With global leaders phasing out combustion engine cars for electric vehicles, we’re running short on key metals, like lithium. Even the International Energy Agency warned that, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.” That’s all great news for companies such as Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), General Motors (NYSE: GM), Tesla (NASDAQ: TSLA), Lithium Americas (NYSE: LAC) (TSX: LAC), and Albemarle (NYSE: ALB).
Even better, major automakers are securing lithium deals as the battle for supply heats up.
General Motors said it would invest $650 million in Lithium America (LAC) to help develop a lithium deposit in Nevada. According to Barron’s, “The mine, referred to as Thacker Pass, is projected to begin lithium production in the second half of 2026. The Thacker Pass investment should amount to all the lithium GM needs to meet its goal of selling 1 million EVs in North America by mid-decade.” In addition, Piedmont Lithium amended its agreement with Tesla for lithium. In fact, Piedmont has agreed to deliver approximately 125,000 metric tons of SC6 to Tesla beginning in H2 2023 through the end of 2025. With automakers racing to secure even more supply, we’re likely to see many more deals.
Look at Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), For Example
Usha Resources Ltd., a North American mineral acquisition and exploration company focused on the development of drill-ready lithium and battery and precious metal projects, announced that it has successfully completed hole JP22-1 at the Jackpot Lake Lithium Brine Property. The Company will now proceed with drilling its second hole and sampling JP22‑1.
USHA’s 2023 drill program marks the first drill testing of the Jackpot Lake Project which is hosted within a basin estimated to be 10,900 acres and 625 metres deep. JP22-1 was completed to a total depth of 1,723 feet or 525 metres below ground and now confirms:
- Support for a similar geologic setting to that of Clayton Valley, hosting Albemarle’s Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America;
- Evaporitic crystallization, indicative of a brine-forming environment, extends to the top of the basal conglomerate, with interbedding, veining and inclusions increasing significantly beginning at a depth of 1,250 feet (381 metres). Interbedded zones included up to 90% evaporites.
- A higher porosity zone comprised of sand and conglomerate with evaporite crystallization was identified beginning at 1,629 feet that continued on to the bottom of the hole at 1,723 feet or 525 metres.
- Static water was present at approximately 146 feet. The total water column at the Project is anticipated to be greater than 1,577 feet or 481 metres.
- Lithium is present in JP22-1 at a grade of up to 300 ppm within ten samples collected from shallow surface soils (<442 ft). The Project target was identified based on geophysical studies and 129 core samples collected by the USGS with an average lithium value of 175 ppm.
Most notably, the hole terminated in a higher porosity zone of sand and conglomerate. Reaching this sand-conglomerate zone was a high priority for the program as it should contain the greatest porosity within the basin aquifer and serve as a pumpable zone into which the fluids above can drain (See Figure 1). As per the Preliminary Economic Assessment (PEA) completed by Pure Energy Minerals for their Clayton Valley project, their sand and conglomerate zone was identified to contain a large volume of brine with superior grades.
“The significance of evidence supporting the geologic setting coupled with the geological similarities and notable proximity to the sole domestic producer of lithium in the United States bodes well for USHA’s future potential – both near and long-term,” said Deepak Varshney, CEO of Usha Resources. “We have been very pleased with our maiden drilling program findings to-date and it’s great seeing the core beginning to come out of the ground. Shallow basins with the characteristics of Jackpot are uncommon and to be able to validate our thesis for the project on the first hole is very exciting. We are very excited to now move on to hole number two as sampling of hole number one gets underway. Brine projects have the ability to move towards production much quicker than their counterparts in the hard rock space, and the identification of heavily crystallized core overlaying permeable pumpable sands and conglomerate shows that Jackpot has the potential to produce and help meet this demand in the coming decade.”
Other related developments from around the markets include:
General Motors announced that its Board of Directors has declared a first quarter 2023 cash dividend on the company's outstanding common stock of $0.09 per share payable Thursday, March 16, 2023, to all common shareholders of record as of the close of trading on Friday, March 3, 2023. Also, in its most recent earnings release, the company reported third-quarter net income attributable to stockholders of $3.3 billion and EBIT-adjusted of $4.3 billion driven by record third-quarter revenue of $41.9 billion.
Tesla just noted that, “In the fourth quarter, we produced over 439,000 vehicles and delivered over 405,000 vehicles. In 2022, vehicle deliveries grew 40% YoY to 1.31 million while production grew 47% YoY to 1.37 million. We continued to transition towards a more even regional mix of vehicle builds which again led to a further increase in cars in transit at the end of the quarter.”
Lithium Americas announced it entered into a purchase agreement with General Motors pursuant to which GM will make a $650 million equity investment in Lithium Americas. In connection with the Transaction, the Company has provided an update on the construction plan for the Thacker Pass lithium project in Humboldt County, Nevada, including the release of an independent National Instrument 43-101 feasibility study. The agreement represents the largest-ever investment by an automaker to produce battery raw materials, with GM to become Lithium Americas’ largest shareholder. Lithium Americas to receive $650 million equity investment from GM consisting of $320 million first tranche investment for common shares representing 9.999% of Lithium Americas before separation; and $330 million second tranche investment, contemplated to be invested in the Company’s U.S. business following the separation of its U.S. and Argentine businesses.
Albemarle, a leader in the global specialty chemicals industry, today announced the official brand launch of Ketjen, its wholly owned subsidiary that crafts tailored, advanced catalyst solutions for the petrochemical, refining and specialty chemicals industries. The company shared the new name of its catalysts business in November 2022 after announcing plans to operate the business as a subsidiary. As a distinct brand, Ketjen will continue to support customers in their unique energy transition journeys from fluidized catalytic cracking to clean fuels to hydro-processing to organometallics and curatives. "As the industry responds to global market dynamics, our customers need innovative solutions to help them navigate their changing landscapes," said Ketjen President Raphael Crawford. "Ketjen will continue to provide its portfolio of advanced catalyst and specialty chemicals solutions, which are unique to each customer's needs, to increase production performance and business value."
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. Usha Resources Ltd. paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Usha Resources Ltd. Please click here for disclaimer.
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