The EV market is experiencing tremendous growth, with numerous companies cutting prices, such as Tesla. This in combination with government tax credits, has pushed the industry to new levels of demand as they continue to take market share from traditional ICE vehicles. For example, in Western Europe, the EV market share has surged from just 5% at the beginning of 2020 to over 20% by the end of 2022, which has been pushed by the extremely high gas prices and well-placed incentives, with growth not looking to slow anytime soon. This has created an extremely high demand environment for lithium as mining companies still try to satisfy the growing demand in the space, especially with the US government looking to bring production domestically.
https://thedriven.io/2023/02/10/good-incentives-drive-quadrupling-of-ev-market-share-in-western-europe/amp/
With so much growth in the market, it’s about finding a few really great lithium companies at a low valuation. $SCV.C is one of them for a variety of reasons.
- They own property in Jackson Valley and Clayton Valley (with one of the largest land packages in Clayton Valley adjacent to the only producing mine in the US, Albemarle’s Silver Peak mine).
- Recent drilling has extended the underground lithology estimates as they were able to discover previously unknown sections of volcanic ash and potential lithium deposits.
- And most importantly, a top-notch management team leading the way here.
Overall, at the current $11.8M valuation and the macroeconomic environment around lithium, as they continue to explore their properties, definitely keep an eye out for continued developments.