MARKET

WHY LITHIUM?

Lithium is essential for producing the lithium-ion batteries used in EV’s, laptops, etc.

By 2040, lithium demand could grow by more than 12x. 

Currently ~87% of all lithium is sourced from Australia, Chile and China.

The United States currently has only one significant lithium extraction site, Silver Peak in Nevada, whereas Canada has extracted only minimal amounts of lithium.

EV MARKET FUELS LITHIUM DEMAND

I don’t see any major price decline any time soon because demand is going to keep growing as more EVs come into the market,” says Morningstar analyst Seth Goldstein, who believes the top Lithium producers are undervalued.”

– Mov. 9, 2022, The Globe & Mail 1
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Why Now?

Global investment in the low-carbon energy transition totaled $1.1 Trillion in 2022

  • A new record and a huge increase from 2021 –drove faster deployment of clean energy technologies.
  • Renewable energy, which includes wind, solar, and other renewables, remained the largest sector in investment terms,
    • New record of $495 billion committed in 2022, up 17% from the year prior.
  • Electrifying Transportation, which includes EV’s and associated infrastructure, was second with $466 billion spent in 2022
    • An impressive 54% increase year-on-year.
  • Major government stimulus from Inflation Reduction Act (USA) and Mineral Tax Exploration Credits (Canada)
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Source: Globalxetfs.com

ELECTRIC VEHICLE MARKET

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WHY NOW – USA IRA

Inflation Reduction Act

  • Single largest investment in climate and energy in American history
  • Enabling America to tackle the climate crisis and advancing environmental justice,
  • Securing America’s position as a world leader in domestic clean energy manufacturing and putting the United States on a pathway to achieve climate goals, including a net-zero economy by 2050.
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