Nearing Production as Development Progresses As governments across the globe create mandates such as having a requirement for all new passenger vehicle sales to be fully electric, and considering current EV sales only account for 14% of new vehicle sales, there will always be growing demand for the resource in the foreseeable future. Additionally, as the US and Canadian governments look to incentivize more domestic manufacturing and production for the industry (for example, the Volkswagen battery plant that will be built in Ontario), companies are going to look towards simplifying their supply chains by securing agreements with North American lithium producers.
https://www.cbc.ca/news/canada/london/vw-volkswagen-st-thomas-battery-plant-german-autos-car-industry-electric-vehicles-1.6817262
One company that could capitalize on this growth is VLT, as they’re focusing on bringing DLE lithium to market from their property in Alberta. And they already boast some of the highest grades in the region.
- Spanning over 435,000 acres, lithium concentrations have reached 119 mg/L (more than 40 mg/L above peers in the area, such as LBNK and E3).
- With their DLE technology, they can produce both oil and brine simultaneously, allowing for battery-grade lithium to be produced with high purity (and the tech has already been tested on a real well).
- They already have an agreement with Cabot Energy which will help reduce CAPEX and exploration risk by leveraging existing equipment and current oil production for operations.
With a pilot project plant expected to begin in Q2 and results at the end of Q3, there’s a lot of potential, especially considering the clear path to commercial production by 2024, far ahead of their regional peers. Definitely, a lot of upside, considering the strong management team behind the company and the current $41M valuation.
Posted on behalf of Volt Lithium Corp.