ION Energy May Be Poised To Disrupt The Lithium Supply Market In Asia With Its Presence In Mineral-Rich Mongolia

As the world increasingly moves towards green energy, swapping fossil fuel for emissions-free electrification, batteries are fast becoming a key energy storage mechanism to enable the energy transition.

Lithium-ion batteries, which offer high energy density and have a long cycle life, are currently the preferred option in energy storage applications, including in microelectronics and electric vehicles. 

In tandem with the increase in demand for electric vehicles, the demand for lithium-ion batteries has gone up globally - estimated to reach USD 171 billion by 2030. As a result,  the demand for lithium extraction, too, is on the rise.

Continued exploration efforts have seen global lithium-reserve estimates climb to 80 million tonnes – a significant proportion of which are located in South America’s “lithium triangle” – an area encompassing parts of Chile, Argentina and Bolivia. 

While China features among the global top six lithium-rich countries and tops the list for Asia, Mongolia is another country that is fast emerging as a mining destination for lithium – and has seemingly caught the attention of mining majors like Rio Tinto Ltd. (ASX: RIO) and Zijin Mining Group Ord Shs A (SHA: 601899).

ION Energy IONGF ION, a lithium brine exploration & mining company primarily focused on Mongolia, could be poised to become a promising player in Asia’s booming lithium market.

ION has one of the largest exploration licenses in Mongolia and the company says that as Mongolia’s first lithium brine exploration company it is capitalizing on its first-mover advantage in mineral-rich Mongolia. 

Why Mongolia?

ION says that Mongolia has a strong location advantage over South American producers. The reasons for this are:

• Proximity to China –- China is the world leader in manufacturing Lithium batteries and also has the world’s largest Electric vehicle consumer base.
• Mongolia’s proximity to Korea, Taiwan and Japan whose large tech industries will continue to fuel demand for lithium batteries. 

Other reasons that make Mongolia a preferred location for ION are: 

• ION’s leadership team has proven, strong in-country experience in Mongolia, having successfully operated in Mongolia for over a decade
• Mongolia has had no historical exploration in Lithium and other new under-explored battery minerals
• ION’s confidence in Mongolia as one of the fastest-growing economies in the world and a successful mining and investment-friendly jurisdiction

Projects and Progress So Far

ION’s flagship Baavhai Uul Lithium Brine Project commenced in 2019 in the arid region of the south Gobi desert and has 81,000+ hectares of prospective lithium brine located close to the Chinese border at just 24 kilometers away, with results of up to 810ppm Li.

The site is low in potassium and magnesium ratios and has a high evaporation and low precipitation basin with no outflow to external bodies of water – drawing similarities to the Lithium Triangle. 

A second site - Urgakh Naran - has been recently acquired by the company, comprising 29,000 hectares of highly prospective Lithium brine. The site is located about 150 kilometers away from its flagship Baavhai Uul project, and is a part of ION’s fast-tracked exploration program, with drilling and geophysics as priorities. 

ION reports that it has completed initial geophysics successfully at the Urgakh Naran site with all holes drilled found to contain significant levels of lithium. It has also found exceptional early results at the site – of 918 mg/L lithium – the highest grade lithium brine known to have ever been collected in Mongolia.

The expanded exploration program is underway currently with diamond core and water well drilling already commenced and the company says it is well on its way to an early resource indication in early 2023.

Current demand for battery metals, coupled with supply pressures, has pushed global lithium majors to build multiple strategic regional value chain hubs – and ION believes it is well positioned to capitalize on this opportunity with its unique position in Asia, with an executive team that has a combined 150+ years of mining successes and alumni from thriving top-tier lithium giants. The company has also entered into a strategic alliance with an emerging Mongolian copper exploration company, Aranjin Resources, to consolidate its position in the market.

With Mongolia fast emerging as a credible mining jurisdiction, ION energy may be a company worth watching out for in 2023.

For more information about ION Energy, visit the company website.

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Featured Photo by ION Energy