Thailand aims for lithium output in two years, boosting EV ambitions

Flagship Minerals

24/01/2024 10:08

By Devjyot Ghoshal and Panu Wongcha-um
       BANGKOK, Jan 24 (Reuters) - Thailand hopes to start
producing lithium from a mine in its southwest in about two
years, boosting its ambitions to become a regional electric
vehicle (EV) production hub, according to government and company
officials involved in the project.
    The silvery-white element is a key metal for EV batteries
and establishing lithium mines would put Thailand in a unique
position compared to other major producers because it is also
developing an EV production industry, including $1.44 billion in
investment commitments from Chinese carmakers.
    Miner Pan Asia Metals  PAM.AX  is preparing to submit mining
licenses in March for the Reung Kiet project in Thailand's
Phang-Nga province that consists of the prospective Reung Kiet
and Bang I Tum sites. 
    Pan Asia's Chairman and Managing Director Paul Lock told
Reuters the company is "optimistic" about starting lithium
chemical production from Reung Kiet by early 2026.
    Thailand's Department of Primary Industries and Mines (DPIM)
forecasts that the Reung Kiet site could produce about 164,500
metric tons of lithium carbonate, used in lithium iron phosphate
batteries for EVs.
    The Reung Kiet resource could translate into enough lithium
for at least 1 million EV batteries of 50 kilowatt-hour
capacity, the DPIM's Director General Aditad Vasinonta said,
adding that mining could begin there in about two years.
    The mineral resources at Bang I Tum may be 10%-70% larger
than Reung Kiet, according to Pan Asia's Lock. 
    "The potential for growth through further exploration is
significant. This positions Thailand as an emerging player in
the lithium market, aligning well with its ambitions to become a
regional hub for electric vehicles," said Lock.
    The potential timeline for mining at Reung Kiet and details
of the Bang I Tum resource have not been previously reported.
    The total lithium resources in Thailand, and the amount that
could be viably mined, is still unclear. Australia, Argentina,
Chile and China are among the world's major lithium suppliers. 
    
    REGIONAL HUB
    Starting lithium production coincides with Thailand's push
into higher EV output. The country, Southeast Asia's largest car
producer and exporter, wants to convert about 30% of its annual
vehicle production into EVs by 2030.
    So far, 38 battery production projects, including for EVs
and other uses, totalling an investment of 23.6 billion baht 
($659.40 million), have received support from the Thailand Board
of Investment, its secretary general Narit Therdsteerasukdi
said.
    "Our goal is to push Thailand to become the regional hub for
battery production, both for EV and for energy storage," he
said.
    The Thai government is also pushing for lithium exploration
in new areas, including revising regulations to enable private
firms such as Matsa Resources  MAT.AX , an Australian miner
hunting for lithium in Thailand, to undertake studies on
agricultural land, DPIM's Aditad said.
    "We have been working on this, on revising regulation for
quite sometime. We plan to finish them by the end of next
month," he said.
    Matsa holds two special prospecting licences in Thailand and
has over 100 applications in the pipeline, it said in a January
announcement.
    "They will be only one of a handful of countries that have
got the whole supply chain from mining to production within the
same country," said Paul Poli, Matsa's executive chairman.
    The Thai lithium deposits under exploration are found within
what are known as lepidolite minerals, which differs from
Australian mines that typically produce lithium from spodumene
and Chilean projects that extract the metal from brine. 
    Matsa and Pan Asia said they are in discussions with Chinese
firms to process the lepidolite mineral, which can be more
expensive than the processing for spodumene and brine. Chinese
firms have experience producing lithium from lepidolite in
Jiangxi province. 
    "Our discussions with the Chinese lepidolite mining and
processing company are focused on a potential tripartite venture
to mine and produce lithium chemicals in Thailand," Pan Asia's
Lock said.
    Establishing a mine and a 10,000-tonnes-per-annum lithium
conversion plant in Thailand would require an investment of
about $180 million to $250 million, he said.
    "This strategy aims to support Thai-based battery
manufacturers by ensuring a local supply of essential
materials," he added.
    
    ($1 = 35.7900 baht)

 (Reporting by Devjyot Ghoshal and Panu Wongcha-um; Editing by
Christian Schmollinger)
 ((Devjyot.Ghoshal@thomsonreuters.com;))