Lithium Prices Soar As Tesla, Apple And Google Fight For Supply
The electrical car (EV) revolution is gaining severe momentum.
According to consultants’ projections, demand for electrical automobiles ought to rise at a 21.1% Compound Annual Growth Rate (CAGR) till 2026.
The extraordinary demand that’s forecast for EVs over the subsequent 5 years has now begun to set off a large disruption within the world vitality markets.
As demand for EVs continues to maneuver larger, the demand for lithium – the important element wanted for the batteries that energy all these EVs – can also be projected to climb larger.
According to Roskill Information Services, “lithium chemical demand from end-use sectors is expected to increase year-on-year to around 280,000 tonnes lithium carbonate equivalent.”
These projections have already begun to have a profound affect on the worth of lithium within the market.
Lithium costs declined from 2018 by the tip of 2020, however since December 1, 2020 the worth of lithium has soared 71.24% — and could possibly be poised to climb even larger.
With rising lithium costs and hovering projected demand, what’s the greatest excessive danger / reward method for traders to play this EV-powered pattern for optimum upside potential?
One under-the-radar firm, United Lithium Corp. (CSE:ULTH; OTC:ULTHF), seems that it could possibly be on the proper place on the proper time.
United Lithium’s flagship undertaking is a not too long ago found lithium deposit positioned in central Sweden. The firm has agreed phrases to accumulate the undertaking, with closing anticipated by April.
This undertaking is a near-surface, near-market, exploration-stage lithium property that seems poised to assist the corporate reap the benefits of Europe’s hovering demand for electrical automobiles, and the EU’s robust push for lithium self-sufficiency.
United Lithium Corp.’s Bergby Project: A Near-Surface, High-Grade Deposit Offering Significant Upside Potential
The Bergby undertaking is a not too long ago found lithium-rich pegmatite deposit in central Sweden that gives an superb location.
This property is close to to the world well-known Woxna graphite mine, the brand new Northvolt lithium battery gigafactory and near main mining and transportation infrastructure, workforce and gear suppliers.
The Bergby undertaking, if confirmed up as a business deposit, is optimally positioned to learn from entry to the EU market and its rising demand for different vitality car manufacturing, excessive tech units and grid storage techniques.
In addition, the undertaking’s proximity to subsequent technology lithium-ion battery manufacturing crops is important, as is entry to close by EU academic establishments and low energy prices for processing exhausting rock lithium bearing minerals cost-effectively.
The Bergby lithium property ought to have the ability to capitalize on three key parts:
Probable low price floor and near-surface extraction…
Well-established mining and transportation infrastructure, and…
Rapid success of commerce rules permitting tariff-free gross sales to potential EU lithium prospects.
But the placement of the Bergby lithium undertaking is barely a part of the story of its potential.
Historic Sampling Shows Extensive Lithium Mineralization
Mapping and sampling of United Lithium Corp.’s (CSE:ULTH; OTC:ULTHF) Bergby property website outlined an intensive discipline largely comprising boulders with considerable lithium-bearing minerals.
Assay outcomes from 41 boulders exhibits Li2O (lithium oxide) values averaged 1.06% inside a spread from 0.03% to 4.56% Li2O; and Ta2O5 (tantalum pentoxide) assays averaged 168ppm, starting from 1 ppm to 499 ppm Ta2O5.
Further mapping positioned lithium mineralization in outcrops. Fifteen samples collected from three outcrops returned Li2O values averaging 1.71%, starting from 0.01% to 4.65% Li2O; and Ta2O5 values averaging 133 ppm inside a spread from 16 ppm to 803 ppm Ta2O5.
In 2017, the primary and solely drill program was accomplished on the Bergby undertaking.
IN that drilling program, 28 of the 33 holes drilled on the property intersected lithium mineralization alongside roughly 450m strike size.
The deepest holes examined to solely 65m under floor with mineralization remains to be open alongside strike in each instructions and nicely as down dip.
Three principal kinds of lithium mineralization have been noticed in broadly -spread boulders and outcrops on the Bergby property, offering encouragement that mineralization could also be extensively developed.
Homogeneous, high quality grained to medium grained leucogranite/aplite: Complex zoned boulders the place the aplite materials seems to intrude coarse grained pegmatite . This fashion is wealthy in tantalum, with a median grade from 31 boulders of 208 ppm Ta2O5. The lithium mineralogy of this fashion isn’t but confirmed, nonetheless, the measured particular gravity of highest-grade samples was comparatively gentle and suggests petalite is a dominant mineral (LiAlSi4O10).
Petalite dominated extraordinarily coarse-grained pegmatite: Located in each outcrop and boulders; this fashion is comparatively excessive in lithium and poor in tantalum.
Spodumene-bearing, very coarse grained pegmatite: Coarse spodumene crystals (LiAl(SiO3)2 have been acknowledged in boulders, with crystals as much as 30 cm in size.
What’s Next for United Lithium Corp.’s Bergby Project
The European Union has sounded the alarm on important uncooked supplies shortages, estimating that to satisfy its local weather neutrality objective, it’s going to want as much as 18 instances extra lithium and 5 instances extra cobalt in 2030 than present consumption.
By 2050, the EU estimates that it’ll want a staggering 60 instances extra lithium than present demand.
For this purpose, the EU has added lithium to its important supplies listing and launched a multi-billion greenback fund to assist pace the manufacturing of uncooked supplies to provide the European battery market.
This means there may be potential for important capital accessible for tasks akin to United Lithium Corp.’s Bergby undertaking because the scope of the undertaking comes into focus.
Now {that a} discovery has been made at Bergby, the subsequent activity for United Lithium (CSE:ULTH; OTC:ULTHF) is to outline the general measurement and grade of the lithium and tantalum useful resource on the property.
The deposit at Bergby is open alongside the strike to the north and south…and there are extra recognized pegmatites within the space which have by no means been examined for lithium mineralization.
A easy drill program on the property of one other 25 to 40 holes could possibly be massively impactful for the corporate in a comparatively brief time frame.
It’s doable that such a modest drilling program – one which the corporate has the monetary sources to undertake – could possibly be accomplished throughout the 12 months with the objective of uncovering a discovery of a number of million tonnes on the property.
Experienced Management Team is Ready to Deliver Results
One of an important components in evaluating any exploration firm is the standard of its administration.
In the case of United Lithium (CSE:ULTH; OTC:ULTHF) the corporate is led by an skilled management crew with geologic experience in addition to a historical past for main profitable exploration corporations.
This crew contains…
Michael Dehn – President, CEO & Director
With over 20 years of expertise within the mining trade, he labored as an exploration geologist and later as a Senior Geologist with Goldcorp Inc. Michael has been a director and officer of publicly traded and personal junior mining corporations.
His experience lies in grassroots to superior minerals exploration, and advertising and financing junior corporations and Mr. Dehn has intensive expertise in lithium and cobalt exploration and processing.
Faizaan Lalani – CFO & Director
Mr. Lalani is an accounting and finance skilled with over 10 years of expertise overlaying audit, monetary reporting, company finance, and operations administration. Mr. Lalani beforehand labored within the audit and assurance group at PricewaterhouseCoopers LLP, Canada, the place he obtained his CPA, CA designation, gaining huge expertise in accounting practices in each the private and non-private sectors throughout his tenure.
Mr. Lalani has additionally served as a Senior Accountant for PortLiving, a Vancouver based mostly actual property improvement firm, since 2016 and, from 2014 to 2016, Mr. Lalani served as a Senior Accountant with Century Group, a Vancouver actual property improvement firm. Mr. Lalani at the moment serves as a director and Chief Financial Officer of Soldera Mining Corp., and a director of IMC International Mining Corp.
Bottom Line: Why the Future Could Be Bright for United Lithium Corp.
* Demand for lithium is hovering – and the worth of lithium has shot up 71.24% within the final two months. With the worldwide shift towards electrical automobiles in full swing, the world is desperately looking for to convey new provides of lithium on-line…and the markets are more likely to reward any firm that may accomplish that handsomely.
* United Lithium is an organization whose major asset exhibiting lithium mineralization is in the best place on the proper time, because the Bergby undertaking’s location in Sweden is close to the brand new Northvolt lithium battery gigafactory and near transportation infrastructure.
* Drilling on the Bergby undertaking has proven an intensive lithium-mineralized floor boulder discipline. 28 of the 33 holes drilled on the property in a 2017 drill program intersected lithium mineralization and the undertaking confirmed potential high-grade, near-surface lithium potential.
* The firm plans to maneuver ahead with a further drill program in 2021 that would doubtlessly reveal a lithium deposit discovery on the property. Positive outcomes from this drill program could possibly be a real game-changer for the corporate with Europe – and battery corporations – so determined to convey new lithium sources on line as rapidly as doable.
You can discover extra info on United Lithium Corp. right here: (CSE:ULTH; OTC:ULTHF)
Other corporations depending on the battery growth:
Apple (NASDAQ:AAPL) is a pacesetter in Big Tech’s sustainability push…nevertheless it’s extra than simply that. From the merchandise themselves, to the packages they got here in, and even the information facilities powering them, Apple has gone above and past to chop the environmental affect.
But now, it’s even stepping into the transportation enterprise. “We’re focusing on autonomous systems. It’s a core technology that we view as very important. We sort of see it as the mother of all AI projects. It’s probably one of the most difficult AI projects actually to work on.” Apple CEO Tim Cook on Apple’s plans within the automobile area. Electric automobiles aren’t more likely to be ignored, both…
Apple’s rumored automobile design implies that extra energetic materials could be packed contained in the battery, giving the automobile a doubtlessly longer vary. Apple can also be analyzing a chemistry for the battery referred to as LFP, or lithium iron phosphate which is inherently much less more likely to overheat and is thus safer than different varieties of lithium-ion batteries.
Microsoft (NASDAQ:MSFT) is a tech big that creates the whole lot from software program to {hardware} and extra. This is vital as a result of not solely does it assist corporations with exploration of minerals, it depends on them simply as a lot. Microsoft is an organization that can also be going above and past in its emissions targets, aiming to be carbon impartial within the subsequent ten years. A feat that won’t be a simple activity for such a large expertise company. Why does that matter within the lithium race? Because the inexperienced vitality growth will probably be destroyed with out the very important steel.
That’s why Bill Gates’ tech big has made quite a few investments in clear vitality throughout the globe. From Ohio to the Netherlands, Microsoft is pouring hundreds of thousands into photo voltaic and wind tasks to not solely assist cut back its personal carbon footprint but additionally assist neighboring communities do the identical.
In addition to its investments and inexperienced operations, Microsoft can also be stepping into the auto-game. Microsoft’s Azure cloud-based infrastructure and edge computing goes to be pivotal on this new trade. Not solely will it permit automakers to investigate knowledge and optimize their merchandise, however it’s going to additionally give them the chance to conduct superior checks and simulations to fine-tune their software program in risk-free environments. It’s even partnering with leaders within the auto trade akin to Renault and Audi.
Mark Everest, Information Systems Development Manager, Renault Sport Formula One Team famous, “There are so many components which can be consistently altering and may have an effect on race technique: monitor temperature, tire efficiency, what the opposite drivers are doing. Simulation helps us rapidly perceive easy methods to configure the automobile for a selected monitor.”
Nvidia Corporation (NASDAQ:NVDA) has made major progress towards a more sustainable tomorrow. And as a chipmaker, it is reliant on the production of key metals and minerals such as copper and lithium. But what makes NVIDIA even more special is that it is tackling the ESG trend on all fronts. In fact, it was ranked as one of the world’s top 100 companies to work for due to its incredible working conditions, hiring practices and professional development programs. In addition to its ranking as one of the world’s top companies to work for, it was also ranked on MIT Tech Review’s 50 Smartest Companies list and the Human Rights Watch’s Corporate Equality Index.
Not only is Nvidia a role model for companies in its social and governance stance, it is also firmly committed to building a greener future, as well. From its push to use renewable energy in its day to day operations to its innovative technological advancements in chipmaking which reduce the amount of energy needed to power devices, Nvidia is checking all boxes for impact investors.
This year, Nvidia has done something that many other companies have struggled to do. Not only has it stayed afloat in one of the most trying years in recent history, it has thrived. Since January 2020, Nvidia’s share price has increased from $293 to $525, representing a noteworthy 80% increase in value.
While electric vehicles are the talk of Wall Street right now, autonomous vehicles are on the horizon as well, and they too will rely on a number of key metals and resources. And the leader in this push is Waymo, a subsidy of tech giant Alphabet Inc. (NASDAQ:GOOGL). Waymo may just be the de facto leader in the emerging autonomous vehicle industry. It’s already had cars driving themselves across the United States for several years. In fact, in Arizona alone, Alphabet’s self-driving cars have logged over 6.1 million miles. To put that in perspective, that means that Alphabet’s autonomous cars have driven the distance between New York City and San Francisco over 2100 times. Or, as the company explains, “over 500 years of driving for the average licensed US driver.” Even more impressive, however, the vehicles were only involved in 47 “contact events”, and the vast-majority of the collisions were the result of human error and none resulted in any sort of severe injury for anyone involved.
While these tests are extremely promising for Alphabet’s Waymo, there are still some hurdles to overcome. First and foremost, these lengthy trials took place in Phoenix, a city not exactly known for extreme weather. Second, an issue that may frustrate many drivers, the vehicles operated in a sort of hyper-cautious mode, driving at slower speeds and taking sometimes unnecessary precautions to avoid conflict.
While Alphabet’s Waymo gets a lot of credit for these massive accomplishments, a widely loved and wildly popular chipmaker is at its core. Intel Corporation (NASDAQ:INTC) and Waymo teamed up way back in 2017, and have worked together to fine tune their technology together ever since. Through their mutual knowledge of hardware and software, the tech giants have made leaps and bounds towards building the car of the future.
In addition to its efforts with Waymo, Intel has also been on the forefront of developing its own artificial intelligence and vision hardware. Back in 2017, it acquired MobileEye, a supplier of camera-based chips and software to the global mobile industry. And now, in a new deal with Luminar, another emerging tech company on the forefront of this movement, Intel is positioning itself as its own giant of this new sector.
Canada’s Silicon Valley is all in on the sustainability race, too. Shopify Inc (TSX:SH) Canada’s own e-commerce giant helps users build their own online stores. It has huge clients – everyone from Tesla to Budweiser are on board. And the company is beloved by millennial investors. In addition to its revolutionary approach on e-commerce, Shopify is playing an increasingly active role in creating a greener tomorrow. It has committed to spending at least $5 million annually to help combat climate change. It’s even making cuts throughout its own operations, decommissioning its data centers and sourcing renewable power for its buildings. Thanks the these efforts, Shopify has posted a return of 137% this year alone, and is showing no signs of slowing.
The Descartes Systems Group Inc. (TSX:DSG) is a Canadian multinational technology company specializing in logistics software, supply chain management software, and cloud-based services for logistics businesses. Recently, Descartes announced that it has successfully deployed its advanced capacity matching solution, Descartes MacroPoint Capacity Matching. The solution provides greater visibility and transparency within their network of carriers and brokers. This move could solidify the company as a key player in transportation logistics which is essential-and-often-overlooked in the mitigation of rising carbon emissions.
Another way to get some indirect exposure to the booming tech, EV and mineral industries is through AutoCanada (TSX:ACQ), a company that operates auto-dealerships through Canada. The company carries a wide variety of new and used vehicles and has all types of financial options available to fit the needs of any consumer. While sales have slumped this year due to the COVID-19 pandemic, AutoCanada will likely see a rebound as both buying power and the demand for electric vehicles increases. As more new exciting EVs hit the market, AutoCanada will surely be able to ride the wave.
Burcon NutraScience Corporation (TSX:BU) is a Canadian tech firm rethinking the our diets. And while that may not seem exciting for minerals investors, it is a key stock to watch in the wider sustainability boom. With a focus on high-purity, sustainable, flavorful, and affordable products, Burcon has checked every box in the consumer’s book. Founded way back in 1998, the company has been at the forefront of the movement for over two decades, and it’s only become more refined since.
According to its mission statement, Burcon “seeks to improve the health and wellness of global consumers through the discovery and development of sustainable, functional and renewable plant-based products for the global food and beverage industries.”
Mogo Finance Technology Inc. (TSX:GO) is a new spin on unsecured credit, which is a burgeoning sub-segment of FinTech. Providing loan management, the ability to track spending, stress-free mortgages, and even credit score tracking, Mogo is at the forefront of an online movement to assist users with their financial needs.
Mogo’s software analyzes borrowers instantly and greatly reduces the traditionally cumbersome underwriting process for loans. It’s online only, so there’s very low overhead and a ton of cash to spend on marketing. Labeled as “the Uber of finance” by CNBC, Mogo is definitely turning heads.
With increasing membership growth and revenue lines continuing to improve, and a platform which many banks have failed to offer, Mogo could well become an acquisition target in the near future.
By. Jody Wilson
The technical information presented in this article has been reviewed and approved by Robert W. Schafer QP, PGeo, as defined by NI 43-101
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This article contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this article include that demand for lithium will increase in future as currently expected; United Lithium’s business and plans, including with respect to undertaking further acquisitions, completing the acquisition of Bergby, acquiring additional mineral claims nearby Bergby, complying with the terms of the Bergby acquisition and carrying out exploration activities in respect of its mineral projects; that most of the lithium is reachable close to surface; that they can reduce costs compared to many similar projects; that ULC can produce a PEA by Q3 2021; and that they can raise $4M quickly. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the Company may not be able to finance its intended drilling programs, aspects or all of the property’s development may not be successful, 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 do not acquire the additional mineral claims in the region of the Project prior to March 21, 2021; that United Lithium does not spend $1,000,000 on exploration work on the Project within 18 months from the Closing Date; the Company may not be able to carry out its business plans as expected; changing costs for mining and processing; permits may not be granted for the mining projects; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on historical or even current data that may change with more detailed information or testing; potential mineral recoveries assumptions based on limited test work with further test work may not be viable; competitors may offer cheaper lithium; more production of lithium could reduce its price, or the price may drop for other reasons; alternatives could be found for lithium in battery technology; the availability of labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the minerals cannot be economically mined on its properties. The forward-looking information contained herein is given as of the date hereof and the writer assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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PAID ADVERTISEMENT. This communication is a paid advertisement and is not a recommendation to buy or sell securities. Safehaven.com, Medtronics Ltd, and their owners, managers, employees, and assigns (collectively “the Company”) has been paid by United Lithium ninety thousand US dollars for this article and certain banner ads. In addition United Lithium has granted the Company stock options to acquire shares exercisable for 2 years at at price of $0.86 per share.This compensation is a major conflict with our ability to be unbiased. This communication is for entertainment purposes only. Never invest purely based on our communication.
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