Investors Continuing to Move Into the Lithium Market Lithium demand has steadily risen over the past decade and is expected to increase the pace going into the next decade. As EVs begin to take over due to operating costs, government legislation, and sustainability concerns, the trifecta has caused a variety of consumers to make the transition. Furthermore, lithium companies have seen huge investments from EV manufacturers, with GM investing $60M into LAC and Tesla signing multiple off-take agreements to secure a guaranteed supply of lithium. Investing in lithium companies provides EV exposure but without the tech company's valuations.
https://www.bnnbloomberg.ca/tesla-gm-follow-own-shareholders-with-push-into-lithium-miners-1.1892116.amp.html
Now, the lithium companies that hold the most upside are the exploration-stage companies with properties that have potential. $SCV.C’s properties in Nevada have already shown signs of promise from the first drilling program.
- They are one of the largest landholders in Clayton Valley, adjacent to Albemarle’s Silver Peak mine, which is the only actively producing lithium mine in the US (could indicate production-level amounts of lithium at $SCV.C’s properties due to the proximity).
- The drilling program discovered previously unknown sections of volcanic ash that may be a continuation of lithium deposits in the area.
Overall, the current $11.5M valuation provides a lot to look out for as they develop the properties and build off of the first exploration program. The management team is extremely experienced in the space, so worth it to keep an eye out for any updates.