Global EV Sales Are Up 70% In 2022 Creating Major Demand for Lithium Industry

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Dec 13, 2022, 08:30 ET

FinancialNewsMedia.com News Commentary

PALM BEACH, Fla., Dec. 13, 2022 /PRNewswire/ -- Lithium is a highly efficient energy storage medium used in virtually all batteries currently powering electric vehicles as well as consumer electronics. The Benchmark Minerals' Lithium Price index has soared more than 180% in the past year. The global energy transition marathon and its demand for electric vehicles sent lithium demand into overdrive in 2022. Prices for the energy-savvy metal surged around the world over the past year. A recent article from Investors.com said that news reports last month said Argentina, Chile and Bolivia — country's sitting on some of the world's largest lithium deposits — were discussing a potential production and pricing pact. Rumors for years have stirred, expecting South American countries to angle for more control of lithium prices… the specter of possible OPEC-like alliance among three leading lithium producing countries weighs on industry prospects going into the new year. The report said: "Telam, Argentina's national news agency, reported in October that representatives from the three countries have been in "advanced talks" on an agreement to give them control of global lithium prices. The foreign ministers from the three countries also hoped to have Australia, the world's top lithium producer, join the cartel, Brazil's Rio Times reported. A majority of the world's undeveloped lithium resources are in an area of South America known as the "Lithium Triangle." This region is made up of Chile, Bolivia and Argentina. The three countries hold roughly 58% of the world's lithium resources, according to the 2021 U.S. Geological Survey Mineral Commodity Summary." Active mining stocks in the markets this week include: Lithium South Development Corporation (OTCQB: LISMF) (TSX-V: LIS), Lithium Americas Corp. (NYSE: LAC) (TSX: LAC), Livent Corporation (NYSE: LTHM), Standard Lithium Ltd. (NYSE: SLI) (TSXV: SLI), Piedmont Lithium (NASDAQ: PLL).

The article continued: "The discussion around the creation of a lithium-OPEC nonetheless reflects greater commitment from the respective governments to further develop their lithium resources, and to play a more important role in the global supply chain," Yu said. Alice Yu, a senior analyst with S&P Global Commodity Insights. Automakers and battery suppliers are currently scrambling to lock down the lithium supplies to meet EV sales targets for 2024, 2025 and beyond… It concluded: "A lithium market outlook report from Morgan Stanley analysts on Nov. 28 said "with demand headwinds looming, we believe a near-term (lithium) price correction is in sight. Morgan Stanley predicts the strong EV demand in 2022 is unlikely to carry over into 2023. So far in 2022, global EV sales are up 70%, or around 2 million units, according to Morgan Stanley. Morgan Stanley is expecting a 22% year-on-year increase, or around a 1.8 million unit rise, in EV sales in 2023… Morgan Stanley projects lithium demand to expand by 10% in 2023."

Lithium South Development Corporation (OTCQB: LISMF) (TSX-V: LIS), BREAKING NEWS: Lithium South Provides Further Excellent Lithium Results - Lithium South Development Corporation (the "Company") is pleased to provide results from the ongoing drill campaign at the Hombre Muerto North Lithium Project (HMN Li Project) in Salta Province, Argentina. The resource expansion drill program is comprised of four core holes (Holes AS01, AS02, AS03 and AS04) located north to south, along a channelized extension off the main salar, and three core holes (Holes AS05, AS06 and AS07) along the west side of the channel. Two drill rigs are operating on site.

The western boundary of the salar extension has now been expanded based on current results from Holes AS05 and AS06, which have encountered significant lithium brine (grade and thickness). Drilling results indicates a wider salar channel than the initial concept.

Hole AS05, located approximately 800 meters west of hole AS03, has been completed to a depth of 260 meters, with a brine zone of approximately 185 meters. Eight packer samples have been acquired. Assay work is being performed at Alex Stewart Laboratories of Mendoza, Argentina, on samples acquired under the supervision of Dr. Mark King, a Qualified Person under NI 43-101. The Company is reporting results from three samples received so far from Hole ASO5:

Sample HMN 139 located at the top of the hole at 35 meters, and within an alluvial fan with freshwater influence, returned 434 milligrams per liter lithium (mg/L Li).
Sample HMN 140 was taken at 52 meters depth and returned 725 mg/l Li.
Sample HMN 141 was taken at 66 meters depth and returned 701 mg/l Li.

Hole AS06 located approximately 800 meters west of hole AS02 is encountering similar geology to hole AS05. The hole is currently at 170 meters and will be continued down to basement. Hole AS02 located in the center of the salar channel, is now at 240 meters depth. Borehole logging indicates predominantly medium-grained sand. To avoid issues with collapse of the sandy materials, sampling will be conducted at the conclusion of the hole. Site preparation work is underway to locate Hole AS07 at the southwest.

Company President and Chief Executive Officer Adrian F. C. Hobkirk is quoted, "The ongoing exploration is returning consistently excellent results. Holes located to the west of the claim area are delineating the Alba Sabrina salar channel to be wider than expected, which could positively impact the expansion of the total resource at the Hombre Muerto North Lithium Project."CONTINUED… Read this release for the Lithium South news at: https://www.financialnewsmedia.com/news-lis/

Other recent mining developments in the markets include:

Lithium Americas Corp. (NYSE: LAC) (TSX: LAC) recently announced that, after months of review by the Company, along with its advisors and the Board of Directors, it intends to advance a reorganization that will result in the separation of its North American and Argentine business units into two independent public companies (the "Separation"). The Separation will establish two separate companies that include: An Argentina focused lithium company ("Lithium International") owning Lithium Americas' current interest in its Argentine lithium assets, including the near-production Caucharí-Olaroz lithium brine project in Jujuy, Argentina ("Caucharí-Olaroz"); and A North America focused lithium company ("Lithium Americas (NewCo)") owning the Thacker Pass lithium project in Humboldt County, Nevada ("Thacker Pass") and the Company's North American investments.

"Following a comprehensive review of the merits of separating Lithium Americas into two public entities, we have reinforced our beliefs that separating the North American and Argentine businesses will facilitate unlocking the full potential of their significant asset base to deliver maximum value to our shareholders and other stakeholders," said Jonathan Evans, President and CEO. "Upon completion of the Separation, Lithium Americas shareholders will retain ownership in two leading lithium businesses – one of the largest known lithium developments in North America, which is central to the U.S. domestic supply chain, and a near-term producing portfolio with significant growth from two high-quality projects in Argentina."

Livent Corporation (NYSE: LTHM) and Nanyang Technological University, Singapore (NTU Singapore) recently announced a research collaboration that is intended to drive new advancements in sustainable lithium battery technologies. The joint project will be led by Professor Madhavi Srinivasan, Executive Director of the Energy Research Institute at NTU (ERI@N) and Co-Director of NTU-Singapore CEA Alliance for Research in Circular Economy (SCARCE), a center for excellence in innovative solutions for recycling and recovering valuable elements from e-waste.

"Livent has played an important role in many breakthroughs in battery research and development. By expanding our R&D partnerships, we build on our rich heritage of innovation and continue to push the boundaries of what is possible," said Walter Czarnecki, Chief Commercial Officer at Livent. "We are excited to begin this journey with a pioneering, distinguished scientist like Professor Srinivasan and the entire team at NTU, as we explore new pathways to support advancements in battery technology."

Piedmont Lithium (NASDAQ: PLL), a leading global developer of lithium resources critical to the U.S. electric vehicle supply chain, recently announced that Sayona Quebec, owned 75% by Sayona Mining ("Sayona") (ASX:SYA) and 25% by Piedmont, has entered into a strategic acquisition and earn-in agreement with Jourdan Resources Inc. ("Jourdan Resources" or "Jourdan") (TSXV:JOR) for 48 claims of the Vallée Lithium Project ("Vallée"). The move will increase the land position for Sayona Quebec's adjacent North American Lithium project ("NAL") operation.

Under the agreement, Sayona Quebec will acquire 20 claims of Vallée outright, which will be added to NAL's existing 19 claims on the adjacent property. Sayona Quebec can earn into a 51% equity interest in the remaining 28 claims of Vallée by making a series of staged investments, including: A 25% earned interest by spending C$4 million on exploration within 12 months; A 25% earned interest by spending another C$6 million on exploration within 24 months, and A 1% earned interest if Sayona Quebec arranges funding for the development of a mine at Vallée.

Standard Lithium Ltd. (NYSE American: SLI) (TSXV: SLI), a leading near-commercial lithium company, recently announced it has completed all necessary agreements with LANXESS Corporation to secure access to the proposed commercial lithium plant site (the "Site Access Agreement") and conduct all required fieldwork to support the Definitive Feasibility Study (DFS) underway. Standard Lithium is also pleased to report that subsequent to signing the Site Access Agreement, the Company has commenced the site work necessary for the design of its first commercial lithium plant.

Dr. Andy Robinson, President of Standard Lithium commented, "The Company is pleased to reach this important milestone. Our team has successfully negotiated and agreed to a key agreement with Lanxess, the site owner, to exclusively secure the required property for our commercial facilities and allow us to start working on the ground at the proposed location of the first commercial lithium project. The data gathered over the next few months will be vital to allow the OPD team to design the plant and locate key equipment on the large land area available to Standard Lithium at Lanxess' South Plant facility. Once the important ground conditions are determined, and the location of key equipment can be fixed, then the engineering work to allow for connection between the Standard Lithium plant and Lanxess' existing brine infrastructure present at the site can begin. We look forward to announcing more developments as the design towards the Company's first commercial lithium project unfolds."

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