The world could run into a massive lithium supply crunch.
Thanks in part to the electric vehicle boom that doesn't look to cool off any time soon.
In fact, "A global push for EV adoption, helped by government subsidies and incentives, means that demand for lithium is not going away. Companies like Volkswagen, Ford, Mercedes and Amazon having started shifting their focus to electric vehicles," reports Bloomberg.
According to the Boston Consulting Group, by 2025, EVs could account for a third of all auto sales. By 2030, EVs could surpass combustion engine vehicles with a market share of 51%.
Helping to fuel the boom, Tesla just signed a lithium ore supply deal with Piedmont Lithium.
"The initial five-year agreement implies that Piedmont will supply about a third of its planned 160,000-tonnes-per-year spodumene concentrate produce from its deposits in North Carolina. Both companies have an option to extend the deal for another five years," added Reuters.
With demand increasing, it's only a matter of time before lithium prices spike again.
E3 METALS CORP. just hosted the Energy Minister, Sonya Savage, from the Government of Alberta at the Company's offices in Calgary.
During this visit, the government announced it has assembled a five-member panel of experts from the metals and mining industry whose strategic advice will help government unlock the province's vast mineral potential, including lithium. The panel will support the province in its efforts to diversify its economy and become a world leader in mineral resource production.
"We are very happy to host the Minister of Energy at our offices today. This announcement solidifies the province's commitment for the development of critical minerals. E3 Metals is on the forefront of lithium development in Alberta, a critical mineral that can be produced on the backbone of the oil industry. Alberta has a skilled energy labour force already in place that is well positioned to support an emerging minerals sector," said Chris Doornbos, President and Chief Executive Officer of E3 Metals.
"As E3 Metals works to commercialize lithium production in Alberta, we are excited to participate in this broader effort to position Alberta as an international player in a world increasingly focused on battery materials," he added.
In addition, according to Sonya Savage, Minister of Energy, Government of Alberta, "We (the Alberta government) need to take bold action to diversify our economy by exploring... minerals. Our government's efforts will support the development... of the mineral sector including the ground breaking work that is being done by Alberta companies such as E3 (Metals). Our ultimate goal (is to become) a global destination for mineral investment exploration and development."
The announcement by the province complements the Canada-U.S. Joint Action Plan on Critical Minerals Collaboration, which focuses on securing and developing critical mineral supply chains. Lithium, graphite, cobalt and rare earth elements, all of which play an important role in the production of lithium-ion batteries and the energy storage sector, are listed as critical minerals. To date, many other developed economies have put in place a critical minerals strategy including the European Union, Japan, Korea and Australia.
For more information, visit the company's website at https://www.e3metalscorp.com
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