Edison Lithium Corp (EDDY)

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Bidding Wars for Argentinian Lithium and 1 undervalued Lithium small-cap ($EDDY)

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Bidding Wars for Argentinian Lithium and 1 undervalued Lithium small-cap to take notice of

The mining industry has been headlined by several major deals involving lithium firms over the past months.

This should be of no surprise as the battery metal has been trending up since the beginning of the year. Following a second rally at the onset of the third quarter, lithium prices have shot up to their highest since 2018.

In China, the #1 electric vehicle market globally, lithium carbonate prices have shot up nearly five-fold over the past year and are trading near record highs.

Benchmark Mineral Intelligence (BMI), the world’s leading battery supply chain researcher and price reporting agency reported that “Price of the key battery ingredient held around 165,000 yuan (~$25,000) per tonne in October, and rose quickly to end the year at $41,925/tonne. For a perspective of prices outside of China, Global Lithium prices averaged $27,327/tonne at Dec 31st, 2021.” Higher China prices are not surprising given their demand and form a key rationale for the Lithium M&A frenzy many are calling for in 2022.

The rally comes amid a global push for green energy sources, which has automakers and battery manufacturers have started an arms race in racing to secure supplies of so-called ‘future-facing commodities’ such as lithium. Takeovers and offtakes are aggressively being pursued and emerged as a Central theme in 2021 that is likely to carry over in 2022.