- A historic shift to electric vehicles is triggering a new boom in lithium prices. Battery-grade lithium carbonate, has skyrocketed in price 89%1 so far in 2021 to more than $13,000 per ton, outperforming the S&P 500 by almost 8 to 1.2
- And with a recent report by the International Energy Agency (IEA) projecting the number of electric vehicles to grow 1,200%3 by the end of the decade, junior resource mining companies are soaring as well.
- Now, ACME Lithium (CSE: ACME | OTCQB: ACLHFCSE: ACME | OTCQB: ACLHF) is positioned to surge into the lead, as it pursues claims covering more than 4,000 acres in Nevada’s prolific Fish Lake and Clayton Valleys.
Standing on a lakebed in Esmeralda County, Nevada, you can see signs of the region’s lengthy history with lithium.
They’ve been extracting and processing lithium here since the sixties, but a recent drive towards clean energy has brought this region back into focus for technology industry leaders and investors alike.
Below the surface is one of the richest reserves of lithium in the world – a key component of the batteries which will power North America’s energy future.
But the United States has been slow to establish its reserve potential, making the finding of new lithium sources nothing short of a national security crisis.
If we look at last year alone, the top producers of lithium in 2020 were1:
- Australia with 40,000 metric tonnes
- Chile with 18,000 metric tonnes
- China with 14,000 metric tonnes
- Argentina with 6,200 metric tonnes
- Brazil with 1,900 metric tonnes
With only a single lithium mine at Silver Peak in Nevada, the United States doesn’t even make the list.
But it’s not for lack of resource. In fact, the country is blessed with some of the largest lithium reserves on the planet. The USGS estimated in 2020 that the US had lithium reserves of around 750,000 metric tons, putting it behind only China, Argentina, Australia and Chile2.
It simply hadn’t been a priority, as the United States has long relied on its ample fossil fuel reserves. Until now.
Betting on the Future of Electric Vehicles
Although demand for electric vehicles seemed to have plateaued a few years ago, growth is very much back on.
A report from MarketsandMarkets predicts the global market to grow from 4,093 units in 2021 to 34,756 thousand units by 2030, at a CAGR of 26.8%3.
This is a sector which has come into its own over the last two or three years. The technology has improved, enabling electric vehicles that offer greater range, and high-performance options.
So too has infrastructure. The US is ramping up installation of electric charging points, meaning, the obstacles to owning an electric vehicle are quickly fading.
There is now little doubt that much of the world is turning away from fossil fuels to electric power – and shifting national policy makes it clear the United States intends to vie for a dominant position.
A $2.3 Trillion4 Infrastructure Push Fuels New Lithium Boom
With a stroke of a pen, a $2.3 billion infrastructure bill laid the framework for the greatest energy shift in history.
Another executive order pledged to ensure that half of all new vehicles sold in 2030 in the US would be electric. The move came with the full backing of America’s automotive manufacturers, a clear sign that the industry understands that electric is the new standard.
Then in March, a number of U.S. senators called for a ban on new sales of gasoline-powered cars anywhere in the United States by 20355 – and industry analysts predict that sales of electric vehicles in the U.S. could grow from 3% of all vehicles today to 50% by 2035.6
And with that, the US joined the growing number of countries enacting legislation to support the EV market.
- China plans for 100% of new cars produced in the country to be electric by 20304.
- The UK, meanwhile, aims to ban the sale of new petrol and diesel cars altogether by 20305.
- The EU has proposed a similar ban from 2035 as they seek to achieve a 55% reduction in emissions from cars6.
These would see the US and other major countries working towards net zero by 2050.
The Unstoppable Rise of Lithium
Of course, when it comes to electric vehicles it’s no longer huge news that they are driving unrelenting demand for lithium.
But, we often lose sight of just how big the trend is now and how massive it is poised to become.
Ultimately, analysts at UBS investment banks forecast that by 2030, EVs will need 2,700 GWh worth of lithium-ion batteries a year.7
For perspective, that’s equivalent to 225 billion iPhone 11 batteries – and 13X more battery power than we use today.8
In fact, the International Energy Agency forecasts that there will be a combined 125 million EV cars and trucks on the road over the next decade.9
And their batteries will require hundreds of tons of lithium.
At an estimated 3 pounds (1.4kg) of lithium per kWh of power, the smallest EV, that runs on 20kWh batteries will use about 60 pounds lithium.
Big cars with 100kWh batteries will use around 300 pounds of lithium.10
This is a significant issues for all EV makers.
The world is going to need at least 20.8 billion pounds, or 10.4 million tons, of lithium over the next decade.
In addition, lithium will be powering more than just electric vehicles. Lithium-ion batteries will be powering the smart cities of the future11.
This year, the Moss Landing Power Plant tower over Monterey Bay, which used to be America’s largest gas fired power plant is starting a new life as the world’s largest battery. It is home to a 300-megawatt lithium-ion battery which will provide power for residents in California.
More are to come. Across America mega-batteries are firing up, providing a sustainable answer to the challenge of powering America.
If North America is to come close to achieving these targets, U.S. lithium production will need to be scaled up dramatically.
That explains why this stock has shot out of nowhere in the last year, to become one of the hottest microcaps in a smouldering lithium market.
Resource Investors Are Eager For a Repeat of the Boom in Lithium Mining Stocks That Arose in 2015-2018.
Over the past year, the price of lithium has already doubled13.
Despite the pandemic, prices eclipsed expectations in the first three months of the year, with little signs of a slowdown as we move into Q3.
The Benchmark Global Weighted Carbonate Price rose by 15.6 percent across the quarter, and its equivalent Benchmark Global Weighted Hydroxide Price rose by a startling 34.5 percent, while spodumene prices shot up 11.1 percent (FOB Australia)14.
And the future look even better. Global lithium demand is expected to more than double by 202415. As a result, investors have already seen share prices of lithium exploration companies rise sharply:
Lithium Americas Corp (Nasdaq: LAC) shot up almost 300% in the past 52 weeks.
Standard Lithium Corp (NYSE: SLI) skyrocketed more than 800% in the same time period.8
And Piedmont Lithium (Nasdaq: PLL) shot up a stunning 1000% in 15 months.9
Like all emerging markets, investing in this space can be complicated. Successful investors will be those who spot stocks which are on the lower slopes of a rise rather than one which is already at the top.
In other words, you want to invest in a company which is on the brink of a breakthrough, not one which has already maxed out its potential. That’s what makes ACME Lithium so appealing.
Right now, they’re in a sweet spot, sitting in a historic region with rich reserves and proven exploration credentials, all at a time of booming demand. And while some of the big performers of the past year appear to have peaked, all the evidence suggests ACME is at the start of its ride.
This alone puts it in a strong position to capitalize from the lithium boom.
Recent times have seen ACME Lithium (CSE: ACME | OTCQB: ACLHFCSE: ACME | OTCQB: ACLHF) stock more than double, surging from under CAD$0.40 just last May to a high of CAD$1.34 in September, giving early investors a chance to take profits. Now the stock is maintaining at around $1.05 and primed for potential investors who see industry’s exponential rise in demand.
Playing One Of The World’s Dominant Trends
Their Clayton Valley project, which boasts a 100% interest in 122 claims totalling 2,440 acres, is raw and bursting with potential because it abuts a famous lithium mine.
And their Fish Lake Valley project looks to hold historic concentrations. ACME currently holds a 100% interest in 81 lode mining claims totalling 1,620 acres there.
Now, the company is undertaking an extensive exploration campaign to uncover targets at both.
A World Class Neighbor in Clayton Valley
Mining is steeped into the history of Clayton Valley. To date, this region has already proved to be a vital source of lithium, and signs suggest mining operations have only scratched the surface.
Named after Joshua E Clayton, a settler and mining engineer, the lithium rich brines pumped up from the ground here currently provide a third of America’s lithium requirements.
The metal is thought to originate from the Tertiary volcanics which abound in the area. While the region has been producing lithium from rich brine pools since the 60s, it’s only recently garnering heavy attention. And for very good reason.
Albemarle’s flagship mine, Silver Peak, is the ONLY commercially producing lithium mine in North America.
Currently this mine produces 3,500 metric tonnes of lithium per year, but has the capacity to produce 6,000. It’s one of two world class mines operated by Albemarle with the other being in the Salar de Atacama, Chile.
Remarkably, ACME Lithium’s project borders Albermarle sitting right next door.
That positions ACME Lithium (CSE: ACME | OTCQB: ACLHF) at the epicentre of lithium exploration and production in the US, next to a source which has been a productive supply of lithium for six decades.
Plus, ACME recently completed phase one of a two phase geological survey targeting lithium brine, which entailed a gravity survey including a total of 120 gravity stations acquired over the claim area on a grid of 250 meters.
And, phase two of the Hybrid-Source Audio-Magnetotellurics (HSMAT) survey has recently commenced, which should give ACME a clear picture of which drill locations to prioritize for testing lithium concentrations within brines.
Results are expected soon16.
Fish Lake Valley, Nevada’s Lithium Windfall
Nearby you’ll find another area rich in potential – Fish Lake Valley. This 25-mile-long endothermic valley has long been viewed as a rich potential for lithium. Even back in the 70s analysis of the water in Fish Lake revealed high levels of the white metal.
Until recently it has been unexploited, simply due to lack of demand. But that is changing rapidly.
Follow up sub sampling, as well as mapping, is intended to better understand the geological model and focus on traverses along a major drainage area where higher lithium values occurred.
Further analysis will assist with drill hole targeting and access routes for potential drill sites17.
One Of The Best Mining Jurisdictions On The Planet
The best part of the story is that ACME can move forward with exploration and drilling plans, without seasonal shifts or bureaucracy slowing their progress.
You see, Nevada is not the only source of lithium in the States… it’s just the most promising region.
The Nevada government has always been mining friendly, going back to the gold rush era, when mines began popping up like wildfire during the mid-1800s.
It was the Nevada’s abundant mineral wealth which established it as a state in the first place. And it remains key to the State’s economy in the modern age. Governments have pledged to the promotion of mineral exploration and development, and see lithium as another key player in its future.
Furthermore, the state benefits from excellent road, rail and air infrastructure, which makes it easily accessible. And the warm climate means mining can continue all year round.
Founded in 2019, ACME has undergone two tranches of financing with the second closing on an oversubscribed $3.6 million with no debt.
As they look to the future, the company is well capitalized to prove out the resources on its two Nevada projects, as well as potentially acquire accretive projects in the lithium and EV space.
That means the immediate future holds significant growth potential, based on a few factors.
- Drilling results: Based on the significant lithium resources that neighbor Albemarle is pulling out of the ground, ACME is excited to prove up its initial findings once drilling commences. And the resulting news coverage could continue to garner attention from investors.
- New economic assessment: Based on positive results, an economic assessment could be a key milestone in the year ahead which could trigger positive interest.
- Special partnerships: The company is actively seeking joint venture partners on its projects which, could attract significant interest.
Because ACME is still in early stages, it is has a relatively small market cap. That means investors could have the potential for considerable upside.
For a relatively modest investment, there are real opportunities to be had.
The Right Address, The Right Market, The Right People
- They sit on a massive opportunity next to a proven source of lithium.
- With geological targets ready to drill.
- And the capital to meet there near term objectives.
Furthermore, their management team has extensive experience in financial markets and mining. They bring an outstanding track record in explorations and production of lithium sources around the world.
Stephen Hanson, Director, president and CEO, has headed up companies in numerous sectors including oil, gas, mining and alternative energies. He’s been successful in a number of M&A strategies including several exits for major firms.
Zara Kanji, CFO and corporate secretary, has worked in financial reporting for junior listed companies, and is a member of the Chartered Professional Accountants of BC and Canada.
Vivian Katsuris, Director, specializes in corporate development, management, consulting and corporate services. She brings almost three decades of financial experience in the brokerage industry.
Yanis Tsitos is a geophysicist with almost 30 years’ experience in the mining industry. He has 19 years with BHP Billiton, group one of the biggest mining companies in the world. He is also currently president of Goldsource Mines a TSXV listed company, and sits on several boards as an independent director.
William Feyerabend is a Certified Professional Geologist and a member of the American Institute of Professional Geologists. He has direct working experience in the exploration and development of lithium projects, including technical reports in Nevada.
What to Do Now…
Everything about the way we live, work and power the economy is evolving, and it’s all happening right now. The companies which benefit from this historic shift have the potential to enjoy dramatic growth over a short space of time.
And lithium is one of the sectors that should be on every investor’s radar.
To get started on your due diligence, head to the ACME Lithium website, which has all the information you need including:
However, remember, the clock is ticking.
Should ACME’s projects start producing lithium, the stock is an incredible opportunity, so it’s worth taking action at its current share price.
1 Top Producers of Lithium: • Global lithium mine production top countries 2020 | Statista
2 Demand for Lithium is Pressuring the US to Remain Competitive: Demand for Lithium Production Is Pressuring the US to Stay Competitive (guidehouseinsights.com)
3 Global Electric Vehicle Market: The global electric vehicle market size is projected to (globenewswire.com)
4 Emissions: China and Electric Vehicles: Emissions in China: 100% EVs by 2030 – Ultra Resources Inc. ULT
5 Government Takes Historic Step Towards Net Zero: Government takes historic step towards net-zero with end of sale of new petrol and diesel cars by 2030 – GOV.UK (www.gov.uk)
6 EU proposes effective bank for new fossil fuel cars: EU proposes effective ban for new fossil-fuel cars from 2035 | Reuters
11 Powering Smart Cities with Lithium Ion Batteries: Powering Up Smart Cities with Lithium-ion Batteries (reuters.com)
12 Lithium price: Lithium | 2017-2021 Data | 2022-2023 Forecast | Price | Quote | Chart | Historical (tradingeconomics.com)
13 Lithium Prices Q2: Lithium Market Update: Q2 2021 in Review | Price, Supply, Demand | INN (investingnews.com)
14 Global Lithium Demand to More than Double by 2024: Global lithium demand to more than double by 2024 on EV growth: GlobalData | S&P Global Platts (spglobal.com)
15 ACME Lithium Completes Phase 1 Geological Survey: ACME Lithium Completes Phase 1 Geophysical Survey Targeting Lithium Brine (investingnews.com)
16 ACME commences Field Work at Fish Lake Valley: ACME Lithium Commences Field Work at Fish Lake Valley Nevada (investingnews.com)
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FORWARD LOOKING INFORMATION
This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect expectations regarding ACME Lithium future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to ACME Lithium industry; (b) market opportunity; (c) ACME Lithium business plans and strategies; (d) services that ACME Lithium intends to offer; (e) ACME Lithium milestone projections and targets; (f) ACME Lithium expectations regarding receipt of approval for regulatory applications; (g) ACME Lithium intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) ACME Lithium expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute ACME Lithium business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) ACME Lithium ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) ACME Lithium ability to enter into contractual arrangements; (e) the accuracy of budgeted costs and expenditures; (f) ACME Lithium ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption as a result of COVID-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of ACME Lithium to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) ACME Lithium operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as the COVID-19 pandemic may adversely impact ACME Lithium business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing ACME Lithium business operations (e) ACME Lithium may be unable to implement its growth strategy; and (f) increased competition. Except as required by law, the Website Host undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise.
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This presentation contains information about adjacent properties on which we have no right to explore or mine. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.
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