Emerging Markets Report: Lithium Could Run out by 2025
The press release highlights the growing demand for lithium due to the rise of Electric Vehicles (EVs), with UBS forecasting a potential lithium shortage by 2025. This scenario is bolstered by the projected cost parity of EVs with gas-powered vehicles by 2024. Lithium South Development Corporation (TSX-V: LIS, OTCQB: LISMF) focuses on the Hombre Muerto North Lithium Project in Argentina, near POSCO's development area. The company aims to innovate through alternative extraction methods, enhancing its competitive edge in a tight market.
- Lithium South is strategically located near POSCO's lithium development area, enhancing potential collaboration opportunities.
- The company's focus on alternative extraction methods could position it as a leader in Direct Lithium Extraction technology.
- Forecasted lithium shortages may pressure production and drive up costs, impacting profitability.
- Reliance on conventional evaporation extraction methods could limit operational efficiency amid rising competition.
An Emerging Markets Sponsored Commentary
ORLANDO, Fla., April 14, 2021 (GLOBE NEWSWIRE) -- Over the last few years, the emergence of Electric Vehicles (EV’s) has been obvious and incredible. Led by Tesla, electric vehicles are everywhere and hardly a novelty on the road.
But Electric Vehicles by and large need lithium for their batteries. As the success of EV’s taking market share continues, so too will the need for lithium.
One Forbes writer penned a fairly recent piece about lithium based companies in which he makes these bold assertions, many of which are sourced to a UBS report on battery materials for its institutional clients. UBS is the world’s leading investment bank so if you wanted to think of the direct opposite of something you read on a stock message board this is it.
In the report, UBS advances the notion that at today’s prices, lithium might run out by 2025.
Read that one more time: Lithium could run out by 2025.
The reason? According to the Forbes article, “UBS analysts crunched the numbers on the progress of seven different battery technologies (in tech lingo: “battery cells”). They estimate that EVs will reach a cost parity with gas-powered cars by 2024.”
That’s a whole lot more demand for lithium batteries.
Here is the link to review one writer’s thoughts are as to the impact on the sector if lithium runs out.
With that in mind, please allow us to introduce our latest profiled company, Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt OGPQ).
Lithium South is focused on developing the Hombre Muerto North Lithium Project (HMN Li Project), located on the Hombre Muerto Salar, a major lithium-producing salar in Argentina. The project is adjacent to land under development by the Korean multinational corporation, POSCO, which acquired the ground from Galaxy Resources Ltd. for U.S.
We’re just beginning our dive into Lithium South and hope to have more information about its business model and their mining operations. One thing we’ll want to know more about is the last line of that self-descriptor above wherein they discuss alternative extraction methods and how that impacts their efforts.
In a market that many think could be absolutely dry in just a few years, new exploration efforts and technology methods as Lithium South is engaged in could be intriguing.
Qualified Person
The scientific and technical information contained in this news release has been approved by William Feyerabend CPG, who is a Qualified Person as defined by NI 43-101.
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FAQ
What is Lithium South Development Corporation's focus?
What are the implications of UBS's lithium shortage prediction for Lithium South (LISMF)?
How might Lithium South's extraction methods impact its business?
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Where is the Hombre Muerto North Lithium Project located?
