting up, uh, to incentivize no new projects in that timeframe. And when we look, I guess more broadly at the push towards cleaner, greener technology, the push towards EVs. Do you think there is going to be a greater rebound and demand as well for lithium?

4:39

Absolutely. I think the issue is there's a very, very high take up rates of electric vehicles in China. Um, the take up in the EU and US has lagged, uh, a bit on, uh, on forecasts because the man in the street is saying, look, the cars are too expensive. We like electric vehicles, but if they were cheaper, no, we would buy them. So all the motor manufacturers are now targeting the the mass market and to to try and make those cars more affordable. And that will drive up, um, the, the use of um, electric vehicles and, um, all those electric vehicles, it needs, uh, cheaper batteries, it needs a stable, uh, supply of, of, um, reasonable cost, uh, battery materials like lithium, uh, going into them, uh, the favored battery, uh, chemistry is going to be lithium ion phosphate, which is cheaper, which needs the, the lithium carbonate which we will be producing directly in, in Chile. So yes, the car

5:38

manufacturers are getting their act together. There will be increased takeup because it's being driven by by government. You know, they want to see, uh, the transition to a green economy and decarbonize the industry. So it's unstoppable. That is the direction.