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Feb. 23, 2021, 7:45 a.m. EST

Lithium Prices Soar As Tesla, Apple And Google Fight For Supply

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Feb 23, 2021 (Baystreet.ca via COMTEX) -- The electric vehicle (EV) revolution is gaining serious momentum.

According to experts’ projections, demand for electric vehicles should rise at a 21.1% Compound Annual Growth Rate (CAGR) until 2026.

The extraordinary demand that is forecast for EVs over the next five years has now begun to trigger a massive disruption in the global energy markets.

As demand for EVs continues to move higher, the demand for lithium – the critical component needed for the batteries that power all those EVs – is also projected to climb higher.

According to Roskill Information Services, “lithium chemical demand from end-use sectors is expected to increase year-on-year to around 280,000 tonnes lithium carbonate equivalent.”

These projections have already begun to have a profound impact on the price of lithium in the marketplace.

Lithium prices declined from 2018 through the end of 2020, but since December 1, 2020 the price of lithium has soared 71.24% -- and could be poised to climb even higher.

With rising lithium prices and soaring projected demand, what is the best high risk / reward way for investors to play this EV-powered trend for maximum upside potential?

One under-the-radar company, United Lithium Corp. /zigman2/quotes/201020968/delayed CA:ULTH -4.12% /zigman2/quotes/200379118/delayed ULTHF -5.46% , appears that it could be at the right place at the right time.

United Lithium’s flagship project is a recently discovered lithium deposit located in central Sweden. The company has agreed terms to acquire the project, with closing expected by April.

This project is a near-surface, near-market, exploration-stage lithium property that appears poised to help the company take advantage of Europe’s soaring demand for electric vehicles, and the EU’s strong push for lithium self-sufficiency.

United Lithium Corp.’s Bergby Project: A Near-Surface, High-Grade Deposit Offering Significant Upside Potential

The Bergby project is a recently discovered lithium-rich pegmatite deposit in central Sweden that offers an ideal location.

This property is near to the world famous Woxna graphite mine, the new Northvolt lithium battery gigafactory and close to major mining and transportation infrastructure, workforce and equipment suppliers.

The Bergby project, if proven up as a commercial deposit, is optimally positioned to benefit from access to the EU market and its growing demand for alternative energy vehicle manufacturing, high tech devices and grid storage systems.

In addition, the project’s proximity to next generation lithium-ion battery manufacturing plants is critical, as is access to nearby EU educational institutions and low power costs for processing hard rock lithium bearing minerals cost-effectively.

The Bergby lithium property should be able to capitalize on three key elements:

1. Probable low cost surface and near-surface extraction...

2. Well-established mining and transportation infrastructure, and...

3. Rapid fulfillment of trade regulations allowing tariff-free sales to potential EU lithium customers.

But the location of the Bergby lithium project is only part of the story of its potential.

Historic Sampling Shows Extensive Lithium Mineralization

Mapping and sampling of United Lithium Corp.’s /zigman2/quotes/201020968/delayed CA:ULTH -4.12% /zigman2/quotes/200379118/delayed ULTHF -5.46% Bergby property site defined an extensive field largely comprising boulders with abundant lithium-bearing minerals.

Assay results from 41 boulders shows Li2O (lithium oxide) values averaged 1.06% within a range from 0.03% to 4.56% Li2O; and Ta2O5 (tantalum pentoxide) assays averaged 168ppm, ranging from 1 ppm to 499 ppm Ta2O5.

Further mapping located lithium mineralization in outcrops. Fifteen samples collected from three outcrops returned Li2O values averaging 1.71%, ranging from 0.01% to 4.65% Li2O; and Ta2O5 values averaging 133 ppm within a range from 16 ppm to 803 ppm Ta2O5.

In 2017, the first and only drill program was completed at the Bergby project.

IN that drilling program, 28 of the 33 holes drilled on the property intersected lithium mineralization along approximately 450m strike length.

The deepest holes tested to only 65m below surface with mineralization is still open along strike in both directions and well as down dip.

Three principal styles of lithium mineralization have been observed in widely -spread boulders and outcrops at the Bergby property, providing encouragement that mineralization may be extensively developed.

1. Homogeneous, fine grained to medium grained leucogranite/aplite: Complex zoned boulders where the aplite material appears to intrude coarse grained pegmatite . This style is rich in tantalum, with an average grade from 31 boulders of 208 ppm Ta2O5. The lithium mineralogy of this style is not yet confirmed, however, the measured specific gravity of highest-grade samples was relatively light and suggests petalite is a dominant mineral (LiAlSi4O10).

2. Petalite dominated extremely coarse-grained pegmatite: Located in both outcrop and boulders; this style is relatively high in lithium and poor in tantalum.

3. Spodumene-bearing, very coarse grained pegmatite: Coarse spodumene crystals (LiAl(SiO3)2 have been recognized in boulders, with crystals up to 30 cm in length.

What’s Next for United Lithium Corp.’s Bergby Project

The European Union has sounded the alarm on critical raw materials shortages, estimating that to meet its climate neutrality goal, it will need up to 18 times more lithium and five times more cobalt in 2030 than current consumption.

By 2050, the EU estimates that it will need a staggering 60 times more lithium than current demand.

For this reason, the EU has added lithium to its critical materials list and launched a multi-billion dollar fund to help speed the production of raw materials to supply the European battery market.

This means there is potential for significant capital available for projects such as United Lithium Corp.’s Bergby project as the scope of the project comes into focus.

/zigman2/quotes/201020968/delayed
CA : Canadian Securities Exchange
$ 0.93
-0.04 -4.12%
Volume: 240,657
April 16, 2021 3:51p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$48.95 million
Rev. per Employee
N/A
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/zigman2/quotes/200379118/delayed
US : U.S.: OTC
$ 0.74
-0.04 -5.46%
Volume: 537,426
April 16, 2021 3:51p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$39.06 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/201020968/delayed
CA : Canadian Securities Exchange
$ 0.93
-0.04 -4.12%
Volume: 240,657
April 16, 2021 3:51p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$48.95 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/200379118/delayed
US : U.S.: OTC
$ 0.74
-0.04 -5.46%
Volume: 537,426
April 16, 2021 3:51p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$39.06 million
Rev. per Employee
N/A
loading...
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