By 2025, EV sales are expected to make up 7% of all car sales, according to Woods Mackenzie, as noted by CNBC. By 2040, that number could soar to 38%. Along the way, that could lead to substantial opportunity for investors and lithium companies alike. At the moment, lithium prices are dropping on oversupply issues, with producers cutting back on supply. However, this could eventually lead to a sizable supply crunch. It’s why companies like Albemarle are still bullish on lithium. In fact, Albemarle expects for lithium supply-demand dynamics to tighten in 2020, as noted by Mining Weekly. That's opening a wide range of opportunity for companies involved in the lithium space, including E3 Metals Corp. (TSXV: ETMC)(OTC: EEMMF), Tesla Inc. (NASDAQ:TSLA), Albemarle Corporation (NYSE:ALB), Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) and Lithium Americas Corporation (NYSE:LAC)(TSX: LAC).
E3 Metals Corp. (TSX-V: ETMC)(OTC:EEMMF) is a lithium development company committed to its goal of commercial lithium production in Alberta. In partnership with Livent Corporation, E3 Metals Corp is scaling up a novel direct lithium extraction technology that could potentially unlock their strategically located, massive lithium resource in an excellent jurisdiction. E3 Metals’ shareholders are welcome to attend the AGM that will be held on November 19, 2019 in Calgary, AB. The AGM will be immediately followed by an Investor Presentation hosted by E3’s executive team to discuss the recent agreement with Livent and development plans for 2020. The Company welcomes investors and interested parties to join by webcast or in person in Calgary.
Other related developments in the lithium industry include:
Tesla Inc. (NASDAQ:TSLA) released its financial results for the third quarter of 2019 by posting the Q3 update on its Investor Relations website. Please visit http://ir.tesla.com to view.
Earlier this year, a Tesla spokesperson noted concerns over supply for raw materials used in lithium ion batteries. Secure sources of raw materials like lithium are anticipated to become increasingly important as the supply crunch looms. North American sources of lithium, such as the resources identified by E3 Metals in Alberta, Canada, could become progressively strategic given that lithium named on the US list of Critical Minerals.
Albemarle Corporation (NYSE:ALB) just announced that it expects third quarter 2019 diluted earnings per share to be approximately $1.46 and adjusted earnings per share to be $1.53 on net income of approximately $155 million and adjusted EBITDA of approximately $254 million. The Lithium business performance was impacted by discrete items, which more than offset solid results from both the Bromine and Catalysts businesses. For the third quarter 2019, the Lithium business is expected to deliver revenue of $330 million, up $59 million or 22%, and adjusted EBITDA of $128 million, up $14 million or 12% year-over-year. Factors impacting Lithium during the quarter include: Sales volume was lower than expected primarily from Typhoon Tapah, in late September, that caused lithium shipments from ports in Shanghai to be delayed into October. The volume shortfall impacted the third quarter by approximately $15 million in EBITDA but is expected to be fully recovered in the fourth quarter. Use of tollers to meet customer commitments and address operating issues in La Negra, Chile, resulted in an EBITDA reduction of around $10 million. The technical team in Chile has focused on reliability improvements which have enabled operating rates to now reach full capacity. Given customer commitments, tolling is expected to continue into the fourth quarter. An out-of-period adjustment regarding Lithium carbonate inventory values was identified and corrected during the third quarter close process and resulted in a $7 million non-cash charge in the third quarter. Overall lithium pricing was flat to slightly up in the third quarter versus prior year; however, continuing price pressure on lithium sales in China unfavorably impacted EBITDA by about $5 million.
Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) announced it would pay an interim dividend equal to US$0.26669 per share to be charged against 2019 retained earnings. This amount shall be paid in the equivalent of Chilean pesos according to the value of the "Observed Dollar" or "US Dollar" that appears published in the Official Gazette on August 30, 2019. This shall be paid to the corresponding shareholders, in person or through their duly authorized representatives, starting at 9:00am on September 12, 2019 to shareholders who are registered on the shareholders registry of the Company five business days prior to the payment date."
Lithium Americas Corporation (NYSE:LAC)(TSX:LAC) announced the appointment of Dr. Yuan Gao to its Board of Directors. "We are pleased to welcome Dr. Gao to Lithium Americas' Board of Directors,” commented George Ireland, Lithium Americas' Chairman. “Dr. Gao’s years of operating experience and relationships in the lithium and battery industry will be a strong asset to the Lithium Americas board as we advance construction of Cauchari-Olaroz and evaluate financing options for Thacker Pass, including a potential joint venture partner." Dr. Gao is Vice-Chairman of the board of directors of Qinghai Taifeng Pulead Lithium-Energy Technology Co. Ltd. one of China’s leading lithium-ion battery cathode producers and a key player in the lithium-ion battery supply chain. Dr. Gao was previously President and Chief Executive Officer of Pulead and prior to joining Pulead in 2014, Dr. Gao held senior positions with Molycorp Inc. and FMC Corp.’s lithium division. Dr. Gao has a PhD in Physics from the University of British Columbia.
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