Lithium
Stocks and Mining in 2018
Lithium
Trends 2017: EV Plans Fuel Supply Concerns
For the past three years, Tesla (NASDAQ:TSLA) has
brought much excitement to the lithium space, and 2017 wasn’t an
exception. In January, the company started production at its Nevada
facility, which is expected to produce 35 GWh per year of lithium-ion
battery cells in 2018. During Q1, the Elon Musk- led company also
announced plans to open two to three EV gigafactories by the end of
2017, boosting excitement among investors.
But as many analysts say, Tesla is just one
story, and this year many car makers started
to outline plans to win a space in the electric
car race. In fact, in Q1, analysts at UBS
(NYSE:UBS) raised their forecast for global EV
sales in 2021 to 3.1 million units from 2.5 million, and to 14.2
million units in 2025.
This surging demand for EVs is expected to push
demand for lithium-ion batteries
above 400 GWh by 2025, Benchmark Mineral
Intelligence says. That means supply of
lithium, a key component in the batteries, will
need to reach 400,000 to 500,000 tonnes
by the same year.
“There’s much more consensus on demand; we’re
no longer even debating demand.
We’re shifting to supply and whether, as an
industry, we can deliver,” John Kanellitsas,
vice-chairman of Lithium Americas (TSX:LAC), said
earlier in 2017.
Most analysts agree that the world is not short
on lithium. The “lithium triangle,” which
overlays Argentina, Bolivia and Chile, holds 54
percent of the world’s lithium resources,
which currently sit at a total of 14 million MT.
But while reserves are large, bringing
projects into the lithium market is not always
easy; after all, it can take years for a new
mine to be producing at full speed.
In Q1, China continued to be a key player in the
EV space, in part due to environmental
pressure. The government is pushing for
all-electric battery cars and plug-in hybrids to
account for at least one-fifth of its vehicle
sales by 2025. China already produces 55
percent of lithium-ion batteries globally, and
its share is forecast to grow to 65 percent, according to Bloomberg
New Energy Finance.
“This is about industrial policy. The Chinese
government sees lithium-ion batteries as a
hugely important industry in the 2020s and
beyond,” said Bloomberg New Energy Finance analyst Colin
McKerracher.
In Q2, the market was flooded with news stories
about electric cars and the huge
amount of lithium demand that could hit the
market in the next few years.
“The success of EVs will depend on our ability
to deliver lithium to the world,” Lithium
Americas CTO David Deak said at this year’s
Benchmark World Tour stop in Toronto,
adding that “the lithium market must grow by a
factor of 20 for a world that runs on
EVs.”
In fact, analysts believe that despite the
world’s large lithium reserves there is not
enough supply in the pipeline to satisfy the
expected demand by 2025. “It is our
expectation that the lithium industry will
struggle to keep up with demand between now
and 2021. [We don’t expect an] oversupply [in
the market],” said Benchmark Managing
Director Simon Moores.
Looking over to the major news stories in Q2,
Argentina’s new mining deal, which could
see its lithium carbonate output rise
substantially by 2022, was one that impacted the
market. If the new mining act brings the expected
investments, the country could triple
production in the next five years.
Lithium expert Joe Lowry said earlier this year
that the country could develop two more
world-class assets within the next four or five
years. “Given the number of producers,
and the relative ability to bring new production
online, I believe that by 2021 or 2022,
Argentina will be outproducing Chile,” he said.
Another big news story that hit the market in the
second quarter was worries that Tesla
might not be able to deliver its Model 3 on time
due to a battery shortfall.
Moving into Q3, pricing in China was estimated to
go up rather than down — back into
the upper teens for lithium carbonate and
slightly higher for hydroxide, both of which are considered
battery-grade lithium, expert Lowry said at the time. “My “new
normal” prices are $12-14/kg range for carbonate pricing and
$18-22/kg for hydroxide,” he said in
his Lithium Halftime report. Similarly, Benchmark
analysts said that the average global price of lithium carbonate rose
by 9 percent in Q2, “led by pressures into the Asian battery sector
in particular.” At the beginning of the second half of the year,
announcements from major governments hit the lithium market. France,
the UK and potentially China all outlined plans to ban fossil fuel
cars by 2040. Other countries have also set electric car sales
targets or have hinted at bans on ICE cars in the coming years; such
countries include Norway, Germany and the Netherlands. n addition,
several car makers said they will electrify most of their models by
the mid-2020s, including Volvo (STO:VOLV), BMW (ETR:BMW), GM
(NYSE:GM), Mercedes, Dyson and Ford (NYSE:F).
Partnerships between major carmakers and Chinese
firms were also a major trend
during the quarter, with Renault-Nissan and Ford
fighting for a place in the surging EV
market.
In the third quarter, sales of EV and plug-in
hybrid batteries exceeded 287,000 units, up
63 percent compared to the same period last year
on the back of strong Chinese demand. That number is expected to
increase significantly as the electric car revolution
continues to unfold.
Another major news story in Q3 was producers’
long-term contract strategies. As
mentioned, processing lithium for use in
batteries can be challenging; as a result,
producers are on the hunt for ways to ensure they
have enough funding to meet future
demand. Top lithium producers such as SQM
(NYSE:SQM) and FMC (NYSE:FMC) are
reportedly betting on long-term agreements to
fund expansions.
In Q3, the London Metal Exchange also started to
consider introducing a lithium
contract to give investors exposure to growth in
EVs. But expert Lowry commented at
the time that even though he expects a lithium
contract to be launched at some point, it
is likely a few years off. “[The] lithium
market is still too small for the LME to implement a contract but
there is no question that it is desired from by major purchasers,”
he said in August.
In September, Australia-listed Kidman Resources
(ASX:KDR) and Chile’s SQM agreed
to form a joint venture to develop the Mount
Holland lithium project. This type of alliance could be critical for
lithium supply, Lowry explained in an interview earlier this year.
Later in the quarter, Volkswagen (FWB:VOW) said
it was looking to invest $60 billion into electric car content,
including batteries, and was aiming to sign supply deals for raw
materials by the end of the year.
Before the end of Q3, Australian Pilbara Minerals
(ASX:PLS) signed a lithium offtake
deal with Chinese car manufacturer Great Wall
Motor (HKEX:2333) to further develop
its flagship Pilgangoora lithium-tantalum
project. The deal was seen as a milestone in
the space, as it was the first investment deal by
an automaker into an upstream supplier
of lithium raw materials. Until now, offtake
agreements have in general been with
chemical manufacturers and traders rather than
car makers.
After the news, lithium expert Chris Berry said
security of supply is still
under appreciated. “[It’s] going to be
interesting to see how/if other automakers move to secure raw
material access,” he added.
As the year comes to an end, many market
participants believe 2017 has been the year
of the electric car. But as car makers realize
how much supply is required, investments
will be needed to ensure that lithium jumps from
a niche market to mainstream, Moores
said in an October interview.
Looking at major Q4 news stories, several
companies started to show interest in a stake
in SQM. The company has reportedly attracted
interest from mining giant Rio Tinto
(ASX:RIO,LSE:RIO,NYSE:RIO), China’s GSR
Capital, Sinochem International (SHA:600500), battery firm Ningbo
Shanshan (SHA:600884) and Tianqi Lithium Industries (SZSE:002466).
SQM is currently in a legal dispute over its lithium lease with
Corfo, Chile’s state-run development agency; it may not be resolved
until the end of 2018.
Another major news story in Q4 came from LG Chem
(KRX:051910), which outlined
plans to invest $1.63 billion to open the biggest
lithium-ion battery factory in Europe.
China currently leads in the production of EV
batteries, but car manufacturers have
been calling for Europe to start producing the
batteries in order to remain competitive.
Benchmark is now tracking 26 battery cell plants
that are expected to start production or expand capacity by 2022. In
2014, there were only three battery mega factories in the
pipeline. “The combined planned capacity of
these plants is 344.5GWh. To put that into
perspective total lithium ion cell demand in 2017
is estimated at 100GWh,” but the
industry needs to scale up, the firm said.
In fact, Cairn Energy Research estimates that
lithium-ion battery demand will reach 750
GWh by 2026. And according to Benchmark, the
increasing demand for raw materials
key in batteries will see the need for lithium
raise from 75,000 tonnes in 2016 to 550,000
tonnes by that time.
Lithium
Outlook 2018: Higher Supply and Demand
Demand for electric cars continued to grow in
2017, and lithium, a key metal used in the batteries that power them,
performed better than many expected. Investor interest in the metal
surged as lithium and electric vehicles (EVs) made news headlines
throughout the year. Prices were up, and many TSX- and TSXV-listed
stocks jumped over 100
percent in 2017. With the start of 2018 just
around the corner, many investors are now wondering what will happen
to lithium next year. Here, the Investing News Network looks at
lithium’s 2017 price performance, what analysts had to say about
the market and what’s ahead for the metal in 2018. Overall, market
participants continue to be optimistic about lithium’s future.
Looking back at how lithium prices performed in 2017, it’s clear
that prices remained strong throughout the year. As the chart below
from Benchmark Mineral Intelligence shows, that has been the trend
for the last few years as well.
Chart
via Benchmark Mineral Intelligence.
“The continued pricing strength in lithium has
been a surprise,” said Chris Berry of
House Mountain Partners and the Disruptive
Discoveries Journal. He added that his
previous demand forecast out to 2025 for lithium
ended up being too low.
“I thought the lithium market (on a LCE basis)
would grow to roughly 550,000 tonnes
per year, [but] in the middle of the year I
adjusted this upwards to 617,000 tonnes by
2025. This still appears too conservative based
on potential gigafactory-scale
expansion,” he added.
In fact, Benchmark Mineral Intelligence is now
tracking 26 megafactories, up from
just three back in 2014. The combined planned
capacity of these plants is 344.5 GWh.
To put that into perspective, total lithium-ion
cell demand in 2017 is estimated at 100
Gwh. While that number might seem high, global
lithium-ion battery demand is expected to grow between six and seven
times by 2026, which will require a battery pipeline of
nearly double what exists today.
“We said a few years ago that the present
lithium price run will continue, and it has. It
has, and it’s gone into a second phase now,”
Benchmark Mineral Intelligence Managing
Director Simon Moores told the Investing News
Network at this year’s Cathodes
conference.
“Quite simply, there’s not enough supply to
meet the demand, and the demand is
increasing quicker than the supply is. Much, much
quicker. Therefore, lithium’s price will
remain strong for some time,” he added. For his
part, lithium expert Joe Lowry said in his Lithium in Review report
that “2017 was a year when virtually all the positive surprises
were on the demand side and most of the negative surprises were on
the supply side.” The expert also recently explained that the “Star
Alliance of the lithium market” was one of the major trends this
past year. Looking ahead to 2018, supply constraints look set to
continue as the lithium demand forecast rises.
In terms of demand, analysts agree that the
lithium space will be led by battery
production. “While most of the major battery
expansions are due to come into
production closer to 2020, a lot of battery
producers will be looking to secure their raw
material supply chains ahead of these
expansions,” Benchmark Mineral Intelligence
analyst Andrew Miller explained.
He also expects to see continued growth in the
volume of lithium carbonate and lithium
hydroxide sold into the battery sector in 2018.
Looking over to supply, many existing producers
are seen expanding production in
2018, such as Albemarle (NYSE:ALB) in Chile and
hard-rock producers in Western
Australia. “In terms of new projects, spodumene
will be the main source of expansion in
the short term,” Miller said.
He mentioned Pilbara Minerals (ASX:PLS), which
expects to be in production by the
second half of 2018, and Nemaska Lithium
(TSX:NMX), which recently announced its
first delivery of lithium hydroxide, as some
examples. “A number of others are pushing
ahead with developments in 2018, but it will
likely be 2019 onwards before they reach
significant volumes,” Miller added. Similarly,
Berry said that more hard-rock lithium supply from Australia is
expected to hit the market in 2018, with a wave of brine supply
following later in 2019, “so I don’t see any real moderation in
pricing until later in 2018 at the earliest.”
For his part, Lowry said in his report that
execution of the key hard-rock projects in
Australia, such as Pilbara Minerals and Altura
Mining (ASX:AJM), will be “a bellwether
for future pricing trends.” He added,
“[h]owever, the most important supply side story
from my perspective in 2018 will be the
resolution of the SQM/CORFO situation.”
Moores said the biggest challenge for the
industry will be to bring lithium into the
mainstream. “The industry needs big money to
come into the space, it needs for the big
players to understand the opportunities here. It
needs these companies to understand
that they have to secure the whole supply chain,
from the mine to the battery, if they’re going to realize [their]
very bullish targets,” he commented. He believes the industry needs
to raise another $7 to $9 billion to get to where it needs to be by
about 2025 to 2026. Meanwhile, Lowry said earlier this year that
because investments have been delayed for so long, he doesn’t
believe that enough lithium can be brought into the market by 2025 to
do more than 10-percent EV penetration. After another strong year,
lithium-focused investors are wondering what to expect in 2018. For
Miller, one of the biggest trends for the industry in 2018 will be
the introduction of more raw material feedstock and whether there is
the necessary capacity to process this material in the short term.
“This has been a development in the market throughout H2 2017 as
the market has shifted from an under supply of raw material to
conversion capacity,” he said, adding that this trend will likely
continue with the additional raw material expansions planned for
2018. “The question is how quickly this feedstock material can be
converted and integrated into the supply chain,” Miller noted.
In terms of prices, Miller expects them to be
“more stable next year,” although the
market will remain finely balanced. “New raw
material supply will continue to enter the
market, and although there will be significant
growth in battery demand, lithium-ion
battery production won’t reach the levels
expected 2020 onwards,” he explained. He
believes a lot will hinge on conversion capacity
and producers’ ability to increase
battery-grade production.
For his part, Lowry said that this year the new
normal for lithium carbonate was $12 to
$14 per kilogram outside of China, and $18 to $22
per kilogram for lithium hydroxide. “Going forward, I see a gradual
convergence of the prices, just because most of the capacity, as for
hydroxide now, are based on the hard rock process, which has similar
cost structures for carbonate and hydroxide,” he added.
Most recently, Lowry said in his report that if
some of the anticipated new capacity is
delayed, “pricing in the $30s is not out of the
question.” Another factor to keep an eye on is China, which will
continue to lead the way in 2018, “both in terms of lithium-ion
expansions and raw materials sourcing,” Miller said. An interesting
development that the analyst expects to continue is ongoing efforts
from auto original equipment manufacturers (OEMs) to secure raw
material supply chains.
“With the major targets for EVs, producers will
have to look further upstream than ever
before, and this could change the dynamics of raw
material markets,” Miller added.
Similarly, Lowry said that the problem is that
car and battery companies want to
negotiate from strength and “tend to be bullies
when dealing with their suppliers.” He
added, “they are trying to price shop in a
seller’s market. It will take time for them to realize the reality
of the lithium market — lithium suppliers are in the driver’s
seat,” he
added.
For his part, Berry said interest in lithium
opportunities has only intensified this year, and
he expects this level of interest to continue
going forward. “I have been bullish on this
sector for several years now, and see no reason
to change that view as the market cap
expansion of various companies has opened them up
as investment opportunities to a
whole new class of investor,” he said.
Berry summarized the factors investors interested
in lithium should pay attention to in
2018 as follows:
• Keep a close eye on the trend in EV sales
both inside and outside of China;
• Watch for any deal between CORFO and SQM
(NYSE:SQM) in Chile;
• Watch to see how Albemarle is able to ramp
its operations in Chile;
• Watch to see the valuation and success of
FMC’s (NYSE:FMC) spin out of its lithium
business;
• Watch for the pace of project development in
Argentina and the maturing political
situation in the country;
• Watch the pace of funding in the lithium
sector for any drop off;
• Watch to see how all of the announced
lithium-ion battery factory capacity gets funded;
• Watch for advances in autonomous vehicle
technology and adoption — understanding
how this will affect the insurance markets is
important;
• Watch for a major downstream player such as
an OEM to make a sizeable investment in
mining capacity — this is the real key to
growth in the sector going forward
Lithium
Forecast 2018: Execs Weigh In
Patrick Highsmith, CEO of Pure Energy Minerals
(TSXV:PE); Tim McCutcheon,
president of Wealth Minerals (TSXV:WML); Nikolaos
Cacos, CEO of Argentina Lithium and Energy (TSXV:LIT); and Andrew
Barber, investor relations manager at Orocobre (TSX:ORL), were all
able to provide insight.
This time last year, Orocobre’s Barber
anticipated that 2017 would see lithium prices
remain firm and actual supply continue to be
tight. “We continued to achieve an average
price in excess of $11,000 per tonne, and it is
clear that there continues to be significant
headwinds for new lithium production,” he said,
adding that supply additions remain
overstated.
Similarly, Pure Energy’s Highsmith expected
prices to soften after 2016’s run up.
“Clearly we were wrong, as both carbonate and
hydroxide prices have moved up
strongly on a year-to-date basis,” he said.
Meanwhile, Wealth Minerals’ McCutcheon
explained that the market has been
experiencing a major shift as the electric car
revolution unfolds. “The paradigm shift is
ongoing, and I don’t think anyone expected
otherwise. And therefore the price of lithium
reflects that,” he noted.
One of the key trends seen in 2017 has been
increasing EV sales forecasts, which have
made “the end game much clearer,” Orocobre’s
Barber said. With that in mind, he believes that for the broad
lithium market the supply model has to change to meet
enormous future demand.
“Access to technical skills and experience will
mean that brown fields expansions are the
lowest risk and fastest to market, while access
to financing remains a key constraint for
new projects,” he said, adding that for
producing companies like Orocobre, “strategic
relationships will remain key, from both the
production and consumption perspectives.”
Pure Energy’s Highsmith also mentioned
investment as a huge challenge in the market.
“The list of players remains relatively small,
and the velocity of capital is slow compared
to more ‘mainstream’ commodities such as
gold. We believe this relates in large part to
investor education and outreach, which remains a
key theme for many lithium players,”
he commented.
Similarly, Wealth Minerals’ McCutcheon said the
lithium space is quite small, which creates confusion and issues in
terms of “just getting clarity on the market to the general
investor public.”
For his part, Argentina Lithium’s Cacos said
one of the biggest challenges this year has
been that “competition for buying lithium
projects has intensified, driving up acquisition
prices.”
Looking ahead to 2018, investors are wondering
whether the electric car revolution will
continue to have an impact on lithium, and more
importantly, what to expect from the
market going forward.
In terms of prices, Orocobre’s Barber said
current lithium carbonate (LCE) pricing is
running at around $12,000 to $14,000, while
lithium hydroxide prices are $2,000 to
$3,000 higher. He forecasts that this trend will
“remain firm” going forward.
For the 2018 fiscal year, Orocobre is forecasting
approximately 14,000 tonnes of LCE
production at an average price of more than
$10,000, subject to market and operating
conditions. “Global market fundamentals for
lithium remain intact for 2018, with strong
demand growth, tight supply and attractive
pricing,” Orocobre’s Barber said.
Argentina Lithium’s Cacos agreed, saying that
with automotive and other industries
moving toward electric power, demand is set to
keep growing, and this will likely push
prices higher. Wealth Minerals’ McCutcheon
expects to see a continuing trend of
permanently higher lithium prices in 2018.
Pure Energy’s Highsmith also expects a similar
price environment next year — “strong,
but with somewhat lower volatility than in 2016.”
He also said, “the market for lithium ...
will continue to mature and build to unseen
demand levels. Regardless of where we are
in the price cycle, it is important to remember
that the best developers will focus on low-
cost projects that can weather the cycles.”
Pure Energy’s CEO also expects the market for
lithium equities to mature, while more
knowledge and more concrete advances will likely
help investors identify quality
companies and projects.
Similarly, Wealth Minerals’ McCutcheon said
that as investors mature regarding their
understanding of the lithium industry, “they
certainly will start seeing more differentiation between different
companies and what they are trying to do.”
For his part, Argentina Lithium’s Cacos
suggested investors focus on lithium companies
that have established exploration track records,
good in-house lithium experts and
expertise in working in the jurisdiction in which
they operate.
Orocobre’s Barber added that for investors
“there are no more compelling investment
attributes than experience, strategic
relationships and proven capabilities. The lithium
market is no exception.”
Pure Energy’s Highsmith said investors should
do their homework, and attend
conferences where they can meet management
personally or at least by video
conference. “[Investors should] consider the
differences between lithium and other
mining investment opportunities. [In lithium,]
different formulas for success may apply
than in gold stocks, for instance,” he added.
As the year comes to a close, the execs had a
slew of achievements to highlight from
2017 and many more catalysts to look forward in
the year ahead.
For Orocobre, 2017 has been a milestone year, as
it emerged as the first new lithium
brine producer in 20 years. The company reached
production of just under 12,000 tonnes of lithium carbonate,
representing over 5 percent of the global lithium market.
“We achieved this milestone after more than 10
years operating in Argentina, giving us
deep experience, strong strategic relationships
and vital community links in the Olaroz
region,” Barber said. Looking ahead, Orocobre
is working with its joint venture partner,
Toyota Tsushu (TSE:8015), towards further
expansion. “We continue to investigate the expansion of our Olaroz
facility and the construction of a lithium hydroxide facility in
Japan,” added Barber, saying that a final decision will be made
around the first half of 2018. Assuming stable performance from stage
1 at Olaroz, this expansion will see production double at Olaroz,
coupled with a 10,000- tonne-per-annum lithium hydroxide plant in
Japan.
In 2017, Argentina Lithium had set out to build a
“sizeable, quality property portfolio in
some of the best areas within the Lithium
Triangle,” Cacos shared. The company
acquired two major projects: Arizaro, a big stake
in the largest salar in Argentina, and
Incahuasi, which covers the entire salar in
Catamarca.
“With drill programs underway, success in
identification of economic lithium-bearing
brines could lead to an exponential rise in the
price of the shares and market valuation,”
Argentina Lithium’s Cacos said.
This year, Pure Energy Minerals published a
preliminary economic assessment for its
Clayton Valley project. “There have not been
many preliminary economic assessments
for lithium brine projects, so it was an
important achievement,” Highsmith said.
In 2018, Pure Energy intends to build a pilot
plant at its Nevada-based project, where
engineering, procurement and permitting are under
way. “At the same time, we are very
excited to drill the first holes on our new Terra
Cotta lithium brine project in Argentina,
which will happen in Q1 2018,” Highsmith added.
Lastly, in 2017, Wealth Minerals signed a letter
of intent for the Seven Salars project in
Chile. The property includes the Salar de La
Isla, believed by many to be Chile’s
second-largest lithium deposit. CEO McCutcheon
expects the drill program at Atacama
to be one of the highlights next year.
Top
Canadian Lithium Stocks of 2017
Lithium prices have been rising this year on the
back of strong demand for lithium-ion batteries, which are used to
power electric cars. Major trends in 2017 include mega factory
announcements, offtake deals and of course continued news about the
electric vehicle revolution. Overall, market participants are
optimistic about the metal’s future.
Against that backdrop, lithium stocks have also
gained in 2017. Here’s an overview of the three top Canadianlithium stocks on the TSX and the three top Canadian lithium stocks
on the TSXV with year-to-date gains. Only companies with market caps
above $10 million as of December 14, 2017 are included
1. Lithium Americas (TSX:LAC)
Current price: $11.28; year-to-date gain: 182
percent
Lithium Americas, together with SQM (NYSE:SQM),
is developing the Cauchari-Olaroz
project, located in Argentina, through its
50-percent interest in Minera Exar. Lithium Americas also owns the
Lithium Nevada project and RheoMinerals, a supplier of rheology
modifiers for oil-based drilling fluids, coatings and specialty
chemicals.
2. Nemaska Lithium (TSX:NMX)
Current price: $2.14; year-to-date gain: 72.58
percent
Nemaska Lithium’s goal is to supply the
emerging lithium-ion battery market with lithium hydroxide and
lithium carbonate. Its wholly owned Whabouchi spodumene mine project
in Quebec is estimated to be the second-richest and largest lithium
deposit in the world, and the company recently confirmed first
delivery of battery-grade lithium hydroxide from Whabouchi
concentrate.
3. Orocobre (TSX:ORL,ASX:ORE)
Current price: $5.84; year-to-date gain: 34.25
percent
Orocobre is building a substantial
Argentina-based industrial chemicals and minerals company through the
construction and operation of its portfolio of lithium, potash and
boron projects and facilities. Its operations include the Olaroz
lithium-producing facility in Northern Argentina; Borax Argentina, an
established Argentine boron minerals and refined chemicals producer;
and a 35-percent interest in Advantage Lithium (TSX:AAL).
QMC
Quantum Minerals (TSXV:QMC)
Current price: $0.98; year-to-date gain: 1,533.33
percent
Junior exploration company QMC Quantum Minerals
is focused on properties in
Manitoba, and its flagship asset is the Cat Lake
lithium property in the province. Cat
Lake, formerly the Irgon mine, is a historic rare
metals deposit where “substantial
developmental work” was undertaken by Lithium
Corporation of Canada. QMC is
currently completing its own exploration at the
property.
Kairos
Capital (TSXV:KRS)
Current price: $1.23; year-to-date gain: 1,347.06
percent
Kairos Capital has 15 projects in the Chilean
portion of the Lithium Triangle. Located in
Northern Chile, the Kairos Capital properties
make up a collective 134,200 hectares and
are all located within a 300-kilometer radius of
the Atacama salar, which hosts the
largest lithium-from-brine production in the
world. Exploration is underway, and the
company is targeting resource estimates by Q2
2018.
NRG
Metals (TSXV:NGZ)
Current price: $0.49; year-to-date gain: 340.91
percent NRG Metals is an exploration-stage company focused on the
advancement of lithium brine projects in Argentina. In addition to
the Salar Escondido lithium project, the company is evaluating the
3,287-hectare Hombre Muerto North lithium project in the province of
Salta. Further projects are under negotiation.
Top
Lithium News Stories of 2017
1.
Eight Capital’s 4 Lithium Stocks to Watch
Lithium has been hot on investors’ lips for the
last few years, and many are wondering
which stocks to invest in. This September article
covers stock picks presented by Eight
Capital analysts David Talbot and Joe Fars. Click
through to see which lithium
companies they recommend and why.
2.
Thom Calandra: Lithium, Graphite and Uranium Stocks
The next lithium news story our readers enjoyed
most was an interview done with Thom
Calandra of the Calandra Report. We caught up
with him at the New Orleans Investment
Conference, and he explained why he has only one
lithium stock in his portfolio: Nemaska Lithium (TSX:NMX). Why pick
just one? Calandra explains his reasoning, as well as why he’s
chosen to invest in graphite and uranium.
3.
LG Chem to Open $1.63-billion Lithium-ion Battery Factory
in
Europe
This article on LG Chem’s (KRX:051910) massive
investment in lithium in Poland was
our third-most-read lithium news story in 2017.
The company said in October that it will invest $1.63 billion to open
the biggest lithium-ion battery factory in Europe. It plans to
produce up to 100,000 batteries annually.
While China still leads the charge in terms of
electric car batteries, European car
manufacturers have been encouraging greater
competition in battery production. LG
Chem will initially be importing the raw
materials for the batteries it makes from its
parent company in Korea, but hopes to source from
local suppliers further into the
future.
4.
Joe Lowry: Lithium “Star Alliance” is Crucial for Supply
We caught up with Joe Lowry of Global Lithium at
the Cathodes conference in California.
In this audio interview, Lowry explains what he
means by the “Star Alliance” in the
lithium sector, and touches on how this alliance
will affect lithium supply as demand
increases. Plus, will low investment in the
lithium space kill the electric car? Listen to the
interview below to hear what his verdict is.
5.
Ken Brinsden of Pilbara Minerals: “We Will See More
Lithium
Offtake Deals with Car Manufacturers”
Rounding out our five most popular lithium news
stories of 2017 is an audio interview
done at Cathodes with Ken Brinsden, CEO of
Pilbara Minerals (ASX:PLS). The
company signed an unprecedented deal this year
with Chinese carmaker Great Wall. What are Ken’s predictions for
the future of both lithium and auto manufacturing? Find out by
listening to the interview.
