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The Lithium Revolution 2015 HIGHLIGHTS
2015
The 1 millionth electric car is built in September 2015.
Report surfaces that Apple plans to ship driverless cars by 2019.
Google’s self-driving cars reach the milestone of 1 million miles driven autonomously.
Tesla takes $800 million in orders for its new home batteries in just two weeks.
A TSX-V traded company was the most recent recipient of an off take agreement to supply Tesla with Lithium Hydroxide.
Volkswagen’s stock price gets crushed over 30% in the aftermath of DieselGate.
FMC recently announced an “across the board 15% increase in price” in all finished lithium products. Lithium Hydroxide rose from $9,500 per ton, up to $10,870. Lithium Carbonate from $6,500 per ton up to $7,475 USD.
General Trends:
Charging stations have increased rapidly around the world.
Every major auto manufacture has more than one fully electric car. Some automakers mandate is to have an electric version of every model.
The oil price has hit a 6.5 year low, yet electric vehicle sales have held momentum.
Lithium battery manufacturing costs are dropping in price while lithium battery technology is getting better.
New technology is decreasing the charge time for electric cars. Meanwhile, “miles per charge” is rising, and some cars can even recharge wirelessly.
There’s a greater interest in looking after the environment with a continued scare of global warming.
Wind and solar storage needed to regulate output of electricity back to the grid.
China is a nation now giving priority to EV cars on their highways and parking lots.
http://www.equities.com/spotlight/canadian-spotlight/the-lithium-revolution
Lesson 1: Remember, BASHERS NEVER BASH A BAD STOCK. Watch the board for stocks with no potential. They never have any bashers. Bashers only go after stocks that are going upwards or have excellent potential to go up. Bashers get left behind, so they want to bring the price down.
Lesson 2: BASHERS ALWAYS BRING UP OLD NEWS THAT YOU HAVE HEARD MANY TIMES. New startup companies always have a few bits of bad news. The basher will post this over and over again. The stupid basher will try to make the old news a bit fresher to try to fool you.
Lesson 3: BASHERS POST MANY TIMES A DAY. They try to wear you out. They comment on everything, every other post, and can answer every question. THEY KNOW IT ALL! There is no positive comment they won't bash. They try to control the board. True longs may have to address the bashers or they will appear to the newbies as being the people with all the information.
Lesson 4: BASHERS WILL LIE TO YOUR FACE. Never trust a basher. The truth on startup companies is that many mistakes are made and losses happen. The basher will try to make you believe all startup companies make a profit, release financials every quarter and all aspects of the business run smoothly. THIS IS NOT TRUE. THE BASHERS LIE TO YOU. Startup companies can go years without profits, financials and good business, this is the nature of the beast.
Lesson 5: The bashers know YOU CAN'T VERIFY THEIR STATEMENTS. That's why they make the statements they do.
Lesson 6: The bashers PLAY ON YOUR LACK OF KNOWLEDGE. They can lie about information and you couldn't know the difference (unless you have done your assessment of the company and know the truth and facts).
Lesson 7: Bashers play on your lack of patience. YOU have held a penny stock for a while. You knew it will be a big penny stock someday, but the BASHER CAN GET TO YOU BECAUSE YOU ARE TIRED OF WAITING FOR YOUR GAIN . That's when the basher is best. You are tired. You have forgotten the goal for the penny stock was to hold it for one year. The basher is bothersome, so you dump it on a bad day. Some others also dump. Then you get mad for your loss and return to let everyone know how mad you are. Then you turn into a basher as well. THE BASHER HAS WON, AND GAINED A NEW PARTNER TOO, to be able to get in at a great price.
Lesson 8: BRING THE PRICE DOWN. That is the basher's job. The truth is not important. Lies are the norm. Post continuously on the board every day. They are trying to hit the newbies visiting the board. They are trying to wear out the longs on the board. They do whatever it takes to wear the longs out.
Lesson 9: BASHERS WILL TRY TO CREATE DOUBT AND GET YOU TO RESEARCH ITEMS THAT THEY KNOW WILL LEAD TO THE CREATION OF DOUBT IN YOU AND IN OTHER STOCKHOLDERS. A typical trick of an advanced basher is to propose that there is a potential "problem" because "we" don't have the facts on a particular subject. The basher dares someone in the group to find out the answer to the question. The basher already knows the answer; the basher already knows what will be found. The power of this tactic is that the basher is now in control of the actions of the stockholders; the basher has you, the stockholder doing HIS/HER due diligence and when you, the stockholder come back to the group with a questionable finding then the basher gains credibility. What to do??? Solution??? Well, I think it's important to find answers but on your own terms. I actually pick up the phone and call the company and talk to the investor relations person or the CEO until I get a satisfactory answer. The problem here is that the advanced basher has you doing his bidding and his work; you have essentially joined his ranks. So, develop your own little Due Diligence package and answer questions by placing the information into the package and referring all new investors to read the answers to questions raised in the Investor Information package but DON'T GET INTO A CONVERSATION WITH THE BASHER REGARDING THE TOPIC. THAT IS WHERE YOU LOSE. DON'T CONVERSE WITH THE BASHER;
I am 45 years old thanks for the compliment. I do fine in my charting I am a chess player at a high level and i catch on very quick.I did have a nice Friday and Monday 11% in my portfolio. not in western lithium only 8% of total position at this time. I might be adding more if this market and my charting pay off.as for Feb I think bill is talking about Tesla name suppliers or maybe earning report not sure. I feel that any large buy or even news would spike this stock up since its under priced now and there is going to be a pulling up of all lithium stock as we move forward into 2016.
the Ultimate Oscillator looks like the stock is oversold and the Volume Moving Average is .33 any volume i think would push this over .33 even in one day 2/232015 2/24/2015 is a example of this on this stock.
were will funding come from? Answer is simple
POSCO Bangchak Petroleum Orion Mine Finance and there is Other big money players with there eye on this. Funding will be there and is here now you just have to look under the hood of the car to see this Lithium Engine is about to drive into the future and I am not missing my ride.
At this time the parties have agreed that POSCO will contribute to the joint venture the right to use its proprietary lithium extraction technologies for the production of lithium carbonate and lithium hydroxide, while LAC will contribute the right to use brine from its Cauchari-Olaroz salar properties. The plant is expected to be producing up to 2,500 tonnes per annum by year-end 2016, and anticipates ramping up to 20,000 tonnes by year-end 2017.
POSCO has agreed to finance the capital expenditures required for the initial phase of 2,500 tonnes commercial production, ahead of the Joint Venture Company raising project financing for 20,000 tonnes.
Reno, Nevada, USA: Western Lithium USA Corporation (“Western Lithium” or “the Company”, TSX: WLC; OTCQX: WLCDF) is pleased to announce that it has entered into a subscription agreement for a non-brokered private placement with an affiliate of Bangchak Petroleum Public Company Limited (“Bangchak”) initially for gross proceeds of US$5 million, which will be funded in two tranches. Bangchak, subject to its Board approval, has a co-investment right to increase their equity ownership position in Western Lithium to up to 19.9% through additional equity investment in Western Lithium during the next development stages of the Company’s business.
Bangchak is a public company in Thailand, whose major shareholders are the State of Thailand, Ministry of Finance, Vayupak Fund 1 and Social Security Fund. Bangchak operates over 1,000 service gas stations, and is a progressive oil refiner, based in Thailand, that has a vision to operate a petroleum company with a green energy outlook. Bangchak was an industry leader in 2002 when it first launched its biofuel products. Since 2013, Bangchak has entered the solar power energy generation business and has increased its installed solar power capacity to 118 MW. Bangchak plans to go to 500 MW of electrical generation capacity from renewable energy by 2020. Bangchak has recognized lithium’s role as a key raw material to supply the growth of lithium-ion batteries used for electric and hybrid vehicles, stationary storage and consumer electronics.
“When we visited Bangchak’s refinery and solar panel operations in Thailand, we recognized their progressive outlook to pursue alternative energy projects and operational excellence,” said Jay Chmelauskas, CEO of Western Lithium. “We welcome a long term shareholder, with similar vision as Western Lithium to advance better energy solutions, that intends to provide additional capital to our Company as we develop our businesses.”
The initial tranche of US$1.5 million will be funded pursuant to the issuance of 2,676,214 subscription receipts at a price of CDN$0.70 that will each be convertible into one common share of the Company following satisfaction of all Toronto Stock Exchange (“TSX”) listing requirements, including shareholder approval. The second tranche of US$3.5 million will be funded pursuant to the issuance of 6,244,500 subscription receipts at a price of CDN$0.70 that will each be convertible into one common share of the Company following satisfaction of certain conditions, including, but not limited to, satisfaction of all TSX listing requirements, including shareholder approval and completion of trial runs for the production of high purity lithium carbonate at its demonstration plant in Germany in the fall of 2015. The gross proceeds from the issuance of the first tranche and second tranche subscription receipts will be deposited and held in escrow and will be released concurrent with the conversion of the subscription receipts.
In addition, if Western Lithium enters into a transaction prior to January 31, 2018 in which it issues no less than $100 million of securities, Bangchak has a co-investment right in which it can concurrently acquire the same securities at the same price as the $100 million transaction, such that it will hold up to 19.9% of issued capital. If Western Lithium does not complete such a transaction by that date, then Bangchak has a one-time option to purchase common shares up to 19.9% at the prevailing market price. This option would expire upon commencement of a take-over bid.
The issuance of the subscription receipts is expected to occur on or about July 2, 2015; the first tranche is expected to convert towards the end of August 2015 and the second tranche is expected to convert in the fall of 2015. The transaction is subject to TSX approval. To the extent that Western Lithium issues shares or convertible securities prior to the earlier of the first tranche conversion date and September 7, 2015 at a price of less than CDN$0.70, Bangchak will be entitled to convert its subscription amount under the subscription receipts into common shares at that same price.
http://personal.crocodoc.com/e7Onvhx
We continue to recommend Western Lithium with a BUY and C$1.30 share price
target. 2014 report.
Western Lithium Secures US$5.5 million from Strategic Investor Orion Mine Finance
Sep 23, 2013
i would be wicked happy if mine was .22 my average not counting what i flip i would have to look at closed pos. but just now its like .42 i flipped 2,500 into 5000 and sold last year then I stated adding now over 33,000 shares not much but at say .32 to .54 range I am still not worried since we have not started selling Lithium. and what will the stock be worth when it has 280 million a year sales?
I don't think that's a start of 3 Black Crowes Pattern not when the stock is in the oversold position.and you can look up shorts onto otc level 2 or any software that shows shorts.I think we're moving up over 30 with the week but I am just going of my own chart experience. and I am Long now on this not taking a chance missing a big day.
15% lithium price increases why Western Lithium is in driver seat.
Lower cost in the production and in locations offer them a strategic advantage offer there competitors.Also its seem there ability to bring lithium to the market is starting faster then any of the junior mining company's. 2017 20,000 ton wow that is nice number to come out of the gate first and with permits and planing management there in the drivers seat not to be controlled by Tesla oligopoly.
as noted by this post about FMC there aware that these juniors are at there door step.
The company said that the price hikes are a response to market growth outpacing supply capabilities and a need to reinvest in its manufacturing facilities.
NYSE-listed FMC Corp. is to increase prices for almost all of its lithium products by 15%, the company said today.
The price change will be effective 1 October, or as contracts permit, and will apply to lithium carbonate, lithium chloride, lithium hydroxide and all other lithium products with the exception of...
Though lithium prices are on the rise, we would offer a thesis that is likely anti-thetical to traditional resource company evaluation: A focus on higher lithium prices is misplaced. While higher prices may harm battery manufacturers (marginally), we don’t see the higher prices providing leverage to miner share prices. What matters most is cost of production – especially when competing with an oligopoly. Given that we firmly believe in the thesis of electrification of transportation, it doesn’t matter to us whether the price of lithium hydroxide goes to $12,000 or $2,000 per tonne. It’s arguably detrimental to investment analysis. What is important are the production costs of a project. In an oligopoly, if you can’t beat the established producers on cost, you won’t last.
Some Nice points about the so called Tesla deals.
By Chris Berry
It’s been interesting to read the mainstream media’s impression of the recently announced lithium hydroxide supply deal between Tesla Motors (TSLA:NASDAQ) and Rare Earth Minerals PLC (REM:LON) and Bacanora Minerals (BCN:TSXV, BCN:LON), a joint venture with lithium concessions in Mexico. Arguably the biggest misconception is that TSLA has consummated a deal with companies operating an existing mine. This is not the case as the deposit at the center of the agreement is just that – a deposit.
Semantics aside, the agreement between the companies offers an interesting window into TSLA’s supply chain strategy. In the end what the company has done here has purchased an out of the money call option on future lithium supply.
Out of the money options have no intrinsic value (though do have time value) but are effectively used as a hedging strategy to lock in a given price in the future depending upon the option purchaser’s view of future asset prices. The only capital in play is the option premium the option purchaser pays.
The only “capital” TSLA has at risk here is its name. The company has yet to commit any money that we know of to future supply of lithium cobalt, or graphite – and this, to be clear, is still a significant risk for the company. The much more significant risks of financing a mining project, building the mine, and producing lithium hydroxide to TSLA’s specifications still rest squarely with the REM/BCN joint venture (known as the Sonora Lithium Project Partners). The plan is that once the mine is built and lithium hydroxide is produced, TSLA will purchase a set amount at below market prevailing prices.
With respect to TSLA’s accessing lithium hydroxide supply in the near-term, we still believe it will originate in China. This thinking is based on analysis of existing producers ex-China and the potential demand not just from TSLA, but other lithium ion battery manufacturers with somewhat less grandiose plans than the Gigafactory such as LG Chem.
One of the more interesting takeaways from the agreement is the fact that the Sonora lithium project is clay-based, rather than traditional brine or hard rock. As we currently know de minimis about the capital and operating expenditures at Sonora, trying to forecast financial metrics is difficult at best.The only other clay-based deposit where we have significant financial data is Western Lithium’s (WLC:TSX, WLCDF:OTCBB) King’s Valley deposit in Nevada, though using those metrics as a proxy for other clay-based lithium deposits would be unwise. That said, the ability to produce lithium hydroxide or lithium carbonate at scale from a clay-based deposit could have significant implications on lithium feedstock in the future. It’s just too early to tell at this point, however TSLA’s interest musn’t be overlooked or minimized.
Charts i like charts they are always subjective and even the experts are not correct,but charts are a very good tool to traders and worth talking about. I think it looks like a Elliott Wave 3 witch is the longest wave of 5 and it seem to have turned the bottom last 2 days. I chart every Lithium stock and 6 out of 7 all were in a 6 months down slid over 25% to 70 % also
in many other stocks past 6 months. Western Lithium does have a plane and has stated it read the September PRESENTATIONS I posted link on top of are board.
Lets try to stick to points that have facts we can check Like a report or news record or video.
They Have all Permits and POSCO is Funding so you are 100% Wrong please post supporting Info and I will look into that. Link below supports my 100 % permits and if you read the PRESENTATIONS September 2015
Western Lithium Corporate Presentation (PDF)
I Post that link at the top of the Board.
Lithium Americas (and their Argentina-based Cauchari-Olaroz Project) was a past holding of the Partnership - I even conducted a site visit to the property in mid-2012. At current lithium prices, the project is very much economic and, given the fact that LAC has already released a Feasibility Study and received full mining permits, construction in theory could begin as soon as the initial capex of $320m has been raised.
This "merger of equals" (and the addition of the Cauchari-Olaroz project to Western Lithium's development pipeline) will certainly affect future milestones. In fact, in the initial press release announcing the proposed merger, WLC management suggested that the development of the Kings Valley Lithium project would be deferred to accommodate the "fast-tracking" of Cauchari-Olaroz. More specifically, management stated the possibility of "potential revenues from Lithium America's Cauchari-Olaroz project under a contemplated two-year development timeline, and potential revenues from Western Lithium's Kings Valley project under a contemplated four-year development timeline".
The beauty of this arrangement is that Western Lithium should see first production from Cauchari-Olaroz in mid-2017 - precisely as Tesla begins to scale up production to commercial volumes at its Nevada gigafactory. In theory Western Lithium could supply Tesla with lithium directly but, in the absence of this exciting possibility, at the very least WLC will be able get a foothold in the lithium market far faster than if they'd focused on the Kings Valley project alone. Additionally, first production at Kings Valley, which is expected in mid-2019, will coincide very nicely with the next wave of lithium ion battery plants
Bill you rembmer that post about why is Jay Chemelauskas flying around spending money? watch are money at work on this short utube.I dont think any of the guys in the room were he was speaking have deeper pockets than the posters on this site lol.
Short better get there pockets ready to Empty looks like something is up.
this was before the Tesla Power wall news and now there are more then one company that have plans for home lithium storage for off grin solar power and with solar home battery storage the demand will be crazy. read my post on this board and do some real research.
lithium hydroxide is the stuff that makes today’s lithium ion batteries work but supplies are being stretched thin as the automotive industry calls for more and more battery electric vehicles. In fact, one principal supplier, FMC, has raised its price for lithium hydroxide by 10% twice in 2014.
Tesla Motors expects its new GigaFactory to produce 20 times more lithium batteries than were manufactured world wide in 2013. Industry giant LG Chem has just broken ground for a new factory in China that will produce another100,000 batteries annually.
Simon Moores of Benchmark Mineral Intelligence tells Wall Street Daily the demand for all lithium chemicals used in batteries will increase by as much as 50% shortly. Without an equivalent boost in lithium hydroxide supplies, shortages could occur as soon as next year, driving prices up 30% or more from current levels.
Tesla is not stupid there playing a price war in response to the mini monopoly that controls the price of lithium witch was just predicted a 15% increase.
there is no guarantee of anything for anyone. as regards to these junior mining there a pawn in bigger game and yes sometimes if they become queen. And as for Western lithium all permits and everything is all set in Argentina for production. The real money is made at lower cost of production hence taking time to make sure everything is right. So when the product comes to market you're not relying on one supplier. Please feel free to use your brains to make your own assumptions.
The Energy Storage Market Is About To Boom
Some Points to look at home battery storage has not even started to take of and these number are going to change,The cost of extraction to sales on the market is were a company makes money. there is only 3 sources that set the price of Lithium on the market now and that is why Tesla is playing with the junior lithium mining companies. Western Lithium will be able to hit the market in 2017 with low cost Lithium 20,000 by 2017 and have all the permits and backing by posco. Jay is setting this up for 20 or more of production at the start of the Boom and he locked down this Lithium America deal speeding up the timing for sale on the market at perfect time. I am saying it on this post now watch out for a BIG BUYER coming in anytime I think you will see this very soon large volume spike.
2013
A new report from Pike Research indicates that improvements across the board in the lithium ion battery sector is likely to lead to a $22 billion market by 2020, from 2012’s roughly $1.6 billion.
2013 was 6000.00 now 7000.00 2015 see below post.
Currently only about 23% of produced lithium goes to making batteries. With the lithium battery market slated to grow at over 18% annually, it could put a strain on lithium supply and send prices higher.
In the last two years alone, lithium demand has grown 25%. It's expected to double by 2020.
And lithium prices are rising, too. Lithium carbonate hovered around $2,000 per tonne from 2000 to 2004, but then started rising with demand. By 2009 they were at $5,000 per tonne — and are expected to hit $6,000 per tonne this year.
Though lithium prices are on the rise, we would offer a thesis that is likely anti-thetical to traditional resource company evaluation: A focus on higher lithium prices is misplaced. While higher prices may harm battery manufacturers (marginally), we don’t see the higher prices providing leverage to miner share prices. What matters most is cost of production – especially when competing with an oligopoly. Given that we firmly believe in the thesis of electrification of transportation, it doesn’t matter to us whether the price of lithium hydroxide goes to $12,000 or $2,000 per tonne. It’s arguably detrimental to investment analysis. What is important are the production costs of a project. In an oligopoly, if you can’t beat the established producers on cost, you won’t last.
Posted on Wed, 13 March 2013
On a relative-value basis, we like Lithium Americas. Its lithium-brine reserves are indicated to support a 40-year mine life at 20,000 tons per annum (20,000 tpa) of low-cost lithium carbonate equivalent (LCE) production. The company's Cauchari project is adjacent to Orocobre's Olaroz project, which is fully financed and has construction underway. Orocobre trades at ~$23 of enterprise value per tonne of resource compared to Lithium Americas' ~$5 per tonne of resource by our estimates. Lithium Americas is currently in financing and JV discussions with a number of parties, including Mitsubishi Corp. (MSBSHY:OTCPK). We believe the company has sufficient funding left on its credit facility to see it through to a financing decision, which we expect later this year. We expect a financing update shortly on progress to date. In our view, once financing is in place, the stock would likely be re-rated substantially higher.
For investors looking for exposure to overall lithium demand and price and less to company-specific risk/reward tradeoffs, we would suggest Canada Lithium. It is at the tail end of its mine and plant commissioning, is expected to make first delivery by the end of March to one of its two offtake partners and expects to ramp up to its full production rate of 20,000 tpa of LCE by year-end. Management has done a great job of arranging permitting, financing and offtakes while staying on budget and on schedule.
Some point to think about in regards to them so called deals from a article below.
I am not happy the share price is down in everything I own its down and the markets been down.I bought shares under a dollar and I am hoping to add shares when I can free up cash I would love to add 3 times my position at this low price.I feel that by end of 2016 we will be over a dollar for sure. Even any news or a large buy volume spike would rocket this stock at these low prices.Note this stock is not selling Lithium yet and I am investing with hopes it will me selling 40,000 tons a year buy 2020 and trading over 5 dollars a share. little example 10,000 share at .50 cents = 5000.00 or 10,000 share today at .20 = 2000,00 or 10,000 share in the year 2020 at 5.00 dollars = 50,000 dollars. risk and waiting is the hard part. this is not McDonald ordering of a meal buy stock pull up next window eat meal 5 mins then go shit. this is going to cooking school put in time training a waiting then eating a 5 star restaurant in 5 years not 5 min.
We will note three commonalities between the two announcements that serve to guide our analysis of Tesla's motivation.
Both agreements are contingent up on the projects reaching commercial production.
Both agreements have these juniors selling lithium at a discount to the "market price."
Tesla did not make its own announcement.
The last point is a cosmetic one. The first two points make for a highly unfavorable proposition from the point of view of the juniors: Tesla is essentially saying that if these two projects are able to get into production, it will buy their lithium at a discount to the market price.
Why would anybody agree to this? If a company gets into production and is selling a product that resembles other products that are going for a certain price, then there must be some motivation to sell one's product at a lower price. Furthermore, a financier looking at these terms is going to find that the project economics are somewhat (or possibly completely) compromised at the discounted price, and the risk/reward from that perspective is thereby less attractive. Finally, the market doesn't know the discount, which means there is an element of uncertainty that is extremely off-putting from an investment standpoint.
Given these observations, the reasons provided by the aforementioned companies' managements are unsatisfying.
We disagree with the reasoning provided by Bacanora Chairman Colin Orr-Ewing, who states:
"We anticipate this contract to rapidly accelerate the development of the Sonora Lithium Project, which we expect will prove to be invaluable in an increasingly lithium hungry world."
The fact that the company will be selling lithium at a lower price could actually delay the development of the project, whose IRR relative to other candidates vying for capital will be compromised.
Similarly, we disagree with Pure Energy CEO Robert Mintak's statement:
"This agreement with Tesla is a significant milestone that validates Pure Energy's lithium brine project and business development model, and is an important step in the development of the Project."
We note that the deal is not a validation of the project since the deal is contingent upon Pure Energy meeting certain milestones in a timely manner. In other words: Pure Energy must validate its project before the deal becomes concrete.
While we disagree with it, there is a perspective from which we could argue that these deals make sense, namely that the Tesla brand is so powerful that companies with its association will get preferential treatment - especially from environmental organizations - so that the pricing discount is worthwhile.
If this is the case, we urge the managements of these companies to explain their actions with greater specificity.
Tesla's Motivation
We don't know whether Tesla really intends to source lithium from these two companies given that there are three producers and several companies further ahead in their respective development cycles. Nevertheless, we suspect - given the conditionality clauses in both agreements - that Tesla is not willing to bet on the quality of these assets just yet.
So where's the motivation?
One thing is clear: Tesla wants the price of lithium as low as possible as it is desperately attempting to reduce the cost of its Li-Bs. This latter endeavor will be a critical step in bringing the cost of its vehicles down to the point where EVs are competitive with combustion-engine vehicles. However, we note that this would require that the cost of the vehicle come down by tens of thousands of dollars while the lithium content in a Li-B is only a few kilograms. With Li-carbonate prices at ~$6,000/t ($6/kg.) the lithium value in an EV is miniscule considering the cost savings that need to be achieved. Even with the company's 500,000 vehicle sales goal in 2020, the cost savings of reducing lithium costs would be a few million dollars at best per year.
The fact that Tesla's lithium cost per vehicle is low would indicate that it should prioritize supply security as it could easily absorb a doubling or even a tripling of lithium prices without this significantly impacting the cost of producing an EV. And we suspect lithium producers see this as well, but from their angle they are thinking how easy it would be to raise prices and to do so on a regular basis.
We suspect that Tesla's primary motivation in symbolically supporting these long-shot junior miners is that it hopes to prevent the further consolidation of the lithium industry. We suspect that TSLA's management believes that the market values its brand so highly that these new associations could jump-start projects not owned by the oligopoly and that the discount clauses discourage additional consolidation. Again, we are doubtful that this approach will prove successful as the economics of a given mining project will be a financier's top priority, with other factors having value only insofar as they improve the project's IRR. Even if the government supports these projects as a result of the Tesla affiliation, they ultimately have to be developed, and therein lies a significant risk (no matter how promising these projects might seem).
The Bottom Line
Recent consolidation in the lithium space has left three players controlling 90% of the world's production:
Albemarle
FMC
Sociedad Quimica y Minera de Chile (NYSE:SQM)
Furthermore, in what has been a brutal bear market in commodity prices, Li has held up phenomenally well.
Again, we note that FMC just announced a 15% price increase in the face of a commodity bear market.
Why this disconnect between lithium and other commodities? There is certainly a rise in demand from Li-Bs, but this only accounts for ~25% of demand. Note that flake graphite, which also gets ~25% of its demand from Li-Bs, has suffered and continues to suffer through a bear market.
While there are certainly other factors in determining prices, and while commodities don't all trade together, the strength in lithium coupled with the incredible concentration of productive capacity in the hands of just a few companies is highly suggestive.
We think there's a lithium war brewing between producers and Tesla, and we've seen several "shots" taken by both sides. Producers have consolidated and have raised prices in the midst of a commodity bear market. Meanwhile, TSLA is dealing with potential competitors, as its management is likely displeased with the proposed off-take arrangements offered by the current producers.
As outsiders, we don't have access to the entire story, but Tesla's shareholders need to ask themselves if this is the best path toward lithium-supply security. We're doubtful, as it's highly contingent upon the market's perception of TSLA's brand value rather than the high likelihood that these two projects get into production in a timely fashion. We note that generally it takes years to bring a mine from the resource stage of its development to production, and that most projects at that stage actually never make it into production.
A spokesperson for Albemarle - a producer in Nevada - has stated that the company is capable of meeting Tesla's lithium needs. What is at issue are the terms. Without owning the productive capacity, Tesla is likely doomed to pay "market prices," and this is not a reality that the company has yet been able to accept.
This has the potential to have a deleterious impact on the Tesla brand. If suppliers, partners and investors have any doubt as to the company's ability to meet any of its material needs, then they will be forced to conclude that TSLA is potentially unprepared in a fundamental aspect of its business.
Sep 14/15 Sep 4/15 Hodgson, William Thomas Direct Ownership Options 00 - Opening Balance-Initial SEDI Report 1,676,625
This guy has lot more shares so i do think he just need a little cash.
Director John Kanellitsas acquired 200,000 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were bought at an average cost of C$0.31 per share, for a total transaction of C$62,000.00.
do your home work this guy came over from Lithium America, with more than just them shares. taking some profit is normal for a 62 year old now consultant who after 6 months might not be with wlcdf .it happens a lot.
Franco Mignacco will continue in his role as
President of Minera Exar S.A. and Tom Hodgson and John Kanellitsas
have agreed to be engaged as consultants for Western Lithium under a
six-month term and become members of a Western Lithium integration
team established to execute initiatives related to corporate
development, strategy and capital raising.
You can learn very little from it. Company directories are often given share options or shares as a bonus, and because of that they are unlikely to buy shares. When they sell shares, you'll hear people shouting "so-and-so sold his or her shares, they must know something bad about the company".
The truth is that you can't eat or drink shares. If that company director owning shares worth a million dollars wants to buy a new Ferrari, he will find that Ferrari doesn't give free cars to people owning lots of shares. He actually has to sell the shares.
In addition, Western Lithium has reserved for issuance up to 5,345,475 Western Lithium Shares upon exercise of replacement options granted to certain Lithium Americas executives and up to 78,900 Western Lithium Shares issuable upon exercise of outstanding share purchase warrants of Lithium Americas. In connection with the Arrangement, three Lithium Americas nominees joined the Board of Directors of Western Lithium, being: Tom Hodgson, Executive Chairman of Lithium Americas prior to the Arrangement.
I am going keep adding why I can.my car is payed for.
Wow what a nice outlook for the future of Western Lithium.Real direction and clear goals for 2015 to 2019.I am looking forward to being able to add to my share base at such a discounted price I am almost glade when I see a stupid post on some of the message boards about this company missing the boat or not moving forward or I love the posts that are like the office is empty or they should be a least mining pot ash or something stupid. How about the environment acid soda killing fish and birds hahaha.
I am looking at 30,000 ton to 46,000 ton of Lithium for sale a year by 2020
not even counting other products at 6500.00 to 7500.00 a ton simple math at
40,000 TONS PRODUCTION A YEAR AT $7000.00 280 million U.S. dollars
OK THIS A SAMPLE FROM SQM Sociedad Quimica y Minera de Chile AND THERE STOCK PRICE SEPT 24 1993 WAS .24 CENTS 2000 WAS 2.85 2005 WAS 7.00
STOCK SPLIT 10-1 2008 AND WAS 60 + DOLLARS A SHARE 2011.
FROM SQM
We believe that we are the world’s largest producer
of lithium carbonate, and one of the largest
producers of lithium hydroxide. In 2013 our revenue
from sales of lithium and derivatives amounted to
approximately US$ 196.5 million, making up some
9% of our total annual revenue. We estimate that
our sales made up 27% of the total volume of
lithium compounds sold worldwide in 2013.
Lithium: Markets
Lithium carbonate is used in a wide variety
of applications, including the production of
electrochemical materials for batteries, ceramics
glazes and frits, heat resistant glass (ceramic
glass), primary aluminium smelting processes,
air conditioning chemicals, continuous casting
powder for steel extrusion, and the synthesis of
pharmaceuticals and lithium derivatives.
Lithium hydroxide is primarily used as a raw
material in the lubricating grease industry, as well
as in the dye and battery sectors.
In 2013, demand for lithium compounds grew by
approximately 4% to some 130,000 tons, with
close to 50% of global supply produced in Chile.
Well now i am feeling like waiting to 2020 might be fruitful for me to stick around add a few share to my nut stash. or maybe I should just post some crazy rant about epic failure around the corner crash burn and I told you BILL it toast lol.
Looking down the road to a time when are highways are filled with other options rather then just gas and diesel. Electric solar charging stations with Lithium battery storage for fast charging of cars and trucks.
Looking down the road to autonomous safe quit electric lithium cars light truck and drones, making home and business delivery. This is a changing world we live in and the younger generation is progressive and Eco friendly.
I posted the other day about TESLA and POSCO not funding WLCDF I might be wrong about this after reading more POSCO could fund the plant with its technology.
The 300 or so million plant cost if location if in Nevada would not take long to be operational. I am hoping they start producing at the former LAC s’ Cauchari-Olaroz Project in Jujuy, Argentina with POSCO there could be a much faster to sale of Lithium there at a lower cost to build and to production.Note this is just my thinking I am just a guy at a pc with a FEW share of WLCDF eating leftover beef teriyaki skewers and drinking Dunkin Donuts why skipping work on a Friday. So make sure you do your own home work.
I thought this post was cool from a Chicago start up. I am very hopeful anyone Investing in the long term with all writing on the walls pointing to a future with Western Lithium having such a large deposit of Lithium on the global market not just in the back yard of Tesla and MUSK.There going to be such a advancement in EV and Battery storage the paradigm shift could be like the horse and steam train to the gas car and Diesel train.
Chicago startup to build 3,000 solar charging stations in Jordan
http://www.chicagotribune.com/business/ct-allcell-jordan-solar-charging-stations-biz-20150805-story.html
Tesla secures lithium deal from Nevada site
Ok so I am sure all the poster are coming out today on this Reno Gazette
news.
I would like to note that on the Pure Energy website there is this Info.I posted under this ramble of mine.
Ok so why no Western Lithium agreement same process of extraction. It is my assumption that western Lithiums management is more then capable of pitching there Lithium carbonate ability of production after completion of funding and all results of demonstration plant in Germany are complete.
Along with the LAC incorporation with the same POSCO process.It is not A good business practice to announce something your not even able to process anything for sale at this time.
TESLA IS NOT GOING TO FUND THE PLANT.OR POSCO if they were why not just buy out the company.
Same for all that claim these agreements with TESLA Just point out the demand is there. And it gives a small stock jump to junior lithium mining companies that are no further alone if even close to the same stage of WLCDF..
Funding for the wlcdf Plant could come from many sources.And can be scaled up quickly after all permitting construction and funding are complete. I do not see concrete footing pours on any of there website Like Western Lithium Posted when the clay plant was being built real plant real production.Real MANAGEMENT YIELD RESULT IN THE LONG TERM NOT A LITTLE HOPE SPIKE ON A STOCK CHART.
Basic engineering for the Lithium Demonstration Plant was completed by URS Corporation (Denver, USA) and K-UTEC AG Salt Technologies (Germany) in conjunction with IBU-TEC Advanced Materials AG (Germany). The design is based on running calcination and crystallization on a 24-hour basis with the rest of the process on an 8-hour basis based on the equipment sizing. It is anticipated that our lithium clay will be calcined at a rate of 12 tonnes per day and battery grade lithium carbonate will be extracted at a rate of 60 kg per day. During the operation, approximately 280 kg per day of fertilizer grade potassium sulphate will also be recovered as a byproduct. The plant includes all the key process equipment envisioned for the commercial facility at a size that will allow easy scale up to the commercial design.
Pure Energy’s is working with global technology providers Tenova Bateman and POSCO that have developed proven, innovative and sustainable lithium extraction technologies that outperform conventional processes. The innovative processes use selective mineral extraction technology to target lithium-bearing salts held within the brine and has significant advantages over conventional technology:
Faster – 8 hrs vs. 1-2 years (not weather dependent)
Better use of resource – >99% Li extraction vs. 40%-50% Li extraction
Higher purity – battery grade >99.9%
Sustainable – spent solutions suitable for reinjection vs. large waste piles
Compact and Cheaper – small 100m x 100 m footprint vs. 4000+ acre ponds
Weather – non-issue vs. dependent variable
Ability to recycle – capture massive future market demand vs. no recycle
Feed solution – suitable for brines with Li >20 ppm vs. higher conc req.
Tesla Motors could be acquiring lithium closer to home after the company secured a supply deal from a location just a few hours away from its gigafactory site in Nevada.
Vancouver-based Pure Energy Minerals announced on Wednesday morning that it finalized an agreement with Tesla to potentially supply the company with lithium hydroxide for use in its batteries.
The lithium will be procured from Pure Energy's' Nevada Lithium Brine Project at Clayton Valley, just three and a half hours away from Tesla's "Gigafactory 1" site east of Reno-Sparks. It is also on the same basin as Albermarle's Silver Peak lithium brine mine. Silver peak is the only producing lithium operation in the United States.
The agreement with Tesla is a key milestone for Pure Energy's lithium brine project and its business development model, said Robert Mintak, Pure Energy CEO.
"We think the project, its Nevada location and Pure Energy's green, clean, innovative development model provide a unique opportunity as a domestic lithium source," Mintak said by phone on Tuesday evening. "It's been a hectic day (and) we're extremely excited working with Tesla Motors."
Patent US7157065 Production of lithium compounds directly from lithium containing brines
US 7157065 B2
http://www.google.com/patents/US7157065
The POSCO extraction process is also capable of producing potash. The potash demonstration plant, located in Jujuy city, is in the final stage of construction and is expected to be in operation in the next few weeks. Both the lithium and potash plants will operate for several weeks, following which LAC expects to commence commercial stage negotiations with POSCO in the spring of 2015.
POSCO, Korea’s largest steel company and a leader in the development of advanced material processes, has developed a proprietary and innovative lithium extraction technology which it believes has numerous advantages compared to traditional lithium brine evaporation technology. Specifically, POSCO claims that its technology produces lithium considerably more quickly than traditional brine evaporation technology, minimises the environmental footprint associated with large scale evaporation ponds used in traditional brine evaporation technology, and has a recovery rate which is significantly higher than traditional brine evaporation technology. The higher recovery rates associated with POSCO’s processing technology should result in a project requiring fewer production wells for a given level of production, thereby reducing the capital cost requirements for the wells as compared to traditional evaporation technology. In addition, higher recovery rates would serve to increase the effective size of a lithium resource, thereby extending the life of a project. POSCO’s several hundred tonne per year Demo Plant is the final stage test in the commercialisation plan for its high efficiency lithium extraction process, having previously successfully operated pilot plants in 2011 and 2013, respectively.
Wish I had a crystal ball on the stock price buy in at .27 the market is not that easy or we would all be Warren Buffet.I am happy any price under .76 at this point I feel safe that WLCDf Will be above a doller by 2019 if not more. I am thinking if there at the point of selling Lithium by 2017 the stock should go above 5 by 2019 easy. this is just a average percent listed on this Post.
overall lithium market, another research titled Global Lithium Market 2015-2019 forecasts 11.2% CAGR growth to 2019. The Global Lithium market can be segmented based on type into Lithium Carbonate, Lithium Hydroxide, Lithium Concentrate, Lithium Metal, Butyl-lithium, Lithium Chloride, and Other Lithium Compounds. The production of electric vehicles and hybrid vehicles is an important trend upcoming in the lithium market. Consumers are opting for green tires made from lithium solutions because they are eco-friendly and durable, provide grip, reduce carbon emissions, and are fuel-efficient. According to the report, the use of lithium batteries in portable devices is the major contributor to the market growth. The demand for small portable and hand-held electronic devices has led to the proliferation of rechargeable lithium-ion batteries.
sorry bill i just posted link i seen on a search I dont put any stock in there reports at this time in the game i just liked what it said about there using local lithium. there no operational mine selling anything to Tesla at this time and there not even making anything yet so i am not worried about them using some other sources.Down the road I am very sure WLC will be fully suppling more than one buyer.
Last week, Tesla Motors (NASDAQ:TSLA) announced that it had agreed in principle to an off-take agreement with Bacanora Minerals Ltd. (TO:BCN) (located in Sonora Mexico) and to a lesser extent, its joint venture partner, on a portion of their properties, Rare Earth Min. Since then, Bacanora’s stock is up approximately 40%. At first, I was surprised Bacanora’s stock didn’t soar even higher. It turns out that the off-take agreement has a number of contingencies and no financial commitment from Tesla. In fact, Tesla’s Elon Musk was quoted as saying, “this lithium deal is not exclusive (and) has many contingencies. The press on this matter is unwarranted.”
Elon Musk CommentsElon Musk Comments
The point of the opening paragraph is not to marginalize the good fortune of Mexico’s Bacanora, they have certainly staked a coveted spot! Instead, I believe it has significant and important ramifications for lithium juniors in Nevada. There’s Dajin Resources [(DJI.V) & (DJIFF)] Pure Energy Minerals (TO:PE) the proposed [Western Lithium/Lithium Americas] merger and of course the currently producing Rockwood Lithium brine operation.
Clearly, more than one of the above will get the green light. In fact, I’m laying out a thesis that, over time, all existing Nevada lithium companies will be keenly sought after. I find it noteworthy that Tesla’s first move to secure lithium supply was choosing a company that remains years from production. To be fair, Bacanora is more advanced than Western Lithium, Dajin Resources and Pure Energy. However, the fact that Tesla is looking so far in advance and might soon announce deals in Nevada, is telling of Musk’s longer-term strategy. Remember, Musk believes, “the need for lower-cost batteries for autos and power storage means there will need to be hundreds of, “giga-factories…”
Will Long-Term Users Tap Every Lithium Source?
If Tesla is largely confined to North America for his its raw materials, as is reported to be the case, Nevada is surely a great place to be. The State offers security of supply not just for Tesla, but for giga-factories sure to follow. There are not that many lithium juniors, except a dozen or two with little more than a potential deposit, in places like Serbia, with no cash or the ability to raise capital. Hope is not a strategy.
Tesla and others will need ALL of the lithium supply from any economic deposit in a known, safe jurisdiction like Nevada. It’s a question of when, not if, investors wake up to Nevada’s small cap lithium opportunities. Even companies in Nevada that might be 5 + years from production are still years ahead of green field prospects. Dajin Resources is an early-stage play, but it has invested capital, drilled holes, and staked some of the most prospective property in Nevada as well as in Argentina. Dajin has a committed shareholder base and the demonstrated ability to raise capital, including from the ongoing exercising of in-the-money warrants.
Yes, Dajin is an earlier stage play than Western Lithium (OTC:WLCDF) and Pure Energy (TO:PE). However, there will be room for more than just one winner. Dajin controls almost 7,000 acres in Nevada and an enormous land position (roughly 250,000 acres) in Argentina. Investors in Dajin get a long-dated call option in Argentina for free. How large a holding is 250,000 acres? Lithium Americas controls about 200,000 acres, which was no doubt an attractive attribute to Western Lithium’s stakeholders. Although at early stage, in the long run will that matter if lithium demand explodes higher like Musk and others seem to believe? I think not.
The bottom line is that there are probably 10 or fewer pure-play, lithium juniors with a shot of reaching production, (there will be more joint ventures, farm-outs and takeovers). Therefore, green field explorers and higher-cost projects in Australia (and elsewhere) will never see the light of day. In my opinion, Musk tying up a portion of Bacanora’s output would not be a meaningful part of his aggressive long-term demand expectations. Bacanora might end up supplying just 10% (my guess) of its lithium output to Tesla’s first giga-factory. Security of supply means multiple sources for multiple end users.
Conclusion
Tesla and others to follow will demand consistent, high quality, on-time delivery from a wide range of sources. If Musk keeps to his pledge of obtaining raw materials solely from North America, he will likely be all over Nevada’s emerging production, timing unknown. Not to be lost in the analysis is that Musk not only wants to secure his own growing needs, but is likely to be searching for opportunities to thwart competition.
As soon as the likes of Buffet’s BYD, LG Chem, Panasonic (TOKYO:6752), NEC, Samsung (OTC:SSNLF), Sanyo, etc. begin announcing off-take agreements, the world will see how critically important the 10 or fewer lithium hopefuls are.
I work for the department of public works of a city in MA USA you should see were are empty road paint cans go. I am sure there municipal and state
regulations are able to handle some toxic wast water lol. and that other country i dont think they even have teeth or a dr office down there. I know been to Mexico and you can still buy a wood leg.
POSCO has agreed to finance the capital expenditures required for the initial phase of 2,500 tonnes commercial production, ahead of the Joint Venture Company raising project financing for 20,000 tonnes.
Commenting on the HOA, the Company's Executive Chairman, Tom Hodgson, stated: "We are very pleased to execute this agreement on the eve of our merger with Western Lithium. This memorializes our joint commitment to develop a lithium project in Jujuy, Argentina and is the culmination of over two years of working together with POSCO. We would like to congratulate the many people whose hard efforts made this achievement possible including the strong support from our local partners in Jujuy, Argentina."
Chinese electric vehicle market is expected to become the world’s biggest starting in 2016. In fact, the government says it plans to have five million electric vehicles on the road by 2020.
All those cars are going to need batteries, and it isn’t just Tesla’s gigafactory that’ll be producing them.
South Korea’s largest chemicals company, LG Chem (051910.KS), broke ground for an electric vehicle battery factory in China on October 30. The plant will have the capacity to produce 100,000 batteries annually.
LG Chem said at the groundbreaking that it expects the global battery market for electric vehicles to grow to $18.24 billion in 2020. That’s more than five times the size of the market in 2013, which reached $3.26 billion.
According to research from Benchmark Mineral Intelligence by Simon Moores, all of this demand will put stress on lithium hydroxide supplies.
2015. During
this period, over 20 tonnes of lithium compound was produced and subsequently exported to
POSCO’s facility in Pohang, Korea where it was further processed into battery grade lithium
carbonate and lithium hydroxide. POSCO advised Lithium Americas that initial test results
indicated that the Demo Plant achieved or exceeded all performance targets and that the
lithium products processed in Pohang were of very high quality. POSCO claims that its high
efficiency lithium extraction technology has numerous advantages compared to traditional
The Forgotten Lithium
Moores states that there are several factors contributing to the shortage.
From the perspective of Wall Street, there’s plenty of lithium on the market. But in reality, there’s only a surplus of lithium carbonate. Lithium hydroxide, in fact, is lacking.
You see, most supply expansions in lithium have occurred in the carbonate sector; hydroxide was forgotten. Reason being, there’s much more carbonate in lithium brine deposits (the source for various lithium types). Lithium hydroxide segments are also 2.5 times smaller than the well-supplied lithium carbonate segment. Thus, manufacturers need more deposits in order to get hydroxide, which makes production more expensive.
But with Tesla and others planning to use lithium in their batteries, Moores says the demand for all lithium chemicals used in batteries will increase by as much as 50%.
With little increase in lithium hydroxide supplies, shortages could occur as soon as next year. As a result, prices will increase by as much as 30% from current levels.
We could reach an all-time high for lithium hydroxide prices – the previous record was set in 2012 at $8,000 per metric ton.
And some increases look to be already underway.
This type of news is very good news for WLCDF it shows me that the market for Lithium hydroxide supplies is in such demand Tesla has to start Fishing around in projects that are not even able to supply at this time just provisional at best.I am sure with the storage Battery revolution on the horizon the outcome of Western Lithium and Lithium Americas and POSCO funding and technology its a nice looking outcome.
A long way to go
A deal with Tesla is a game-changing development for Rare Earth, but the company still has a lot to do before the contract translates into revenue. For example, today’s press release warned that:
“…the Sonora Lithium Project Partners will need to design and construct a suitable mining and processing operation. This will require the Sonora Lithium Project Partners to secure significant financing through debt and/or equity.”
What’s more:
“Bacanora and REM will be pursuing next steps to raise finances in order to achieve this goal. There can be no assurance that the conditions to supply product under the Supply Agreement will be met or that the agreement will prove to be economic.”
In other words, while Rare Earth and Bacanora may have a provisional agreement with Tesla, there’s no guarantee that the partnership will register any economic benefit from the deal.
Project: Kings Valley, Nevada
Ownership: 3%
http://www.rareearthmineralsplc.com/operations/operations-listing/
Rare Earth Says Western Lithium To Merge With Lithium Americas
Alliance News
Wednesday July 01, 2015 12:28 AM
LONDON ( Alliance News ) - Rare Earth Minerals PLC Wednesday said that Western Lithium USA Corp , in which it holds a 3.1% stake, is joining forces with Lithium Americas Corp to consolidate strategic lithium deposits in North and South America .
The natural resource investment company said that Western Lithium will acquire all outstanding shares of Lithium Americas under the agreement in an all-stock transaction that values the company at approximately CAD80 million .
Rare Earth said that the combined entity will control two large and geographically diversified development stage lithium projects, and will generate revenue from its subsidiary Hectatone in 2015 followed by potential revenue from the Cauchari-Olaroz project in Argentina under a two-year development timeline and from the Kings Valley project in Oregon under a four-year development timeline.
Under the agreement, Lithium Americas' shares will be exchanged on the basis of one share for 0.789 of a Western Lithium share. Western Lithium will also settle all of Lithium Americas' in-the-money options and warrants, as well as certain change of control payments otherwise payable in cash, using the same exchange ratio calculation, Rare Earth said.
Upon completion, existing Western Lithium shareholders and Lithium Americas security holders will own approximately 50.05% and 49.95% of the combined company, respectively.
"The lithium market is approaching an important inflection point for the sector, with the strong fundamentals driving a rapidly increasing demand, with little additional supply capacity from the traditional producers," Rare Earth Chief Executive Kiran Morzaria said in a statement.
This merger along with Albermale's acquisition of Rockwood Holdings earlier this year for USD 6.2 billion is part of a trend to find synergies in technology, management and assets that will allow the economic development of lithium assets and fill the anticipated supply gap," he added.
Shares in Rare Earth were trading up 3.6% at 0.927 pence Wednesday morning.
There is more than one fish in the sea. Sure Tesla Pond is in the back yard of Western Lithium and we all love fishing close to home cuz its cheaper. But Western Lithium adding LAC is wicked smart move. Lac admitted there management was lacking.
Western Lithium will continue to be led by CEO Jay Chmelauskas. Lithium Americas executives Tom Hodgson, John Kanellitsas and Franco Mignacco will join the Western Lithium Board of Directors. Franco Mignacco will continue in his role as President of Lithium America’s subsidiary Minera Exar S.A. and Tom Hodgson and John Kanellitsas have agreed to be engaged as consultants for Western Lithium under a six-month term and become members of a Western Lithium integration team established to execute initiatives related to corporate development, strategy and capital raising. Each of Messrs Hodgson, Kanellitsas and Mignacco have executed agreements by which they have agreed to settle change of control payments for common shares of Western Lithium and to a six-month lock-up on all securities held following the effective date of the merger.
TORONTO, Canada, August 27, 2015 - Lithium Americas Corp. (TSX: LAC) (“LAC” or the
“Company") is pleased to announce that it has executed a Heads of Agreement (“HOA”) with
POSCO regarding the commercialization of the Company’s Cauchari-Olaroz lithium project in
Jujuy Province, Argentina. As previously reported, POSCO and LAC’s decision to commercialize
the Cauchari-Olaroz lithium project (the third largest known lithium brine resource in the
world) is based on the successful results surrounding the operation of POSCO’s innovative high
efficiency lithium extraction demonstration plant (the “Demo Plant”). The Demo Plant, with an
operating capacity of 200 tonnes per year of lithium carbonate equivalent (“LCE”), was
inaugurated at the LAC Cauchari project site on December 19, 2014 and achieved full and
continuous operating rates throughout a test period that ended in late January, 2015. During
this period, over 20 tonnes of lithium compound was produced and subsequently exported to
POSCO’s facility in Pohang, Korea where it was further processed into battery grade lithium
carbonate and lithium hydroxide. POSCO advised Lithium Americas that initial test results
indicated that the Demo Plant achieved or exceeded all performance targets and that the
lithium products processed in Pohang were of very high quality. POSCO claims that its high
efficiency lithium extraction technology has numerous advantages compared to traditional
lithium brine evaporation technology, specifically that its technology produces lithium
considerably more quickly than traditional brine evaporation technology, minimizes the
environmental footprint associated with large scale evaporation ponds used in traditional brine
evaporation technology, and has a recovery rate which is significantly higher than traditional
brine evaporation technology.
The HOA, legally non-binding and non-exclusive, provides the basic framework and conditions
to establish a Joint Venture Company, which the parties expect to negotiate after completion
of due diligence, and during the fourth quarter of 2015. Both parties will now commence
detailed due diligence with the objective of establishing a financial model and business
plan. Further details on terms such as capital investment, operating costs, product mix,
economic ownership and financing responsibilities will be finalized within a Joint Venture
Agreement.
At this time the parties have agreed that POSCO will contribute to the joint venture the right to
use its proprietary lithium extraction technologies for the production of lithium carbonate and
lithium hydroxide, while LAC will contribute the right to use brine from its Cauchari-Olaroz salar
properties. The plant is expected to be producing up to 2,500 tonnes per annum by year-end
2016, and anticipates ramping up to 20,000 tonnes by year-end 2017.
POSCO has agreed to finance the capital expenditures required for the initial phase of 2,500
tonnes commercial production, ahead of the Joint Venture Company raising project financing
for 20,000 tonnes.
Commenting on the HOA, the Company’s Executive Chairman, Tom Hodgson, stated: “We are
very pleased to execute this agreement on the eve of our merger with Western Lithium. This
memorializes our joint commitment to develop a lithium project in Jujuy, Argentina and is the
culmination of over two years of working together with POSCO. We would like to congratulate
the many people whose hard efforts made this achievement possible including the strong
support from our local partners in Jujuy, Argentina."
Update on Proposed Merger between Lithium Americas and Western Lithium
On June 30, 2015, LAC and Western Lithium USA Corporation (“WLC”) announced that they had
entered into an arrangement agreement pursuant to which WLC agreed to acquire all of the
issued and outstanding common shares of LAC on the basis of 0.789 of a WLC common share
for each outstanding LAC common share pursuant to a statutory and court-approved plan of
arrangement. The special meeting of shareholders of LAC is scheduled to be held at 2:00 p.m.
(Toronto time) on Monday, August 31, 2015 to vote on, among other things, the special
resolution to approve the arrangement. Completion of the arrangement is subject to, among
other things, receiving the requisite shareholder, court and stock exchange approvals, and the
satisfaction of other customary conditions contemplated by the arrangement agreement.
According to Frost & Sullivan, the global market for lithium-ion batteries is expected to double to $22.5 billion in 2016 from $11.7 billion in 2012. Consumer goods and automobile sectors are driving the demand.
The share of the automobile sector in the lithium-ion battery market is expected to grow to 25% in 2016 from 14% in 2012, per the data from Frost & Sullivan. This represents a Compounded Annual Growth Rate (CAGR) of 37%. With the increasing use of lithium-ion batteries in consumer electronic products as well as efforts to promote the use of electric cars by many governments to curb pollution, the demand for these batteries is expected to rise.
Lithium Americas Corp (TSE:LAC) Director John Kanellitsas purchased 200,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were bought at an average cost of C$0.31 per share, with a total value of C$62,000.00.
Shares of Lithium Americas Corp (TSE:LAC) remained flat at $0.30 on Tuesday. 1,360,500 shares of the company’s stock traded hands. The firm’s market cap is $46.88 million. Lithium Americas Corp has a 52-week low of $0.24 and a 52-week high of $0.49. The stock has a 50-day moving average of $0.38 and a 200-day moving average of $0.35.
Lithium Americas Corp. is engaged in developing lithium operations. The Company’s principal property consists of a portion of two adjacent Argentinean salt lakes, Cauchari and Olaroz, covering 82,498 hectares in the Lithium Triangle region of South America. As of February 28, 2011, the Company had rights over approximately 164,700 hectares in five salt lakes in the Jujuy and Salta Provinces of Argentina. Its main property consists of a portion of two adjacent salt lakes, Cauchari and Olaroz, located in Jujuy, Argentina. On August 12, 2010, the Company announced the opening of its on-site pilot evaporation and analytical laboratory facilities. On August 26, 2010, the Company announced that it had completed its advanced exploration program on its Cauchari- Olaroz properties in Argentina.
I still believe the first phase of the Gigafactory will be a pack assembly plant rather than a battery plant.
Most of the initial manufacturing work will consist of taking lithium-ion cells from Panasonic and assembling them on a bigger scale in Nevada for Tesla's Model S and the new Model X, which is out in September.
At Benchmark, we believe the Gigafactory will evolve into a true battery producing plant in 2017 where the anode (graphite) and cathode (lithium, cobalt) components will be produced on-site. Therefore, raw materials suppliers have roughly another year to finish off supply deals, and Tesla will have to make a tough call on which ones to back.
TGR: The lithium market witnessed some consolidation with the merger of Western Lithium USA Corp. (WLC:TSX; WLCDF:OTCQX) and Lithium Americas Corp. (LAC:TSX; LHMAF:OTCQX). What is the takeaway for investors?
SM: It is now a bigger lithium company that will be on more institutional desks. A lot of the critical minerals and metals companies are too small to attract big investment capital. Companies trying to produce 20,000 tonnes (20 Kt) of lithium or 30 Kt of flake graphite are often too small to get institutional attention. This merger puts a new, much larger lithium company on their radar and with it lithium as a whole. That's good for the lithium industry, which needs new investment.
On a side note look how oil prices have effect the Lithium market on the short side it works out perfect for us that are adding to are share base by driving down price on the short time side and on the long side it will be cheaper to mine with lower oil cost WIN WIN for us I think.
Cheap oil has already had a negative effect on other green energy sectors, namely, solar. According to an article from ETF Trends, the Guggenheim Solar ETF (NYSEARCA:TAN) and the Market Vectors Solar Energy ETF (NYSEARCA:KWT) have lost about 14 and 11 percent, respectively, over the past three months, and oil’s weak performance is likely to blame.
Back on the lithium side of things, Berry has pointed to Tesla as “the bellwether for battery-grade lithium demand.” Notwithstanding all of the excitement surrounding Elon Musk and his lithium-ion battery gigafactory, the analyst stated that negative effects from a delay in the roll out of new models or a miss of sales targets could trickle down to the lithium space as well.
On the bright side, cheaper oil could mean cheaper mining costs when it comes to the broader metals and mining space. But as is explained by Berry in this interview with JT Long of the Gold Report, that could be a double-edged sword.
“[L]ow oil prices could end up hurting the mining industry in the near term as cheaper energy encourages increased production into many oversupplied markets,” he states. However, he notes that such a scenario has not come about quite yet. Furthermore, many have indeed alluded to the “tax cut” being enjoyed in many industries due to lower oil prices.
On Wednesday, light sweet crude was still below $50 a barrel, sitting around $48.77. It will be interesting to see how the situation develops moving forward, as market watchers are divided on exactly how low oil may go.
yes i been adding to my little share bank in this Lithium paradigm shift to EV AND Storage units. I love the fact that wlcdf is attemting to buy lithium Americas.That will bring them to market so much faster.
very hard to figure out that Going-Concern Value without recent year's earnings data.do you have info on how you arrive at this ?
An Important Element In (Li)mited Supply
WLC Western Lithium USA Corp -- -- 0.67%
ok so this guy wrote this talking about The Global X Lithium ETF note that its at a 52 week low and also note that it holds WLC Also read the OTC Markets WLCDF — Research Report
Amended & Restated Technical Report (NI 43-101)
http://www.otcmarkets.com/stock/WLCDF/research
And check this out largest shareholder -- Geologic Resource Partners -- has bought up nearly $500,000 worth of shares in the company on the public market, showing confidence in Lithium Americas'.
Lithium-ion battery make XALT Energy LLC forms a joint venture with Magna International of America, HHI Battery Co.
Lithium Americas' operating cost per tonne of lithium carbonate is expected to be one of the lowest in the industry. Mitsubishi Corporation and Magna International are shareholders in the Company, in addition to both companies having off-take arrangements with Lithium Americas.
The news — coming to us via a report from Automotive News Europe — concerns the joint venture between Bosch and GS Yuasa known as Lithium Energy and Power GmbH & Company KG. The joint venture is based out of Stuttgart, and was formed relatively recently — back in November 2013. The ownership split for the venture is: Bosch holds a 50% stake, GS Yuasa International holds a 25% stake, and Mitsubishi Corporation holds a 25% stake.
Lithium Americas is one of the most advanced brines project in South America, producing lithium using brine technology and solar evaporation—a very low-cost production method. We expect it to be among the first to market, in relatively due course.
Lithium is an important non renewable resource.
Lithium is found in relatively few and highly concentrated geologic regions.
Supply limits may not match increasing demand.
Introduction
The world is facing an imminent supply shock that will ultimately damage the economy. I'm not talking about crude oil, natural gas, gold, or water. I'm talking about a natural resource that dictates the new way of life many of us have grown accustomed to. I'm talking about lithium. Lithium is used in special glasses, ceramics, A/C units, aircraft, armor plating, bicycle frames, pharmaceuticals, and high speed trains. Lithium's most recognizable and important function is its unique functionality that allows it to perform optimally as a rechargeable battery. Lithium batteries are used for mobile phones, electric vehicles, laptops, and digital cameras. Non-rechargeable lithium batteries are found in toys, clocks and pacemakers. Lithium is a unique substance that is in limited supply. Current demand is unsustainable. Without a wide scale recycling plan, supply limits will likely lead to higher prices. I urge investors to consider the economic impact of higher lithium prices (particularly with consumer electronics and electric cars).
What is Lithium?
First discovered by Brazilian chemist Jose Bonifacio de Andrada e Silva in the 1800s, lithium is the third element on the periodic table. It is a low density solid that does not occur naturally, rather in compounds. What makes Lithium unique is its single valence electron that can form a cation easily. Lithium's high power-to-weight ratio and low atomic mass allow it to have a high energy density. Lithium-ion batteries are the most efficient batteries for their density. Lithium-ion batteries replaced Nickel-Cadmium and NI-MN batteries because they have a higher power to weight ratio and Li-ion batteries suffer less from the "memory effect". Think of the "memory effect" in terms of your own phone holding less and less of a charge over time. Lithium is valuable because it can hold a large and sustainable charge in a relatively condensed space. The economic benefits from these properties become blaringly obvious when considering the condensed qualities of most consumer electronics.
How Is It formed?
Lithium is found in small concentrations all throughout nature, but it is economically extractable in only few (very specific) geologic conditions. Lithium reserves are found in brines, minerals, and clays. The largest deposits of lithium are found in South America. Lithium brines are volcanic and form by solar evaporation. Infrequent rainfall in volcanic valleys transports trace lithium deposits down into playas. The water pools into a depression and dries up. The lithium then consolidates into highly concentrated deposits. These conditions only occur in a select few locations on earth, and they are primarily located along the western coast of South America in Chile, Bolivia, and Argentina. Interestingly, Australia extracts the largest quantity of lithium each year due to political restrictions in those three countries. Lithium can also be extracted from seawater, but it is very expensive and consumers will have to be willing to shoulder the cost.
Supply and Demand
(click to enlarge)
According to a Stanford Study, the majority of the world's lithium deposits have been discovered. This makes sense because the geologic conditions that make lithium economically viable are fairly obvious. I included a chart from mining.com that estimates future demand. It also takes in into account high supply and low scenarios. A high supply scenario would essentially involve the immediate, widespread, and uninterrupted exploitation of South American lithium. The low supply scenario is a conservative estimate based on current extraction rates. These scenarios are then extrapolated to the year 2020. Demand ranges provide a high and low estimate of future lithium demand.
Why Demand Will be High Rather than Low
Based on several studies (a few of which are here and here and here) lithium demand will grow unsustainably. The primary source of contention is when supply will become a serious issue. Some say prices will shoot up as soon as 2020 and others believe prices will increase as late as 2030. Reserves are large enough to meet demand, but as more lithium is extracted, it will become less economically efficient to extract. Technology will likely adapt to match supply demand, (as it has with oil) but it is more expensive to do this. The wide scale utilization of lithium's powerful properties has already taken effect. Smart phones have already become permanent fixtures of society. The alloys in lithium are also incredibly valuable for manufacturing specific machinery such as cars. Pacemakers certainly are here to stay. The rise of electric cars and "giga factories" are also a booming cause for concern. Tesla (NASDAQ:TSLA) wants to make lithium batteries more efficient by scaling up size. They want to Increase the utilization of electricity over fossil fuels. While efficiency is good, lithium is also in limited supply. Lithium also loses its efficacy over time (up to 200% over 200 cycles), and once cheap sources have been extracted, companies will be forced to pay premiums for more expensive sources (like seawater). Some primary lithium consumers include hybrid cars (Prius, Nissan Leaf, Tesla, ect.), Phones (Apple, Samsung, Google, ect.), and many others I've mentioned already. The lithium battery, however, is the fastest growing use.
Related Stocks and ETFs
LIT Chart
It is difficult to invest directly in lithium due to a lack of serious options. I only found one widely traded and investable ETF. The Global X Lithium ETF (NYSEARCA:LIT) allows investors to buy into a global index of lithium funds. The ETF format allows investors to avoid the large risks associated with individual mining and processing endeavors. LIT has a 0.75% expense ratio and 43.5 Million AUM. It is trading near its 52Wk low at $10.91. It is has decent volume (for a commodity ETF) with a 3 month average of 28,875. Its SEC yield is 0.63%. It is comprised 58.2% of Non U.S. Stock and 41.7 percent in U.S. stock. Indirect methods of investment involve investing in a company that relies on the lithium market. Examples include: FMC Corp (NYSE:FMC) or Rockwood Holdings (NYSE:ROC) or Advanced Battery Technologies (OTCPK:ABAT). Johnson controls (NYSE:JCI), General Electric (NYSE:GE), Tesla, Panasonic (OTCPK:PCRFY), and EnerySys (NYSE:ENS). Each of these stocks relies on lithium demand. The first three companies produce the different lithium batteries, and the second group of stocks creates, markets, and sells lithium products to consumers. These stocks allow investors to invest in the increasing demand of lithium ion batteries. Each investor should think of how a supply limit will play into and industry that is increasingly in demand.
Conclusion
Unless a wide scale and efficient recycling program is put into place for lithium-ion batteries, the world will face a significant shortage. Many of the important and necessary products we know and love get their energy from the unique properties of lithium. Once the majority of lithium is economically extracted, prices will shoot up. Mining companies will be forced to extract lithium from sea water or less concentrated brines. It is unlikely that lithium reserves will be depleted soon, but the lack of supply will likely lead to price increases ought to be noted.
sorry for the OT Post just conecting the dots .
I copy and past stuff I read.If i had more time I would love to write about why I think this stock is going to be a 20 to 40 stock by 2020
l,. opy and past stuff I read.If i had more time I would love to write about why I think this stock is going to be a 20 to 40 stock by 2020
Lithium Americas, Western Lithium eye strategic merger
VANCOUVER — On June 30 juniors Western Lithium (TSX: WLC; US-OTC: WLCDF) and Lithium Americas (TSX: LAC) announced a strategic business combination agreement the companies hope will create a "leading lithium-development company combining expertise, technology, and two significant lithium deposits based in North America and South America." Western Lithium will acquire Lithium Americas in all-share deal valued at roughly $80 million.
Under terms of the arrangement Lithium Americas investors will receive 0.789 share of Western Lithium for each share held. Based on the companies' closing prices on June 29 the offer values Lithium Americas at around 50¢ per share, which represents a 36% premium. Western Lithium will continue to be led by CEO Jay Chmelauskas, while Lithium Americas executives Tom Hodgson, John Kanellitsas and Franco Mignacco will join the joint board of directors.
“The merged company will hold two of the leading lithium development projects in the world. We believe this combination will also result in better liquidity, market capitalization and funding opportunities”, said Chmelauskas in a prepared statement.
“We have been watching the progress of Lithium Americas for several years and believe that it is the right time to combine our efforts and take a leadership role in the sector, with our shared vision and commitment to develop the lithium market in a disciplined manner and a focus on technical innovation and successful project execution," he added.
In May 2014 Western Lithium released a pre-feasibility at its Kings Valley lithium property roughly 100 km due northwest of Winnemucca, Nevada. The project is spread over five mineralized lenses — named Stage I through Stage V — that extend around 30 km. The company's Stage I reserve base supports annual production of 26,000 tonnes lithium carbonate, 90,000 tonnes of potassium sulfate and 100,000 tones of sodium sulfate.
Based on an update published in late 2011 Kings Valley hosts 27 million proven-and-probable tonnes grading 0.395% lithium, 3.88% potassium, and 1.36% sodium. The initial development would advance in two stages, with the initial build costing around US$248 million and a second phase costing roughly US$161 million. The plan would carry an after-tax net present value (NPV) of 24% at an 8% discount rate, along with a 20% internal rate of return (IRR).
Western Lithium reported the production of 99.8% high quality lithium carbonate in its first trial run at a demonstration plant in Germany. Studies have been advanced to finalize the design of the company's lithium hydroxide circuit for production, and it expects pilot testing later this year.
Meanwhile, Lithium Americas has invested roughly US$47 million in advancing its Cauchari-Olaroz project, which consists of a significant portion of two adjacent salt lakes on Argentina's Puna Plateau. The project hosts approximately 2.7 million tonnes of lithium carbonate equivalent (LCE) at a lithium cut-off grade of 354 milligrams per litre.
The company released a feasibility study (FS) at Cauchari-Olaroz in mid-2012 that contemplates staged development with a US$315 million price tag. The FS assumes the project is built over two stages, with each stage consisting of a 20,000 tonnes per year lithium carbonate facility and a 40,000 tonnes per year potash facility.
The study features an after-tax NPV of US$464 million at an 8% discount rate and a 20% IRR.
In January Lithium Americas unveiled a co-operation agreement with POSCO, Korea’s largest steel company and a leader in the development of advanced material processes. POSCO has been working on innovative extraction technology, which it claims produces lithium much faster than traditional brine evaporation technology, minimizes the environmental footprint associated with large-scale evaporation ponds, and has a "significantly higher" recovery rate.
The company followed up in early May when it announced that it was in discussions with POSCO over a commercialization proposal at Cauchari-Olaroz. An eventual agreement would outline a joint venture between the two companies following promising results at a lithium extraction demonstration plant setup at the project in late December.
The demo operation has a capacity of 200 tonnes per year of LCE and achieved full operating rates throughout a test period that ended in late January. The companies have produced over 20 tonnes of lithium phosphate and exported the product to POSCO’s facility in Korea where it was further processed into battery grade lithium carbonate and lithium hydroxide.
"Manufacturers of lithium-ion batteries are increasingly looking for alternative sources of lithium supply, particularly as they build-out major production facilities. We are creating a combined entity that will pursue innovative process technology with a goal of producing improved lithium products," commented Lithium Americas CEO John Kanellitsas
"This transaction is occurring at an important inflection point for the sector, with the strong fundamentals of the lithium sector all coming into focus from the continued growth of electrified vehicles, consumer and industrial energy storage, and consumer electronics using lithium-ion batteries," he added.
The combined company expects to begin generating revenue this year from Western Lithium's wholly-owned Hectatone subsidiary, which manufactures organoclay products used in complex oil and gas exploration, animal feed, and other applications. Hectorite clay is an enabling mineral with thermal stability superior to bentonite clays in high-pressure and high-temperature environments.
The new-look Western Lithium is contemplating revenue from Cauchari-Olaroz based on a two-year development timeline, and potential revenues from Kings Valley under a four-year development timeline.
The companies will also have a good amount of starting capital thanks to a couple of financings Western Lithium negotiated in the past few months. In early May the company closed a US$2.8-million convertible security funding agreement with New York-based asset management firm, The Lind Partners.
Western Lithium followed up in early June with an $8 million bought-deal offering wherein it issued 11.4 million units priced at 70¢ per unit. Each unit consists of a share and one-half purchase warrant priced at 90¢ for 24 months.
strong buy
Elon Musk's Lithium Revolution
Lately, we've been closely following one particular story with imminent growth in today's market: lithium.
Lithium is already necessary for efficient nuclear power, space travel, and every rechargeable item we own. Now it's going a step further and creating a lucrative ground-floor opportunity for individual investors like us.
Here's why...
Through both Tesla (NASDAQ: TSLA) and its sister company SolarCity (NASDAQ: SCTY), Elon Musk is bringing off-grid solar-powered batteries to businesses and homes.
In fact, we already know he has 38,000 pre-orders for these batteries, and some are going to Australia to support its move to solar power.
Needless to say, this story is going to get even bigger going forward...
Elon Musk's Lithium Revolution
Tesla's electric cars are already popular in Europe and China, and the company is partnered with Japan's Panasonic, the world's largest battery manufacturer.
Does it sound like I'm just throwing a list of major deals at you? I admit it; I am.
But you need to realize this: Tesla is only 12 years old, and it already has a massive worldwide reach. The demand for its products is sky-high.
Of course, the biggest question that's floating around the market today is, “Who's going to supply Elon Musk and his friends with all this lithium?"
It's a good question... yet we can already hint at the answer.
Follow the Clues
Our first clue lies within the location of Tesla's Gigafactory. It's no coincidence that Musk decided to place his Gigafactory right on top of the United States' only lithium hub — a potentially great source for his supply issue, or at least a portion of it.
Make no mistake; that factory is going to need 15,000 tons of lithium carbonate per year just to start.
And at last count, the U.S. only has 38,000 metric tonnes in proved reserves. The 500,000 lithium car batteries that Musk wants the Gigafactory to produce per year will eat that up.
The supply situation looks even tighter when you consider the fact that we still have to include demand from the home and business batteries that Tesla — and now SolarCity — will be offering.
Yet that single hub cannot be Tesla's only source of lithium.
Driving a Global Lithium Revolution
Understand that we can't just focus on Elon Musk. After all, lithium is a globally mined and globally used metal.
Lithium use in batteries has risen 78% in four years, with batteries accounting for 30% of lithium demand by 2014.
Moreover, global lithium consumption is expected to grow to 35,000 tonnes per year by 2020, according to the United States Geological Survey. The USGS also estimates that global lithium reserves amount to about 13.5 million tonnes.
To put it bluntly: The world is not short on lithium.
However, it is short on producers that can efficiently extract and refine it.
Tesla has already announced that it will put U.S. companies first when it comes to finding its supply, which gives potential lithium producers in the United States a leg up against competing producers.
I'd also like to note that smaller lithium players here in the U.S. are taking notice and preparing for the surge in demand.
For example, just look at the recent merger between Western Lithium U.S.A. Corp. (TSX: WLC) and Lithium Americas Corp. (TSX: LAC), which gives the combined company assets in both the U.S. and Argentina — a country that holds the world's fourth-largest proved reserves of lithium.
So again, we have to consider the question of where companies like Tesla will turn for their lithium supply.
Let's take a more detailed look into the world's lithium reserves:
pic1july14
When it comes to lithium extraction, there are two methods — but only one is catching our attention.
The “silicate ore” circles indicate lithium in rocks. Although this kind of mining extraction is costlier and more difficult, it's still a main source of lithium for companies in places like Australia and Africa.
As you know, lithium is abundant on Earth, but it has very low concentrations in rock, which must be mined and crushed, then separated and ground down further. That mixture is submerged in liquid to separate the lithium particles from the rest of the minerals. It is then filtered and dried back into a solid.
Now take another look at the image above, and you might notice something else that's peculiar: Brine-based reserves, held in mineral-rich aquifers, account for roughly 66% of the world's lithium resources.
Thing is, brine extraction is by far the cheaper, more economic method.
The concentrations of lithium are much higher in brines because natural movement of the water and heat from the Earth have already released the lithium from rocks and sediment, separated it from many other minerals, and brought it closer to the surface. From there, it's just a matter of filtering.
But even this is still developing. Traditionally, the brine-based product is slowly air-dried. But there are already some methods by which the lithium can be dried through mechanical or chemical means.
That, dear reader, is where the real opportunity is in the ongoing lithium revolution