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By Mangeet Kaur Bouns, Benzinga

The lithium market is experiencing unprecedented growth, fueled primarily by the rapid expansion of the electric vehicle (EV) industry, which heavily relies on lithium-ion batteries for their superior energy density and longevity. Additionally, the surge in renewable energy storage systems, consumer electronics, technological innovations and supportive government policies are significantly broadening the lithium market. This surge is creating potential opportunities for companies engaged in acquiring, exploring, and developing lithium projects.

Li-FT Power Ltd. (OTC: LIFFF) is one such company making strides in this growing sector. Focused on lithium pegmatite projects in Canada, Li-FT is strategically positioning itself to benefit from the growing demand for lithium, which is essential for the ongoing EV revolution and the global transition to clean energy. The company's diverse project portfolio and forward-thinking initiatives underscore its potential to be a pivotal player in the lithium market.

North America's Lithium Market: Driving The Future Of Clean Energy

The lithium sector in the U.S. and Canada could be poised for substantial growth in 2024 and beyond despite recent global pricing and demand challenges. The U.S. saw a remarkable increase in lithium-ion battery imports in the first quarter of 2023, reaching 235,386 metric tons, marking a 66% rise from the previous year. This surge underscores the escalating demand for lithium, driven by the expanding EV market and the clean energy transition.

In addition to increasing imports, America also witnessed a notable rise in the construction of lithium-ion battery factories, fueled by manufacturing tax incentives from the Inflation Reduction Act of 2022. In Canada, particularly Quebec, there is a strong push to develop a fully integrated supply chain from lithium mining to EV manufacturing. With the world's sixth-largest lithium reserves, Canada is focusing on harnessing its 930,000 tonnes of lithium to support the growing market.

Amid ongoing geopolitical uncertainties and the aftermath of the pandemic, companies in the U.S. and Canada are revisiting undeveloped lithium assets, accelerating existing projects and exploring new opportunities. Favorable government policies promoting clean energy and regional battery supply chains are driving this renewed focus, with significant construction activities anticipated across various states and provinces in the coming years.

According to the S&P Global Commodity report, lithium-ion battery capacity is projected to more than double by 2030, reaching 6.5 terawatt-hours (TWh). Additionally, the demand for lithium-powered EV batteries is anticipated to grow annually by over 22%, with the electric vehicle transport sector expected to account for 93% of the market share by 2030.

Li-FT Power, which operates five high-yield lithium pegmatite projects across three regions safe and mining-friendly jurisdictions in Canada, seems poised to capitalize on the rapidly expanding lithium market and contribute to the future of clean energy.

Li-FT Power's Flagship Yellowknife Lithium Project

At the heart of Li-FT Power’s portfolio is the Yellowknife Lithium Project in the Northwest Territories, which stands out as a potentially significant source of hard rock lithium in North America. This project encompasses 13 lithium pegmatite systems, with grades averaging between 1.0% and 1.2% Li2O over widths of 10 to 30 meters and strike lengths up to 1,800 meters. These systems are predominantly exposed at the surface, making them easily visible from satellite imagery.

As of April 2024, Li-FT had completed 50,000 meters of resource development drilling, significantly advancing the project toward a maiden resource estimate. Recent drilling results have been promising, with notable intersections such as 35 meters at 1.32% Li2O at the Shorty pegmatite and 28 meters at 1.7005% Li2O at the BIG East pegmatite, underscoring the project's potential to yield substantial lithium resources.

Exploration Projects In Quebec: Rupert, Pontax And Moyenne

Li-FT’s portfolio extends beyond the Northwest Territories to Quebec, where it holds three early-stage exploration properties: the Rupert, Pontax and Moyenne projects. These projects are strategically positioned to tap into Quebec's rich lithium potential. The Rupert Project, spanning 141,572 hectares in the James Bay region, commenced initial drilling in March last year, with plans for 17 holes (5,000 meters) targeting lithium-bearing pegmatites under cover.

The Pontax Project, covering 61,520 hectares, features the most extensive lithium anomaly in Li-FT’s Quebec portfolio and benefits from convenient highway access. Summer 2023 exploration activities revealed a significant 13 km by 6 km lithium anomaly at Pontax, with additional spodumene anomalies identified on the Rupert Property. CEO Francis MacDonald highlighted the potential for a large spodumene pegmatite dyke swarm in the Pontax area based on the anomaly's size and spodumene grain counts.

The Moyenne Project, covering 25,145 hectares, is in an earlier exploration stage, with regional till sampling completed and further surface work planned. This 100% owned property is accessible by helicopter and holds promise for future exploration efforts.

Cali Project: Exploring The Little Nahanni Pegmatite Group

Adding further depth to Li-FT’s portfolio is the Cali Project, located within the Little Nahanni Pegmatite Group in the Northwest Territories near the Yukon border. Acquired in 2022 alongside the Yellowknife Project, the Cali Project features a spodumene pegmatite system with significant vertical and horizontal extents, outcropping over a 500-meter strike length and up to 100 meters in width.

In 2023, Li-FT conducted a comprehensive soil geochemistry survey and mapping campaign at Cali, revealing that the spodumene pegmatite dyke swarm system exceeds initial expectations. Rock sampling and mapping efforts have shown high lithium grades, with 124 out of 163 grab samples returning grades exceeding 1.0% Li2O. These findings underscore the project's potential to become a significant lithium resource.

Li-FT Power's Strategic Position In A Booming Market

The North American lithium sector is undergoing a transformative period, driven by the accelerating demand for lithium-ion batteries, especially for electric vehicles. Government policies supporting clean energy and the establishment of regional battery supply chains are further bolstering this growth. Canada, particularly Quebec, is taking significant steps to develop a comprehensive supply chain from mining to EV production, underscoring the strategic importance of lithium in the global clean energy transition.

Li-FT Power seems to be strategically positioned to capitalize on these trends. With its flagship Yellowknife Lithium Project and promising exploration projects in Quebec and the Northwest Territories, Li-FT is at the forefront of advancing lithium resources to meet the growing demand for EV batteries. As the company continues to make strides in its exploration and development activities, it stands out as a potential key player in the lithium sector, driving innovation and sustainability in the clean energy landscape.

Featured photo by MiningWatch Portugal on Unsplash .

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