Recent lithium exploration success has highlighted the potential for Thailand to become a major player in the Asian battery metals supply market.
An advanced industrial economy, Thailand ranks 30th in the OEC Economic Complexity Index and is the largest automotive manufacturer in South East Asia and the fourth largest in Asia.
It is the second largest one-tonne pickup manufacturer globally and the sixth largest commercial vehicle manufacturer globally. Almost every dual-cab utility vehicle in Australia and New Zealand is manufactured in Thailand.
Thailand has 21 auto assemblers, including Toyota, Nissan, Mitsubishi, Honda, Mercedes, and BMW, and 12 motorbike assemblers. Supporting them are 525 Tier 1 Auto Parts companies and over 1,500 Tier 2 and 3 suppliers.
Now Thailand is aiming to retain its leadership position in South East Asian automotive manufacturing through its electric vehicle (EV) policy. The country is targeting having 30% EV production by 2030 by providing income tax exemptions of up to 13 years and import tariff exemptions on machinery and raw materials used in manufacturing.
The Thai Board of Investment (BOI) recently reported that there are 14 battery electric vehicle (BEV) initiatives underway and 18 battery initiatives underway as a result of this policy. Chinese manufacturers BYD, Great Wall, and Geely recently started producing EVs in Thailand and all three are scheduled to start using lithium-ion batteries (LIB) manufactured in Thailand within three years.
This government aim to build a major EV and LIB manufacturing sector, has opened up real opportunity for battery metals explorers and recent exploration success has highlighted the in-country potential for the production of key battery metals.
Pan Asia Metals
Battery and critical metals explorer and developer Pan Asia Metals Limited (ASX: PAM) has already had initial meetings with Thailand’s Office of the Board of Investment, with the company reporting a very positive response to PAM’s projects and initiatives.
In 2022, PAM’s Directors Paul Lock and Thanasak Chanyapoon held two introductory meetings at Thailand’s Office of the BOI.
“The recently announced policy on mining and downstream industry is an important development for Thailand and for PAM, particularly in an increasingly competitive global EV and LIB manufacturing landscape,” Mr Lock said.
“The policy on mining and downstream industry sent a strong signal that the Thai Government is on the front foot with regard to its minerals supply chain security, which was confirmed during PAM’s meetings with the BOI.”
Exploration success
Pan Asia’s main focus is the Reung Kiet Lithium Prospect (RKLP) and in early February 2023, Mr Lock revealed that Pan Asia had further drilling success with 18 more drill holes completed there.
He said the latest results continue to support the geological model of extensive lithium mineralization hosted in lepidolite rich pegmatite dykes-veins and adjacent metasediments. The mineralized zone is currently defined over a strike length of over 1km and remains open along strike to the north and south, and at depth especially in the south.
“We near the end of the drilling programme at the Reung Kiet Lithium Prospect and the results remain very positive with the step out drilling continuing to demonstrate extensions at depth and along strike of the existing Mineral Resource and the infill drilling supporting and enhancing the existing mineral resource,” Mr Lock said.
“The results at the southern end of the prospect are particularly good. Final assays required for the updated mineral resource will be received shortly and then CSA Global will start the required modelling and estimation work.
“A move to Bang I Tum is imminent and then we can start our diamond drilling programme there to test the Exploration Target as well as the extension zone as previously reported.”
“We are quite excited about this programme; non-selective rock chip and channel assays were some of the highest received at Reung Kiet, with 44 of 64 samples average 1.56% Li2O at a 0.30% Li2O cutoff, 35 samples were greater than 1.00% Li2O, 12 samples greater than 2.00% Li2O, and the maximum grade was 2.62% Li2O.”
RKLP is a hard rock lithium project with lithium hosted in lepidolite/mica rich pegmatites chiefly composed of quartz, albite, lepidolite, and muscovite, with minor cassiterite and tantalite as well as other accessory minerals. Previous open pit mining extracting tin from the weathered pegmatites was conducted into the early 1970s.
PAM’s objective has been to continue drilling with the aim of increasing and upgrading the existing Mineral Resource, which will then be used as part of a pre-feasibility study that will consider various options to determine the technical and economic viability of the project including the production profile of lithium carbonate and or lithium hydroxide and associated by-products.
PAM is focusing on lepidolite as a source of lithium as peer group studies indicate that lithium carbonate and lithium hydroxide projects using lepidolite as their plant feedstock have the potential to be placed near the bottom of the cost curve. Lepidolite has also been demonstrated to have a lower carbon emission intensity than other lithium sources.
Valentines day celebrations
On 14 February 2023 Matsa Resources Limited (ASX: MAT) announced that it had discovered two new lithium provinces hosting widespread lithium bearing pegmatite outcrops and float at Kanchanaburi and Ratchaburi in western Thailand.
Matsa’s extensive lithium bearing discoveries cover an area of approximately 6km strike by 1km wide at Kanchanaburi and 2km long by 0.5km wide at Ratchaburi. These discoveries build on Matsa’s recently announced lepidolite discovery in the Phang Nga province some 600km to the north.
The company’s latest discoveries are considered highly significant, in that they have opened up new lithium provinces at Kanchanaburi and Ratchaburi where lithium bearing pegmatites have not previously been recorded, in contrast to the Phang Nga province, where the British Geological Survey mapped known lithium bearing pegmatites at Reung Kiet, Khata Tong and Bang I Tun in the 1970s.
The Kanchanaburi project comprising four Special Prospecting Licence Applications (SPLAs) covering 62.5km2 have been lodged and accepted by the Thailand government and is characterized by widespread occurrences of both coarse grained lepidolite and polylithionite pegmatitic outcrop and float.
In Ratchaburi, two SPLAs have been lodged and accepted by the Thailand government where Matsa has identified fine grained polylithionite bearing pegmatites.
The lithium mica polylithionite has been confirmed via XRD work by Thailand’s Department of Mineral Resources on Matsa samples.
Matsa’s SPLAs for lithium in Western Thailand now covers a total of 1,160km2.
“What an excellent result, 6km of lithium bearing rocks in an unexplored region is an explorer’s dream. We believe we have discovered a new lithium province,” Executive chairman, Paul Poli, said.
“The area has a huge scattering of coarse grained lepidolite and abundant polylithionite. We’ve only just started to scratch the surface here and with our discovery at Phang Nga, that makes three new discoveries in quick succession. We really don’t know at this point how big these discoveries could be.”
“These are very exciting times for Matsa, lithium exploration in Thailand, and our exploration team who are starting to reap rewards for their laborious but diligent work. It’s not every day that you can claim to discovering not one but three new significant lithium projects,”
“We have a fantastic ground position in the western granite belt that is second to none and I’ll repeat what I’ve said before, Thailand will deliver. We can’t wait to start drilling.”
Matsa believes it is now arguably one of the larger holders of tenure, prospective for lithium in South East Asia and with these new discoveries, the company says it has an impressive pipeline of lithium projects.
Matsa has recently acquired six new SPLAs comprising 90km2 which have been accepted by the Thailand government to capture the new lithium bearing pegmatites. The SPLAs are near the railway line linking Thailand to China.
The Select Special Prospecting Leases (SPLs) are being fast tracked for full grant to enable Matsa to conduct drilling operations and test for continuity, extent, and depth of the identified lithium pegmatites.
