As expected, lithium prices have reached a new all-time high ($71k/ton in China) as demand continues to outpace supply due to the EV industry. For example, China has increased its forecast to sell 6 million EVs, double that of 2021. At this rate, we’re going to need a lot more lithium and lithium mines to satisfy the growing demand considering that in 2021, EVs only accounted for less than 7% of the global car market.
https://www.mining.com/web/lithium-price-smashes-new-record-as-supply-struggles-to-feed-ev-growth/
That’s where companies like $LBNK come in with their lithium exploration. With a direct brine (DLE) focus, they’re also able to combat one of the biggest arguments against EVs, which is the impacts of lithium mining. DLE allows for a far lower impact and potentially carbon-neutral method of lithium extraction. And more recently, the company has expanded their lithium land holdings by 530,000 across Saskatchewan and Alberta. Historical samples from the properties collected by multiple petro-operators range from 76 mg/l to 130 mg/l lithium.
With the stock pushing up over 6% today, there is significant potential for $LBNK.V to continue to take advantage of the elevated lithium prices and rising demand. And considering that the Boardwalk project has just under 6M tons of LCE, this is highly undervalued at $33M compared to industry peers.