PFE’s latest presentation outlines next steps for promising USA lithium project

Today, our USA lithium Investment, Pantera Minerals (ASX: PFE) laid out its vision for its 2025 operations in the state of Arkansas.

The new investor presentation details some of the driving forces behind a growing demand for lithium, particularly the rollout of huge gigafactories in the US to build EV batteries:

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This slide in the new PFE presentation also details the potential hidden upside from humanoid robots:

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The prospect of massive lithium demand from humanoid robots is certainly a left-field idea - but it also resonates with us.

Tesla alone is projected to have 1.5 million of these lithium battery powered robots walking around by 2030 (Source):

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There may yet be more undiscovered lithium powered battery applications waiting in the wings as technology enters “hockey stick mode”.

All up, what we’ve come to expect from the lithium market over years of Investing in the space is that it is a wildly unpredictable market.

And technology demand usually surprises to the upside - hopefully taking lithium prices and PFE’s highly promising lithium brine project in the Smackover region of Arkansas with it.

For a full summary of why we are Invested in PFE read this note:

New PFE Investment Memo - and did lithium sentiment just return?

How does this impact our PFE Investment Memo?

We see recent developments in humanoid robots and the broader lithium market as strengthening the macro theme driving our PFE Investment.

What is the macro theme?

Lithium is a critical material used in Electric Vehicle (EV) battery cathodes.

We believe battery metals are the most compelling investment theme of this decade. A lithium supply deficit is anticipated between 2024-2030.

Lithium rich brines and the complementary technology, Direct Lithium Extraction, are an emerging option for addressing this anticipated supply deficit.

In addition, we think that domestically sourced lithium will be a top priority for the US, in the wake of the US$370BN Inflation Reduction Act which creates strong incentives for critical minerals production.

Source: 4 March 2024 PFE Investment Memo

With a new US president in office, we expect Trump’s “best buddy” Elon Musk will continue to stress the importance of domestic US lithium production - noting that Arkansas’ governor is Trump’s former press secretary.

We saw Sarah Huckabee-Sanders speak for ourselves last year too:

Arkansas Lithium Summit - lithium come back?

What’s next for PFE?

Below are the next steps for PFE (slide):

(Source)

🔄Finalisation of three well locations (Q1-Q2 2025)

We want to see PFE release drill targets so it can pull a lithium brine sample to surface, to demonstrate the lithium grades that could be present on its acreage in the Smackover.

🔄Continued acreage growth (Q1-Q2 2025)

Building a land position could help underpin PFE’s valuation in the eyes of larger players in the Smackover such as energy supermajor ExxonMobil.

🔲Drilling initial stand alone well/s (Q3-Q4 2025)

The aim of this activity is to pull a lithium brine sample to the surface and prove that high grade brine is present on PFE’s acreage.

🔲Testing and publication of lithium grades (Q3-Q4 2025)

A marker to the market of PFE’s potential resource size.

🔲DLE Testing (Q3-Q4 2025)

This would show the market that any lithium brine extracted from PFE’s well can be made into a battery grade product.

🔲Preparation of well pad for DLE pilot plant (Q3-Q4 2025)

Essentially a test run for the production of lithium from the project - shows a product can be made.

🔲JORC Resource (Q3-Q4 2025)

This would provide a potential valuation marker for PFE relative to the resources of other lithium brine companies and allow for peer comparisons in the Smackover region.