Lithium has already seen a rise in price since the U.S. presidential election and analysts predict a huge demand for copper. Grid Battery Metals (TSXV:CELL) has lithium projects in Nevada and a Copper in British Columbia and the company’s CEO, Tim Fernback, discusses how the company is set to benefit as demand for electrification increases over the next decade.
TMO: With interest rates declining in Canada and globally, how do you anticipate this will affect junior exploration companies like Grid?
Fernback: When interest rates decline, economic activity goes up. There’s more investment in different projects and capital, commodity prices go up because there’s a certain increase in demand for things like electric vehicles and every other device that is for part of the electric revolution that we’re experiencing right now. So there’ll be demand increases and commodity price increases, which bode well for Grid and its shareholders.
TMO: Now along that note, how do the current and projected EV projections and sales, how do they affect Grid in terms of copper and lithium?
Fernback: So there is a huge supply imbalance that’s projected for both lithium and copper starting in 2025. So there will be a need for more supply to come on. So for a commodity-based company like Grid Battery Metals, it’s really important that we get our projects fast forward and moved along because the metal that’s actually there will eventually be part of what comes out and goes into electric vehicles.
So with all of these big projections on electric vehicles being forecasted, it’s really important to make sure that the supply matches up with the demand.
TMO: You just mentioned that time crunch, what does that look like?
Fernback: So there is quite a bit, starting in 2025, there’s going to be a huge imbalance for the copper market. So research analysts are talking about right now saying that there’s going to be a huge demand for more copper.
So commodity price will probably increase based on the fact that there’s limited supply and this demand exists and as we go forward to 2030, 2035, there’s only going to be more demand for electrification and EV cars on the market. So that will lead to more need for commodities like lithium and copper.
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(Top photo of Grid Battery Metals’ CEO Tim Fernback and Stockhouse’s Coreena Robertson: File)