The world is in desperate need for lithium supply.
For one, "lithium might run out by 2025. And as electric cars begin to take over the roads, lithium stocks could turn out to be some of the biggest winners," as noted by Forbes. "Since 2018, lithium prices have crashed 60-70% to rock-bottom lows. The drawdown forced miners to cut back on operations and call off the exploration of new mines. And now there's a very limited number of projects making lithium."
Two, the world will need five times more lithium that is mined currently mined to meet global climate targets by 2050, according to the World Bank, as noted by BBC.
Three, according to Green Car Congress, "The underlying demand growth for lithium compounds remains strong, with demand from rechargeable battery applications forecast to exceed 220kt LCE in 2020, representing roughly 70% of total lithium demand. Forecast growth in Li-ion battery demand from EV applications continues to be strengthened with major markets targeting an earlier transition to EV-only sales, in order to reduce emissions from transport."
Four, EV sales are only expected to improve from here with Joe Biden. As noted on his site, "There are now one million electric vehicles on the road in the United States. But a key barrier to further deployment of these greenhouse-gas reducing vehicles is the lack of charging stations and coordination across all levels of government. As President, Biden will work with our nation's governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030."
Five, countries around the world are pushing for more EVs on the road, including the U.S., China, and those across Europe.
However, for all of this to happen, the world must have far more lithium supply.
If not, prices could rocket higher - and fast.
E3 Metals could be a major part of the lithium story, especially after posting results of a preliminary economic assessment (PEA) for its Clearwater lithium project with a NPV of $1.1 billion, pre-tax at 8%. The company also outlined plans to produce 20 000 t/y of battery-quality lithium hydroxide monohydrate (LHM) over 20 years, as highlighted by Creamer Media's Mining Weekly.
In addition, E3 has an attractively low operating cost to produce battery quality lithium hydroxide, at just $3656 per tonne. The brine production costs account for 1947 per tonne, bringing the cost to move the brine to about $0.83 per m3. The lithium extraction and production account for the remainder at $1732 per tonne.
"The combination of electrochemically produced lithium hydroxide, targeted process re-cycle streams, and relatively low cost of energy in Alberta provides for a very attractive trade-off between opex and capex. This provides a robust opex capable of withstanding lithium hydroxide price fluctuations," E3 president and CEO Chris Doornbos said.
"E3 says the lithium grade is expected to be consistent throughout the area. A series of well, drilled specifically to produce brine, shows it will be capable of producing 3 300 m3/d per well. At an average grade of 74.6 mg/L lithium, the project will move just over 128 000 m3/day of brine, with additional well production capacity in excess of this."
For more information, visit the company's website at https://www.e3metalscorp.com
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