US Elemental Investor Webinar: Major Lithium Asset Moves Toward US Listing

Overview

US Elemental, a company formed from the business combination of HiTech Minerals and Constellation Acquisition Corp. I (a SPAC sponsored by Antarctica Capital), hosted a pivotal investor webinar outlining its upcoming US NASDAQ listing and the development plans for its flagship McDermitt Lithium Project. This event is highly relevant for shareholders and investors, as it signals major steps in capital markets access, asset development, and potential valuation catalysts.

Key Highlights

• Formation of US Elemental and NASDAQ Listing: HiTech Minerals will become a wholly-owned subsidiary of US Elemental Inc., which is expected to trade on NASDAQ under ticker ULIT. Jindalee Lithium (ASX: JLL) will retain approximately 80% ownership of US Elemental, with the remaining shares allocated to legacy Constellation shareholders and new investors funding the transaction.
• Transaction Structure & Valuation: The business combination applies a pre-money valuation of \$500 million for Jindalee shareholders, with a pro forma enterprise value of \$571 million. This represents an 82% discount to the project’s \$3.23 billion post-tax NPV, presenting a compelling entry point for investors. The deal includes a capital raise of \$20–\$30 million to fund project advancement, with committed support from Antarctica Capital.
• McDermitt Lithium Project – Asset Quality: The McDermitt asset is one of the largest known lithium resources in the US, boasting 21.5 million tons of lithium carbonate equivalent and a project lifespan over 60 years. The 2024 prefeasibility study confirms world-class economics: post-tax NPV of \$3.23 billion (8% discount rate), post-tax IRR of 17.9%, annual production of 47,500 tons lithium carbonate, and an EBITDA margin of 66%. The asset sits in the bottom half of the global cost curve, with a five-year payback period.
• Strategic Government Support: McDermitt has been awarded FAST-41 federal permitting status, marking it as a project of national strategic importance. It is also supported by a DOE partnership and a Cooperative Research Agreement. The project has received approval for its exploration plan of operations, with ongoing engagement at senior federal government levels, including the White House.
• Policy & Market Tailwinds: The US federal government has prioritized domestic lithium supply, with significant capital deployed—including \$2.26 billion DOE financing for the nearby Thacker Pass project and the launch of Project Vault (\$12 billion critical mineral reserve). Increased tariffs on Chinese batteries and an executive order to boost US mineral production further support the sector.
• Demand Drivers: Lithium demand is now driven by both electric vehicles and battery energy storage systems (BESS), with BESS demand projected to grow by 55% in 2026. US battery storage installations reached 57.6 GWh in 2025, up 30% year-over-year. Artificial intelligence and data centers are also emerging as new sources of lithium demand, with global electricity consumption by data centers expected to double by 2030.
• Magnesium Byproduct Opportunity: The McDermitt deposit contains a significant magnesium resource—20 times more magnesium than lithium—which is currently under evaluation for byproduct recovery. The US imports most of its magnesium, making this a potential additional value driver.
• Permitting & Development Roadmap: The permitting process is advancing under NEPA and BLM oversight. The next phase involves extensive data collection and environmental impact statements, targeting mine plan approval toward the end of 2027. First lithium production is targeted for the early 2030s, aligning with projected supply deficits.
• Shareholder Structure & Lock-Up: Jindalee’s shareholding in US Elemental will be locked up for 12 months post-transaction, reflecting management’s commitment to the project. No direct exchange of shares will occur for Jindalee shareholders; indirect ownership is maintained via Jindalee’s listed entity.
• Offtake & Financing Strategy: The project has no binding offtake agreements to date, preserving flexibility. Offtake partnerships and commercial debt financing are prioritized as the feasibility study advances, aiming to minimize shareholder dilution and optimize capital structure.
• Technical Validation: Extensive metallurgical test work has confirmed the viability of producing battery grade lithium chemicals, with further optimization expected as feasibility work continues.

Shareholder Considerations & Potential Price Sensitivity

• Valuation Discount: The 82% discount to NPV may attract investors seeking value, potentially impacting share price as the market reassesses the asset’s worth.
• Government Engagement & Funding: Ongoing high-level US government support and potential access to federal funding could significantly de-risk the project and accelerate development, which is likely to be price sensitive.
• Permitting Milestones: Recent approval for the exploration plan and FAST-41 status signal regulatory progress, which can be major share price catalysts.
• Magnesium Byproduct Upside: The evaluation of magnesium recovery could unlock additional value, enhancing project economics and shareholder returns.
• Strategic Capital Raise: The planned capital raise (with committed backing) provides runway for project development, reducing financing risk.
• Lock-Up Period: The 12-month lock-up of major shareholder positions signals commitment and may reduce near-term volatility.
• Timing of Production: Targeting first production in the early 2030s, US Elemental is poised to benefit from lithium supply deficits, aligning with forecasted demand growth.

Conclusion

US Elemental’s path to a NASDAQ listing, combined with the strategic, government-supported McDermitt Lithium Project, positions the company at the forefront of the US critical minerals sector. The asset’s scale, quality, and policy tailwinds—alongside strong economics and new demand drivers—present a compelling opportunity for shareholders and new investors. Key developments in permitting, government funding, and capital markets access are likely to be major share price catalysts in the months ahead.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Forward-looking statements may be subject to risks and uncertainties that could cause actual results to differ materially from those discussed. Investors should review all company filings, presentations, and disclosures before making investment decisions.

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