North American Produced Lithium is Important Despite the recent price action in the lithium spot market, demand is only going to continue increasing as companies push their R&D teams to the limit as they look to bring new EVs to market and slowly phase out their ICE lineups. This confirms the long-term demand aspect as EVs still only account for a small portion of overall vehicle sales, especially when considering the other types of vehicles that are just starting to get electrified, such as buses. Lithium isn’t just a short-term play, but it’s an industry that’s going to remain strong for the years to come.
https://www.counterpointresearch.com/global-ev-sales-q4-2022/
$SCV.C is definitely in a position where they can take advantage of the long-term demand with their properties. With Nevada being one of the only places with commercial-grade lithium in the US, $SCV.C’s properties are in the Clayton and Jackson Valleys.
- With 2 properties spanning 9,540 acres in Clayton Valley, they are one of the largest landholders in the area bordering Albemarle’s producing Silver Peak mine and Pure Energy’s close-to-production project.
- The additional 5,360 acres are in Jackson Valley, with a closed basin geological structure similar to that of Clayton Valley.
With their strong management team and significant land holdings across the valleys, the current valuation is definitely understating the potential. Solid momentum today as well, with volume significantly higher than usual.