DAN - Lithium Craze: Comparing Arianne Phosphate To Top Companies
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By Meg Flippin, Benzinga
From powering electricvehicles to storing solar and wind energy, lithium plays a criticalrole in the transition to a greener world. So it’s not surprisingdemand for Lithium-Iron-Phosphate (LFP) batteries is exploding – asare the market values of its key publicly traded producers.
With energy and food prices still high andweather-related calamities occurring far too often, everyone fromcompanies to consumers is looking for greener alternatives across theboard. Electric vehicles have driven a lot of the demand, but lithiumis also used in storing captured wind and solar for the power grid andresidential solar power systems.
LFPs Gaining Traction
For years, NorthAmerican EV makers relied on lithium-ion batteries made of lithium,cobalt and nickel to power this greener vision. But cobalt and nickelare scarce and expensive – not to mention controversial .
Companies lookingfor an alternative have turned to LFPs. These batteries are highlystable, longer lasting, and more resistant to heat degradation. Theyalso require less lithium.
In 2022, about 737,000 tons of lithium was producedglobally. That’s expected to increase to 964,000 tons in 2023,reaching 1.17 million tons by 2024. The LFP market is projectedto exceed $50 billion by 2023 . And, in a recent report, WoodMackenzie predicted that lithium iron phosphate will become the leadingbattery chemistry for EVs by 2028 .
Beyond EVs, there’s another big opportunity for LFPs: energystorage systems and powerwalls. These are designed to store energyfrom solar or the grid to be used later. Some are portable whileothers are connected. Tesla, Inc. (NASDAQ: TSLA) is increasinglyusing LFPs in its energy storage products, which bodes wellfor the industry.
Northern Exposure
Evidently, this isn’tlost on investors, and many investors are watching publicly tradedlithium companies keenly. Some of the keyplayers include Albemarle Corp. ( NYSE: ALB ) , Sociedad Química y Minera S.A. (NYSE: SQM), Ganfeng LithiumCo., Ltd. (OTCMKTS: GNENF) and Mineral Resources Ltd. (OTCMKTS: MALRY).
But they aren’t cheap. Albemarle currently trades ataround $168 per share. In dollar terms, that’s more expensive than General Motors (NYSE: GM), Ford (NYSE: F), and even Amazon (NASDAQ: AMZN). Meanwhile, SQM sports a $15.85billion market valuation .
Fortunately, there are cheaper ways to get exposureto the lithium battery market, such as through the miners that providethe minerals needed to make batteries. Arianne Phosphate (OTCMKTS: DRRSF), one such company hailing from Quebec, Canada, providesa key ingredient for LFP batteries and is cheaper than theaforementioned lithium stocks in dollar terms.
But, as its phosphate is snapped up byproducers of everything from EVs to solar storage systems, that maynot be the case for long.
Deposits Set it Apart
Arianne’s Lac àPaul project in Quebec could become a key resource formanufacturers. The geology of the deposit is igneous and thus veryrare, with less than 10% of all phosphate coming from ore bodies ofthis nature. Arianne’s deposit can produce a purer concentrate,higher than over 90% of the world’s phosphate. Further, aside fromthe phosphate content, Arianne reports that its deposit does not haveany issues with deleterious elements (radioactive, heavy-metal) thatare found in most of the world’s phosphates. From an ESGperspective, Arianne’s mine also adheres to strict environmental,social and corporate standards that set it aside from most otherdeposits.
There isalso pro-mining legislation that helps companies like Arianne. TheWhite House’s AmericanBattery Materials Initiative is aimed at securing a reliableand sustainable supply of critical minerals used for power,electricity, and EVs. Meanwhile, the Department of Energy is awarding$2.8 billion from the Bipartisan Infrastructure Bill to boost domesticmanufacturing. Lastly, Quebec has shown itself to be aggressive inattracting and advancing battery initiatives and is expected to play asignificant role in Arianne’s advancement.
Judging by how themarket is moving, LFPs could well be the future. A cheaper way to playthis exploding market is with phosphate, of which Arianne appears tobe a well-positioned producer.
ARIANNE PHOSPHATE INC. ( www.arianne-inc.com )owns the Lac à Paul phosphate deposit in Quebec, Canada. Fullypermitted and shovel ready, the asset is among the world’s largestgreenfield deposits, capable of producing an environmentally friendlyphosphate concentrate. Due to the nature of its high-purity,low-contaminant product, Arianne’s phosphate can be used to producefertilizer as well as meeting the technical requirements of specialtyapplications such as the lithium-iron-phosphate (LFP) battery. The Lacà Paul deposit is rare due to its geographic location and geologicalstructure. Arianne Phosphate is listed on both the TSX-V: DAN and the OTCQX: DRRSF .
This post contains sponsored advertising content.This content is for informational purposes only and is not intended tobe investing advice.
This information contains forward lookingstatements. All statements, other than statements of historical fact,included herein, including without limitation, statements regardingpotential mineralisation and reserves, exploration results and futureplans and objectives of Arianne Phosphate Inc, are forward-lookingstatements that involve various risks and uncertainties. There can beno assurance that such statements will prove to be accurate and actualresults and future events could differ materially from thoseanticipated in such statements. Important factors that could causeactual results to differ materially from Arianne Phosphate Inc’s(“Arianne Phosphate” or the “Company”) expectations aredisclosed under the heading "Risk Factors" and elsewhere inArianne Phosphate Inc’s documents filed from time-to-time with theTSX Venture and other regulatory authorities.
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