Lithium Giant Says Global Lithium Demand Will Increase by 40% This Year | News Direct

Lithium Giant Says Global Lithium Demand Will Increase by 40% This Year

News release by MarketJar

facebook icon linkedin icon twitter icon pinterest icon email icon Vancouver, BC | November 22, 2022 06:30 AM Pacific Standard Time

 

The lithium market has been on a serious bull run for the last year, and the world's second-largest lithium producer sees that momentum continuing into 2023.

Sociedad Química y Minera (SQM) predicts that battery material prices will remain high into next year, which could alleviate concerns that China's two-year buying spree will come to an end. After more than quadrupling sales in Q3 2022 amid increasing lithium prices, SQM expects ongoing optimism in the lithium space and sees global lithium demand rising by at least 40% this year.

Rising lithium prices are clearly working in favor of SQM, with the company posting a ten-fold increase in Q3 net profit. SQM reported a $1.1 billion net profit for the three months ending September. Quarterly revenue increased more than fourfold year on year to $2.95 billion, with lithium revenues increasing more than twelvefold.

 According to CEO Ricardo Ramos Rodriguez, the Chinese electric vehicle (EV) market is rapidly expanding, which is driving up demand for lithium, a key ingredient in EV batteries. Since 2020, the price of lithium has increased by more than 1,200%, and it has more than tripled in the last year.

Tight supplies for EV manufacturers, one of China's few bright spots in the country's struggling economy, have caused the extraordinary rise, but there may now be cracks in near-term consumption.

Even though the EV market and its supply chain are on track for long-term growth, China's rate of growth is slowing. Subsidies for electric vehicles (EVs) that have helped them grow quickly over the last ten years are set to end next month, even though there has been talk that they might be extended.

At the same time, lithium demand is higher than ever. And although global lithium production is expected to increase by 21% in 2021, global lithium consumption is expected to increase by 33%. This gap will only widen as the West moves away from China's lithium supplies, which is prompting calls for at least $42 billion in lithium investment over the next six years to meet 2030's forecasted demand of 2.4 million tonnes per year. 

Among the regions with the potential to fill the gap is Canada (particularly Québec and Ontario). The nation is already positioning itself to be a major player in the global lithium stage, with large hard rock spodumene deposits and brine-based lithium resources in place.

Interest in the region is good news for mining companies with projects in Canada, like FE Battery Metals (CSE:FE) (OTCQB:FEMFD), a junior lithium exploration company that has prime land with great infrastructure in a mining-friendly jurisdiction of Quebec.

Since early 2021, FE Battery Metals has acquired a significant number of mining claims surrounding Val d'Or, Québec. This land includes several old discoveries as well as new lithium prospects found during current exploration. The Company’s flagship property, the Augustus lithium property covers a large area of spodumene Lithium bearing pegmatites in one of the world’s best mining jurisdictions, Quebec. The property is comprised of a non-contiguous claim block consisting of over 700 mining claims covering a total area of over 27,000 hectares. The Augustus Lithium Property sits right next door to the North American Lithium Mine, a mine that is slated for production in Q1 2023.

Since acquiring the property, FE Battery Metals has continued to produce promising results from Phase 1 and Phase 2 drill programs at its Augustus lithium project and plans to continue its exploration efforts in the future.

First Energy Metals Drills 1.49% Lithium Oxide Across 4.5 Meters at Augustus Lithium Property

FE Battery Metals just announced the results of drill hole LC22-40 from the Phase 2 exploratory drilling program at its Augustus Lithium property in Quebec. Drill hole LC21-40 encountered a lithium pegmatite at a depth of 189.6 meters (m). The main 4.5-meter-wide pegmatite zone contained 1.49% lithium oxide on average (Li2O).

Two weeks earlier, FE Battery Metals announced the results of drill hole LC22-39 at Augustus. At a depth of 188.7m, drill hole LC21-39 hit three lithium pegmatites. The main pegmatite zone was 7.3m wide and had an average lithium oxide content of 1.54%. (Li2O).

The drill program is based on data from the past and Phase 1 exploration, as well as results from FE Battery Metals’ surface trenching and sampling. The drill is run by Forage Hebert Inc. Drilling, which is based in Amos, Quebec. For this job, a B-20 drill rig is being used, which can dig holes up to 1,000m deep. They are building a core shack in the village of St-Dominique du Rosaire, which is about 50 kilometers from the Property. It will be used to log drill cores, prepare samples, and store them. So far, more than 7,500m of core drilling has been done in 42 holes on the Property. At the core shack, the drill core is logged and samples are taken with a rock saw. For quality control and quality assurance (QA/QC), field duplicates, standards, and blanks are added at set times.

Learn more about FE Battery Metals (CSE:FE) (OTCQB:FEMFD) by clicking on this link or by visiting their website.

 

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding FE Battery Metals Corp.’s 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 FE Battery Metals Corp.’s industry; (b) market opportunity; (c) FE Battery Metals Corp.’s business plans and strategies; (d) services that FE Battery Metals Corp. intends to offer; (e) FE Battery Metals Corp.’s milestone projections and targets; (f) FE Battery Metals Corp.’s expectations regarding receipt of approval for regulatory applications; (g) FE Battery Metals Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) FE Battery Metals Corp.’s 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 FE Battery Metals Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) FE Battery Metals Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) FE Battery Metals Corp.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) FE Battery Metals Corp.’s 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 to as a result of CV-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 FE Battery Metals Corp. 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) FE Battery Metals Corp.’s 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 CV-19 may adversely impact FE Battery Metals Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing FE Battery Metals Corp.’s business operations (e) FE Battery Metals Corp. may be unable to implement its growth strategy; and (f) increased competition.

 

Except as required by law, FE Battery Metals Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does FE Battery Metals Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither FE Battery Metals Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

 

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