Infinity Lithium Holds A$12.4M Cash, Extends Mining Licence Timeline to Late 2025

Mining Licence Application Progress and Timeline

Infinity Lithium Corporation has provided an update on the San José Lithium Project, highlighting ongoing engagement with the Extremadura Regional Government's Directorate General of Industry, Energy and Mines. Following the major project submission in June 2024, the company received detailed feedback in January 2025 requesting clarifications and additional information. This has extended the timeline for the public consultation phase, now expected in late 2025 rather than the initially anticipated Q4 2024.

The extension offers Infinity Lithium a clearer pathway to meet regulatory requirements but also delays the project’s permitting milestones. The company is actively working to address the new requirements within the nine-month window provided, aiming to maintain transparency and deliverability in the licensing process.

Strategic Shift in Funding Approach

In a notable strategic pivot, Infinity Lithium has elected to withdraw from the PERTE VEC II grant program, which had allocated up to €18.8 million for capital equipment purchases. Due to external circumstances limiting the feasibility of utilising these funds within the required timeframe, the company is returning the grant and redirecting efforts toward applying for a broader suite of European and national funding initiatives.

These new opportunities include the European Commission’s €1 billion Innovation Fund for battery cell production, Spain’s €750 million aid line for renewable energy and storage, and the €4.6 billion Innovation Fund for Zero Emission Technologies. This shift aligns better with the project’s development phase and could provide more flexible and substantial financial support.

Leadership Restructuring Reflects Project Focus

Reflecting the evolving operational focus on Spain, Infinity Lithium has restructured its board and management team. The resignation of Managing Director and CEO Ryan Parkin in November 2024 and the upcoming retirement of Non-Executive Director Jon Starink in March 2025 mark a transition toward a leadership team more centred on Spanish oversight. An existing Non-Executive Director has stepped into the role of interim CEO and Executive Chairman, streamlining decision-making during this critical permitting phase.

Financial Position and Project Expansion

As of 31 December 2024, Infinity Lithium holds A$12.4 million in cash, including approximately A$6.4 million in restricted grant funds. The company has also signalled its intent to explore additional project acquisitions, particularly in energy minerals that complement its lithium portfolio. This strategic diversification aims to enhance shareholder value while the San José project advances through regulatory assessments.

Outlook and Market Positioning

Infinity Lithium remains confident in the medium to long-term demand for lithium within Europe’s energy transition framework. The San José project, with its significant hard rock lithium deposit, is positioned to play a vital role in establishing a vertically integrated lithium-ion battery supply chain in the EU. The company views the extended timeline and new funding avenues as constructive developments that support sustainable project advancement.