Lithium Stocks To Watch (CSE: GEMS) (OTC: TLOOF) (TSXV: PMET) (TSXV: ABR) (OTC: CXOXF) (NASDAQ: TSLA) (TSXV: RCK) (OTC: MGBAF)
The Electric Future of Lithium as it Aims to Meet the Global EV Demand
Vancouver, Kelowna, Delta, BC - September 2, 2022 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering lithium mining and EV stocks releases a special report on the continued demand for lithium, featuring Infinity Stone Ventures Corp. (CSE:GEMS) (OTC:TLOOF). Infinity Stone's mission is to be a diversified, single source supplier for the critical energy metals being used in the clean energy revolution.
As more countries push forward with their green energy initiatives, the EV sector is driving growth for new lithium mining developments.
In recent news, "The global lithium-ion battery market is expected to grow by a factor of five to 10 in the next decade. Reaching aggressive targets for electric vehicles (EVs) and battery-based energy storage system production relies on materials such as lithium and rare earth metals. However, material shortages could stall the manufacturing of some clean energy technologies, which is concerning from a climate perspective."
Lithium is a critical material in manufacturing the batteries used in EVs and energy storage systems. However, from September 2021 to March 2022, the price of the element increased by more than 400 percent, though it has recently leveled off. Nevertheless, skyrocketing material costs will result in higher prices for consumers.
Joe Lowry of Global Lithium doesn't expect future lithium supplies to keep up with demand. "In the next two years, even though there will be significant growth in supply, it will be less than demand, so the gap will just continue to grow," he explained in a recent interview with Bloomberg.
So how are companies looking to address this supply shortage right now?
Infinity Stone Ventures Corp. (CSE:GEMS) (OTC:TLOOF) recently announced that it has entered into an option agreement to acquire, from an arm's length party, a 100% interest in and to the Taiga Lithium Project adjacent to Patriot Battery Metals (TSXV:PMET) Corvette Lithium discovery in the James Bay Region of Quebec. Patriot Battery Metals has made several recent announcements with regard to their project, including their announcement on August 10, 2022 identifying "a total of thirty-one (31) spodumene-bearing pegmatite outcrops identified, including twenty (20) outcrops with estimated >5% modal spodumene content". (1)
The 923-hectare Taiga Lithium Project is located 3.4 kilometres west of Infinity Stone's Camaro Property, directly adjacent to Patriot Battery Metals Inc.'s Corvette Property, in the James Bay Region of Quebec, approximately 235 kilometres east of Radisson, Quebec and 245 kilometres northeast of the Cree village municipality of Nemaska. The northern edge of the Project is located approximately 15 kilometres south of the Trans-Taiga road and transmission line. The region has been historically explored for its rich gold, copper, silver, base metal and PGE deposits.
"Infinity Stone is excited to further increase our position in the rapidly expanding James Bay Lithium District. Our team is hopeful that the identified LCT pegmatite trend in the corridor presents a number of occurrences trending northeast to southwest," said Michael Townsend, Executive Chairman of Infinity Stone. "The Taiga Lithium Project is strategically positioned with existing mapped pegmatites that present significant discovery potential given recent developments from other operators in the region," further stated Mr. Townsend. "It is evident from regional mapping that there is a high potential there are additional pegmatites present on the Project," concluded Mr. Townsend.
The addition of the Taiga Lithium Project to Infinity Stone's existing land position in the area, being the Camaro Project, brings the Company's total land position in the area to 1,282 hectares.
Patriot has been conducting grassroots exploration on the gold, copper, silver, molybdenum and PGE showings across its FCI and Corvette properties for several years. In 2017, Patriot discovered the CV Lithium Trend.
During the 1950s, lithium gained importance as a component of nuclear bombs and pharmaceuticals, and the area around Kings Mountain, near Charlotte, saw a major boom in mining. For about 30 years, the region supplied almost all the lithium in the world. Then in the 1980s, production moved to lower-cost operations overseas. Today, less than 1 percent of global lithium is mined in the United States, all from one mine in Nevada; the vast majority comes from Chile, Australia, and China.
Last summer, President Joe Biden signed an executive order calling for electric vehicles, which depend on lithium-based batteries, to make up 50 percent of all new vehicle sales by 2030. The Inflation Reduction Act, recently signed into law, aims to incentivize a domestic battery supply chain, providing tax breaks for mines and credits for electric cars and grid storage applications when a percentage of the battery is produced or recycled in the US.
Last year, Arbor Metals Corp. (TSXV:ABR) announced that, through its wholly-owned subsidiary Arbor Metals USA Corp., that it had secured 100% ownership of the Miller's Crossing Lithium Project, Big Smoky Valley Nevada USA. The Miller's Crossing project consists of 192 claims covering 3,800 acres in the Big Smoky Valley. The Project fits well into the playa-type brine deposit model as it is located adjacent to, and shares geological similarities with Clayton Valley, home to the only lithium producing brine operation in North America.
Not only have we witnessed an uptake in interest in lithium mining in the US but also in countries like Australia where, in recent news, Core Lithium Ltd (OTC:CXOXF) has come to a mutual agreement with electric car giant Telsa Inc. (NASDAQ:TSLA) to extend the termination date for its binding offtake term sheet to October 26, 2022.
The agreement gives Tesla and Core the opportunity to finalise negotiations for the definitive full form binding offtake agreement, which would see Core supply Tesla with up to 110,000 dry metric tonnes of lithium spodumene concentrate produced at Core's Finnis Lithium Project near Darwin. This offtake is expected to start in 2023.
In the last four weeks, Core has presented plenty of news for investors to think about, including the start of a reverse circulation (RC) drilling campaign of more than 40,000 metres of greenfields and brownfields target areas at Finnis and the appointment of resources sector veteran Gareth Manderson as CEO of the Company.
Core is building Finnis, described as Australia's newest and most advanced lithium project on the ASX, in the Northern Territory. Finnis has been awarded Major Project Status by the Australian Federal Government and is one of the most capital-efficient lithium projects with arguably the best logistics chain to markets of any Australian lithium project. The Finnis Project is expected to provide the globe with high-grade and high-quality lithium suitable for lithium batteries used to power electric vehicles and renewable energy storage.
We are also seeing similar developments in Canada with Rock Tech Lithium Inc (TSXV: RCK) (OTCQX: RCKTF) and Mercedes-Benz AG (OTC:MGBAF) having recently announced that they are about to enter into an agreement which provides for a strategic partnership to produce high-quality lithium hydroxide for the automaker and its battery suppliers. Under the intended binding agreement, Rock Tech has agreed to deliver up to 10,000 tonnes per year of its planned production to the premium manufacturer and its partners starting in 2026.
Mercedes-Benz wants to become fully electric by the end of the decade. From 2025 onwards the luxury carmaker plans that all newly launched vehicle architectures will be all electric. To help make this a reality, Mercedes-Benz intends to enter a strategic partnership with Rock Tech, lasting for at least five years and an option to prolong.
From 2026 onwards, it is envisaged that Rock Tech contributes up to 10,000 tonnes of lithium hydroxide annually to Mercedes-Benz and its battery partners, starting with a qualification period and after quality and sustainability benchmarks have been met. This battery-grade lithium product is an essential component of high-performance vehicle batteries. The Canadian-German Rock Tech expects to become a central implementation partner for the automaker and its all electric and carbon neutral strategies.
"Mercedes-Benz plans to go all electric by the end of this decade, wherever market conditions allow. To scale up our electric vehicle production, access to raw materials is needed to improve the resilience and sustainability of the electric vehicle supply chain. With the Rock Tech partnership we intend to take a direct sourcing approach to secure the lithium supply for Mercedes-Benz battery production," says Markus Schaefer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, responsible for Research & Development and Procurement.
As lithium mining and production spreads out globally in this "new era gold rush" we can expect in the near term to see a slight price drop and an increase in supply, however many EV producers are still far from scale production, which will be when the real test begins for many of these operations. We are witnessing a race between EV producers and the mining facilities they depend on for who can reach their target scale production first and while at the moment we are seeing growth and renewed investor interest in both sectors, we still face the question of will it be enough for this Green Revolution?
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