A recent executive order from President Donald Trump could give U.S. lithium supply a lift. That is the argument of a release from NetworkNewsWire, issued in New York on January 10, 2018.
The order followed a government report that listed as many as 23 minerals as critical to the economy and national security. Its aim is to reduce dependence on foreign sources and raise domestic output. Lithium stands out on that list, since the U.S. imports about half of its lithium, even though it has large reserves of its own.
Demand is rising because carmakers are moving toward electric vehicles. General Motors and Volvo have pledged to end gas-powered car production in the future. Meanwhile, Volkswagen planned to invest $40 billion in electric vehicles by 2022. Global Market Insights expects the worldwide lithium-ion battery market to pass $60 billion by 2024. By one estimate cited in the release, the world will need one new lithium mine every year through 2025.
After laying out the demand picture, the release turns to several companies it sees as likely to benefit.
Standard Lithium holds the Bristol Dry Lake property in California’s Mojave Desert, which covers more than 33,000 acres. The company installed six new evaporation ponds and finished four exploration boreholes, with two more planned. Historical samples showed lithium above 100 mg/l. In addition, it holds about 30,000 acres of brine rights in the Smackover Formation across Texas, Arkansas and Louisiana, where older Arkansas data showed 365 mg/l.
Liberty One Lithium planned to review prospects in Latin America and the U.S. in the first quarter of 2018. Its North Paradox property in Utah has 233 placer claims over 4,480 acres.
Albemarle, based in Charlotte, reported third-quarter 2017 net sales of $343.6 million for lithium and advanced materials, up 42.9 percent from a year earlier.
Lithium X Energy agreed to be acquired by Nextview New Energy Lion Hong Kong Limited. Meanwhile, it holds two projects in Argentina’s Salta province.
Nemaska Lithium is developing the Whabouchi spodumene mine in Quebec and plans a plant in Shawinigan to make lithium hydroxide and carbonate.
In the release’s view, lithium demand will keep growing, and limited processing capacity will favor producers. The release was paid promotional content and noted that it is not investment advice.
