Lithium Prices Soar As Tech Giants Fight For Supply
- FN Media Group Presents Safehaven.com Market Commentary
NEW YORK, Feb. 23, 2021 /PRNewswire/ -- The electric vehicle revolution is gaining serious momentum. According to experts' projections, demand for electric vehicles should rise at a 21.1% Compound Annual Growth Rate 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. Mentioned in today's commentary includes: Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), NVIDIA Corporation (NASDAQ: NVDA), Intel Corporation (NASDAQ: INTC).
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. And one under-the-radar company, United Lithium Corp. (ULTH; ULTHF), appears that it could be at the right place at the right time. 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.
A European Lithium Hotspot
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.