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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 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.