[Featured Stock] ZEN1 Energy's Lithium Production Progresses Smoothly in the US... Lithium Prices Hit Record Highs

[Asia Economy Reporter Hyungsoo Park] G1 Energy is showing strong performance. The news that Lithium Korea is receiving support for brine and ponds for lithium extraction plant construction from its U.S. partner company MRI (Mineral Resources International) appears to be influencing the stock price.

As of 1:02 PM on the 21st, G1 Energy is trading at 4,915 KRW, up 8.26% compared to the previous trading day.

A Lithium Korea official explained, "To extract lithium, brine and ponds that evaporate and concentrate it to the required concentration for the process are necessary." They added, "It is a favorable structure where the U.S. partner provides all the essential basic elements in the brine lithium manufacturing facility."

MRI was established in 1969 in Salt Lake City, Utah, USA, and concentrates mineral components from the Great Salt Lake to produce various products. MRI holds the rights to use 39 million gallons (147 million liters) of brine annually from the Great Salt Lake and owns six natural evaporation ponds.

In August, Lithium Korea signed a memorandum of understanding with MRI to install a pilot plant for lithium extraction at the Great Salt Lake. Lithium Korea will install the pilot plant, and MRI will support with brine and ponds. Since the ponds, which occupy the largest area among the entire facilities, are provided, rapid progress of the pilot plant is expected.

An official stated, "To manufacture 1 ton of high-performance cathode material for electric vehicles, about 0.46 tons of lithium is required," and explained, "High-concentration brine is essential to extract a large amount of lithium." They emphasized, "Installing the plant will be the first step to reliably supply raw materials to North American battery factories."

Meanwhile, according to the Korea Resource Information Service, the price of lithium carbonate reached a record high of 576.5 yuan as of November 17. In particular, with the enactment of the IRA (Inflation Reduction Act) in August, the U.S. is pushing to exclude purchase subsidies if battery parts and minerals for electric vehicle manufacturing are produced in countries like China. The importance of securing lithium within the U.S. is expected to increase.