Lithium Royalty Corp. Commends Power Metals on Landmark Cesium Offtake Agreement with Albemarle, Reinforcing 2026 Production Ambitions
Lithium Royalty Corp. has formally congratulated Power Metals Corp. (“Power Metals”) following the announcement of a significant cesium concentrate offtake agreement with Albemarle Corporation, one of the world’s foremost producers of critical minerals. The agreement marks an important milestone for the Case Lake project in Ontario, Canada, and underscores growing momentum in the global cesium supply chain—an area characterized by extreme scarcity, strategic importance, and rising demand.
Albemarle Corporation (NYSE: ALB), with a market capitalization of approximately US$16 billion, is recognized globally as a leading supplier of lithium and specialty chemicals, with an established position in both lithium and cesium markets. Under the newly announced arrangement, Albemarle has secured offtake rights for cesium concentrate produced from Power Metals’ Case Lake project, further validating the project’s technical viability and commercial potential.
Lithium Royalty Corp., which holds a 2.0% Gross Overriding Royalty (GOR) on the Case Lake project, views the agreement as a positive development that strengthens the long-term value of its royalty portfolio while accelerating the path to near-term production.
Strategic Offtake Agreement and Prepayment Structure
As part of the transaction, Albemarle acquired the cesium offtake rights previously held by Winsome Resources and entered into a prepayment agreement with Power Metals for up to C$5 million worth of cesium oxide concentrate. This prepayment structure provides Power Metals with additional financial flexibility to advance project development while securing a reliable downstream partner with extensive experience in processing and marketing specialty minerals.
Power Metals emphasized that the Case Lake project is advancing steadily toward its targeted production start in 2026. The company highlighted one of the project’s most compelling attributes: exceptionally low capital requirements. Initial capital expenditure for the project is estimated to be below C$8 million, a figure that stands out in the mining sector, particularly for critical minerals projects that often require substantial upfront investment.
This combination of modest capital intensity, secured offtake, and prepayment financing significantly reduces execution risk and positions the Case Lake project as one of the more advanced near-term cesium development opportunities globally.
Maiden Cesium Resource Establishes Strong Foundation
In June 2025, Power Metals announced its maiden mineral resource estimate (MRE) for cesium at the Case Lake property, marking a pivotal achievement for the project. The estimate outlined an inferred resource of approximately 13,000 tonnes grading 2.4% cesium oxide (Cs₂O), using a 0.1% cut-off grade. The resource is located within the West Joe Dyke, a key geological feature within the broader Case Lake land package.
The resource estimate was supported by a comprehensive drilling database totaling 7,264 meters across 113 drill holes completed during campaigns in 2018, 2022, and 2024. The results highlighted the consistency and continuity of cesium mineralization, reinforcing confidence in the project’s geological model and exploration strategy.
Importantly, Power Metals has noted that the current MRE reflects only a portion of the mineralized system at Case Lake. The West Joe Dyke represents just one of multiple prospective zones on the property, leaving substantial room for resource expansion.
Exploration Upside and Growth Potential
Beyond the existing inferred resource, Power Metals has identified a significant exploration target ranging from 11,000 to 15,000 tonnes of additional cesium-bearing material. This target encompasses 17 untested or lightly tested zones across the Case Lake property, underscoring the project’s potential to evolve into a larger-scale cesium operation over time.
The limited scope of drilling to date suggests that Case Lake remains underexplored relative to its geological potential. As further exploration programs are undertaken, there is a strong possibility that additional resources could be delineated, extending mine life and enhancing long-term production capacity.
For Lithium Royalty Corp., this exploration upside translates directly into potential future royalty revenue growth, making the Case Lake project a strategically valuable asset within its broader portfolio.
Executive Commentary Highlights Market Significance
Ernie Ortiz, President and Chief Executive Officer of Lithium Royalty Corp., emphasized the broader implications of the agreement and Power Metals’ progress:
“Power Metals continues to advance the Case Lake project toward delivering the first meaningful incremental cesium supply to the global market in quite some time. Cesium is a high-value critical mineral with specialized and growing applications. The partnership announced with Albemarle, combined with the project’s low capital requirements, positions Power Metals as a near-term producer and revenue contributor within our royalty portfolio.”
Ortiz also highlighted current pricing dynamics, noting that cesium carbonate prices are being quoted at nearly US$219,000 per tonne, reflecting both the mineral’s scarcity and its importance across advanced technology sectors.
Cesium: A Critical Mineral with Fragile Supply Chains
Cesium is one of the rarest naturally occurring elements and is classified as a critical mineral by Canada and several other jurisdictions due to its strategic importance and supply vulnerability. At present, there are only two known active cesium-producing mines worldwide: the Tanco mine in Canada and the Bikita mine in Zimbabwe. A third operation, the Sinclair mine in Western Australia, previously produced cesium but is no longer active.
According to the U.S. Geological Survey (USGS), the Tanco mine is currently the only operation still processing cesium ore on a commercial basis. Most other cesium-bearing projects globally remain at early-stage exploration, with limited near-term development prospects.
This highly concentrated and fragile supply chain has heightened concerns among governments and industrial users, particularly as demand for cesium continues to expand across advanced technologies, energy systems, aerospace applications, and defense infrastructure.
Market Dynamics and Pricing Trends
Due to its scarcity and specialized uses, cesium commands some of the highest prices among industrial metals. Recent market data indicates that cesium carbonate prices are trading near US$219,000 per tonne, reflecting strong demand and limited supply availability.
Annual global cesium production remains extremely limited, with demand increasingly outpacing supply. This imbalance has contributed to elevated pricing and heightened interest in new sources of production, such as the Case Lake project.
Understanding the Cesium Market
Cesium is the heaviest stable alkali metal and possesses unique physical and chemical properties that differentiate it from other elements. Its exceptionally low ionization energy allows it to easily release electrons, making it highly efficient for photoelectric devices, ion propulsion systems, and advanced electronics.
Cesium’s high atomic mass and resonance frequency stability make it essential for atomic clocks, which serve as the global standard for time measurement. Additionally, its low melting point of 28.5°C enables specialized heat transfer applications, while its high reactivity and non-corrosive nature make it suitable for use as a safe drilling fluid.
Cesium is primarily sourced from pollucite ore, typically processed into cesium oxide before being refined into various downstream products.
Key Cesium Products and Applications
The two primary cesium product categories are cesium formate and cesium fines, which include cesium carbonate, cesium chloride, and cesium nitrate.
Historically, the largest market for cesium has been cesium formate, a high-density drilling fluid used in high-pressure, high-temperature oil and gas drilling. This fluid is typically leased rather than sold outright, with used brine returned, reprocessed, and reused across multiple drilling campaigns. It is estimated that approximately 10,000 tonnes of cesium formate are currently in circulation globally, with about 5% depletion annually—equating to roughly 500 tonnes of replacement demand each year.
Cesium fines represent a smaller but rapidly evolving market, with applications spanning:
- Defense: night-vision systems and specialty optical glass
- Communications: 5G infrastructure, fiber-optic systems, and emerging ion-based communication technologies
- Energy: experimental energy generation technologies, including magneto-fluidic and thermo-ionic systems
- Medical: advanced imaging equipment and pharmaceutical manufacturing
- Aerospace: satellite navigation systems, GPS constellations, and aerospace guidance technologies
The USGS estimates that the cesium fines market totaled approximately 2,000 tonnes in 2024, supplemented by an additional 500 tonnes of demand related to cesium formate replacement.
Supply Constraints and Long-Term Outlook
Despite growing demand, primary cesium production remains virtually nonexistent outside of limited operations, with only small quantities produced in China. Much of the current supply is derived from legacy stockpiles at former mine sites, which are processed by downstream refiners. However, recent assessments suggest that these stockpiles could be depleted within the next few years, intensifying supply pressures.
Against this backdrop, the advancement of new projects such as Case Lake takes on heightened strategic importance. With secured offtake, low capital intensity, and a clear development pathway, Power Metals is positioned to play a meaningful role in stabilizing and expanding global cesium supply.
For Lithium Royalty Corp., the project represents not only a near-term revenue opportunity but also long-term exposure to one of the most critical and undersupplied mineral markets in the world.
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