African Critical Elements has completed its purchase of Lepidico Canada, taking an 80% stake in the Karibib lithium, rubidium and caesium project in Namibia. The project passed a feasibility study in 2020 but was never built.
At a glance
- The deal is ACE's first acquisition and includes all of Lepidico Canada's secured debt.
- Karibib's 2020 feasibility study gave it a net present value of $221 million at a lithium hydroxide price of $13,677 a tonne.
- The site already holds 24,000 tonnes of lepidolite concentrate grading about 1.38% lithium oxide.
Background
Karibib, in central Namibia, mines lepidolite, a lithium-bearing mineral that also contains the rarer metals rubidium and caesium. A definitive feasibility study (DFS) is the detailed engineering and cost study that comes before a decision to build a mine. Net present value (NPV) is a project's estimated worth today based on its future cash flows.
What happened
African Critical Elements (ACE) has completed the full acquisition of Lepidico Canada, Mining Weekly reported on October 22. ACE bought all of the company's shares and all of its secured debt from its existing lender. The deal gives ACE an 80% interest in the Karibib lithium, rubidium and caesium project in Namibia.
"This acquisition is ACE's first transaction but a very significant one," chairperson John Wisbey said. He said ACE had bought a project that reached the DFS stage in 2020 and upgraded its resource estimate in January 2023.
What Karibib holds
The 2020 study gave Karibib an NPV of $221 million, based on a lithium hydroxide price of $13,677 a tonne. It reported ore reserves of 11.85 million tonnes. Measured and indicated resources contain 46,733 tonnes of lithium oxide, 22,822 tonnes of rubidium oxide and 3,076 tonnes of caesium oxide.
The site also has a head start. It holds a historical mined stockpile of about 400,000 tonnes and 24,000 tonnes of processed lepidolite concentrate, grading about 1.38% lithium oxide.
What it means
ACE is betting on a lithium recovery. The lithium carbonate price has weakened over the past five months but is still about 83% above its June 2025 low, according to Mining Weekly.
Rubidium and caesium add a second market. ACE says they are used in chemicals, atomic clocks, speciality glass, solar panels, electronics and oil and gas drilling fluids. Wisbey said reviving Karibib would bring jobs and tax revenue to Namibia, but ACE has not yet given a timeline or cost for restarting the project.
Our read
Outlook: neutral. A change of owner at an unbuilt project adds no lithium supply until a build decision is made.
What to watch
- ACE's plan, cost and timeline for developing Karibib.
- Whether the 2020 feasibility study is updated for current lithium prices.
- Any sale or processing of the existing 24,000-tonne lepidolite concentrate stockpile.
For information only, not investment advice.
Lithium price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-22: ACE reports completing its acquisition of Lepidico Canada and its 80% stake in Karibib.
Supply Drivers
Karibib has studied reserves and a concentrate stockpile, but no restart timeline has been given.
Mining Production
A 400,000-tonne historical stockpile and 24,000 tonnes of concentrate could shorten any restart.
What could lift prices
- Lithium carbonate is still about 83% above its June 2025 low, which improves project economics.
- Rubidium and caesium give Karibib extra revenue streams.
What could weigh on prices
- Lithium prices have weakened over the past five months.
- The 2020 feasibility study may need updating before any build decision.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Namibia | Medium | A dormant lithium project gains an owner that says it plans to revive it. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Lithium Mining | Neutral | The deal changes ownership but adds no near-term supply. |
Who gains, who loses
- African Critical Elements: It gains a studied lithium, rubidium and caesium project in its first deal.
- Lepidico: It no longer controls the Karibib project it took through a feasibility study.
Other ways this could play out
- If lithium prices recover further, ACE could move quickly to restart using the existing stockpiles.
- If prices keep weakening, Karibib could stay on hold despite the new owner.
Price risks
- Lithium prices are driven by large producers, not by small projects like Karibib.
- A fast restart could add modest supply sooner than expected.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
