JP Morgan Lithium Deficit to Continue to 2026As was expected by many, the scramble to get hands on Lithium product will continue for another 3 years (minimum).
Along with Lithium supply constraints, amid rapidly rising Lithium demand for BEV's (80% year-over-year increase) in an attempt to balance the "transportation" energy mix especially with dangerously low oil availability (i.e. Saudi Aramco), therefore, it's also likely to be an exciting 3 years of Lithium takeovers.
The right timing for Lithium Americas "spin-out" North American Lithium company to grow NA Lithium assets, for instance, key Northern Ontario mining-friendly & mining progressive jurisdiction adjacent LAC's Pennock Lithium property, likely expanding Lithium asset ownership in respective jurisdiction, perhaps by acquisition, if need be, for instance, the adjacent rapidly growing Lithium reserves and multi-Billion dollar NPV Lithium assets of Frontier Lithium who recently completed capital raise & over-alotment option with Goldman Sachs (23 million), funds partly earmarked for Lithium demonstration processing plant(s). FL volume nearly 2 million in Tuesday's session, perhaps the rapid accumulation for asset and operatorship control begins in anticipation of high purity, high grade Lithium (over 4% in section of recent drill hole), ultra low mining strip ratio, power line infrastructure installed and overall, cash cow profitability opportunity.
With Lithium currently around US $37 a pound and anticipated to be well north of $40 by spring of 2023 and global Lithium producers profits currently up 10-fold, the Lithium cash cow profitability outlook is likely to bring about a battleground for key North American Lithium assets, in particular, Canada for LAC's newco "spin-out" who have the financial and human capital to fast track Lithium opportunities to production.