| Dear Shareholders,
As we close out the year, I am pleased to reflect on the significant progress Century Lithium achieved in 2025 as we advanced our Angel Island lithium project in Nevada. We continue to build on our patent-pending chloride-based lithium extraction process, which, by using sodium chloride, provides an efficient and environmentally sustainable solution for the recovery of lithium and potentially other metals. Our team remains focused on the critical milestones ahead as we continue to strengthen this asset, one positioned to create high-quality jobs, support domestic critical mineral supply chains, and establish Century Lithium as a US producer of battery-grade lithium carbonate. I want to highlight several significant accomplishments achieved over the course of the year.
- Early in the year, Century Lithium signed a memorandum of understanding (“MOU”) with Orica Specialty Mining Chemicals for a potential offtake of surplus sodium hydroxide, demonstrating the value of this key by-product of the chlor-alkali process and its potential in significantly reducing the estimated operating costs for Angel Island.
- The Company completed an internal optimization study of Angel Island, evaluating the data provided as part of our 2024 Feasibility Study. Century Lithium’s technical team concluded changes could be made resulting in potential cost reductions of up to 25% of CAPEX on its initial Phase 1 CAPEX of $1.58 billion as well as reductions in estimated operating costs at Angel Island. These findings will be part of an update to the feasibility study which is currently in its final stages.
- By mid-year, the Company had completed collaborative testing with Amalgamated Research LLC. This work focused on the extraction and recovery processes related to lithium feed and eluate grades, resulting in increased recovery of lithium from these process streams. These results will be used in the update to the feasibility study.
- The Demonstration Plant generated ample samples of lithium carbonate from Angel Island claystone during its years of testing. This lithium carbonate will be used as feed stock to test the manufacturing of various lithium products. First Phosphate Corp used Angel Island lithium carbonate in the making of its 18650 lithium iron phosphate (“LFP”) battery cells. Alpha-En Corporation used lithium carbonate from Angel Island to make lithium metal anodes using their patented conversion process.
- In August, Angel Island was added to the U.S. Government’s FAST-41 transparency dashboard. This action brought the Angel Island project into the public record, providing stakeholders with visibility into the progress being made through the federal permitting process
- Later in the year, our technical team utilized the Demonstration Plant to make samples of high purity lithium hydroxide demonstrating the potential to make two lithium products: lithium carbonate and lithium hydroxide. The capability to produce both lithium carbonate and lithium hydroxide will be critical to meeting the needs of modern battery technologies and will play a central role in the long-term success of Angel Island and the continued growth of Nevada’s emerging Lithium Loop.
- Most recently, the Company reported on testing that indicated greater than 97% recoveries of rare earth elements (“REEs”) from primary leach solutions derived from Angel Island claystones. Importantly, these high REEs recoveries were possible without impacting the process’ lithium recovery. The results reinforce the strategic importance of Angel Island as a source of critical minerals and highlight the opportunity to develop additional revenue streams alongside our core lithium and sodium products.
Government and Partnership Engagement
Century Lithium has engaged consultants to support our outreach with U.S. government agencies, including the Department of Defense and Department of Energy. These efforts are focused on exploring opportunities for strategic collaboration and funding across our critical minerals and chemical production plans. We will continue to reach out to and work with potential offtake and technology partners, as well as other industry stakeholders, to broaden our opportunities for strategic alliances and enhance the overall value of Angel Island.
Permitting and Regulatory Progress
All baseline environmental studies required by the U.S. Bureau of Land Management have now been completed and accepted, a major milestone in our development timeline. We are finalizing Angel Island’s Plan of Operations, which will define mine and plant layout, water-use and management systems, waste-handling infrastructure, and environmental-mitigation measures. Submission of the Plan will initiate the federal permitting process under the National Environmental Policy Act. We continue to align our schedule with the Federal FAST-41 permitting framework and remain committed to transparent, timely engagement with regulators and local stakeholders.
Feasibility Study Update
Work on the update of the 2024 Feasibility Study on Angel Island is in its final stages and the Company’s expectations include:
- Significant reductions in Phase 1 CAPEX from through changes in:
- flow sheet, equipment selection and updated vendor quotes in the processing areas of filtration, Direct Lithium Extraction (“DLE”) and the chlor-alkali plant
- estimated engineering and construction plans to identify areas of overlap, modifications of site facilities and elimination of redundancies and inefficiencies to streamline the process from mining to the planned on-site production of battery-grade lithium carbonate (“Li2CO3”)
- the estimated cost for on-site services resulting from the changes in processing
- indirect costs, as a result of the cost reductions set out above, for contingency and EPCM calculated in the Feasibility Study as a percentage of direct costs
- Decreased land use requirements through modifications to project infrastructure
- Reduced estimated operating costs through plant-design modifications
- Significant updates to fluid-management, Direct Lithium Extraction (“DLE”) system design, and lithium-carbonate production, incorporating insights gained from our strong Demonstration Plant performance
The Company continues to advance electrical infrastructure planning for Angel Island. NV Energy’s Greenlink West transmission project, a 525-kV system now under development between Las Vegas and the Fort Churchill substation near Yerington, Nevada will be a critical asset supporting Angel Island’s long -term development.
The Feasibility Study Update continues to focus on producing lithium carbonate as the primary product, with the added benefit of additional revenue from surplus sodium hydroxide produced through the chlor-alkali process.
Demonstration Plant Relocated and Tonopah Airport Facility
Late this year, the Demonstration Plant was relocated to our facility in Tonopah, where we plan to reassemble and further develop the site to showcase our process and strengthen our research and development capabilities. This facility will continue to play a key role in advancing extraction, processing, and product-quality improvements for Angel Island.
Looking Forward to 2026
We believe that the alignment of domestic lithium demand, federal policy priorities, and Angel Island’s unique capabilities positions the Company strongly for productive collaboration with government partners.
Thank you for your continued support as we build a project designed to meet America’s growing demand for secure, domestic lithium supply. We look forward to sharing updates with you as we achieve new milestones in the months ahead. |
Century Lithium President’s Letter
