Navigating Potash and Lithium Opportunities

Simon Clarke, CEO of American Critical Minerals, discussed the company’s strategic positioning in the potash and lithium markets, recent industry developments, and the company’s plans for 2025.

Potash Market Tightness and Domestic Opportunities

The global potash market is facing significant supply constraints, driven in part by delays and cost overruns at BHP’s Jansen potash mine in Canada, now projected to commence operations in mid-2027 with costs escalating to $7–7.5 billion. Clarke noted that Canada, a dominant global supplier, accounts for 94–95% of U.S. potash imports. These disruptions, combined with rising global demand for food security, are tightening supply and driving prices higher.

Clarke highlighted the strategic advantage for American Critical Minerals, which is focused on developing domestic potash resources in the U.S. “You never want to take other people’s bad news and turn it into good news, but it is good news for us,” he said. The company’s Green River Potassium Lithium Project in Utah’s Paradox Basin positions it to capitalize on the increasing need for local supply, especially as potential tariffs on potash imports, similar to those recently imposed on copper, could further incentivize domestic production. Clarke also pointed to global shipping costs and geopolitical uncertainties as factors making domestic supply chains more critical.

With the world’s population growing and food security becoming a priority, Clarke described the situation as a “perfect storm” for potash, emphasizing its essential role in improving crop yields and agricultural efficiency. He expects continued price increases and a global push for localized potash sources.

Lithium Market Recovery and Challenges

Shifting to lithium, Clarke discussed the market’s recent volatility, noting that prices had fallen to unsustainable levels. “There’s not many new projects that can come on around the world or even continue producing at the current price level,” he said. However, with electric vehicle (EV) adoption and grid storage needs driving demand, Clarke sees a recovery underway, with prices stabilizing and sentiment improving.

He acknowledged that while EV growth in the U.S. and Europe has been slower than anticipated, global demand, particularly in China, remains robust. Additionally, the need for battery storage to support grid expansion, especially with potential growth in nuclear energy, is a significant driver. Clarke believes lithium prices could settle in the $20,000–$25,000 per ton range, a level that would support new project development without returning to the unsustainable highs of previous years.

Challenges for new lithium projects include the time required to restart exploration and development halted by low prices, as well as the dominance of China in refining. Clarke emphasized the importance of domestic lithium production to reduce reliance on foreign supply chains, aligning with broader U.S. policy trends.

Paradox Basin: A Strategic Hotspot

The Paradox Basin, where American Critical Minerals’ Green River project is located, is emerging as a key region for both potash and lithium. Clarke highlighted recent successes by neighboring companies, including Intrepid Potash’s production increases and Anson Resources’ successful lithium pilot project, which has attracted attention from POSCO Holdings for its direct lithium extraction (DLE) potential. “Those results put Paradox Basin up as one of the best basins in North America for lithium recovery,” Clarke said.

The company benefits from being adjacent to these projects, with access to historical oil and gas logs that confirm similar potash grades and thicknesses to Intrepid’s operations. The Paradox Basin’s low-contaminant brines are particularly advantageous for DLE, offering high recovery rates. Clarke noted that American Critical Minerals has not yet invested heavily in lithium exploration, relying instead on regional data, but plans to advance its own drilling to confirm both potash and lithium resources.

Fully Permitted and Ready to Drill

American Critical Minerals is well-positioned to move forward, holding federal prospecting licenses—a rarity in the Paradox Basin—and permits to drill three holes on state land, with a total of seven planned. Clarke emphasized that the company’s drilling program will target both potash and lithium in the same holes, leveraging the blanket-style formation of the Paradox Basin. “This is brownfield drilling. We’re pretty certain of what we’re going to get, but we still need to drill our own holes to be absolutely certain,” he said.

The company is finalizing the bonding process for reclamation, a necessary step before drilling can commence with the goal of converting its large exploration target into a formal resource estimate.

Strategic Additions and Financial Strategy

To bolster its technical expertise, American Critical Minerals recently appointed Kenneth Taylor, formerly of Intrepid Potash and Redmond, as a key team member. Taylor brings extensive experience in evaporite deposits, including potash and lithium, and deep connections within the industry. “His background and connections will be key for strategic partnerships as we move forward,” Clarke said.

On the financial front, the company announced an early warrant exercise initiative on July 22, 2025, to strengthen its treasury in a non-dilutive way. Proceeds will be used for working capital purposes including paying annual fees to the Bureau of Land Management (BLM), advancing engineering work with Agapito, and completing thelevera bonding process for drilling. Clarke emphasized the importance of these funds as the company prepares for an active second half of 2025.

Land Position and Growth Opportunities

American Critical Minerals holds a substantial land position in the Paradox Basin, and while Clarke acknowledged opportunities to acquire adjacent land or form partnerships, the company is satisfied with its current scale. “We already have a big land position, and the scale and size of the project we have is already very large,” he said. The focus remains on advancing the existing project, though the company continues to monitor potential acquisitions or partnerships for processing facilities or additional resources.

Looking Ahead to 2025

For the remainder of 2025, American Critical Minerals is focused on finalizing its drilling preparations, advancing preliminary lithium work, and leveraging regional successes to advance its own lithium development. Clarke expects further news flow as the company progresses toward drilling and resource delineation. “It’s a good time,” he said, expressing optimism about the company’s position in a tightening market for critical minerals.

Conclusion

American Critical Minerals is strategically positioned to capitalize on the growing demand for potash and lithium, supported by its prime location in the Paradox Basin, experienced leadership, and robust permitting status. As global supply chains face increasing pressure, the company’s focus on domestic production aligns with broader industry trends, making it a compelling player in the critical minerals space.

Watch the new interview with Simon Clarke here: https://youtu.be/UGeW7iEbsK8?si=9dCP-RRfV_0nDsCD

Disclaimer: This article/interview is not a recommendation to buy or sell any shares, products, or services. Always conduct your own due diligence and consult with a financial advisor.