- Automakers signing deals to secure future lithium supply
- At present, most lithium comes from costly “hard rock” sources
- Lithium Chile offers low cost output from salars and lagunas
- Company holds largest privately owned lithium claims in Chile
As the electric vehicle (EV) market continues to expand, battery manufacturers and automakers are attempting to assuage their anxiety about future supplies of lithium by signing long-term contracts. In June, Tesla declared that it had struck a deal with Kidman Resources of Australia. Meanwhile, Volkswagen already has agreements in place, to the tune of 40 billion euros ($48 billion), to purchase lithium batteries. However, the lithium referenced in these contracts is still buried in the ground or swimming in salars, and it won’t be available for many, many months. Kidman, for one, does not expect its processing plant to come on line until 2021. The concerns about future supply are likely to spark similar deals, driving nervous suitors to court lithium miners. If so, Lithium Chile Inc. (TSX.V: LITH) (OTC: LTMCF) stands ready. The company’s properties, ranging over 152,900 hectares, are the largest privately owned lithium claims in Chile. Remarkably, although acquired at low cost (0.2% of current market prices), they have proven to be of high quality (1,000 mg/liter), a combination that is likely to attract many overtures.
There’s no doubt that the dearth of lithium stock is causing concern. Tesla’s deal, ‘which is for an initial three-year term on a “fixed-price take-or-pay basis” from the first product delivery, features two…
More from NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
For more information, please visit https://www.NetworkNewsWire.com