Edison Lithium

Overview

Edison Lithium (TSXV:EDDY) is positioning itself as a key player in the supply chain of sodium-ion battery technology. Alongside this, the company has interests in lithium assets in Argentina. It is divesting its cobalt projects in Canada via a spin-off into a new publicly listed company, Edison Cobalt.

Post the spin-off of cobalt assets, the company will comprise two divisions: Edison Saskatchewan and Edison Lithium

Company Highlights

• Edison Lithium is a Canadian junior mining company that is pivoting towards sodium-ion battery technology. The company is restructuring its business by divesting lithium and cobalt assets while acquiring concessions for alkali that hosts sodium sulphate.
• The company acquired lithium assets in Argentina in 2021, comprising 148,000 hectares of lithium brine claims, but has sold 80 percent of these claims for three times their purchase price in December 2023. It continues to hold 20 percent, or 28,766 hectares, of lithium brine claims. The transaction corresponds with the company's strategic shift towards sodium-ion technology.
• The company has received approval to spin off its cobalt project located in Ontario, Canada, into a new company, Edison Cobalt, which will be listed on the TSXV.
• After the realignment, the company will comprise two divisions – Edison Lithium, focused on the remaining lithium claims in Argentina; and Edison Saskatchewan, focused on alkali dispositions in Saskatchewan, Canada.
• The alkali dispositions were acquired in August 2023 and in April 2024 from Globex Mining Enterprises. This move underscores the company's strategic positioning in the burgeoning sodium-ion battery market, which is increasingly seen as a promising alternative to traditional lithium-ion batteries.
• The company filed an NI 43-101 compliant technical report entitled, "Alkali Mineral Dispositions, Saskatchewan," with respect to the acquired alkali dispositions.

Key Business Divisions

Edison Saskatchewan

This division will focus on advancing the company’s ambition to become a significant participant in the sodium-ion battery technology supply chain. To achieve this, the company acquired four alkali dispositions from Globex Mining Enterprises in August 2023. These dispositions encompass 4,564 acres located in Ceylon Lake, Freefight Lake, and the north and south areas of Cabri Lake, in Saskatchewan, Canada. The company subsequently also acquired the rights to an alkali disposition located in Whiteshore Lake, Saskatchewan. It has been reported that sodium sulfate is present on all the acquired assets. Sodium sulphate has applications within the battery industry, specifically in sodium-ion battery technology.

The sodium-ion battery is a rechargeable battery that relies on the movement of sodium ions to store and release energy. While there are a lot of similarities with the lithium-ion battery, the major difference is that it substitutes lithium with sodium as the cathode material. As the global quest for sustainable energy solutions continues, sodium-ion batteries are coming into the limelight as an eco-friendly and efficient alternative to lithium-ion batteries, due to the ample availability of sodium and its cost-effectiveness.

Sodium-ion batteries offer several advantages. First, sodium is abundant which translates into stable pricing and consistent availability. Second, the cost advantage means it is suitable for large-scale energy storage solutions. Third, technological benefits include enhanced safety. Lastly, sodium-ion batteries are considered more sustainable.

However, challenges such as lower energy density impede their widespread adoption. As battery technology evolves, we can see a resolution to these challenges and more mass adoption of sodium-ion batteries. Major industry players and start-ups such as Northvolt AB, Tesla, and BYD are investing in exploring sodium-ion technology.

Solidifying its commitment to develop Saskatchewan's sodium sulfate resource, the company filed, in September 2024, an NI 43-101 compliant technical report entitled, "Alkali Mineral Dispositions, Saskatchewan," with respect to alkali dispositions on four alkali lakes in the province - Whiteshore Lake, Ceylon Salt Lake, Freefight Lake and Cabri Lake.

Edison Lithium

This division comprises nearly 28,766 hectares of lithium brine claims located in the province of Catamarca, Argentina. Earlier, the company had access to 148,000 hectares of lithium brine claims but sold nearly 80 percent of these claims to Meteor Energy for three times its purchase price in December 2023. The sale to Meteor Energy comprises 29 mining concessions that span 105,699 hectares for US$5 million. Edison Lithium retains eight mining claims, mostly located in the Pipanaco Solar basin in Catamarca.

Lithium, as a mineral, has garnered significant attention due to its pivotal role in electric vehicle batteries. It stands as the most sought-after metal essential for facilitating the energy transition. The ongoing global transition from fossil fuels is expected to drive increased demand for lithium over the next decade. According to findings from the International Energy Agency, there is a pressing need for a tenfold expansion in global battery and minerals supply chains by 2030 to accommodate this demand surge. Consequently, lithium is poised to reap substantial benefits as a crucial component in battery technology.

Forecasts from mining leader Albemarle indicate that lithium demand is poised to surge to 3.7 million tons by 2030, propelled by supportive government regulations in numerous countries banning new internal combustion engine vehicle sales. With the continuous expansion of global lithium demand, Edison’s lithium mining claims offer investors a chance to engage in the rapidly expanding lithium market.

Management Team

Nathan Rotstein - CEO

Nathan Rotstein brings more than 45 years of experience in financial markets. He has consulted several companies in the energy metal sector, including lithium, cobalt, manganese and graphite. He has a rich network of international funds and high-net-worth individuals.

Dr. Luisa Moreno – COO

Luisa Moreno is a physics engineer and holds a Ph.D. in material science and mechanics from Imperial College, London. She has over 12 years of rich experience in technical and economic research. She co-founded Tahuti Global and has spent seven years as a financial and equity analyst.

Jay Richardson – CFO

Jay Richardson is qualified as a Canadian chartered accountant and certified public accountant from Singapore. He has worked as a partner with E&Y and KPMG, prior to starting his own practice. He has held senior roles, including CEO and CFO, with several companies.

Roger Dahn – Director

Roger Dahn is a professional geologist with over four decades of experience in the mining and exploration industry. He has worked with Noranda and Hemlo Gold Mines, Battle Mountain Gold, Olympus Pacific Minerals, and Tri-Star Resources. He is currently the chairman of Manganese X Energy.

Martin Kepman – Head Advisor

Martin Kepman has over three decades of consulting experience in various industries, such as software, printing, food and mining. Currently, he is the CEO of Manganese X.

Gordon Jang – Director

Gordon Jang has rich experience in various domains such as capital markets, M&A, compliance, taxation etc. He has previously worked with Fortuna Silver Mines, Lundin Mining, Augusta Resources and Pan American Silver.

This article was written in collaboration with Couloir Capital.