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Charger Metals is an exploration company based in Western Australia with several advanced spodumene-bearing pegmatite projects. Over the last two years, we have witnessed lithium spot prices plummet after reaching all-time highs in 2021. In the aftermath, nearly all lithium-focused companies have shifted their interests toward more favorable commodities like gold, antimony, and rare earth elements.
However..
Charger is different.
“Resiliency” is a word that comes to mind. Often, investors discuss contrarian investment methods, but it is rare to see a company genuinely adhere to their commitment. As of March 23, 2025, after three years of depressed lithium prices, Charger is still staying true to its vision.
The question is, why? They don’t have to change anything. They have a joint venture with Rio Tinto Exploration and Core Lithium as a shareholder—one giant and one significant player. A look into their financial records reveals that the company is frugal, which is a smart strategy in today’s economy. With that said, drills are still spinning at Lake Johnston.
Right Geology, Right Place
Many investors widely overlook geology but is clearly well understood by the management of Charger. The Yilgarn greenstone and granite geology is a substantial geological feature that has produced world-class resources and grades. It not only hosts lithium deposits but is also highly prospective for nickel and gold. Charger Metals’ best intercept at Lake Johnston has been 18 meters at 1.46% Li2O at the Medcalf West target. While this may not be the largest intercept in the region, it is certainly respectable and has garnered the attention of Rio Tinto. In addition to this intercept, the company has many mapped spodumene-bearing pegmatites that will keep them occupied for some time. With the acquisition of Bynoe, there is certainly considerable exploration upside.
The company is in a strong position with multiple pegmatite targets, including the Mt. Day targets. As you may know, pegmatites typically occur in swarms or clusters, and not all of them are mineralized. The reasons for this are still not completely understood, but fractionation can provide some explanation.
So why is it important to have many targets?
Because all resources are consolidated into one, each pegmatite is included in a Maiden Resource Estimate (MRE), which serves as the foundation for the project’s economic valuation.
Do you need to have massive pegmatites to create a mine?
No, not if the underlying thesis is correct. If the electric vehicle (EV) boom continues and we move toward widespread adoption of electric vehicles, there will be a strong demand for lithium. Although lithium is a very abundant element and can even be found in water at economic levels, it will still be profitable to extract it from conventional hard rock sources like pegmatites.
Charger will likely find more
With the Mt. Day targets set for drilling, which features outcropping spodumene, and the proven effectiveness of soil sampling methods to delineate pegmatites—as demonstrated by TG Metals, their neighbor—there is significant potential for future discoveries. Additionally, with a partner like Rio Tinto heavily invested in lithium, as shown by their Arcadium acquisition, any substantial resource discovery could lead to an obvious buyer.
While high-grade nickel is not the current target given today’s prices, it’s still worth considering the possibility of finding nickel in these rocks when evaluating the surrounding geology.
Conclusion
The stock has bottomed out, and as the sole player in the lithium market, it’s understandable considering that current operations are shutting down or barely making a profit. However, has anything materially changed? No.
The company has continued to fulfill its commitments and has even expanded its projects while others are selling off. My guess is that they believe prices will rebound and that their resilience in the market will ultimately pay off and that is why they could be the next exciting story in WA.
