Elevra Lithium Announces Accelerated NAL Expansion

Rhea-AI Summary

Elevra Lithium (NASDAQ:ELVR) announced an accelerated, staged expansion of the North American Lithium (NAL) site that uses new permitting information plus existing permits to fast-track production and lower unit costs. Key milestones: an initial 15–20% production uplift above current levels starting mid-CY27, further milling expansion to 6,500 tpd to target 315 ktpa spodumene by early CY28 using a temporary mobile crusher, and final replacement with a new crushing and ore-sorting circuit by early CY29. C1 unit cash costs were revised to US$630/t (previously US$562/t); AISC remains US$680/t. Reported project economics remain: NPV ≈ US$950M and IRR 26.4%. An updated scoping study and detailed engineering are planned for Q2 CY26.

Positive

• Brings forward incremental production by approximately two years
• Initial 15–20% spodumene output increase starting mid-CY27
• Staged path reduces initial upfront capital requirements
• Maintains reported project NPV of ≈US$950M and IRR of 26.4%
• AISC unchanged at US$680 per tonne after reallocation

Negative

• Revised C1 LOM unit cash cost increased to US$630 per tonne (from US$562)
• Final production ramp to 315ktpa now staged across CY27–CY29, extending execution timeline
• Key metrics pending updated scoping study and detailed engineering in Q2 CY26

Key Figures

Target production: 315ktpa spodumene concentrate Initial production increase: 15–20% above current levels Current milling permit: 4,500 tpd +5 more

8 metrics

Target production 315ktpa spodumene concentrate Whole-of-project and LOM average expansion target

Initial production increase 15–20% above current levels First debottlenecking step from mid-CY27

Current milling permit 4,500 tpd Existing milling permit limit for initial expansion step

Expanded milling capacity 6,500 tpd Planned downstream milling, flotation and filtration expansion

C1 LOM unit cash cost US$630 per tonne Forecast post-expansion after reallocation of SG&A

AISC US$680 per tonne All-in sustaining costs remain unchanged from scoping study

Project NPV US$950 million Post-expansion project NPV remains as previously published

Project IRR 26.4% Post-expansion IRR remains as previously published

Market Reality Check

Price: $6.51 Vol: Volume 49,624 is below 20...

low vol

$6.51 Last Close

Volume Volume 49,624 is below 20-day average volume of 73,782 ahead of this expansion update. low

Technical Price at $57.86 is trading above the 200-day MA of $32.64, indicating a pre-existing uptrend.

Peers on Argus

ELVR was nearly flat (-0.24%) while key peers showed mixed moves: some up (e.g.,...

ELVR was nearly flat (-0.24%) while key peers showed mixed moves: some up (e.g., WRN, NAK), some down (e.g., NB, LZM), and TMQ unchanged, suggesting stock-specific factors rather than a unified sector move.

Market Pulse Summary

This announcement outlines a staged debottlenecking plan to lift NAL output to a life-of-mine averag...

Analysis

This announcement outlines a staged debottlenecking plan to lift NAL output to a life-of-mine average of 315ktpa, bringing forward incremental production by about two years and spreading capital over time. The company also corrected C1 costing, raising post-expansion C1 to US$630/t while keeping AISC at US$680/t. Key project metrics, including NPV of US$950M and 26.4% IRR, remain unchanged. Investors may watch the Q2 CY26 updated scoping study for detailed cost and timing breakdowns of each debottlenecking phase.

Key Terms

spodumene concentrate, life of mine, C1 unit cash costs, all-in sustaining costs, +4 more

8 terms

spodumene concentrate technical

"increase spodumene concentrate production to 315ktpa"

A processed rock product that concentrates spodumene, a mineral rich in lithium, which is then refined into lithium chemicals used to make rechargeable batteries. Think of it as the crude oil equivalent for lithium batteries: an early-stage raw material whose availability and price influence the cost and supply of battery-grade lithium. Investors watch spodumene concentrate as an indicator of future battery material supply, production costs, and the health of electric-vehicle and energy-storage supply chains.

life of mine technical

"expanded average Life of Mine (LOM) production volume of 315ktpa"

The life of mine is the estimated time span during which a mining operation will produce economically recoverable minerals from a deposit. Think of it as the mine’s usable lifespan, like how long a factory or battery can keep making product before it runs out or becomes uneconomical; it matters to investors because it drives projected revenue, reserve valuation, capital spending schedules, and long‑term profitability.

C1 unit cash costs financial

"previously reported C1 unit cash costs did not correctly allocate site SG&A costs"

C1 unit cash costs are a straight measure of the direct cash expense to produce one unit of a commodity (for example, one ounce of gold or one tonne of metal), covering everyday operating costs like labor, fuel and processing but excluding larger items such as major equipment replacements or expansion projects. Investors use it like a per‑unit price tag to compare production efficiency and profit margins — lower C1 costs generally mean a company can withstand price drops better.

all-in sustaining costs financial

"all-in sustaining costs (“AISC”) as detailed in the scoping study2 remain unchanged"

All-in sustaining costs (AISC) is a per-unit measure used mainly in the mining sector that captures the full ongoing cost to produce a unit of metal, including operating expenses, sustaining capital (maintenance of current operations), and a share of corporate overhead and site-level costs. Investors use AISC to judge whether production generates real profit and sustainable cash flow—think of it as the total monthly household cost to keep a home running, not just the utility bill.

AISC financial

"AISC as detailed in the scoping study2 remain unchanged at US$680 per tonne"

All-in Sustaining Cost (AISC) is a comprehensive measure of how much it costs a mining company to produce one unit of metal when ongoing operating expenses, long-term maintenance and sustaining capital, and share of corporate overhead are included. Investors use AISC to compare profitability and cash generation across producers—think of it as the full household cost to keep a business running divided by how many items it makes, which helps assess margins and resilience to price swings.

NPV financial

"project NPV of approximately US$950 million and an IRR of 26.4%"

Net Present Value (NPV) is a way to measure how much a future stream of money is worth today. It helps investors decide whether an investment is worthwhile by comparing the current value of expected earnings to its initial cost. A positive NPV suggests the investment could generate profit, making it a key tool for evaluating financial decisions.

IRR financial

"project NPV of approximately US$950 million and an IRR of 26.4%"

IRR (Internal Rate of Return) is the annualized percentage return an investment is expected to produce based on its projected series of cash outflows and inflows; mathematically, it’s the rate that makes the present value of those cash flows balance to zero. Investors use IRR to compare and rank projects or investments—similar to comparing the interest rates on savings accounts—to judge which offers the best return for the time and risk involved.

scoping study technical

"updated scoping study in the first part of Q2 CY26"

A scoping study is an early, high-level review that maps out what a proposed project or program would involve — its goals, likely costs, key steps, and major uncertainties — without doing detailed design or full testing. For investors it acts like a rough map before a trip: it shows whether the opportunity is worth further time and money, highlights main risks and information gaps, and helps set expectations for cost, schedule, and future decisions.

AI-generated analysis. Not financial advice.

BRISBANE, Australia, Jan. 12, 2026 (GLOBE NEWSWIRE) -- North American lithium producer Elevra Lithium Limited (“Elevra” or “Company”) (ASX:ELV; NASDAQ:ELVR; OTCQB:SYAXF) advises that further refinement of the NAL mine expansion program has identified a pathway to stage permitting, construction and capital investment to fast-track additional production with lower unit operating costs.

Elevra previously outlined a whole-of-project expansion that would increase spodumene concentrate production to 315ktpa, with construction to be completed by the end of CY29 and commissioning thereafter¹. The critical path constraint on this schedule was permitting. As such, recent efforts have focussed on determining steps and an approach to reduce this constraint.

By making use of additional permitting information received following the publication of the scoping study, Elevra has identified a project development sequence that provides a shorter timeframe to achieve increased production from NAL. The additional new permitting information, combined with existing permits, provides a pathway to stage the expansion of production volumes at NAL in a disciplined, agile and more time efficient manner.

The expansion pathway is now proposed take the form of a series of debottlenecking steps which are expected to:

• Increase production capacity above current levels in a staged and incremental manner;
• Reduce the timeframe to achieve the expanded average Life of Mine (LOM) production volume of 315ktpa of spodumene concentrate; and
• Enable the capital investment to be staged and, in doing so, reduce the initial upfront capital requirements.
  
  

The debottlenecking steps are anticipated to be delivered as below:

1. An initial 15-20% increase in annual spodumene concentrate production above current production levels commencing in mid-CY27 with an incremental reduction in unit operating costs. This increase is within the current limits of the milling permit, which is set at 4,500 tonnes per day (tpd);
2. A subsequent expansion of downstream milling, flotation and filtration capacity to 6,500 tpd with an anticipated corresponding concentrate production rate of 315ktpa. The incremental feed material will be processed using a temporary mobile crushing circuit operating in conjunction with the existing crushing circuit. The further expanded production is expected to commence early CY28, with an additional incremental reduction in unit operating costs; and
3. The replacement of the temporary mobile crushing circuit and the existing crushing circuit with a new crushing and ore sorting circuit capable of meeting feed requirements for a LOM average production of 315ktpa. This final step is expected to be completed in early CY29 and is expected to deliver crushing and ore sorting cost efficiencies required to meet the anticipated LOM cost reduction.
   
   

This staged development strategy is anticipated to bring forward incremental production by approximately two years compared with previous plans, while also spreading capital expenditure over a longer period.

Given the low risk, brownfield nature of the proposed expansion, the Company plans to provide an updated scoping study in the first part of Q2 CY26. In conjunction with updating the scoping study, the Company plans to move directly to detailed engineering to advance the respective debottlenecking steps. The updated scoping study will provide a breakdown of operating and capital costs associated with the debottlenecking phases described above.

Commenting on the improved production plan, Elevra’s Chief Executive Officer and Managing Director, Mr Lucas Dow, said: “We have taken a disciplined and pragmatic approach to accelerating production growth at North American Lithium, and the result is a materially improved development pathway. By leveraging new permitting information received since the scoping study, together with permits already in place, we have identified a staged expansion sequence that removes permitting from the critical path and brings forward incremental production in a low-risk, brownfields setting, while maintaining a clear pathway to 315ktpa of spodumene concentrate.”

“The revised strategy is expected to deliver production growth through targeted, capital-efficient debottlenecking steps, bringing forward increased output by approximately two years while spreading capital investment over time and capturing economies of scale. Given the robust nature of the asset and the reduced execution risk, we will update the scoping study and move directly into detailed engineering, providing greater cost clarity and accelerating value creation at NAL.”

During completion of the review of the scoping study², it was identified that previously reported C1 unit cash costs did not correctly allocate site SG&A costs. Following reallocation, forecast post-expansion C1 LOM unit cash costs are US$630 per tonne once the expansion is fully completed (compared to US$562 previously reported).

However, all-in sustaining costs (“AISC”) as detailed in the scoping study² remain unchanged at US$680 per tonne. As a result, key economic metrics, including a project NPV of approximately US$950 million and an IRR of 26.4%, remain as published and are highly attractive. The updated Scoping Study due for completion in early Q2 CY26 will incorporate the earlier delivery of additional production which has the potential to further enhance these metrics.

Announcement authorised for release by Elevra’s Managing Director and Chief Executive Officer.

About Elevra Lithium

Elevra Lithium Limited is a North American lithium producer (ASX:ELV; NASDAQ:ELVR; OTCQB:SYAXF) with projects in Québec, Canada, United States, Ghana and Western Australia.

In Québec, Elevra’s assets comprise North American Lithium (100%) and a 60% stake in the Moblan Lithium Project in Northern Québec. In the United States, Elevra has the Carolina Lithium project (100%) and in Ghana the Ewoyaa Lithium project (22.5%) in joint venture with Atlantic Lithium.

In Western Australia, the Company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium.

For more information, please visit us at www.elevra.com

¹ See “NAL Expansion Scoping Study Confirms Lower Costs and Strong Returns” announcement filed with the ASX on 15 September 2025.
² See “NAL Expansion Scoping Study Confirms Lower Costs and Strong Returns” announcement filed with the ASX on 15 September 2025. All figures reported at CAD/USD = 0.74 per Scoping Study results.

For more information, please contact:

Andrew Barber
Investor Relations
PH: +61 7 3369 7058

FAQ

What expansion timeline did Elevra (ELVR) announce for North American Lithium?

A staged expansion: initial 15–20% uplift mid-CY27, further expansion to 315ktpa early CY28 using a temporary crusher, and final crushing/ore sorting completed early CY29.

How did Elevra (ELVR) change its unit cost estimates after the review?

Post-review C1 LOM unit cash costs were revised to US$630 per tonne from US$562; AISC remains US$680 per tonne.

Will Elevra (ELVR) still target 315ktpa spodumene concentrate after the accelerated plan?

Yes; the staged pathway maintains a clear route to an average LOM production of 315ktpa, with final facilities targeted by early CY29.

How does the staged plan affect capital expenditure for ELVR’s NAL expansion?

The plan stages capital investment to reduce initial upfront requirements and spread spend over the debottlenecking phases.

When will Elevra (ELVR) publish the updated scoping study and next steps?

An updated scoping study and move to detailed engineering are planned for the first part of Q2 CY26.