Lithium Market Shifts on Acquisitions and Promising Lithium Discoveries

LOS ANGELES, June 11, 2018 /PRNewswire/ --

FN Media Group Presents USA News Group News Commentary  

The lithium market, which continues to draw interest thanks to demand by EVs and high tech power applications, is shifting as companies seek to shore up supplies in order to meet the growing demand.  

News from Chinese Mining Company Tianqi Lithium about its Chilean interests show the drive by China to gain more access to lithium supplies. Tianqi Lithium just announced it has acquired a 24% stake in Chilean lithium giant Sociedad Quimica y Minera de Chile S.A. - SQM (NYSE:SQM) (Sociedad Quimica y Minera de Chile S.A.,) to help bolster its South American access. Others mentioned in today's commentary includes: NRG Metals (TSX-V: NGZ) (OTC: NRGMF), FMC Corp. (NYSE: FMC), Galaxy Resources (OTC: GALXF).

At the same time, numbers emerging from junior mining exploration company NRG Metals Inc. indicate there are some very promising new discoveries at hand in South America's lithium triangle where SQM also operates. NRG Metals (TSX-V: NGZ) (OTCQB: NRGMF) has reported what geologist are calling "exceptional results" from the company's Hombre Muerto Salar prospect in Argentina. The emerging lithium grades and low Manganese to Lithium ratios are exceeding expectations, even for this prolific lithium region.

EVs and High Tech Driving Forces

It is no secret that the future of motoring is going electric. Breakthroughs in battery technology have enabled the proliferation of EVs (electric vehicles) to replace combustion engines after a century of being a low-key technology. Lithium ion batteries form the bulk of new electric vehicle batteries, which means that lithium has grown into one of the most important commodities today. The metal's light weight and high electrochemical potential, make it very suitable for high capacity rechargeable batteries used to power EVs along with other high tech devices.

Until entrants like Tesla and Volkswagen entered the electric vehicle sector, China had been the epicenter of the EV market. The Chinese government made it a national policy to promote electric vehicles long before other governments started adopting such policies on masse. The Asian country still remains a major EV powerhouse, constituting the largest market for electric cars. As such, it is of deep concern that the country is able to able to access lithium supplies in sufficient quantities.