Lithium Ionic Eyes Construction in Brazil's Booming Lithium Valley

TORONTO, ON – January 14, 2026 – Following a year of transformative progress, Canadian developer Lithium Ionic Corp. is pivoting decisively from optimization to execution, setting its sights on breaking ground at its flagship Bandeira Lithium Project. After significantly de-risking the project and bolstering its finances in 2025, the company is now navigating the final milestones required to launch construction in Brazil’s rapidly emerging “Lithium Valley,” a region poised to become a critical hub in the global battery supply chain.

In a year-end review, the company detailed a series of strategic achievements that have repositioned its Bandeira project as one of the most economically compelling and construction-ready lithium assets in the development pipeline. These milestones have solidified the project's path toward becoming a near-term, low-cost source of high-quality spodumene concentrate, the raw material essential for electric vehicle batteries.

“Lithium Ionic has moved decisively beyond concept and optimization and is now firmly in an execution phase,” stated Blake Hylands, CEO of Lithium Ionic. “Bandeira is a technically mature, economically compelling project located in one of the world’s lowest-cost hard-rock lithium regions, and our focus is on converting that strength into a producing operation.”

A De-Risked Path to Production

The cornerstone of Lithium Ionic’s momentum is an updated Feasibility Study for Bandeira, released in September 2025, which revealed vastly improved project economics. The study outlines a post-tax Net Present Value (NPV) of US$1.45 billion and a remarkable Internal Rate of Return (IRR) of 61%, a significant jump from the 40% IRR projected in a previous study from May 2024.

Crucially, the initial capital expenditure (CAPEX) required to build the mine was reduced by approximately 28% to an estimated US$191 million. This substantial cost reduction was achieved through a simplified, modular plant design and an optimized mine plan, developed with the support of strategic advisor RTEK International, a firm with deep expertise in lithium project execution. The streamlined approach not only lowers the financial barrier to entry but also reduces the project’s payback period to just 2.2 years.

Further enhancing the project's financial robustness, the study extended the mine's operational life to 18.5 years, up from 14 years, while projecting highly competitive site operating costs of just US$378 per tonne of spodumene concentrate. This positions Bandeira to be a first-quartile, low-cost producer on the global stage, capable of weathering market volatility while delivering strong returns. These robust figures were achieved even while using more conservative long-term lithium price assumptions, signaling the project's resilience.

Securing Resources and Capital

Underpinning the extended mine life and improved economics is a significant expansion of the project's mineral resource base. Throughout 2025, successful exploration and resource definition drilling at both the Bandeira and Baixa Grande projects solidified Lithium Ionic’s standing as one of the largest hard-rock lithium developers in Brazil. The company’s consolidated global mineral resources now stand at 36.76 million tonnes in the Measured & Indicated category, with an additional 31.87 million tonnes classified as Inferred.

This expanded resource provided the foundation for the optimized Feasibility Study and instilled confidence among investors. In late 2025, the company successfully closed an oversubscribed private placement totaling $18.3 million. This injection of capital, backed by strong support from strategic shareholders, significantly strengthened Lithium Ionic's balance sheet, providing the necessary funding to advance critical pre-development activities in 2026.

Demonstrating a sharp focus on its core asset, the company also announced the termination of an option agreement for the K2 claims. This move reflects a disciplined capital allocation strategy, prioritizing resources for the shovel-ready Bandeira project and maximizing shareholder value by concentrating efforts on the most advanced and value-accretive asset in its portfolio.

Navigating Brazil's Emerging Lithium Frontier

Lithium Ionic's progress is unfolding within the broader context of Brazil's emergence as a premier lithium jurisdiction. The company's properties are located in the Araçuaí Pegmatite District in Minas Gerais state, an area now widely known as Brazil’s “Lithium Valley.” This mining-friendly region benefits from supportive infrastructure and a streamlined regulatory framework that has enabled rapid project advancement.

The Bandeira project is strategically situated adjacent to established and significant operations, including Sigma Lithium’s Grota do Cirilo project—which hosts the largest hard-rock lithium deposit in the Americas and is already in production—and Companhia Brasileira de Lítio's (CBL) Cachoeira mine, which has been producing lithium for over three decades. This proximity to successful producers provides a clear operational blueprint and validates the geological potential of the region.

As global automakers and battery manufacturers race to secure stable, long-term lithium supply chains outside of traditional jurisdictions, Brazil’s Lithium Valley is attracting intense interest. With its low projected costs and advanced stage of development, Bandeira is well-positioned to capture this demand and establish itself as a key supplier to the global energy transition.

The Road to a Final Investment Decision

Entering 2026, Lithium Ionic is focused on completing the final, value-defining steps needed to make a Final Investment Decision (FID) and officially transition Bandeira into the construction phase. Key priorities include finalizing the environmental permitting process, securing comprehensive project financing, and advancing offtake discussions for its future spodumene production to final terms.

On the technical front, the company is making tangible progress, having already completed approximately 38% of the detailed engineering work by the end of 2025. The goal is to reach 100% completion by mid-2026, which will provide a high degree of certainty for construction timelines and costs.

Central to this final push is a robust Environmental, Social, and Governance (ESG) strategy. In 2025, the company appointed Flávia Veronese, an experienced environmental engineer, as its Director of ESG. She is tasked with overseeing the permitting process and ensuring the project aligns with the highest standards of sustainability and community engagement. The mine's design, featuring underground mining to minimize surface disturbance and a dry-stacked tailings facility to conserve water and enhance safety, underscores this commitment. These initiatives are not only crucial for securing a social license to operate but are also increasingly vital for attracting project financing and offtake partners who prioritize responsible sourcing.

With a de-risked technical plan, a strengthened balance sheet, and a clear path through the final pre-development hurdles, Lithium Ionic is on the cusp of transforming from a developer into a producer, ready to help power the next generation of clean energy technologies.