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Lithium Demand is Growing as Electric and Hybrid Vehicles Increase in Popularity

V.IBAT, T.LAC

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, March 6, 2018 /PRNewswire/ --

According to a report published by Transparency Market Research, the global lithium-ion battery market is expected to reach USD $77.42 billion by 2024, at a compound annual growth rate of 11.6 percent from 2016 to 2024. Growing use of consumer electronic devices and growing adoption of clean energy in the automotive industry is expected to drive the market in the coming years. Although the consumer electronics segment is projected to hold the biggest market share during the forecast year, hybrid vehicles and electric vehicles (EVs) are expected to increase demand for lithium-ion batteries at the fastest rate. International Battery Metals Ltd. (OTC: RHHNF), Lithium Americas Corp. (NYSE: LAC), Advantage Lithium Corp. (OTC: AVLIF), Panasonic Corporation (OTC: PCRFY), Lithium X Energy Corp. (OTC: LIXXF)

As more and more nations support eco-friendly vehicles, lithium ion batteries demand increases, but so do the components used within it. An essential component of the LIB market is the chemical element of Cobalt. Like nickel, cobalt is found in the Earth's crust only in chemically combined form. According to Benchmark Mineral Intelligence, 75% of lithium-ion battery cathode capacities are expected to contain some volume of cobalt by 2020. The price of the metal has risen 86 percent this year to $61,000 a metric ton on the London Metal Exchange, according to Bloomberg.

International Battery Metals Ltd. (OTC: RHHNF) also listed on the Canadian Securities Exchange under the Ticker 'IBAT'. Yesterday the company announced breaking news that, "it has entered into a binding Share Exchange Agreement (the " SEA"), with North American Lithium, Inc. (" NAL") and Selective Adsorption Lithium, Inc. (" SAL"), dated March 4, 2018, pursuant to which IBAT will acquire intellectual property related to lithium extraction from oil field brines (the " Intellectual Property") for petro lithium extraction projects.

NAL is a California corporation that has developed unique technology that allows direct extraction of lithium from complex brines such as those found in oil fields. SAL has advanced this technology and owns intellectual property related to oil field brines.

The SAL technology involves processes that are highly selective for lithium, and an extraction system that allows lithium recovery from complex brines with only minimal pretreatment. Pretreatment of the brine to remove calcium or magnesium is not necessary in the process. The process also inherently rejects sulfate and borate from interfering with the lithium extraction. Once the oil field brine flows into the system, lithium chloride is removed, and the remainder of the brine is injected back into the ground through an environmentally permitted well.

The output of the patent pending SAL process and system is a high concentration, clean lithium salt solution suitable for further processing into desired products. Additionally, the SAL patent pending process and equipment are specifically designed to operate in the rugged conditions often present at remote oilfield operations.

The patent pending SAL technology provides significant advantages including cost savings by minimizing brine pretreatment and through reduced chemical consumption. The unique equipment design also allows for rapid implementation and installation, minimizing the traditional lag time associated with bringing resources on line…"

Lithium Americas Corp. (NYSE: LAC), together with SQM, is developing Cauchari-Olaroz, located in the Province of Jujuy, Argentina, through its 50% interest in Minera Exar. In addition, Lithium Americas owns 100% of Lithium Nevada (formerly Kings Valley project), and RheoMinerals Inc., a supplier of rheology modifiers for oilbased drilling fluids, coatings, and specialty chemicals. Cauchari-Olaroz is located in Jujuy Province in north-west Argentina. The Project is situated in the Salar de Olaroz and Salar de Cauchari, adjacent to Orocobre Ltd.'s Olaroz facility, which has been in production since 2015. The production process involves two distinct steps and is generally consistent with other established brine operations. The first step uses a solar evaporation process to concentrate lithium in the brine and precipitate competing salts in large-scale ponds. The second step uses the processing facilities that transform the concentrated lithium brine into battery-grade lithium carbonate while ensuring the removal of impurities from the end-product.

Advantage Lithium Corp. (OTCQX: AVLIF) is a resource company specializing in the strategic acquisition, exploration and development of lithium properties and is headquartered in Vancouver, British Columbia. On February 6, 2018, the company provided update on the pumping tests conducted on wells CAU11 and CAU08 of the Cauchari JV property located in Jujuy Province, Argentina. The initial constant rate pumping test conducted on hole CAU11 sustained a flow rate of 19 l/s over a period of 48 hours, which is promising for future brine production. This flow rate was at the upper limit of the pump capacity used for the test. A total of 18 brine samples were taken during the pumping test, with the average concentration of 515 mg/l Lithium and 4,577 mg/l Potassium and a Mg/Li ratio of 2.6:1. CAU08 was drilled to a depth of 400 m in the south of the SE sector of the project, approximately 3.5 km south from CAU09 and 5 km south-southeast of CAU10

Panasonic Corporation (OTC: PCRFY) is a worldwide leader in the development of diverse electronics technologies and solutions for customers in the consumer electronics, housing, automotive, and B2B businesses. In 2017, the company announced that it has decided to start production of automotive lithium-ion batteries at a factory in Himeji, Hyogo Prefecture, expanding domestic production amid increasing demand for such batteries. Panasonic has been building up its production capacity of automotive batteries in Japan, the United States, and China. To further boost the capacity, the company has decided to produce prismatic automotive lithium-ion batteries at the Himeji factory, which currently produces LCD panels. The plan is to install a vertically integrated production line from the component process to the assembly of battery cells at the factory, aiming to start production in the fiscal year that ends in March 2020. The company will continue to make LCD panels at the factory.

Lithium X Energy Corp. (OTC: LIXXF) is a lithium exploration and development company with a goal of becoming a low-cost supplier for the burgeoning lithium battery industry. Its Sal de los Angeles project is situated in the prolific "Lithium Triangle" in Salta Province, Argentina. The project is comprised of 8,854 hectares and LiTHIUM X now controls 100% of the mineral titles contained within the brine bearing regions of the Diablillos basin. Approximately C$20M invested in work on the property between 2010 to 2017. It contains high grade brine with a NI 43-101 Mineral Resource Estimate of 1,037,000 tonnes of lithium carbonate equivalent of Indicated, and 1,007,000 tonnes of lithium carbonate equivalent in Inferred category. Last year, the company and Nextview New Energy Lion Hong Kong Limited announced that they have entered into a definitive agreement, pursuant to which NextView has agreed to acquire all of the issued and outstanding common shares and warrants of Lithium X. Lithium X's flagship project, Sal de los Angeles lithium brine project, as well as Arizaro Lithium Brine Project are located in the prolific "Lithium Triangle" in mining friendly Salta province, Argentina.

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