RMEnergy Report.... Jonathan Lee
Rodinia Lithium Inc. (TSX.V:RM; OTCQX:RDNAF) also has a brine deposit at its Salar de Diablillos project in Argentina. We have a Speculative Buy rating on it with a $2.25 target price. It's another example of fairly good chemistry and good, effective porosity levels. And the project is another that, potentially, could be a low-cost producer. It has a decent level of lithium grade, reasonable magnesium:lithium ratio and very attractive sulfate levels—that's another key. It has a lot of positive qualities.
Rodinia has a strategic investor in Shanshan Resources Co., Ltd., a wholly owned subsidiary of the largest battery manufacturer in China—Ningbo Shanshan. Some of Shanshan's partners have extensive experience doing brine chemistry in the Tibetan salars. Shanshan is a value-add for that company.
TER: Where is lithium demand going relative to new technologies like EVs and batteries for smart phones, laptops and tablets?
JL: We're definitely very bullish on the demand for lithium. Being that lithium is in the top left of the periodic table, it's an energy-dense, but light, material for battery applications. Demand began to pick up in the latter half of 2010 and I believe it will increase significantly from 2014–2016 on, due to the implementation of EVs. To give you some perspective on lithium use, there's roughly 20 kg. (44 lb.) of lithium in every Nissan LEAF battery; and the Tesla Roadster contains twice as much lithium.
TER: One of the issues with some specialty metals like lithium is that cheaper substitutes are often found when prices for specialty metals get too high. Is this a threat in the lithium space, or are its unique properties of lightness and high-energy density virtually irreplaceable?
JL: I don't think there is any danger of lithium being replaced by another metal. If it was to be replaced, it would be swapped out for a different technology. Lithium is the choice material for rechargeable batteries. President Obama has come out and said that, by 2015, all federal vehicles purchased will be alternative-fuel vehicles. That's a steppingstone to where lithium demand can go. I know China's following suit also, in terms of electrification of it vehicles. We firmly believe that because of road electrification, lithium will be used more and more.
TER: Thanks, Jonathan, this has been very informative.