Lithium Energy Secures Final Environmental Approvals to Advance Solaroz Development

Environmental Approvals Unlock Next Phase at Solaroz

Lithium Energy Limited (ASX:LEL) has announced a significant milestone with the receipt of final Environmental Impact Assessment (EIA) approvals for the Central and Northern blocks of its Solaroz Lithium Brine Project in Argentina. These approvals cover key concessions including Chico I, V and VI, Payo 2 South, Silvia Irene, Payo 1, and Payo 2 North, collectively spanning 10,666 hectares where the bulk of Solaroz's lithium resources are concentrated.

This development follows earlier EIA approvals granted in December 2024 for the Mario Angel and Payo concessions, effectively clearing the regulatory pathway for exploration and evaluation activities to resume across the entire Solaroz project area. The green light from environmental authorities is a crucial step in advancing the project’s development timeline and unlocking its resource potential.

Strategic Sale and Funding Framework with CNGR

The approvals come amid the ongoing sale of Lithium Energy's interest in Solaroz to CNGR Netherlands New Energy Technology B.V. (CNNET), a subsidiary of CNGR Advanced Materials Co Ltd, one of the world's leading producers of battery precursor materials. The amended sale agreement, valued at US$63 million (~A$97 million), includes a provision for CNNET to fund local operations and the next development phases at Solaroz starting 1 January 2025.

Under the agreement, CNNET will provide up to US$15 million in loan funding to support exploration and evaluation activities, ensuring continuity of operations during the transition period. Lithium Energy and CNNET are collaborating to finalize a work programme aligned with the scope of the approved EIAs, which will outline the detailed next steps for advancing the project.

Broader Corporate Context and Market Implications

While the Solaroz sale progresses, Lithium Energy is concurrently advancing its strategic pivot towards graphite through the Axon Graphite Limited spin-out, which is preparing for a $15–25 million IPO. This move aims to position Lithium Energy as a vertically integrated battery anode material producer, complementing its lithium assets.

However, the company remains suspended from ASX trading due to insufficient operational scale following the Solaroz sale agreement. Reinstatement will depend on demonstrating adequate ongoing operations or compliance with listing rules, a factor that investors will watch closely as the company navigates this transitional phase.

Overall, the final environmental approvals mark a pivotal regulatory and operational milestone for Solaroz, underpinning the project's advancement under new ownership and setting the stage for Lithium Energy’s evolving corporate strategy.