Investing in Grounded Lithium Corp. (TSXV:GRD, OTCQB:GRDAF) could be a smart move for those looking to capitalize on this growing market.
As the demand for lithium continues to rise, driven by electric vehicle sales, renewable energy projects, and battery capacity growth, the exploration and development company is well-positioned to benefit from this trend.
Lithium is a crucial component in the production of lithium-ion batteries, which are used in various applications, including electric vehicles, portable electronics and grid energy storage systems. Sustainable battery power is an essential ingredient of the energy transition as the global movement towards cleaner energy and the reduction of reliance on fossil fuels gains momentum.
The proposition for Grounded Lithium
There are two key reasons to consider investing in Grounded Lithium.
One is the expected increase in lithium pricing. With demand projected to outstrip supply in the coming years, lithium prices are set to rise. This presents a significant opportunity for companies such as Grounded Lithium, which has access to thick carbonate sequences in Western Canada’s sedimentary basins that create an environment for the concentration of lithium within brines.
The other is the company’s focus on lithium extraction from subsurface brine production, where Western Canada’s potential remains undeveloped. Direct lithium extraction is being hailed as a “game changer” in the mining industry for all parties involved.
Lithium has historically been produced using water-intensive evaporation ponds or open-pit mines, though in an October 2023 interview with Stockhouse, the company’s CEO, Gregg Smith, explained that the team went through a thorough process to identify which technology companies to work with in its brine.
“In the end, we chose the top candidates that would receive large volumes of our brine so that they could demonstrate to us, what can you do with our brines?” he said.
About the Kindersley Project
Grounded Lithium’s vision centers on balancing the battery supply chain in North America. The company aims to provide feedstock to manufacturers in the lithium battery supply chain, such as anode/cathode manufacturers and auto manufacturers.
The company controls roughly 3.2 million metric tons of lithium carbonate equivalent of inferred resource over its land holdings in southwest Saskatchewan.
Its core Kindersley area offers ample logistic solutions for transporting feedstock, and Grounded Lithium has easy access via rail and major highways to virtually any location in North America. This strategic advantage positions the company as a key player in the North American critical mineral feedstock market.
The company’s most recent Preliminary Economic Assessment for Phase 1 development of the Kindersley Lithium Project reflected the reclassification of 1 million tonnes of inferred lithium carbonate equivalent resources to a combination of measured mineral resource and indicated mineral resource. There was no change to the overall lithium carbonate equivalent total.
Source: Grounded Lithium Corp.
Grounded Lithium recently signed a financing agreement with Denison Mines Corp. (TSX:DML, NYSE American: DNN), further strengthening its position in the market.
Under this agreement, Denison has the option to earn up to a 75 per cent working interest in the Kindersley Lithium Project by funding up to C$15.1 million. This funding will be composed of cash payments to Grounded Lithium of up to C$3.1 million and project expenditures of up to C$12 million through a structured earn-in option. It is a partnership that provides Grounded Lithium with the necessary financial support to accelerate its operations.
Grounded Lithium investment corner
Grounded Lithium Corp. presents an attractive opportunity for investors looking to capitalize on the growing lithium market.
Strong demand growth is expected from electric vehicle sales, renewable energy projects, and battery capacity growth. Combined with the anticipated increase in lithium prices and Grounded Lithium’s strategic advantages, the company is well-positioned for success in the North American battery supply chain.
While more established peers trade at higher valuations, this stock presents a solid value proposition with a market cap of C$6 million. Grounded Lithium stock is up 6.25 per cent year to date and the recent partnership with Denison Mines Corp. further reinforces Grounded Lithium’s position and highlights its potential for future growth.
To keep up with the latest developments from the company, visit groundedlithium.com.
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