Cadence Minerals, the AIM-listed mining investment company, has announced that refurbishment work at its Azteca lithium pilot plant has reached 77% completion. The facility, located in the Sonora region of Mexico, is central to the company's strategy to establish a domestic lithium supply chain for the growing electric vehicle battery market.
The company stated that progress on the plant includes the installation of key processing equipment and the completion of structural upgrades. Cadence has previously indicated that the pilot plant will be used to test and refine extraction methods for lithium from claystone deposits, a resource type that is abundant in the region but technically challenging to process.
Cadence holds a stake in the Sonora lithium project through its investment in Mexilit, the joint venture vehicle that owns the asset. The broader project has attracted attention from major battery manufacturers and automotive groups seeking to secure lithium supplies outside of China and Australia.
For UK investors, the update provides a tangible sign of progress at a time when lithium prices have stabilised after a volatile two years. Analysts note that while the pilot plant is a relatively small-scale operation, successful commissioning could de-risk the larger Sonora development and potentially unlock offtake agreements with European battery makers.
The company did not provide a revised timeline for full commissioning but said it expects to provide further updates as refurbishment work continues. Cadence shares have been under pressure in recent months amid broader weakness in mining stocks, but the news offered some support in early trading.