Canada has decided to play in those markets. It has a vast set of mining operations across the Far North. It has quietly mined lithium as early as the 1950s in the La Corne Township. Known as the Lithium Project it continues mining in an area with 100 years of experience. It created a town of mining expertise that now has over 32,000 people surrounded by roads that never are all season. It continues to find ways to market lithium throughout that area.
In Quebec in the spring, the government invested $80 million in the Nemaska Lithium operations. The James Bay territory has the ore spodumene which forms around granite pegmatites. Often in such geologic formations, high-quality lithium intersperses throughout the rock. Lithium batteries use high-quality lithium. Nemaska must build a mine operation which has a schedule of completion in 24 months from May 2018. More importantly, Nemaska created an innovative process classified as an electrolysis technology to retrieve the lithium cleanly. The Canadian government noticed and invested.
Many other lithium operations exist as well as seen on the Toronto Stock Exchange and the Toronto Venture Exchange. The companies exploring for lithium do not just look in Canada. Canadian operations have shown up in Ireland, USA and Argentina to name a few. Allied Market Research data suggests the use of lithium has a projection of doubling in a decade due to the increased use of electric vehicles and digital devices. Tesla and Elon Musk projects keep the lithium markets in the news along with his proposals for electric vehicles.
Possibilities
China has had a significant hold on the lithium markets for a while. With an innovative set of investors, the lithium markets could become disrupted and new significant players emerge because of the USA its tariff war against China. All volatile, all high-risk adventures just like the lithium they seek. Clean technologies have a much better chance of becoming the norm globally if lithium batteries become a norm. Now with the United States, Mexico and Canada Agreement (USMCA) in place forming mutually beneficial relationships that support sustainable development more becomes possible with lithium.
Lithium demands
The Freedonia Group attempted to make a precise global projection of demand for lithium. Despite the dips and bumps in the market, demand will increase for the metal by about 8.9 percent to an estimated 49,350 metric tons. The August MarketWatch stated the competitive outlook using Asian companies estimated $69 Billion by 2022. Canada aware of China’s hold on the market enticed many Chinese investors into its lithium projects and companies. China recognizes the value of the Canadian lithium companies so why hasn’t the USA attempted to do so since it uses vast amounts of electronic devices?
A few Canadian companies have explored lithium ventures with the USA. Lithium Americas (TSX: LAC, NYSE: LAC) a Vancouver based company does have a lithium operation in Nevada USA. It plans to mine lithium from clay. Due to lack of support or investment they had to sell 50 percent of the shares to China Ganfeng Lithium.
Companies
Mining companies must find money where it can to get the operation viable before making payment to investors on lithium. Despite the numerous companies doing lithium on the TSX markets, they need investors to get there. Starting up mining projects remain fraught with regulation and expense before becoming profitable. Lithium will become a major commodity in the global economy.
Possible Canadian companies to invest in now that an investor has a sense of the dynamics.
Nemaska Lithium Inc. (TSX: NSX)
- Government funded
- Supplies lithium hydroxide along with lithium carbonate to the battery industry
- Innovative electrolysis process
QMC Quantum Minerals Corp. (TSX.V: QMC)
- Revitalizing Irgon Lithium Mine
- High quality lithium in pegmatite rich land
- One hundred percent owners of the project
Power Metals Corporation (TSX-V: PWM)
- Entirely fresh so something new this way may come with German backing
- One concentration only– lithium
- Found a case spodumene pegmatite swarm with five dikes
All high-risk adventures with the potential for good profits if successful. Enjoy the ups and downs of the lithium market as the established players attempt to buy up the startups. Like a good wrestling match, it should offer some exquisite entertainment for veteran investors and newbies a place to step in.