Lithium Royalty Corp (TSX: LIRC) has formally extended its congratulations to Power Metals Corp following the latter’s announcement of an offtake agreement with Albemarle Corporation, one of the world’s leading critical minerals companies. The partnership concerns the supply of cesium concentrate from Power Metals’ Case Lake project in Ontario, Canada.
Albemarle, a company with a market capitalisation exceeding US$16 billion, has secured the offtake rights from Winsome Resources and committed up to C$5 million in prepayments for cesium oxide concentrate. This agreement forms part of Power Metals’ broader ambition to commence production by 2026, supported by notably low capital requirements estimated at under C$8 million. Lithium Royalty Corp, which holds a 2.0 per cent gross overriding royalty on the Case Lake project, described the development as a significant milestone in its portfolio diversification.
In June 2025, Power Metals declared its maiden mineral resource estimate for cesium at 13,000 tonnes of inferred resource grading 2.4 per cent cesium oxide (Cs₂O), using a 0.1 per cent cut-off grade. The company has indicated that this figure only accounts for the West Joe Dyke, with a broader exploration target of 11,000 to 15,000 tonnes across 17 untested areas on the Case Lake property. Historical drilling from 2018, 2022 and 2024, totalling over 7,200 metres across 113 holes, underpins the credibility of these findings.
Lithium Royalty Corp’s President and Chief Executive Officer, Ernie Ortiz, remarked that the partnership represents a rare opportunity to reintroduce new cesium supply to global markets. He underscored the strategic importance of the Case Lake project, citing its cost efficiency and the rising value of cesium carbonate, currently quoted by Shanghai Metals Market at around US$219,000 per tonne.
Cesium remains one of the world’s most restricted and valuable critical minerals, with only two known active producers globally: the Tanco mine in Canada and the Bikita mine in Zimbabwe. A third operation, the Sinclair mine in Western Australia, has previously contributed to supply but is no longer active. The limited and geographically concentrated nature of cesium production has heightened global attention to new sources of supply.
For the African continent, particularly for nations such as Zimbabwe where the Bikita mine remains operational, the renewed interest in cesium production underlines the growing strategic relevance of Africa in global critical minerals supply chains. As energy transition technologies intensify demand for specialty minerals, Africa’s geological potential presents both economic opportunity and developmental complexity. The Case Lake development thus forms part of a broader global pattern where mineral sovereignty and resource management are becoming increasingly central to discussions on equitable participation in the green economy.
Cesium’s diverse applications contribute to its high market valuation. It plays a vital role in defence systems, advanced communication technologies including 5G infrastructure, satellite navigation, aerospace engineering and medical imaging. Its unique properties such as low ionisation energy, high atomic mass and resonance frequency stability also make it indispensable for atomic clock technologies, which underpin global positioning and telecommunications systems.
The United States Geological Survey (USGS) has estimated that global demand for cesium fines stood at approximately 2,000 tonnes in 2024, with a further 500 tonnes generated through replacement of cesium formate used in oil and gas exploration. However, the agency has also warned that existing stockpiles of cesium ore may be nearing depletion, which could result in supply shortages within a few years.
Lithium Royalty Corp, headquartered in Canada, continues to expand its portfolio with 37 royalties focused on lithium and other critical minerals integral to the global energy transition. Its assets are strategically distributed across projects that underpin the development of sustainable energy storage and electrification technologies.
The recent offtake agreement among Albemarle, Power Metals and Winsome Resources underscores the evolving dynamics of mineral supply chains where strategic collaboration, investment and resource development increasingly determine global access to critical materials. The Case Lake project, while relatively modest in capital intensity, may play a crucial role in reshaping the cesium market and enhancing supply resilience beyond its current narrow producer base.
