Final Stages of Contracting Talks Signal Major Progress at High-Grade Lithium Project

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Atlas Lithium Corp. (ATLX:NASDAQ) announced that it has entered the final stage of contracting for project management and construction supervision services related to its Neves Project in Brazil's Lithium Valley. The Neves Project, located in the state of Minas Gerais, is Atlas Lithium's flagship lithium development asset and is supported by a Definitive Feasibility Study (DFS) that outlines a robust hard-rock lithium project.

The selected project management firm will be responsible for planning, coordinating, monitoring, and controlling all construction activities to ensure compliance with schedule, cost, scope, quality, safety, and overall performance goals. Atlas Lithium conducted extensive due diligence on five firms and based its evaluation on each firm's technical capabilities, experience in Brazilian mining projects, and proposed project management systems.

According to the company, "securing a top-tier project management partner is a critical step in our disciplined approach to making Atlas Lithium a producer of lithium concentrate in short order," said Eduardo Queiroz, the company's Vice President of Engineering and Project Management Officer. He added, "With our processing plant already in Brazil and key permits in place, we are methodically advancing toward production while maintaining our focus on cost discipline and schedule optimization."

The lithium processing plant referenced by the company has already been delivered to Brazil and is ready for assembly, with pre-operational testing expected to follow. Atlas Lithium noted that the final contract award is anticipated in early 2026.

Atlas Lithium has already secured key permits for its Neves Project, including installation, mining concession, water use rights, and vegetation clearance authorizations. The project will employ 100% dry-stacking for its processing, eliminating the need for a tailings dam, and is expected to recirculate approximately 95%+ of its process water.

Lithium Market Gains Momentum Amid Recovery in Demand and Prices

The lithium sector showed strong signs of recovery in late 2025 following a period of volatility and weakened sentiment. As of December 4, Barry FitzGerald reported in Stockhead that lithium prices had risen significantly since their mid-year lows. Spodumene concentrate, a lithium-bearing mineral, climbed by 64% to approximately US$1,135 per ton, while battery-grade lithium carbonate increased by 45% to over US$13,000 per ton. FitzGerald noted that sentiment began shifting in June, with data showing increased growth in battery energy storage systems (BESS) and evidence of production discipline in China.

On December 9, Leede Financial stated that lithium prices remained in an uptrend despite slight weekly fluctuations. Lithium carbonate was priced at US$12,871 per ton, representing a 24% year-over-year gain, while 6% spodumene concentrate was up 43% year-over-year at US$1,115 per ton. Leede pointed to continued strength in electric vehicle (EV) sales and growing demand for battery energy storage systems tied to AI-driven data centers as key factors supporting lithium's price trajectory. The report added, "With rising commodity prices, producers have seen share price improvements over the past 3 months."

A December 17 report from JP Morgan, quoted by FitzGerald, cited a substantial increase in expected demand for energy storage systems as a key driver behind the market's tightening. The bank projected that energy storage systems would account for 32% of total lithium carbonate equivalent demand in 2026, growing to 38% by 2030. Its supply-demand outlook indicated a medium-term deficit of 4% to 7% of demand. JP Morgan raised its spodumene price forecast to US$2,000 per ton by the fourth quarter of 2026 and lifted its lithium carbonate forecast to US$18,000 per ton.

Two days later, FitzGerald wrote in Stockhead that the turnaround in lithium pricing had "powered up" lithium producers, with growing investor attention potentially flowing toward lithium developers. He stated, "Christmas has arrived early for the ASX-listed lithium stocks thanks to the ongoing recovery in lithium prices," and attributed the shift to a combination of constrained Chinese supply and increasing demand from grid-scale batteries and AI infrastructure.

Competitive Bidding, Cost Advantages, and Long-Term Potential

In a November 17 research note, Heiko Ihle of H.C. Wainwright and Co. emphasized the level of industry participation surrounding the Neves project, calling attention to the extensive interest generated during its development process. Ihle noted that four technical site visits held in September drew between 11 and 17 contractors each and resulted in more than 2,800 clarification questions from potential bidders. He stated that "the competitive bidding process supports disciplined cost outcomes and validates the project's attractiveness," adding that procurement packages tied to electromechanical assembly, mine operations, and internal road engineering comprised approximately 70% of estimated capital expenditures.

Ihle also discussed the company's definitive feasibility study, which was released in August. He wrote, "We remain pleased with the contents and financial projections of Atlas' definitive feasibility study," referencing an after-tax net present value of US$539 million, a 145% internal rate of return, and an 11-month payback period. He highlighted the projected operating cost of US$489 per ton and attributed the project's positioning to its low-impurity, near-surface spodumene and a fully paid-for dense media separation plant already delivered to Brazil.

In an update dated November 24, Ihle reaffirmed a Buy rating for Atlas Lithium and issued a 12-month price target of US$12 per share. While the revised target reflected a decrease from previous estimates, he noted it still represented a potential return of approximately 175% based on the offering price. Ihle incorporated Atlas Lithium's 28.15% interest in Atlas Critical Minerals Corp. (JUPGD:OTCQB) into his valuation and stated that the company's broader portfolio added long-term optionality beyond its flagship asset.

Ihle also addressed the company's exploration efforts at its Salinas project, located about 60 miles north of Neves. He noted that early drilling confirmed spodumene-rich mineralization near surface and described Salinas as "a key area of future growth that is mostly ignored by the market thus far." He wrote that the property provided further potential for resource expansion and complemented the company's position in Brazil's Lithium Valley.

Positioned for Execution in a Rapidly Growing Lithium Region

The Neves Project is located in Brazil's Lithium Valley and benefits from existing infrastructure, a favorable permitting environment, and a large-scale land position totaling 557 km² — nearly three times larger than that of Sigma Lithium. The project is designed as an open-pit mining operation with spodumene ore near the surface, contributing to an estimated product cost of US$489 per ton of lithium concentrate.  

As per its investor presentation, Atlas Lithium's fully-paid Dense Media Separation (DMS) plant has already been delivered to Brazil and is awaiting assembly at a permitted site. The compact, modular design aims to streamline crushing and processing workflows. The Neves Project's production metrics from the DFS project an average annual spodumene concentrate output of 146,000 tons, with direct capital expenditures of only US$57.6 million. 

Looking ahead, Atlas Lithium's 100%-owned Salinas Project and its ~28% ownership in Atlas Critical Minerals offer exposure to additional lithium upside as well as exposure to an expanded portfolio of other critical minerals. The company's lithium offtake agreements and strategic partnerships with entities such as Mitsui, Chengxin, and Yahua further underline its integration into the global battery supply chain. 

Ownership and Share Structure¹

As for ownership and share structure, management owns approximately 24% of Atlas Lithium common shares. Strategic partner Mitsui & Co. Ltd. has ~8%. Numerous institutions hold ~11%. Retail investors own the rest.

Atlas Lithium has 26.5 million shares outstanding. Its market cap is ~US$122M. Its 52-week range is US$3.54–8.32 per share.