EV Automakers Will Have to Brace for Higher Battery Material Costs

Thanks to electric vehicle demand, lithium prices are expected to move higher in the early part of 2021, as noted by Resource World.  “It is anticipated demand for vehicle battery metal will increase sharply over the next several years as automakers abandon internal combustion engines for EVs.” That’s a big catalyst for companies such as E3 Metals Corp. (TSXV:ETMC)( OTC:EEMMF), Albemarle Corporation (NYSE:ALB), Lithium Americas (NYSE:LAC)(TSX:LAC), American Lithium Corp. (OTC:LIACF), and Piedmont Lithium (NASDAQ:PLL).

In addition, “Growing demand for electric car batteries will cause prices of the main materials to surge, Goldman Sachs analysts said in a March 18 note. That in turn will drive prices of batteries higher by about 18%, affecting the total profit of electric car makers since the battery accounts for about 20% to 40% of the vehicle cost,” as noted by CNBC.

Look at E3 Metals Corp. (TSXV:ETMC)(OTC:EEMMF), for example

E3 Metals Corp. announced the receipt of a government grant totaling $1.8M from Alberta Innovates that will assist in funding E3 Metals’ pilot plant as outlined below. The Company has developed a proprietary Direct Lithium Extraction, or “DLE”, technology that seamlessly connects conventional oilfield and lithium processing, unlocking Alberta's previously untapped lithium resources. E3 Metals’ goal is to commercialize its global-scale lithium resource and deliver zero carbon emissions, battery grade, lithium products to the growing electric vehicle supply chain.

The funding provided by Alberta Innovates is to support the demonstration E3 Metals’ DLE technology by progressively scaling it up from the lab prototype to a field pilot. The first step will be a prototype operating within E3 Metals’ Calgary lab, and then a field pilot operating continuously on a site within E3 Metals’ resource area in Alberta. By demonstrating the process at a pilot scale over numerous months, the Company plans to significantly de-risk its Alberta lithium project prior to scaling up to the anticipated commercial scale of 20,000 tonnes/year lithium hydroxide monohydrate. A commercial operation has the potential to directly and indirectly employ many highly skilled personnel as well as generating revenue in taxes and royalties for Alberta and Canada.

Minister of Energy, Sonya Savage commented, “Capitalizing on Alberta’s mineral potential will help diversify our economy, create jobs and contribute to the province’s long-term economic recovery. We believe Alberta has the prime opportunity to be at the forefront of global mineral exploration and development because of our wealth of natural resources and experience as a global leader in responsible development. This E3 Metals pilot project is a great demonstration of the kind of potential that exists, and is another example of Alberta ingenuity in action.”

Minister of Jobs, Economy and Innovation, Doug Schweitzer added, “Lithium is going to be a big piece of Alberta’s future economic diversification and growth. By creating the infrastructure to supply the global need for batteries and other low-emission products, Alberta can be a global player in mineral extraction.”

“We greatly appreciate the continued support from Alberta Innovates,” commented Chris Doornbos, CEO of E3 Metals Corp. “The $1.8M being contributed toward the pilot plant development work ongoing here in our facility in Calgary, and eventually on the project site in Alberta. This will greatly assist in laying the foundation for commercial lithium production in Alberta. We are very excited to be a leading force in the economic diversification for the province.”

Other related developments from around the markets include:

Albemarle Corporation announced that it has declared a quarterly dividend of $0.39 per share. The dividend, which has an annualized rate of $1.56, is payable April 1, 2021, to shareholders of record at the close of business as of March 12, 2021. This year marks Albemarle's 27thconsecutive year raising its dividend.

Lithium Americas stock is gaining traction after B. Riley analysts initiated a buy rating on the stock with a price target of $25. “Domestic projects offer several inherent advantages over overseas imports, namely lower freight rates and sourcing risk,” as quoted by Barron’s. “These advantages will, in our opinion, lead to local lithium projects, like Thacker Pass, outperforming foreign suppliers in the long run.”

American Lithium Corp., a leader in the acquisition, exploration and development of lithium projects, reports the results of the latest independent laboratory testing to beneficiate samples from its Tonopah Lithium Claims project which achieved a 49% mass reduction while increasing lithium grade by 66%. Subsequent leach testing extracted 96% of the lithium from upgraded samples. As previously announced on May 7, 2020, American Lithium has successfully shown the ability, under laboratory conditions, to extract lithium utilizing sulfuric acid leaching on samples of the Company’s TLC claystones at extraction rates of 90% in as little as 10 minutes.

Piedmont Lithium announced that it has appointed Mr. David Klanecky as Executive Vice President and Chief Operating Officer. Mr. Klanecky brings deep lithium industry engineering, construction, and operations experience to the Piedmont team. As COO, David will lead the implementation of the Company’s integrated US-based lithium chemicals business, and development of the Company’s operational capabilities.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for E3 Metals Corp. by E3 Metals Corp. We own ZERO shares of E3 Metals Corp. Please click here for full disclaimer.

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