Musk, Bezos And Cook Are Rushing To Lock In New Lithium Supply / Commodities / Lithium
Lithium-ionis about to take on a lot more significance.
This is not about your iPhone anymore.
It’s not even just about your electricvehicle.
Lithium-ion batteries will power a large part ofour world in the future and are now an important aspect of amulti-trillion-dollar energy transition.
That makes the world’s handful of lithium producersnow finally a hot item to own a piece of.
It makes a lithium discovery about to be acquired bya junior like United Lithium the stuff that should Wall Street excited.
It’s partial vindication for those lithium bugs whojumped the gun years ago by investing in lithium plays that never seemed to goanywhere. Everyone was talking about a looming lithium supply squeeze thatnever came.
Well, now it’s closer. Those lithium bugs were justbefore their time.
So was United Lithium (CSE:ULTH; OTCMKTS:ULTHF) and now it’s aimingto reap the rewards.
It has found itself at the center of one of the world’s hottest lithiummarkets, with a contract to buy a property that already boasts one lithiumdiscovery and indicators that there is much more to come.
At the prime tipping point for batteries, nothing is more precious--orstrategic--than lithium, and that makes junior, pure play lithium miners our bestbets in the upcoming massive energy transition.
And United Lithium’s story is refreshingly simple …They’ve agreed to buy a property where lithium has been discovered at theabsolute prime time for this battery metal, in the absolute perfect location,and now they’ll be working to prove it up, which means a string of upcomingannouncements.
Here are 5 reasons to keep a close eye on UnitedLithium (CSE:ULTH; OTCMKTS:ULTHF) right now:
#1 The Key to the Energy Transition
Apple is a $2.3-trillion company now … partly becauseof lithium batteries.
Tesla is an $818-billion company now … and it’s powerlesswithout lithium batteries.
But this isn’t just about Apple and Tesla. Not evenclose.
Lithium-ion batteries are a critical element of theenergy sector right now.
We’ve come a long way since the iPhone and the EV.Now, it’s possible for companies to use batteries to both store energy andharvest renewable power.
That’s because battery costs have dropped at such arapid clip that has demand soaring to the point that in the auto industryalone, they expect to make EVs the same price as conventional cars within 5years, according to the Wall Street Journal.
Already by mid-December 2020, lithium-ion batterypacks prices had fallen an astonishing 89% since 2010, based on BloombergNEF data.
By 2023, prices are projected to drop another27%.
#2A Lithium Location that Beats All
There’sa very good reason that GM hijacked SuperBowl 2021 advertising with actor Will Ferrell vowing to take onNorway, the world’s leader in EV adoption.
Europe in general is the leader in EV adoption,with a massive 137% sales increase in 2020, compared to 2019.
And Norway and neighboring Sweden are EVsuperstars.
Battery-EVs made up 54% of light-vehicle sales in Norway in 2020, compared to lessthan 2% for the United States. Iceland and Sweden aren’t too far behind.
That’s exactly where United Lithium (CSE:ULTH; OTCMKTS:ULTHF) has positioned itself with its upcoming acquisition ofthe Bergby Lithium property in Sweden.
It’s also in the same region as agiant lithium battery gigafactory which is under construction, the NorthvoltLithium Battery Gigafactory …
And the world famous Woxna graphitemine.
That means it’s parked right in theheart of the best EV market in the world, and right next to established miningand transportation infrastructure.
With … even better …. Tariff-freesales to EU lithium customers.
For guaranteeing market share and getting product to market,it’s hard to find a better setup than this …
But still, it gets better than this:Bergby is planned to be a cost-effectivesurface and near surface extraction. In other words, lithium that’s not onlyparked right next to the best infrastructure in the world for batteries, but isalso cheap to get at.
#3 Planned Production with DirectAccess to the EU Market
The Bergby project includes threeexploration licenses that cover a total of 1,903 hectares of prime EUmarket-bound lithium potential.
In Q4 2016, the Bergby property showed lithium mineralizationin three outcrop areas.
In Q4 2017, the first drill programwas completed with 28 of the 33 drill holes intersecting lithiummineralization.
They’vefound three types of lithium mineralization in Bergby’s boulders and outcrops,including Spodumene bearing very coarse pegmatite with crystals up to 30centimeters in length. All of this is a very promising indication that thiswill lead to extensive development.
With lithium proven on site alreadyto hand, it gets even more exciting … there are additional known pegmatites inthe area that have never been tested for lithium mineralization.
That means we’ve got a tinyexploration company sitting on a potential major lithium discovery that couldbe far bigger than they know.
That’s the kind of situation that couldreap major rewards for an exploration company. And that’s exactly why United Lithium(CSE:ULTH; OTCMKTS:ULTHF) scooped up this discoverylast summer.
They believe this is could be amulti-million-ton discovery and a potential quick win for all.
They’re half-funded to get this tofeasibility for around $5 million, and investors won’t have to wait long basedon ULC’s plans.
By Q3 2021, this has the potentialto be the most sought-after pure-play lithium stock on the planet.
It’s already a discovery …
And it’s positioned to take advantage of a huge EUmarket right next to a battery gigafactory that could be starving for lithiumsoon enough.
There’s massive infrastructure in place, and now it’sall about defining the discovery, and if as big as hoped, getting productiongoing.
This could prove out to be near-surface, near-market,development stage lithium.
It’s lithium potentially for the taking, fivekilometers away from a port and 4-5 hours from a gigafactory. There’s no bettersetup for the coming lithium supply squeeze if this project produces as hoped.
And that makes United Lithium (CSE:ULTH; OTCMKTS:ULTHF) an excellent lithium play. Once we find out exactly howmuch lithium they’re sitting on, the market could react very favorably.
Other companies looking to capitalize on the booming lithium market:
Sociedad Química y Minera de Chile (NYSE:SQM) has seen its stock pricenearly double from $30 in mid-February 2020 to $57 at close on February 16,2021. Sociedad Química y Minera, for example, signed in December a long-termsupply deal with LG Energy Solution, which in turn supplies batteries tocarmakers such as Tesla and GM. Under the deal, SQM will supply battery-gradelithium carbonate and lithium hydroxide to LG Energy Solution between 2021 and2029.
The Chilean firm alsoannounced a capital increase of up to US$1.1 billion, most of which will beused for lithium carbonate expansion in Chile, where SQM plans to more thandouble its production.
Sociedad Química yMinera sees the lithium industry growing at around 20 percent per year in thelong term, supported by rising EV sales and emission reduction goals from Chinato the United States.
Charlotte, North Carolina-based Albemarle Corporation (NYSE:ALB) has also seen its share price almostdouble, from $88 to $162 over the past year.
Analysts are growingincreasingly bullish on lithium producers’ stocks, mostly because of the upsidepotential in lithium prices in the medium term, thanks to the constantlygrowing demand for EV and storage batteries.
The two biggestlithium producers, Albemarle and SQM, have recently announced expansionprojects and long-term supply deals as they believe the EV revolution and theenergy transition are just beginning.
Albemarle is also raising money via a public offering of common stock, withproceeds expected at US$1.3 billion, which will be mostly invested inconstruction and expansion of lithium operations in Silver Peak, Nevada, aswell as in Australia, Chile, and opportunities in China.
Thebiggest lithium producers are preparing for the growing EV demand, which is nowcoming not only from Tesla and Chinese start-ups, but also from establishedcarmakers such as the highest-selling U.S. automaker GM and Jaguar.
Automakers are a key factor in the lithium boom. EVmanufacturers, especially. NIO Limited (NYSE:NIO) used to be an outlier in the EV market. Infact, much of Wall Street was to write off their losses and give up on thecompany. It was even on the brink of bankruptcy But China’s answer to Tesla’sdominance powered on, eclipsed estimates, and most importantly, kept itsbalance sheet in line. And it’s paid off. In a big way. The company has seenits share price soar from $3.24 at the start of 2020 to a high of $50 earlierthis month, representing a massive 1443% returns for investors who heldstrong.
In November, NIO unveiled a pair of vehicles that would make even the biggestTesla devotees truly contemplate their brand loyalty. The vehicles, meant tocompete with Tesla’s Model 3, could be exactly what the company needs to takecontrol of its domestic market.
In addition to its automotive push, however, Nio, Tesla’s largest competitor inChina, has also started to offer abatteries-as-a-service concept, in which car buyers can ‘lease’ the battery oftheir vehicle and save as much as $10,000 on the price of a new vehicle, whilealso offering buyers the option to swap batteries after a few years of use. Andthat’s huge news in the lithium world, because it will mean give miners evengreater incentive to sign deals with the battery innovator.
Tesla (NASDAQ:TSLA) is without a doubt one of the hottest stocks on WallStreet. And that’s a big deal for lithium As one of the world’s mostexciting -and important- car makers, it has made going green a must in thisincredibly competitive industry. Its modern design has become the standard. Youwould have to go out of your way to not see a Tesla when walking around majorcities like San Francisco and Hong Kong.
Elon Musk had his eye on prize long before the green energy hype startedbuilding. In fact, he released the first Tesla Roadster back in 2008, makingelectric vehicles desirable when people were laughing at first-gen electricvehicles. Since then, Tesla’s stock has skyrocketed by over 14,000%. Largelythanks to its energy innovation.
In addition to producing one of the most desirable electric vehicles on themarket, Tesla is ramping up its solar and battery game, as well. Tesla’s SolarRoof project aims to change the way houses function. It replaces traditionalroofs with stronger, and arguably more aesthetically pleasing, solar panelsthat can power your entire home. It also comes in as the lowest-cost-per-wattsolar option in the American market. And its in-home superbatteries will be agame-changer for storing and distributing electricity in the future.
Tesla is leading the charge into a green future, and nothing can stop it. ElonMusk had a brief stint as the world’s richest man, but he could be returning tothat position in no time, and perhaps even be the world’s first trillionaire ifhe plays his cards right.
BlinkCharging (NASDAQ:BLNK) an electric vehicle charging company, will play avital role in the lithium market for years to come. Why? Because its charginginfrastructure will fuel even greater demand for the increasingly popularmetal. And it’s been a great stock for investors, as well. It’s seen its shareprice soar significantly over the past year and it’s showing no signs ofslowing. A flurry of new deals, including a collaboration with EnerSys havecreated some support for the relative newcomer.
Michael D. Farkas,Founder, CEO and Executive Chairman of Blink noted, “This is an excitingcollaboration with EnerSys because it combines the industry-leadingtechnologies of our two companies to provide user-friendly, high powered,next-generation charging alternatives. We are continuously innovating ourproduct offerings to provide more efficient and convenient charging options tothe growing community of EV drivers.”
Another high-profiledeal between Blink and Envoy Technologies to deploy electric vehicles andcharging stations adds further support to the company’s stock price.
Aric Ohana, CEO of Envoynoted, “We’re excited to work with Blink on the deployment of their fast Level2 charging stations as part of our exclusive electric car-sharing service. Thevision of our two companies is aligned: to advance the adoption of electricvehicles. To continue to drive the growth and success across our expandinglocations, we have to ensure that our clients have easy and efficient access tohigh-quality, reliable charging equipment. Blink has an established reputationas an innovator in the EV market, and we are thrilled to add them as apreferred partner.”
Canada’s renewableenergy push is gaining speed, as well. Boralex Inc. (TSX:BLX) is one ofCanada’s premier renewable energy firms. It played a major role in kickstartingthe country’s domestic renewable boom. The company’s main renewable energiesare produced through wind, hydroelectric, thermal and solar sources and helppower the homes of many people across Canada and other parts of the world,including the United States, France and the United Kingdom.
PolarisInfrastructure (TSX:PIF) Is a Toronto-based renewable energy giant with aglobal footprint. The company’s biggest projectsare in Latin America. It’s Nicaragua geothermal project, for example, isalready producing over 77 MW of renewable electricity. And in Peru, itsEl Carmen and 8 de Augusto power plants, is set to produce a combined 17MW ofelectricity in the near future.
Westport Fuel Systems (TSX:WPRT) is a renewable energy provider for the transportationindustry. it provides systems for less impactful fuels, such as natural gas. InNorth America alone, there are over 225,000 natural gas vehicles.But that shies in comparison to the global 22.5 million natural gas vehiclesglobally, which means the company still has a ton of room to grow!
While renewableproviders clearly take the lead, Canada’s tech and telecom giants won’t be leftout!
Take telecom giant ShawCommunications Inc (TSE:SJR.B), for example. Shaw is taking a leadershiprole among Canadian telecom providers through its use of renewable energy, Infact, it is one of the biggest customers of Bullfrog Power which sources itselectricity from a blend of wind energy and hydropower. It is also building itsown portfolio of clean energy investments.
BCE Inc (TSX:BCE)) is another Canadian telecom giant goingto great lengths to reduce its carbon footprint. For the past 25 years, BCE hasbeen at the forefront of the environmental movement. Their environmentalmanagement system (EMS) has been certified to be ISO 14001-compliant since 2009.
By. Ruby Wexford
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Forward-LookingStatements
This articlecontains forward-looking information which is subject to a variety of risks anduncertainties and other factors that could cause actual events or results todiffer from those projected in the forward-looking statements. Forward looking statements in this articleinclude that demand for lithium will increase in future as currently expected;United Lithium’s business and plans, including with respect to undertakingfurther acquisitions, completing the acquisition of Bergby, acquiringadditional mineral claims nearby Bergby, complying with the terms of the Bergbyacquisition and carrying out exploration activities in respect of its mineralprojects; that most of the lithium is reachable close to surface; that they canreduce costs compared to many similar projects; that ULC can produce a PEA byQ3 2021; and that they can raise $4M quickly. These forward-looking statementsare subject to a variety of risks and uncertainties and other factors thatcould cause actual events or results to differ materially from those projectedin the forward-looking information. Risks that could change or prevent these statements from coming tofruition include that the Company may not be able to finance its intendeddrilling programs, aspects or all of the property’s development may not besuccessful, their methods of mining of the lithium may not be cost effective;the risks that the acquisition does not complete as contemplated, or at all;that United Lithium does not complete any further acquisitions; that they donot acquire the additional mineral claims in the region of the Project prior toMarch 21, 2021; that United Lithium does not spend $1,000,000 on explorationwork on the Project within 18 months from the Closing Date; the Company may notbe able to carry out its business plans as expected; changing costs for miningand processing; permits may not be granted for the mining projects; increasedcapital costs; the timing and content of upcoming work programs; geologicalinterpretations and technological results based on historical or even currentdata that may change with more detailed information or testing; potentialmineral recoveries assumptions based on limited test work with further testwork may not be viable; competitors may offer cheaper lithium; more productionof lithium could reduce its price, or the price may drop for other reasons;alternatives could be found for lithium in battery technology; the availabilityof labour, equipment and markets for theproducts produced; and despite the current expected viability of its projects,that the minerals cannot be economically mined on its properties. Theforward-looking information contained herein is given as of the date hereof andthe writer assumes no responsibility to update or revise such information toreflect new events or circumstances, except as required by law.
DISCLAIMERS
PAIDADVERTISEMENT. This communication is a paid advertisement and is not arecommendation to buy or sell securities. Safehaven.com, Medtronics Ltd, andtheir owners, managers, employees, and assigns (collectively “the Company”) hasbeen paid by United Lithium ninety thousand US dollars for this article andcertain banner ads. In addition United Lithium has granted the Company stockoptions to acquire shares exercisable for 2 years at at price of $0.86 pershare. This compensation is a major conflict with our ability to be unbiased.This communication is for entertainment purposes only. Never invest purelybased on our communication.
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