LOS ANGELES, January 22, 2018 /PRNewswire/ --
FN Media Group LLC Presents USA News Group News Commentary
USA News Group -Led by auto manufacturer Tesla, the race for lithium powered battery supremacy is on and South Korea appears to be ready to take the lead.
Of course the race is adding to the demand for lithium supplies which are now forecasting a shortfall as early as next year.
Lithium companies are already benefiting from the effects of this global competition including NRG Metals Inc. (TSX: NGZ) (OTC: NRGMF), Critical Elements (TSX: CRE), Neo Lithium Corporation (TSX: NLC) (OTC: NTTHF), and Galaxy Resources (OTC: GALXF).
The push to wean the planet of its dependence on environment damaging fossil fuels is truly in full gear. Winning this race will be heavily dependent on the advancement of battery technology, and the big boys of renewable energy seem to have taken note.
Besides building what is today the biggest battery factory in the world, Tesla is on course to achieve an incredible feat that promises to change the way the world consumes energy.
One contributor that may be a likely source for lithium is newcomer NRG Metals Inc. (TSX: NGZ) (OTCMKTS: NRGMF), that is developing potentially huge lithium brine project in South America's well known "lithium triangle".
Other major lithium miners working at a furious pace to bring on greater supplies of the 'new petroleum' include Critical Elements (TSX: CRE), Neo Lithium Corporation (TSX: NLC) (OTCQX: NTTHF), and Galaxy Resources (OTC: GALXF). All of these lithium producers are seeing heightened activity.
MOVE OVER TESLA
Tesla recently completed the world's largest lithium ion battery in South Australia, which is expected to solve the region's power outages. South Australia has had biting power shortages for a long time due to its lack of energy resources like coal and gas.
The whole project was finished in less than three months, with Elon Musk having famously tweeted a money-back guarantee if he failed to deliver within 100 days of signing the contract.
As enormous a feat as it is, the South Australia project could soon be overshadowed by a South Korean initiative, which could be as much as 50% larger. This project, which is proceeding on course, involves building a 150-megawatt li-ion battery to power the city of Ulsan by February 2018.
The project is being constructed by Hyundai Electric & Energy Systems Co., a subsidiary of Hyundai Heavy Industries.
These two projects have largely been enabled by dropping battery prices, enabled by increase in supplies. According to Bloomberg, battery prices drop by 19 percent every time supply doubles.
With his daring feat, Elon Musk has opened up a new frontier of competition in the same way that he did with electric vehicles.
Already, a host of companies, buoyed by lower battery manufacturing prices and the intense demand for renewable energy have started working on similar large-scale projects across the globe.
Bloomberg New Energy Finance estimates that in 2017, developers will install 1650 megawatts per hour, of new battery power which is four times the total amount for 2016. Places like South Australia, which have little access to energy resources are increasingly reliant on battery energy, and will be key in driving the market for super-batteries like the one installed by Tesla.
MINERS HAVING A FIELD DAY
This unique climate has created a significant opportunity for all lithium companies. One of the early movers is NRG Metals who operating in Argentina.
The company that has become a stand out among the near term lithium mining companies. It is especially attractive based on its early lead in property and attracting top management.
The COO of NRG, Jose Gustavo de Castro, was country manager for Orocobre in Argentina until 2015. He helped to grow the operation of that company from 10 employees to 800 in construction and about 200 people in operations. He is also credited with the exploration and development of Orocobre's Oraloz lithium project into commercial production.
Others on the management team come from lithium miners Lithium Americas and Galaxy Resources.
NRG Metals has begun putting its lithium strategy to work in the Puna Region of Argentina, considered one of the most productive of all regions in Argentina.
NRG Metal's properties include options in Salar Escondido, which is massive at 29,180 hectares (112 square miles) and Hombre Muerto, which consists of 3287 hectares (12.7 square miles).
The Hombre Muerto property alone is a good reason to consider this company, based on the fact that it shares the same salar as a lithium carbonate production facility owned by giant lithium producer FMC.
However, Salar Escondido is what could propel this company to "great heights". NRG's management team has high expectations for the salar, and drilling is in progress now to prove its value.
While it is one of the relatively new entries to South American lithium development, NRG Metals has rapidly advanced two significant projects, making it one of the best bets in the region for near-term production.
SUPERSIZED BATTERIES FUEL THE FIRE
Supersized batteries solve a problem that has bedecked the alternative energy industry for a long time. Due to the intermittent nature of sunshine and wind, power production tends to be inconsistent and unpredictable. Batteries enable for smoothing out of these dips in power production, making it more reliable.
With more battery resources needed in the coming years to enable such projects, as well as the booming electric vehicle and consumer electronics markets, there is one element that the world cannot get enough of; lithium.
Lithium is a critical material in the construction of lithium-ion batteries. Because of its light weight and electrochemical potential, it produces batteries with a very high energy density.
As such the prices of lithium have been on a bullish upward trend over the past few years, and as manufacturers get closer to full utilization of existing mining capacity, the trend will definitely continue into the foreseeable future.
What lies ahead for lithium over the next year will almost certainly feel the effects of the battle for battery supremacy. The ultimate winner in either scenario will be the consumer.
POTENTIAL COMPARABLES
Critical Elements (TSX: CRE)
Critical Elements Corporation, a junior mining company, acquires, explores, and develops mining properties in Canada. It primarily explores for copper, zinc, gold, silver, nickel, lead, lithium, niobium, tantalum, and platinum group elements. Its flagship project is the Rose lithium-tantalum property that consists of 500 claims covering a total area of 260.90 square kilometers, located in the Eastmain greenstone belt. The company was formerly known as First Gold Exploration Inc. and changed its name to Critical Elements Corporation in February 2011. Critical Elements Corporation is headquartered in Montreal, Canada.
Neo Lithium Corporation (TSX: NLC) (OTCQX: NTTHF)
Neo Lithium Corp. engages in the exploration and development of resource properties. The company explores for lithium deposits. It holds interests in the 3Q Project comprising 10 mining claims covering approximately 35,000 hectares located in Tinogasta area, Catamarca province, Argentina. The company has filed a Technical Report with Positive PEA Results on its 3Q Project Showing a Capital Cost reduction of US$98.5M. The company was incorporated in 2016 and is based in Toronto, Canada.
Galaxy Resources (OTC: GALXF)
Galaxy Resources Limited is a lithium-focused resources company, with assets spanning Australia, Canada and Argentina. Galaxy is currently advancing plans to develop the Sal de Vida Lithium and Potash Brine Project ("Sal de Vida") in Argentina, which is situated in the Lithium Triangle, a region where Chile, Argentina and Bolivia meet. Sal de Vida is a proven high quality resource has excellent promise as a future low cost production facility. Galaxy also owns the Mt Cattlin Spodumene Mine near Ravensthorpe in Western Australia and the James Bay Lithium Pegmatite Project in Quebec, Canada.
For a more in-depth look into NGZ you can view the in-depth report at USA News Group: http://usanewsgroup.com/2017/09/20/electric-car-demand-sparks-lithium-supply-fears/
Article Source:
Legal Disclaimer/Disclosure: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of USA News Group only and are subject to change without notice. USA News Group assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.
DISCLAIMER: USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact Information:
FN Media Group, LLC
e-mail: [email protected]
U.S. Phone: +1(954)345-0611
SOURCE USA News Group
Share this article