The Booming Lithium Market And A Small Company That Uncovered How To Tap In!
As you may know, lithium is the key component in rechargeable lithium-ion batteries. Every smartphone and electric vehicle in the world needs one to operate. And given the anti-carbon fuel zeitgeist today, it’s no surprise that the demand for lithium is booming!
In 2020, the global market size for lithium was valued at 3.39 billion USD. By 2027, that’s forecasted to grow at a compounded annual growth rate (CAGR) of 1.9% to reach a valuation of 4.93 billion.1 "Lithium demand is only projected to increase—here’s why!" All signs suggest the gains are likely to continue into the future. After a decade of rapidly falling costs, the rechargeable lithium-ion battery is poised to disrupt industries! (Ref 8)
Spey Resources Acquires Tech One Lithium Resources Corp.
Titans of the automotive industry seem to agree. General Motors Co. has announced that it hopes to phase out gasoline and diesel-powered vehicles worldwide by 2035 (Ref 8). As countries across the globe focus more and more on meeting target emission standards, the electrical vehicles (EV) market is expected to stimulate the demand for lithium in the coming years. (Ref 4)
The planned production capacity of key Lithium ion battery producers of the world, such as Tesla, CATL, Panasonic, BYD, and LG Chem, is expected to be 465 GW by the end of 2020. Moreover, for 2023, the planned capacity of Li-ion battery has surpassed 1,000 GWh.”(Ref 1) Meaning, the need for lithium is projected to increase significantly by 2023. Yet it’s not just electric vehicles that are relying on more and more lithium as time goes on!
In Texas, lithium batteries are becoming more and more essential in the electric grid. At the end of 2020, installed batteries could deliver 215 megawatts of electricity. And the grid operator expects that to grow to nearly 2,000 megawatts worth of batteries by 2023. (Ref 8) One small company is Tapping Into a New Source of this 'Precious Metal’ - the “Lithium Triangle” Spey Resources (the company) is a Canadian mineral exploration company. More importantly, they recently acquired an option for a 100% interest in a lithium mining project in the prolific “Lithium Triangle”. (Ref 2)
How did they get access to this untapped lithium source?
Recently, the company announced that it has entered into a Share Purchase Agreement dated as of April 23, 2021 with the shareholders of Tech One Lithium Resources Corp. Under which Spey has purchased all of Tech One's issued and outstanding shares. (Ref 2) Furthermore, Tech One has optioned the lithium project from AIS Resources Corp. under a joint venture agreement. AIS is bringing a combined experience of over 35 years in lithium brine projects to the table. Spey Resources is now poised to take advantage of the ongoing lithium boom.
New Release
"We are electrified to be involved in this project given the global need and demand for lithium and battery metals. We are excited to have AIS Resources managing our Argentinian operations as their team has decades of experience with lithium brine exploration and production." -
Spey Resources CEO and director Nader Vatanchi (Ref 5)
The Candela II Project - Exciting Lithium Project
The Candella II project is located within the prolific Lithium Triangle, in the Salta Province of Argentina. Candella II covers 300 hectares, is represented by the mineral claim number 23262 located in the Incahuasi Salar and is road accessible.
Here are a few of the key features we pulled from their website and online presentation for your convenience: (Ref 3)
- Substantially explored by Gangfeng, Advantage, Ekeko and others in Salta Province – covers 9.9sqkm area – land as well as salar,
- VTEM geophysics shows low (<0.02ohm-m) aquifers with K, Mg ,Li brines (not saltwater which is >0.026),
- Drill hole data shows the lithium brines are close to surface (similar geology to Rincon salar),
- Sample analysis shows Li values from 250-400ppm,
- ​100 km from San Antonio de la Cobre (2,000 people) close to Arizaro salar ​Easily accessible by road, and
- No indigenous communities close by.
The Details on the Acquisition Structure Between Spey Resources and Tech One:
- US$1.2 million purchase price – 12 months due diligence,
- US$100,000 deposit,
- US$100,000 deposit 6 months from contract date,
- US$450,000 exploration program to resource statement
- ​Exploration permit in place, ready to fast track
​Read on ......
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