The Top Reasons the U.S and Europe Fear a Lithium Supply Crunch
Houston, October 17, 2019 - Wall Street Nation announces publication of an article that discusses E3 Metals Corp. (TSXV: ETMC) (OTC: EEMMF), a lithium development company with 6.7 million tonnes lithium equivalent (LCE) inferred mineral resources in Alberta.
A Lithium Supply Crunch is on the Horizon
An electric vehicle looks like any other car on the road.
However, since it doesn't have a gas-burning engine, it doesn't have a tailpipe, or even a gas tank. And instead of a big engine under the hood, you'll find is an electric motor, which doesn't need oil, tune-ups or any checks on smog issues.
Instead, you'll find an EV power source that supplies the electric motor with energy to move.
One of the key sources of that power is lithium, which could see substantial demand.
In fact, according to Volkswagen, "Lithium will in the near future be one of the most sought-after raw materials on earth. According to forecasts, the worldwide demand for lithium will more than double by 2023 - largely owing to processing in car batteries. Lithium is currently regarded as an unrivalled charge carrier that will be irreplaceable for the foreseeable future, as no other element offers comparable properties for automotive battery applications."
The U.S. and Europe are Anxious about EV Battery Shortages
As automakers ramp up production of EVs, key metals used to make the batteries may face a sizable supply crunch, according to energy and consulting research firm, Wood Mackenzie, including lithium.
Granted, lithium supplies are enough to meet demand now.
Unfortunately, a crunch is looming. As lithium prices have fallen, producers have cut back on increasing supply to meet future demand. Albemarle Corporation just delayed construction plans for nearly 125,000 tons of additional capacity, as oversupply issues force prices down.
They're not the only one that see a crunch.
"It's dawning on North America and Europe that there's a raw materials issue that needs to be addressed here," CleanTeQ's CEO Sam Riggall told Bloomberg.
Crunch Time Nearing with EV Sales Expected to Rise
A year ago, global EV sales were up 64% year over year.
By 2025, EV sales are expected to make up 7% of all car sales, according to Woods Mackenzie, as noted by CNBC. By 2040, that number could soar to 38%.
By 2030, nearly half of the vehicles sold in Canada will be electric. That's according to a new report from Clean Energy Canada, as noted by Electric Autonomy.
Better, "Over the next decade, Canada's EV industry is expected to grow by 28% every year - paving the way for a cleaner future and more clean jobs," said Merran Smith, executive director of Clean Energy Canada said.
Unfortunately, as lithium prices drop near-term on oversupply issues, producers will cut back on increasing supply. Then, when the EV market begins to boom, and there's a supply crunch, many companies will be on the hunt for supply.
It's why companies like Albemarle are still bullish on lithium.
In fact, it expects expects lithium supply-demand dynamics to tighten in 2020, adding that it would add production capacity to meet demand, as noted by Mining Weekly.
According to Benchmark Intelligence, as noted by The Washington Post, lithium could move into a deficit, as lithium use jumps by 2023. Unfortunately, major lithium companies may not be able to meet that demand.
One of the Top Beneficiaries of the Supply Crunch is E3 Metals Corporation
E3 Metals Corp. is sitting on the sixth largest lithium resource in the world.
In fact, at 6.7 million tons of lithium carbonate equivalent (LCE) - and at an average grade of 75 milligrams per liter - the resource has been shown to be one of the largest.
However, what makes E3 Metals' story even more compelling is Livent Corporation, which announced they would contribute to E3 Metals' development of lithium extraction (DLE) technology. All with the goal of producing battery quality lithium products from lithium enriched brines in the Leduc Formation in Alberta.
With DLE technology, the companies can remove lithium directly from brine solutions, "eluting it into new higher concentration/purity streams that can be easily processed into battery quality lithium chemical products," according to Chris Berry and Alex Grant, per a LinkedIn report.
"This means that brine with the lithium removed can be reinjected into the ground, preventing the disintegration of aquifers as seen in Chile's Salar de Atacama, eliminating years of processing time and dependency on the weather, reducing reagent consumption, reducing environmental footprint, and significantly slashing CAPEX for the project," they added.
In addition, in May 2019, E3 Metals Corp. announced it successfully produced lithium hydroxide at the Alessi Lab at the University of Alberta.
Brine from E3 Metals' Alberta Lithium project was first processed using the Company's proprietary direct lithium extraction technology to produce lithium concentrate. After some further refinement, the purified lithium solution was crystallized into lithium hydroxide.
"By producing lithium directly from Alberta brine using our direct lithium extraction technology and process flowsheet, E3 aims to develop a highly efficient, low cost process having the potential of creating a new standard for the industry," says the company.
For more information, visit the company's website at https://www.e3metalscorp.com
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Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media which has a partnership with www.WallStreetNation.com is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release.
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SOURCE: WallStreetNation.com
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