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The Lithium Tech That Could Send The EV Boom Into Overdrive
FN Media Group Presents Oilprice.com Market Commentary
London – December 6, 2021 -The electric revolution is the biggest change the auto industry has seen since Ford invented the assembly line in 1913. But an impending supply shortage has put one critical resource in the global spotlight. Mentioned in today’s commentary includes: Toyota Motor Corporation (NYSE: TM), Honda Motor Co., Ltd. (NYSE: HMC), General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), Plug Power Inc. (NASDAQ: PLUG).
With the meteoric rise of Tesla, nearly every major automaker has shifted its sights towards producing the next great electric vehicle.Ford made headlines this year with its announcement of the all-electric F-150 Lightning, which now has upwards of 200,000 pre-orders.
That electric enthusiasm has spread to nearly every other major automaker – including GM, Fiat Chrysler, Mitsubishi, Honda, Volvo, and BMW to name just a few. This massive shift has driven demand for one crucial element sky-high.
That’s why Reuters recently reported, “Lithium producers grow bullish as the EV revolution turbocharges demand.” The Wall Street Journal proclaimed, “Lithium booms in the battle for electric-vehicle batteries.” But Barron’s warned, “The EV revolution needs more lithium.”
That’s just one of the reasons top-performing lithium companies have been on such a tear this year, with several stocks more than doubling since the start of the year.
Neo Lithium Corp. has taken off for 198% gains during that time.
American Lithium Corp. jumped for 326% gains.
And Vision Lithium is up an exceptional 577% for the year.
But the biggest winner in the lithium bull market could be one who doesn’t just make the next major mining discovery, but fundamentally transforms how lithium is mined around the world. That’s why we have been following updates from Medaro Mining Corp. (MEDA; MEDAF) so closely.
Medaro is sitting on two promising projects in one of Canada’s top lithium-producing regions. But it’s their new, proprietary technology that we believe could potentially play a role in changing the economics of lithium mining for exploration companies all across the globe.
This New Technology Could Change Lithium Mining Forever
Medaro Mining (MEDA; MEDAF) and their joint-venture partner hold the intellectual property rights for the development of a unique, new Hard Rock Lithium Technology (HLT).
This novel approach to extracting lithium could help create a paradigm shift in the industry if proven successful in their upcoming drill projects. But to fully grasp the gravity of the situation, it’s important to first understand a little about how lithium is processed today.
The precious mineral is primarily mined in one of two surfaces: brine or hard rock. But the vast majority of lithium produced today comes from brine because it’s so much cheaper to process.
Hard rock mining is far more costly because miners need to separate the rock by crushing, grinding, separating, and performing flotation processes on the ore. Not only can this be a long and intensive process, but there are also more costs tacked on top of that because it’s usually done by shipping the ore to a processing plant off-site for extraction. In other words, there’s a large supply of lithium hidden inside hard rock surfaces around the world, and as it stands, it’s just too expensive for lithium miners to process it.
Here’s how it works.
The technology uses a natural solvent that’s recycled and reused in the system, lowering costs on replacing new solvents. Next, it extracts lithium and other valuable byproducts like aluminum oxide and silica, which can also be sold to further offset production costs. Finally, it converts the lithium to high-quality lithium carbonate, lithium hydroxide, or lithium metal.
The company reports this process is unlike anything on the markets today. Not only is it cheaper and more effective, but it’s also environmentally friendly in a world where trillions of dollars are pouring into ESG funds.
Medaro Mining could begin testing the technology by mid to late 2022 through the construction of a pilot plant, with the coming months being pivotal in that process.
From there, they could possibly license that technology out to exploration companies across the globe, delivering new long-term revenue opportunities. Successful implementation of such a technology could unlock a huge portion of the world’s lithium supply that’s been left unprocessed until now. And that could be exactly what we need to keep the major companies like Tesla, Ford, and GM plowing ahead in the EV boom.
Exciting New Project in Canada’s Lithium Heartland
Medaro’s story goes beyond just their potentially transformational technology though. The team just finished Phase 1 of exploration in their new Cyr South lithium project in the prolific James Bay mining region of Quebec.
The Cyr South project is made up of 52 claims across 2,700 hectares in the heart of Canada’s lithium pegmatite region. Work by previous operators at Cyr South has found the presence of several pegmatites on the property and surface samples have shown lithium, niobium, and tantalum. So if Galaxy’s discovery up the road is any indication, along with some additional work on their own property, Medaro could be sitting on a prospective lithium property.
Now, they’re just waiting on results from Phase 1 within the next month or two before finalizing their upcoming drilling plans.
With easy access to a major highway running through the property and a multi-service truck stop located nearby, this is an efficient setup for what looks like it could be a significant drill program. But that’s not all Medaro Mining is holding in their back pocket. They’ve diversified even further with another key resource.
Tapping Into Another Global Shortage
While Big Tech has turned lithium shortages into a global headline, there’s another green energy resource that’s seeing renewed interest with the massive ESG push. Today, nuclear power is playing a bigger and bigger role worldwide.
For example, China just announced plans to build 150 new nuclear reactors over the next 14 years. That’s more nuclear reactors than we’ve built worldwide over the last 35 years.
With uranium already being in short supply as it stands, the increased demand could soon create a huge supply squeeze for uranium as well. This is why Medaro Mining (MEDA; MEDAF) has diversified its holdings to include an option to acquire a new property near the only major uranium basin in all of North America, Canada’s Athabasca Basin.
Wall Street Is Keeping A Close Eye On Automakers
Toyota Motor Corporation (TM) has developed a fuel cell system module and looks to start selling it after the spring this year in a bid to promote hydrogen use and help the world achieve carbon neutrality goals, the world’s largest car manufacturer said in February.
According to Toyota, the new module can be used by companies developing fuel cell (FC) applications for trucks, buses, trains, and ships, as well as stationary generators. “In addition to its effort to popularize FCEVs, Toyota will continue to strengthen its initiatives as an FC system supplier to promote hydrogen utilization through the popularization of FC products together with various FC product companies with the aim of reducing CO2 emissions to curtail global warming and to contribute to the achievement of carbon neutrality,” Toyota said in its statement.
Honda Motors (HMC) is another widely known automaker making major moves in the electric and hydrogen vehicle market. As one of the world’s most valuable automakers, the company is a force not to be ignored.
Honda offers a variety of safe, eco-friendly vehicles to suit consumers’ needs such as fuel-efficient commuter vehicles or sporty coupes. Though Honda doesn’t capture as much of the fuel cell market as its biggest competitors, Toyota and Hyundai, it’s still worth keeping an eye on because its hydrogen vehicle production will only grow from here with President Joe Biden’s upcoming multi-trillion dollar green energy push.
In a recent release, Wabtec announced a partnership with General Motors (GM) where GM would provide “electric batteries and hydrogen fuel systems” for Wabtec’s trains. These deliveries could begin within the next two years, and could potentially transform the entire industry. This move comes as part of GM’s wider shift towards alternative engine production, including fuel cells powered by hydrogen gas and electric vehicles.
GM is one of the most respected and recognized automakers on the planet, and now they are branching out and ditching internal combustion engines, other legacy automakers will likely follow suit. Though General Motors has been around for a long time, this is a turning point for the company. They’re making their best efforts to curb emissions, and it will likely pay off over time. Not only will it keep older shareholders happy, it could draw in new investments from more ESG-focused investors.
Ford (F) is another old-school automaker taking the dive into greener waters. In addition to brand-new electric versions of its best-sellers, the F-150 and iconic Mustang, it’s also carving out its own position in the hydrogen race, as well. In fact, it recently even unveiled the world’s first-ever fuel cell hybrid plugin electric vehicle, the Ford Edge HySeries.
“This vehicle offers Ford the ultimate in flexibility in researching advanced propulsion technology,” said Gerhard Schmidt, vice president of research and advanced engineering for Ford Motor Company. “We could take the fuel cell power system out and replace it with a down-sized diesel, gasoline engine or any other powertrain connected to a small electric generator to make electricity like the fuel cell does now.”
Recently, Plug Power (PLUG announced a brand new green hydrogen plant that will serve customers across the southeastern United States. Producing 15 tons of liquid green hydrogen per day, the plant, powered by 100% renewable energy, will be a game changer for the region.
Andy Marsh, CEO of Plug Power noted, “With this hydrogen production plant, we are expanding our green hydrogen network to provide zero-emissions fuel to customers in Georgia and across the Southeast,” adding, “Investing in Camden County is the right choice to support Plug Power’s continued growth.”
By Charles Kennedy
*IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are forward-looking statements. Forward-looking statements in this material include the Medaro Mining Corp. (the “Company”) joint venture (JV) with Global Lithium Extraction Technologies Inc. to develop a proprietary method of lithium extraction; that the Company will succeed in the development and commercialization of the proprietary technology to extract lithium which is highly cost effective, efficient and clean; that the Company will be able to earn its option to acquire ownership in its lithium projects; that the Company’s lithium projects will have commercial amounts of lithium which may be extracted and developed using its proposed technology or otherwise; that the market for lithium will continue to grow to billions of dollars; that the Company will be able to produce sufficient quantities of lithium to supply major contracts worldwide or be otherwise able to commercialize its business; that the Company’s JV will be able to develop, commercialize and license the technology on a global scale; that the technology will be able reduce extraction costs by up to 50%; that the technology will be implemented in remote areas close to productive mines; that the Company will design processing facilities for lithium extraction using the technology developed by the JV; that the technology will be able to extract commercial amounts of lithium; that the Company will be able to earn its option to acquire ownership in its uranium project; that the Company’s uranium project will have commercial amounts of uranium which may be developed; . Forward-looking statements are subject to a number of risks and uncertainties, which may cause actual outcomes to differ materially from those discussed in the forward-looking statements. Risks that could change or prevent these statements from coming to fruition include that the Company’s JV may be unable to successfully develop a proprietary method of lithium extraction; that the Company may be unsuccessful in the development of its proposed technology, or even if developed, that the Company may be unable to commercialize the technology or otherwise be able to extract lithium by a method which is cost effective, efficient or clean; that the Company may fail to be able to develop lithium extraction facilities or to license its technology; that the Company may fail to fulfill its obligations under its option agreements in respect of its lithium and uranium projects and be unable to acquire ownership in the properties; that the Company’s lithium and uranium projects may be fail to have any or sufficient commercially viable amounts of lithium or uranium which may be extracted and/or developed; that the market for lithium may not grow as quickly or as much as anticipated; that the Company may not be able to finance its intended development of technology and/or the maintenance/development of its lithium and uranium properties; competitors may offer cheaper or better products; markets don’t develop for the products as expected; intellectual property rights may not protect the Company’s processes and the Company’s technology may infringe on the intellectual property of others; and the Company may not be able to carry out its business plans as expected. The forward-looking information contained herein is given as of the date hereof and the writer assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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