Lithium Ionic Awards Engineering and Construction Contracts to Hatch and Reta for Bandeira Project

Lithium Ionic Corp. has officially begun Engineering, Procurement, and Construction Management (EPCM) services for its flagship Bandeira Lithium Project in northeastern Minas Gerais State, Brazil. This marks a significant milestone, as it transitions the project into the construction and development phase, a crucial step toward production. The advancement of engineering and construction management services is expected to keep the project on schedule as it awaits the approval of site permits.

Hatch Ltd., a globally recognized engineering firm with extensive experience in various commodities, has been contracted to provide engineering and design services for Bandeira. With local offices in Belo Horizonte, the capital of Minas Gerais, Hatch will leverage its world-class expertise and innovative solutions to facilitate a streamlined and efficient development process for the project.

Additionally, Reta Engenharia, a leading Brazilian construction management company, has been selected to handle construction management services for Bandeira. Reta brings a wealth of experience in greenfield mining projects, having supported both junior and large-cap producers. Their proven track record in managing such projects, along with deep regional knowledge, positions them as an ideal partner to ensure effective project outcomes for Bandeira.

To support this transition and ensure a seamless shift to production, Lithium Ionic is expanding its owner's team by recruiting experienced professionals. This enhancement aims to guide the project through its construction and operational readiness phases. Blake Hylands, CEO of Lithium Ionic, stated, “Our momentum toward production is stronger than ever as we commence the engineering and construction management phase with our esteemed partners, Hatch and Reta. This milestone is a crucial step towards our goal of becoming one of Brazil’s next major lithium producers.” Hylands emphasized that the company is in the final stages of the permitting process at both national and state levels, reinforcing its commitment to building a sustainable and economically viable lithium mine that will play a vital role in the global lithium supply chain.

The permitting process for the Bandeira Project is advancing efficiently, with critical approvals nearing completion. The review for the Concomitant Environmental and Installation License (Licença Ambiental Concomitante - LAC) is currently underway, part of a fast-track permitting initiative designed for critical minerals projects. Once LAC is approved, the final steps to full-scale production will include obtaining the Mining Concession and the Operating License (Licença de Operação - LO), which follows an inspection of completed site facilities. Lithium Ionic anticipates commencing initial production at Bandeira in the second half of 2026.

Covering 157 hectares, the Bandeira property represents approximately 1% of Lithium Ionic's vast 17,000-hectare land package in Brazil's Lithium Valley, which hosts the largest lithium reserves in the country. Currently, Bandeira accounts for around 70% of the company's global lithium mineral resource estimate of 60.1 million tonnes. A feasibility study completed in May 2024 highlighted a robust 14-year mine life, producing an average of 178,000 tonnes of high-quality spodumene concentrate (5.5% Li2O) annually, with a post-tax NPV of $1.3 billion and an IRR of 40%. Located in a Tier 1 mining region, Bandeira benefits from excellent infrastructure, including low-cost renewable hydroelectric power, ample water access, and transportation infrastructure that connects to international markets through nearby ports. The project is situated about 500 meters from CBL's Cachoeira lithium mine and 4 kilometers from Sigma Lithium’s Grota do Cirilo Mine.