The Lithium Extraction Tech That Could Take Tesla To $2 Trillion
In Austin, Texas, Elon Musk is building his Tesla Cybertruck plant…
And is developing a new technology to supply their huge lithium requirements.
Even Samsung is moving production from overseas to Texas
American lithium is expected to be in high-demand for the next century…
And early investors in the companies set to profit could receive significant returns on their investment in 2022.
Few investors may know that the US has some of the world’s largest lithium reserves…
And with supply-chain issues and China’s emergence as a lithium power-house…
Lithium production is now flooding back to America.
We think one little-known stock could benefit the most because it is the leader in what could become a unique, new lithium extraction technology…
LITHIUM DEMAND ESTIMATED TO INCREASE 40X: 25,000 TONNE DEFICIT PER YEAR FORECASTED!
Not only do supply chain issues have American companies scrambling to bring business back to America…
But current levels and types of lithium extraction may not be able to keep up with demand…
Lithium demand is estimated to increase by up to 40x over the next two decades, with automakers around the world committing to majority-EV production and renewable energy becoming the holy grail.
The majority of the world’s lithium is currently mined in Chile and Australia. And the majority of what is mined is then processed in China. China is controlling supply, which is a national security issue for the United States.
The situation has EV companies like Tesla scrambling to secure American lithium supply deals.
On November 1st, Tesla finally reached a three-year lithium supply contract with the world’s largest producer, Ganfeng Lithium Co.
But it’s still not enough to satiate Tesla’s needs, let alone everyone else’s.
The bulk of the world’s lithium supplies are extracted from liquid brine reservoirs located beneath salt flats, and a deficit is already being felt.
BMI’s George Miller forecasts a lithium carbonate deficit of 25,000 tonnes this year. By next year, he expects that deficit to be much more serious.
For the Biden Administration, securing domestics sources of lithium is a matter of national security.
ELECTRIC VEHICLE PRODUCTION TO CREATE EPIC DEMAND BY ALL MAJOR CAR MANUFACTURERS
Biden’s blueprint for domestic lithium production, refining and battery manufacturing is expected to drive a possible EV sales increase of up to 50% by 2030.
For EV makers and battery manufacturers, like Tesla, it’s all about new technologies that can ensure we have enough lithium and the best batteries for EVs.
Ford (NYSE:F) has pledged to go all-electric by 2040, and will invest over $30 billion in EV and battery production over the next five years. It’s also testing liquid cooling for a faster EV charger that could cut charging time from hours to minutes.
In Europe, they are moving even faster.
Even Mercedes will go all-electric by 2030.
In China, conventional gas-burning cars will be phased out by 2035.
Apple (NASDAQ:APPL) uses lithium in cell phones and laptops. And now, it’s coming out with a car. The Apple Car is expected to be released in four years.
In short: It looks like there’s an international “secret war” going on for access to lithium… and the technology needed to unlock it.
And that’s where the early investors in breakthrough technology may be able to benefit…
HLT TECH: BATTERY GRADE LITHIUM FROM ROCKS
Lithium comes either from subsurface brines or spodumene-bearing pegmatite deposits.
Lithium from brine is easier to extract because you pump the lithium-bearing brines out of the ground and then treat them to form lithium carbonate or lithium hydroxide.
The process doesn’t involve traditional mining.
But there are problems with this method.
The biggest problem is that we need more supply than brine deposits alone can offer.
The process is also incredibly time-consuming.
Extracting from the brine involves solar evaporation from salt flats, and that can take many years.
It’s also environmentally destructive and requires tons of water not available near the salt flats.
For example, Chile’s Atacama desert is being depleted of water thanks to lithium brine extraction. Now it’s barren and the locals are being deprived of water resources and grasslands vital to their survival. But what if there were a better tech?
There may be!
It’s called HLT.
Now, lithium can be mined from the hard rock using traditional mining techniques, and Medaro’s new technology, if developed and commercialized, could potentially upend the lithium extraction segment.
Hard rock is everywhere in the U.S. and in Canada.
The new process could lower lithium extraction costs 30% to 50% finally making it economically viable.
Here’s how it works…
Until now, lithium from brine has been less expensive to extract but refining it is time consuming and requires a lot of toxic chemicals.
Hard-rock uses conventional mining techniques. Hard-rock is plentiful in Canada, Australia and US. But until now, extracting lithium from it has been too expensive.
Medaro says the process only requires three feedstock materials:
High-purity Carbon Dioxide (CO2), which is consumed in forming Lithium Carbonate
High-purity water (H2O), which is consumed in forming Lithium Hydroxide.
It doesn’t use any hydrocarbons at all.
It’s also a modular process that is highly scalable and deployable right at the mine site, possibly even in remote locations. The scalability potential could be up to 50-100 tonnes per day, or more, in the roughest terrains.
And there are no associated CO2 emissions because this is a closed-loop process run on clean energy. That alone means the process could lead to lower costs and a much smaller manufacturing footprint. The process could produce virtually zero waste, which would equal huge savings compared to other methods.
Subject to pilot tests, initial studies predict that Medaro’s new lithium extraction process could deliver almost one-fifth of a tonne of Lithium Carbonate and one-quarter of a tonne of Lithium Hydroxide for every tonne of concentrated spodumene extracted from the rock.
And it would be battery-grade lithium ready for the market.
This could reduce supply chain costs and bottlenecks and could be scalable at an industrial level, possibly with global implications for the industry.
In fact, if fully developed and commercialized, this process might generate over $400 million per year… per modular installation!
ARE BILLIONAIRES GOING “ALL-IN” ON LITHIUM?
In the last decade, technologies powered by lithium have made companies hundreds of billions of dollars. In the next decade, lithium could fuel trillions of dollars in new wealth.
We think the smartest investors are going “all-in” on Lithium.
Warren Buffett’s Berkshire Hathaway made a huge move into lithium in 2019, with a venture to extract $1.5 billion in lithium from geothermal wells in California.
Elon Musk wants to mine his own lithium.
Tim Cook is developing the Apple Car and lithium greed is at an all-time high for the tech giant.
It gets even better…
The infrastructure deal could flood the ESG market with $1 trillion not to mention multiple billions more from investors hopping on this speeding train.
They are going all in because it’s more than just car engines…
The energy storage industry is an even bigger market than EVs.
The potential of lithium grid storage is explosive. Just think Tesla’s PowerWall and Megapacks.
OUR PICK FOR A STOCK TO WATCH FOR 2022: $35 MILLION MARKET CAP STOCK WHICH WE THINK HAS GREAT POTENTIAL
Let’s talk numbers…
As at the end of November, this company has a market cap of $35 million…
But its technology could, if proven out and commercialized, scale up to 50-100 tonnes of processing per day.
That’s approximately 10-20 tonnes of Lithium Carbonate (Li2CO3) at $20,000 per tonne…
And approximately 12-25 tonnes of Lithium Hydroxide (LiOH-H2O) at $22,000 per tonne… per day.
In other words, this could mean a potential of over $400 million per modular installation.
If that happened, company’s valuation could rise significantly with just one installation.
Insiders in the EV industry may already be taking notice…
Their recent private placement was not brokered and it was still oversubscribed…
We think the smart money is moving now.
Which could confirm the exciting potential of this new technology.
Other companies to watch as lithium demand soars:
FuelCell Energy (NASDAQ:FCEL) is another alternative fuel stock that has taken Wall Street by storm. Fuel cells are a relatively new technology, which might explain why the company’s shares seem to have little correlation with other stocks in its industry or even those outside of it. However, while momentum may fluctuate from time to time and investors should be prepared for fluctuations within 24 hours of 10%, this upstart will most likely continue on an upward trend due to steady advances in research and development as well as increased use cases worldwide such as China’s investment into hydrogen transportation infrastructure.
Sitting at just $8.71 at the time of writing, FuelCell is a great…