SLB - Lithium Shortage May Hit as Early as 2025 Due to Rising EV Demand - Securing Local Supply Will Be Critical
2023-10-13 09:43:15 ET
Concerns of a looming global %Lithium shortage within the next few years swell, as demand for the metal surges amid increasing %ElectricVehicle (EV) production. Some analysts predict a supply deficit could emerge as soon as 2025, while others see it further out.
According to a recent report from BMI Research, a Fitch Solutions unit, China's lithium demand is forecast to outpace its domestic supply by 2025. "We expect an average of 20.4% year-over-year annual growth for China's lithium demand for EVs alone over 2023-2032," the report states. However, China's lithium supply will only expand 6% over that timeframe - a rate that cannot satisfy even a third of projected demand growth. China is currently the world's third largest lithium producer.
Global lithium production reached 540,000 metric tons in 2021. But, according to World Economic Forum projections, worldwide demand will exceed 3 million metric tons by 2030.
S&P Global Commodity Insights predicts EV sales will hit 13.8 million in 2023 before skyrocketing to over 30 million by 2030. "We do fundamentally believe in a shortage for the lithium industry. We forecast supply growth of course, but demand is set to grow at a much faster pace," said Corinne Blanchard, Deutsche Bank's director of lithium and clean tech equity research.
Blanchard sees a "modest deficit" of 40,000-60,000 tonnes of lithium carbonate equivalent by end-2025. By end-2030, she forecasts a wider shortfall of 768,000 tonnes.
Understanding this landscape, securing domestic supply becomes paramount – and North American developer %Lithium Bank (TSX.V: ) is well-positioned to become a critical supplier that can help cover the growing demand for lithium.
LithiumBank: Exploring the Future of Lithium Resources in North America
LithiumBank ( TSX.V: LBNK ) is a Canadian company that focuses on the exploration and development of lithium resources in North America. The company’s primary objective is to become a leading producer of lithium in North America by developing its brine projects in Western Canada.
LBNK’s current flagship is the Boardwalk Project - one of North Americas largest and potentially fastest to market. In addition, they are developing the Park Place and Saskatchewan Lithium Brine Projects – all in Western Canada. All their projects are categorized as district-scale.
The Boardwalk project (572,237 acres) is the key focus for LithiumBank, especially after completion of their preliminary economic assessment (PEA) which set the target of a 31,350 TPA over 20 years with a USD pre-tax $2.7B NPV and a 21.6% IRR. The area has a wealth of infrastructure in place, including highway, rail, power, gas pipelines, local skilled labor and roughly 550 Leduc production wells.
But they’re not stopping there: At Park Place, the company has engaged industry leader SLB ( NYSE: SLB ), a global energy technology company, to provide detailed reservoir modeling for an upcoming resource estimation and preliminary economic assessment.
Commitment to sustainability
LBNK’s mineral extraction strategy is environmentally friendly in several ways. It does not produce permanent tailings or need an open pit. It also requires less freshwater than conventional mining. Additionally, carbon capture and sequestration techniques can be applied to the lithium processing to further reduce the environmental impact. By avoiding permanent environmental damage and limiting emissions, this novel approach aims to extract minerals in a more sustainable manner.
LithiumBank also entered an intellectual property license agreement with G2L Greenview Resources Inc. Under this agreement, G2L will grant LBNK a license in Alberta and Saskatchewan for a full suite of continuous ion exchange technologies. The Direct Lithium Extraction technology will be used to extract lithium salts from enriched brines present at the Company’s lithium development projects.
“This licensing agreement with G2L provides LithiumBank with access to best-in-class direct lithium extraction technology that we expect to have a significant impact on the economics of our Alberta projects,” said Paul Matysek, Executive Chairman of LithiumBank . “We are pleased to be working with the G2Lithium team who are a 50/50 joint venture with Clean TeQ Water ( ASX:CNQ ) and Computational Geosciences Inc (CGI), a subsidiary of the Robert Friedland-chaired Ivanhoe Electric Inc. ( NYSE:IE ). They bring over 20 years of experience in designing and constructing ion exchange systems for commercial water treatment and metal recovery applications. Furthermore, access to G2L’s operational pilot plant will expedite the development of all our projects and provide the necessary information for feasibility assessments.”
Strong leadership steers the blue-chip prospect.
The success of any mining project depends on the expertise and experience of its management team. LithiumBank’s management team comprises professionals with extensive experience in the mining industry. Their Executive Director is Paul Matysek – a geologist/geochemist with over 40 years of experience in the mining industry. The team is further bolstered by CEO Robert Shewchuk – who boasts almost 30 years of capital markets experience, and COO Kevin Piepgrass , a professional geologist with 15 years of experience overseeing exploration and development of mining projects.
Making the Grade – How LBNK stands out from the pack.
The company is uniquely set up as an investment opportunity in the lithium industry:
- Strong focus on lithium exploration and development in North America : LithiumBank is dedicated to unlocking North America’s lithium potential and becoming a leading producer in Western Canada.
- Highly experienced management team with a proven track record of success : The expertise and experience of LBNK’s management team position the company for long-term success.
- A portfolio of high-quality, sustainability-oriented lithium brine projects : their projects in Alberta, Canada, offer significant potential for clean lithium production.
LithiumBank is at the forefront of exploring and developing lithium resources in North America. With a highly experienced management team, state-of-the-art technology deployed by industry stalwarts, and a portfolio of high-quality, sustainable lithium brine projects, the company is well-positioned to become a leading producer of lithium in the region.
About LithiumBank
LithiumBank Resources Corp. (TSX-V: LBNK) (OTCQX: LBNKF) is a development company focused on lithium-enriched brine projects in Western Canada where low-carbon-impact, rapid DLE technology can be deployed. LithiumBank currently holds over 3.6 million acres of mineral titles, 3.33M acres in Alberta and 336k acres in Saskatchewan. LithiumBank’s mineral titles are strategically positioned over known reservoirs that provide a unique combination of scale, grade and exceptional flow rates that are necessary for a large-scale direct brine lithium production. LithiumBank is advancing and de-risking several projects in parallel with its Boardwalk Lithium Brine Project.
Legal Disclaimer/Disclosure: This article is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Castle Rising assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Yolowire has been compensated eight hundred dollars by Castle Rising for distribution of this LBNK press release. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. Yolowire was not compensated by any public company mentioned herein to disseminate this press release.