Investments in the Lithium Space Continue to Increase Without a doubt, the lithium market is going to have no struggle to find demand. Even with some pessimism in the industry, prices still remain at 6x pre-pandemic levels, with players like SQM posting record profits triple what it was previously as they plan to invest $3.4B by 2025. And we’ve seen this trend across the industry with record profits and companies investing hundreds of millions to billions into new projects or companies bringing lithium to market, such as GM investing $600M into Lithium Americas. There’s a limit to how low prices can go as it allows EV automakers to produce more cars for consumers due to the lower cost, which in turn drives up demand and, thus, prices.
https://www.marketscreener.com/news/latest/Lithium-miner-SQM-s-profit-more-than-triples-on-EV-demand--43140040/
With SQM investing $3.4B into the industry, it’s important to note that junior mining companies hold the most potential for an ROI. $EMIN.C is a company with properties in Canada and Brazil which are looking extremely promising at the current levels and with the recent developments.
- They increased their Brazilian land package by 700%, making them one of the largest landholders alongside companies like Sigma Lithium and Atlas Lithium.
- Additionally, they closed their $800,000+ second tranche financing round and are preparing to build off the recent pegmatite surveying in Brazil soon.
Overall, at the current valuation, there is no land package more promising than this. With cash now in the bank, there will be a lot of catalysts to look out for here.