The "Oil Of The Future" Is Set To Soar In 2021 / Commodities / Lithium
This boulder could be an indication of anexciting development in the lithium market.
Why?
Processed, that boulder is an importantingredient to power rechargeable batteries for electric vehicles like Teslas,BMWs, Mercedes, Volvos, Cadillacs, Hummers and a lineup of new entrants to theEV frenzy.
And with demand for lithium in Europeprojected to rise 60X in the coming decade...
This find couldn’t have come at a bettertime.
Not only is technology advancing rapidly butthe EU is now supporting the industry in the same way the U.S. supported Tesla inits goal of achieving lithium self-sufficiency by 2025.
Lithium is now a critical metal for Europe. In September2020, the EUadded lithium to its Critical Raw Materials (CRMs) list,warning of the need for a continuous flow of lithium supply for zero-emissionmobility.
They are investing billions, including…
$3.9billion (3.2 billion euros) approved in December 2019 for theEU’s first battery subsidies with seven countries to catch up to Asiancompetitors.
$3.5billion (2.9 billion euros) in its secondbattery-related “European Battery Innovation” project approved by the EuropeanCommission in 2021.
$9 billion … how much the EuropeanCommission expects to leverage in private sector investment in the sameproject.
$9.2billion (7.6 billion euros) in EU structural funds to support innovative battery projectsunder the Smart Specialisation Platform.
So, if you missed out on making money on Tesla… it’s happeningagain in Europe.
And now, a potential new discovery on a property that is undercontract by a $32-million market cap miner could be about to bring lithium toEurope...
UNITED LITHIUM (CSE:ULTH; OTCMKTS:ULTHF) ISBUYING A PROPERTY WITH A POTENTIAL DISCOVERY THAT COULD BE A LITHIUM SOURCE FORSWEDEN AND THE EUROPEAN MARKET AS A WHOLE
The Bergby Project is a propertywith recently discovered Lithium mineralization in central Sweden, near to theworld famous Woxna graphite mine and the new Northvolt lithium batterygigafactory.
This is already a mineralizationdiscovery. That is expected to grow.
Now, United Lithium (CSE:ULTH; OTCMKTS:ULTHF) is about to further define the discovery at acritical moment for the lithium market.
But still, it gets better than this: Bergby maybenefit from cost-effective surface and nearsurface extraction. In other words, it might turn out to be lithium that’s notonly parked right next to the best infrastructure in the world for batteries,but it should also be cheap to get at.
The Bergby project includes three exploration licenses covering 1,903 hectaresof prime EU market-bound lithium potential. Now United Lithium (CSE:ULTH; OTCMKTS:ULTHF) will be buying it, on terms and conditions that have beenmade public.
In Q4 2016, the Bergby discovery showed lithiummineralization in three outcrop areas.
In Q4 2017, thefirst drill program was completed with 28 of the 33 drill holes intersectinglithium mineralization.
They’ve found three types of lithiummineralization in Bergby’s boulders and outcrops—all of which are highlypromising for extensive development of lithium.
All the lithium minerals are contained in coarse pegmatite, some of which hasspodumene crystals up to 30 centimeters in length.
So, we already have a mineralization discovery and a groundmagnetic survey appear to show the thickest part of the pegmatite, which wasthen identified by drilling as well. And the magnetic survey suggests there maybe a lot more …
Assay results from 41 boulders showed the potential forhigh-quality lithium. Li2O (lithium oxide) averaged 1.06% and ranged from 0.03%to 4.56%, which is getting close to the theoreticalmaximum.
But even with all the pegmatite showings in these boulders and outcrops, thereare still more areas that have never been tested for lithium mineralization.
A tiny, $32-million miner is expected to soon close on alithium property that they will soon be working at defining the size of itsmineralization discovery. This is the moment when junior miners tell the worldwhat they have found..
One of the reasons the EU is throwing billions at theEV market is because they are now importing from Argentinaand China…
They’re starting a Gigafactory war, even, hoping tocreate intense competition to push things forward.
They’re offering billionsof euros of co-funding to companies willing to build giant batteryfactories … beyond Tesla.
And they want lithium independence. They need lithiumindependence.
This is the critical moment that makes United Lithium’slithium exploration project right in Europe’s backyard a premium setup.
This lithium could be sold nearby to a Who’s Who of EuropeanLithium Battery Manufactures companies.
All of them are within a one-day ship ride, including …
PLUS, once the Northvoltlithium battery Gigafactory goes online in Sweden... it will get even better.
A REPEAT OF THE US LITHIUM MARKET?
We’ve known for some time that there wouldeventually be a lithium supply squeeze.
All the hype around lithium a few years agowas … premature. Or forward-thinking, depending how you want to look at it.
Some investors jumped the gun and went allin expecting a supply squeeze that never came.
Now, that supply squeeze is here, and theproof is in the EV and EV tie-in stocks.
Tesla (NASDAQ:TSLA) has gained 420% in just 12 months and is, as always, unstoppable.
Blink Charging Co. (NASDAQ:BLNK), whichowns, operates, and provides EV charging equipment and networked EV chargingservices in the United States, has seen 52-week gains of over 2,000%.
ChineseEV maker NIO (NYSE:NIO) is up a stunning 1,450% in a year.
Andthe list goes on … because the market is all about the energy transition …
AndEVs are the most important immediate element of that.
Theyall need tons of lithium, so that’s one place the big money is looking.
BNEFhas revealed that a broad measure of global energy transition investments in2020 clocked in at a record $501.3billion,good for 9% Y/Y growth.
Battery storage, smart grid and energyefficiency companies managed to bring in over $8 billion last year … that’s upfrom $3.8 billion in 2019.
Battery storage also saw a huge boost in corporate funding, with 54 dealsin 2020 worth $6.6 billion.
AndVC is starving for all of this. Globally, venture capital funding for ourenergy transition was 12% higher in 2020, raising $2.6 billion.
There’s no better place to be RIGHT NOW than Europe—the most desperate to gainlithium independence, and the most willing to throw billions of dollars at it.
A mineralizationdiscovery already made and now being defined is geographically perfectlypositioned to take advantage of new energy policies and funding that willrender lithium one of the most strategic metals in the world.
$32 MILLION MARKET CAP COMPANY ABOUT TO BUY PROPERTYWITH POTENTIALLY SIGNIFICANT LITHIUM DISCOVERY
Everyone needs lithium. Tesla, Mercedes,Porsche, Volvo, BMW and more.
And now, when the timing couldn’t be better, United Lithium is moving fast to buya property right in Europe’s back yard … a lithium discovery that ifcommercialized, can go directly to market and is surrounded not only by othermines and tons of infrastructure, but in close proximity to a batteryGigafactory that will come online soon.
A $32-million market cap company buying a project with this much potential isthe kind of project that has a high risk/ reward ratio for investors.
United Lithium (CSE:ULTH; OTCMKTS:ULTHF) signed an agreement for this project last fall,keeping a close eye on the energy transition winds and the rapidly growing EVappetite—especially in Europe.
By. Aya Beekhof
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TOTHE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This article contains forward-looking information which is subject to a varietyof risks and uncertainties and other factors that could cause actual events orresults to differ 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; UnitedLithium’s business and plans, including with respect to undertaking furtheracquisitions, completing the acquisition of Bergby, acquiring additionalmineral 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; increased capitalcosts; 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. The forward-lookinginformation contained herein is given as of the date hereof and the writerassumes no responsibility to update or revise such information to reflect newevents or circumstances, except as required by law.
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