RBC Capital Markets 10:29 AM EDT, 03/22/2023 (MT Newswires) -- RBC Capital Markets said Tuesday that the future is bright for junior lithium developers amid growing demand for the material used in electric vehicle batteries.
RBC noted that the Canadian government has allotted $344 million to develop critical minerals, and lithium-focused companies that could benefit from increased government support include Frontier Lithium Inc. (FL.V) and Critical Elements Lithium Corp. (CRE.V).
Downstream refining capacity is seen as the primary bottleneck within the North American supply chain, according to RBC. Junior developers who have focused on filling this part of the value chain include Rock Tech Lithium Inc. (RCK.V).
RBC also noted that developers are quickly advancing projects, with several juniors setting ambitious plans to reach production within the next three years.
E3 Lithium Ltd. (ETL.V) and American Lithium Corp. (LI.V) are currently on the "emerging designs" stage while Patriot Battery Metals Inc. (PMET.V) is among those with "early state exploration stories," RBC said.
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