Québec’s lithium industry could soon see a boost

• China is reportedly nationalizing Lithium mines and Chile intends to nationalize its lithium industry to bolster its economy and safeguard its environment
• The Sayona Lithium Mine, located near La Corne in the Abitibi region of Québec has started operations as a large-scale lithium mine in North America
• This is welcome news for Arbor Metals Corp. (ABR), who who touted Volkswagen’s (VWAGY) plan to build a large-scale new EV battery plant in St. Thomas, Ontario
• Arbor Metals (ABR) opened trading at C$3.15 per share

“North America plays a key role in our global battery strategy. The region will become PowerCo’s second pillar beside Europe, with battery cells made in North America for North America. Gigafactory St. Thomas opens the door to a key market for e-mobility and battery cell production. We aim to make PowerCo a global player in the battery business and to pave the way for clean, sustainable mobility. Gigafactory St. Thomas is an important milestone in our roadmap,” – Thomas Schmall, Volkswagen Group Board Member for Technology.

There has been a lot of news and activity around the lithium market in the last few days.

Last week, news that China is reportedly nationalizing Lithium mines shook mining investors. On April 20th, 2023, the industry was also shaken by an announcement from Chile, the world’s second-largest producer of lithium from brine deposits, intends to nationalize its lithium industry to bolster its economy and safeguard its environment.

Closer to home, the Sayona Lithium Mine, located near La Corne in the Abitibi region of Québec has started operations as a large-scale lithium mine in North America.

Sayona Québec is a joint venture between Australia’s Sayona Mining Ltd. (ASX:SYA) and North Carolina’s Piedmont Lithium Inc. (NASDAQ:PLL). Together, they reopened the North American lithium mine in late March. High-profile end-users such as Tesla Inc. (NASDAQ:TSLA) and South Korea’s LG Chem Ltd. (KRX: 051910) are anticipated to purchase lithium from the Sayona operations, which would represent a significant achievement for Québec and Canada.

This is welcome news for Arbor Metals Corp. (TSXV:ABR). The mining exploration company pointed to an announcement by Canadian Federal and Provincial leaders on April 20th, 2023, who touted Volkswagen’s (OTC: VWAGY) plan to build a large-scale new EV battery plant in St. Thomas, Ontario.

Following the news of substantial investment by both Volkswagen and the Canadian government, Arbor Metals declared its own plan to expedite its exploration plans for its Jarnet lithium project in James Bay, Québec.

Arbor expects this move by Chile to nationalize its lithium industry will likely hasten a shift in future investments in lithium projects to other countries recognized as “safe havens” with large lithium resource potential, such as Canada (specifically Québec and Ontario).

Québec ranks second in Canada and sixth globally in the Fraser Institute’s 2021 top jurisdictions for investment based on the Investment Attractiveness Index.

The company believes its operation is in the right place at the right time. The Jarnet Lithium Project comprises 47 map-designated claims, covering 37.5 sq. km. The Jarnet South block is located less than two kilometres northwest of Patriot Battery Metals Inc.’s (TSX:PMET) CV-5 pegmatite target, where an intensive diamond drill program is underway and has led to several noteworthy discoveries.

Arbor Metals (ABR) has risen 28.5 per cent since this time, last year and is up 16.6 per cent year-to-date. ABR stock opened trading at C$3.15 per share.

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