Electric vehicles sales are only set to accelerate. Governments want millions of them on the roads, as of yesterday. President Biden wants 50% of all new U.S. auto sales to be electric by 2030. Europe is targeting 50% EV sales penetration by 2030. In China, about 40%. However, for millions of EVs to hit the roads, the world needs far more supply. Unfortunately, that’s easier said than done at the moment, as we deal with strong demand and short supply. Even the IEA warns, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.” That’s creating big opportunity for companies, such as Grounded Lithium Corp. (TSXV: GRD) (OTCQB: GRDAF), Standard Lithium (TSXV: SLI) (NYSE: SLI), Albemarle Corp. (NYSE: ALB), Livent Corp. (NYSE: LTHM), and Lithium Americas (TSX: LAC) (NYSE: LAC).
Look at Grounded Lithium Corp. (TSXV: GRD) (OTCQB: GRDAF), For Example
Grounded Lithium Corp. provided a summary of our 2022 operational and financial achievements in addition to providing our forecasted 2023 activities, dependent upon market conditions.
2022 represented a monumental year for the Company. Entering 2022, we were a private company with a small team, owned a small land base and had a modest treasury. We achieved a significant number of critical accomplishments during 2022, building a solid foundation from which to grow our business on multiple fronts and unlock further value. Significant 2022 achievements and their respective importance are detailed below:
- Strategic Land Base - Over the course of 2022, we increased our land base greater than four-fold with a current total land position of just over 300 sections exiting the calendar year. This land base is expected to be sufficient to support several 20,000 tonne/yr lithium from brine projects. Each 20,000 tonne/yr project represents a significant value proposition for our shareholders;
- Successful Test Well Drilled - We successfully drilled and completed only the second ever dedicated lithium test well in the province of Saskatchewan. The well’s design served multi-faceted objectives: (1) it confirmed the Compay’s ability to secure appropriate services and drill wells with a very modest capital intensity due to the shallow nature in our area, (2) it confirmed lithium concentrations in our chosen geologic area, and (3) it confirmed economic deliverability or productivity rates of wells in the area. This well’s design allows easy conversion to a producing well for both a commercial demonstration facility and ultimately for commercial operations, thereby leveraging drilling and completion capital spent to date;
- Proved Deliverability – An extremely critical component in establishing an economic lithium from brine project is deliverability of the individual wells. We confirmed a potential substantial productivity rate of up to 29,000 bbls/d via the completion of our first test well. Based on prudent reservoir management practices, we expect to restrict this rate to 18,000 bbls/d to help ensure deliverability for decades. A critical conclusion of these efforts is that we likely only require one well per section, and in some cases possibly two wells per section, to contribute to a 20,000 tonne/yr project. In other words, as few as 50-75 sections are needed to support such a target. With a land base of over 300 sections, we believe even on a risked basis, GLC has sufficient land holdings to support multiple 20,000 tonne/yr projects;
(source: GLC January 2023 Corporate Presentation)
- Public Listing – The Company not only achieved a public listing on the TSX Venture Exchange but also successfully achieved a trading quotation on the OTCQB Venture Market. With access to trading both in Canada and the United States, the Company hopes to have greater access to capital at a lower cost;
- Focused Approach to Resource Capture – Right from the outset, our strategy was to target very select properties, whereby each and every acquired section will contribute to supporting a project. Our view was to not simply acquire land for the purpose of reporting a large land position. With our targeted approach and with significant rigour brought to bear in terms of resource assessment, our inaugural National Instrument 43-101 – Standards of Disclosure for Mineral Projects Technical Report effective April 15, 2022 assessed our Kindersley Lithium Project at 2.9 million tonnes of inferred lithium carbonate resource. Our updated NI 43-101 Technical Report effective November 30, 2022, which was prepared by certain “qualified persons” (as defined in NI 43-101) employed by Sproule Associates Limited, an industry leader in sedimentary basis fluid dynamic assessments, reported an increase of 28% to 3.7 million tonnes of inferred lithium carbonate resource. This bodes well in terms of our land position supporting multiple lithium from brine projects;
- Engagement of Hatch Ltd – In October 2022, we executed a DLE Testwork Support & Evaluation contract with Hatch Ltd. to select the preferred extraction technology for our chemistry of brine. We also engaged an internal engineering consultant with experience in Direct Lithium Extraction to support the direction of Hatch’s technical efforts. This overall approach is consistent with our strategy to concentrate our efforts on resource development where we have a history of success, while leveraging the time and capital of others who are experts in the technology sector. In partnership with Hatch, we targeted a short-list of four technologies to assess and expect to determine our preferred DLE methodology by the end of the second quarter of 2023;
- Working Capital Secured – We were successful in raising multiple rounds of financing, all at accretive prices to the prior round throughout the course of 2022. This resulted in a well-capitalized Company with sufficient working capital to address near term catalysts. With a purposely designed conservative capital structure combined with a compelling value proposition, we believe future fundraisings will both be available and accretive; and
- Cohesive and Competent Team – We established the core team which we believe will lead the Company to one or more commercial projects. Additional team members will be onboarded in the future at the appropriate time as we continue to execute our business plan.
2023 Objectives and Milestones
While we advanced our business and value proposition significantly since incorporation, particularly during 2022, we understand there is much to accomplish in the coming years to attain our vision of becoming a leading Canadian lithium producer. Milestones planned to drive the business forward during 2023 include:
- Selection of a Chosen DLE Technology – As mentioned above, our engagement of Hatch will fast-track the DLE technology selection process which we expect to conclude by the end of the second quarter of 2023. This analysis and selection will run in parallel in the preparation of a preliminary economic assessment. While we concentrate on our own efforts, several industry peers in the industry continue driving towards the identical goal. When one or more industry participants demonstrate success in achieving a commercial DLE technology, it is anticipated that such an event will lift the entire sector;
- PEA – A number of corporate personnel as well as external advisors continue to be extremely focused on the completion of the Company’s maiden PEA on the Kindersley Lithium Project. Our PEA is expected to benefit from our 3-dimensional dynamic flow model, where we predict optimal plans for producing the resource. The PEA is expected to provide an independent view of the economics and value proposition of the KLP. PEA’s have historically been important in providing support for an increase in a company’s public valuation;
- Lab Pilot Results – Given the Company’s stated strategy of relying on other experts for a chosen DLE technology, we expect to have results by Q2 2023 from 3rd party lab pilots at a cost substantially less than we would otherwise incur by constructing and operating our own lab. Through our work with Hatch, lab extraction testing on the short-list of technology candidates will conclude during the first and second quarters of 2023. Brine feedstock or product from the completion of our first well is securely stored and available to conduct these tests as needed;
- Funding – The Company will be assessing all forms of capital, ranging from traditional equity sources to non-dilutive government funding. Capital of any form will assist in advancing the value proposition of the Company; and
- Engineering Design and Construction of Commercial Demonstration Facility (“CDF”) – Should the Company move successfully through the milestones stated above, we would quickly move to the design and construction of an appropriately sized CDF. Operating results from the CDF would provide sufficient data to determine if a full-scale operation is economically and commercially attractive. The Company forecasts to commission a CDF by H1 2024 with design, engineering and construction potentially commencing in the second half of 2023.
“Grounded advanced our business on all fronts extremely quickly from our humble roots in a little over two years,” commented Gregg Smith, President and CEO. “Although pleased with our progress to our current position, we remain hyper-focused on the full value proposition and it is our responsibility to move the business forward to achieve both near and long-term milestones. Combined with further understanding of the lithium from brine industry by the wider investment community, 2023 promises to be a very exciting time for all GLC stakeholders.”
Other related developments from around the markets include:
Standard Lithium, a leading near-commercial lithium company, announced that the United States Patent and Trademark Office has issued a Notice of Allowance for Standard Lithium’s third U.S. patent application serial no. 16/895,783 titled “Process for Recovering Lithium from Brines”, This third U.S. patent application is in addition to Standard Lithium’s other two U.S. patent applications for which Notices of Allowance have been earlier issued by the USPTO (U.S. patent applications serial no.16/410,523 and serial no. 16/224/463, both also titled “Process for Recovering Lithium from Brines” see news release November 1, 2022). These three U.S. patent applications comprise a portion of Standard Lithium’s novel and proprietary technique for continuous Direct Lithium Extraction (DLE) from lithium brines.
Albemarle Corp. announced it has acquired a location in Charlotte, North Carolina, where it will invest at least $180 million to establish the Albemarle Technology Park (ATP), a world-class facility designed for novel materials research, advanced process development, and acceleration of next-generation lithium products to market. The company anticipates that innovations from the new site will enhance lithium recovery, improve production methods, and introduce new forms of lithium to enable breakthrough levels of battery performance. "Albemarle Technology Park is part of our mine-to-market innovation strategy to invest in the U.S. EV battery supply chain and to be a leader in advanced lithium materials for next-generation energy storage," said Kent Masters, Albemarle CEO. "This facility will focus and accelerate our lithium technology leadership, better enabling the world's transition to more sustainable energy." Albemarle was awarded a nearly $13 million incentive package from the State of North Carolina to develop the advanced lithium materials research, process development, and product innovation facility in Mecklenburg County, North Carolina.
Livent Corp. and Nanyang Technological University, Singapore (NTU Singapore) 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 and Co-Director of NTU-Singapore CEA Alliance for Research in Circular Economy, 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."
Lithium Americas provided an update following a hearing held by the US District Court, District of Nevada on January 5, 2023, for the appeal of the issuance of the Record of Decision for the Thacker Pass lithium project, located in Humboldt County, Nevada. During the hearing, the plaintiffs, the U.S. Bureau of Land Management and the Company addressed final questions following the submission of briefings in August 2022. The Federal Court reaffirmed no additional hearings or briefings are required and expects to issue a decision in the next couple months. “Yesterday's hearing provided an opportunity to reaffirm our confidence that the permitting process for Thacker Pass was conducted thoroughly and responsibly,” commented Jonathan Evans, President and CEO. “As we continue to prepare for construction, we look to finalize key supply agreements and partnerships that can help to secure America’s clean energy future by providing responsible and domestically produced lithium.”
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains 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 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. For making specific investment decisions, readers should seek their own advice. Grounded Lithium Corp. paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares Grounded Lithium Corp. Please click here for disclaimer.
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