The electric vehicle (EV) revolution is gaining serious momentum.
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According to experts’ projections, demand for electric vehicles should rise at a 21.1% Compound Annual Growth Rate (CAGR) until 2026.
The extraordinary demand that is forecast for EVs over the next five years has now begun to trigger a massive disruption in the global energy markets.
As demand for EVs continues to move higher, the demand for lithium – the critical component needed for the batteries that power all those EVs – is also projected to climb higher.
According to Roskill Information Services, “lithium chemical demand from end-use sectors is expected to increase year-on-year to around 280,000 tonnes lithium carbonate equivalent.”
These projections have already begun to have a profound impact on the price of lithium in the marketplace.
Lithium prices declined from 2018 through the end of 2020, but since December 1, 2020 the price of lithium has soared 71.24% — and could be poised to climb even higher.
With rising lithium prices and soaring projected demand, what is the best high risk / reward way for investors to play this EV-powered trend for maximum upside potential?
United Lithium’s flagship project is a recently discovered lithium deposit located in central Sweden. The company has agreed terms to acquire the project, with closing expected by April.
This project is a near-surface, near-market, exploration-stage lithium property that appears poised to help the company take advantage of Europe’s soaring demand for electric vehicles, and the EU’s strong push for lithium self-sufficiency.
United Lithium Corp.’s Bergby Project: A Near-Surface, High-Grade Deposit Offering Significant Upside Potential
The Bergby project is a recently discovered lithium-rich pegmatite deposit in central Sweden that offers an ideal location.
This property is near to the world famous Woxna graphite mine, the new Northvolt lithium battery gigafactory and close to major mining and transportation infrastructure, workforce and equipment suppliers.
The Bergby project, if proven up as a commercial deposit, is optimally positioned to benefit from access to the EU market and its growing demand for alternative energy vehicle manufacturing, high tech devices and grid storage systems.
In addition, the project’s proximity to next generation lithium-ion battery manufacturing plants is critical, as is access to nearby EU educational institutions and low power costs for processing hard rock lithium bearing minerals cost-effectively.
The Bergby lithium property should be able to capitalize on three key elements:
- Probable low cost surface and near-surface extraction…
- Well-established mining and transportation infrastructure, and…
- Rapid fulfillment of trade regulations allowing tariff-free sales to potential EU lithium customers.
But the location of the Bergby lithium project is only part of the story of its potential.
Historic Sampling Shows Extensive Lithium Mineralization
Assay results from 41 boulders shows Li2O (lithium oxide) values averaged 1.06% within a range from 0.03% to 4.56% Li2O; and Ta2O5 (tantalum pentoxide) assays averaged 168ppm, ranging from 1 ppm to 499 ppm Ta2O5.
Further mapping located lithium mineralization in outcrops. Fifteen samples collected from three outcrops returned Li2O values averaging 1.71%, ranging from 0.01% to 4.65% Li2O; and Ta2O5 values averaging 133 ppm within a range from 16 ppm to 803 ppm Ta2O5.
In 2017, the first and only drill program was completed at the Bergby project.
IN that drilling program, 28 of the 33 holes drilled on the property intersected lithium mineralization along approximately 450m strike length.
The deepest holes tested to only 65m below surface with mineralization is still open along strike in both directions and well as down dip.
Three principal styles of lithium mineralization have been observed in widely -spread boulders and outcrops at the Bergby property, providing encouragement that mineralization may be extensively developed.
- Homogeneous, fine grained to medium grained leucogranite/aplite: Complex zoned boulders where the aplite material appears to intrude coarse grained pegmatite . This style is rich in tantalum, with an average grade from 31 boulders of 208 ppm Ta2O5. The lithium mineralogy of this style is not yet confirmed, however, the measured specific gravity of highest-grade samples was relatively light and suggests petalite is a dominant mineral (LiAlSi4O10).
- Petalite dominated extremely coarse-grained pegmatite: Located in both outcrop and boulders; this style is relatively high in lithium and poor in tantalum.
- Spodumene-bearing, very coarse grained pegmatite: Coarse spodumene crystals (LiAl(SiO3)2 have been recognized in boulders, with crystals up to 30 cm in length.
What’s Next for United Lithium Corp.’s Bergby Project
The European Union has sounded the alarm on critical raw materials shortages, estimating that to meet its climate neutrality goal, it will need up to 18 times more lithium and five times more cobalt in 2030 than current consumption.
By 2050, the EU estimates that it will need a staggering 60 times more lithium than current demand.
For this reason, the EU has added lithium to its critical materials list and launched a multi-billion dollar fund to help speed the production of raw materials to supply the European battery market.
This means there is potential for significant capital available for projects such as United Lithium Corp.’s Bergby project as the scope of the project comes into focus.
The deposit at Bergby is open along the strike to the north and south…and there are additional known pegmatites in the area that have never been tested for lithium mineralization.
A simple drill program on the property of another 25 to 40 holes could be hugely impactful for the company in a relatively short period of time.
It’s possible that such a modest drilling program – one that the company has the financial resources to undertake – could be completed within the year with the goal of uncovering a discovery of several million tonnes at the property.
Experienced Management Team is Ready to Deliver Results
One of the most important factors in evaluating any exploration company is the quality of its management.
This team includes…
Michael Dehn – President, CEO & Director
With over 20 years of experience in the mining industry, he worked as an exploration geologist and later as a Senior Geologist with Goldcorp Inc. Michael has been a director and officer of publicly traded and private junior mining companies.
His expertise lies in grassroots to advanced minerals exploration, and marketing and financing junior companies and Mr. Dehn has extensive experience in lithium and cobalt exploration and processing.
Faizaan Lalani – CFO & Director
Mr. Lalani is an accounting and finance professional with over 10 years of experience covering audit, financial reporting, corporate finance, and operations management. Mr. Lalani previously worked in the audit and assurance group at PricewaterhouseCoopers LLP, Canada, where he obtained his CPA, CA designation, gaining vast experience in accounting practices in both the public and private sectors during his tenure.
Mr. Lalani has also served as a Senior Accountant for PortLiving, a Vancouver based real estate development company, since 2016 and, from 2014 to 2016, Mr. Lalani served as a Senior Accountant with Century Group, a Vancouver real estate development company. Mr. Lalani currently serves as a director and Chief Financial Officer of Soldera Mining Corp., and a director of IMC International Mining Corp.
Bottom Line: Why the Future Could Be Bright for United Lithium Corp.
* Demand for lithium is soaring – and the price of lithium has shot up 71.24% in the last two months. With the worldwide shift toward electric vehicles in full swing, the world is desperately seeking to bring new supplies of lithium online…and the markets are likely to reward any company that can do so handsomely.
* United Lithium is a company whose primary asset showing lithium mineralization is in the right place at the right time, as the Bergby project’s location in Sweden is near the new Northvolt lithium battery gigafactory and close to transportation infrastructure.
* Drilling at the Bergby project has shown an extensive lithium-mineralized surface boulder field. 28 of the 33 holes drilled on the property in a 2017 drill program intersected lithium mineralization and the project showed potential high-grade, near-surface lithium potential.
* The company plans to move forward with an additional drill program in 2021 that could potentially reveal a lithium deposit discovery on the property. Positive results from this drill program could be a true game-changer for the company with Europe – and battery companies – so desperate to bring new lithium sources on line as quickly as possible.
By. Jody Wilson
The technical information presented in this article has been reviewed and approved by Robert W. Schafer QP, PGeo, as defined by NI 43-101
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