Lithium Industry
Electric Vehicles (EV) are here. Generating Lithium for the batteries they use is one of the world’s youngest and most important industries. China currently dominates the marketplace.[21] The rest of the world, including the USA, is now responding to secure its Lithium supplies.
The Bonnie Claire Project, located in Nevada, is well positioned to use any preferential treatment by the US Government. Importantly, Canadian companies, such as Nevada Lithium Resources, are the only non-US entities considered to be US domestic sources of Lithium.[23]
Jump in electric vehicle (EV) sales in 2020 despite global pandemic[1]
Projected output growth of global EVs from 2020 to 2024[2]
Value of global EV market by 2025[2]
Growth needed in global lithium production to meet growing demand[3]
Lithium’s first energy revolution started in the 1990s.
That’s when lithium-ion (Li-ion) batteries took center stage in consumer electronics worldwide due to their superior characteristics:
- Safer
- Lighter
- Lower maintenance
- 2x the energy density of nearest alternative
Today, lithium batteries power virtually all portable electronic devices. Together they consume over 50% of global lithium production.
Lithium’s first energy revolution started in the 1990s.
That’s when lithium-ion (Li-ion) batteries took center stage in consumer electronics worldwide.
Today, lithium batteries power virtually all portable electronic devices. Together they consume over 70% of global lithium production.[22]
71%
of global lithium goes to battery production
14%
goes to ceramics and glass
15%
goes to greases, powders and other uses[22]
But the second lithium revolution is already creating far more demand for lithium around the world.
That’s because batteries for electric vehicles (EVs) are much larger,[15] so they consume far more lithium than all other Li-ion batteries combined.
Global Battery-Related Lithium Demand Disproportionately Driven by EVs
And the EV revolution has just started. Annual global EV output is projected to surge by 274% over 2020’s numbers by 2024, while the EV market will hit a value of $1.5 trillion by 2025.[2]
Taking the lead in the EV revolution are North American automakers.
Tesla
Sold almost 500,000 EVs in 2020, which was more than any other automaker. The all-electric company is now focused on bringing a $25,000 EV to market to help reach their target of annual sales of 20 million EVs.[4]
GM
Announced in early 2021 it plans to sell only zero-emission cars and trucks by 2035 and will invest $27 billion in EV vehicles from 2021 to 2026. To reflect the company’s new EV-focused direction, they even changed their logo.[5]
Ford
Following suit with plans to spend at least $22 billion in EVs from 2016 through 2025, which is nearly double their previous commitment.[5]
That means all the North American automakers will need to lock up stable, domestic lithium supplies to meet their growing demand.
As the demand increases, a domestic source is required.”
– Powermag.com, Nov. 2020[4]
Meanwhile, all the other top automakers have aggressive commitments to growing their EV offerings:
Jaguar Land Rover
Plans to have the first Land Rover EV arrive as soon as 2024 and have an electric version of every model it makes starting in 2030[6]
BMW
Plans to expand beyond its current EV models, which include the BMW i3, to where EVs account for 15% to 25% of sales[7]
Volkswagen
Plans to spend about $40 billion over the next 5 years on EVs with a target of 20% to 25% of total sales from EVs by 2030[7]
Toyota
Plans to sell more than 5.5 million EVs by 2030[7]
Nissan
Plans to expand beyond its ~500,000 EV sales to date to reach the near-term goal of 1 million EV sales by 2022[7]
Honda
Plans to electrify 66% of its global auto sales by 2030[7]
Hyundai
Plans to sell 1 million EVs per year by 2025[7]
Kia
Plans for EV sales to account for 25% of their global vehicle sales by 2029[7]
That’s why Roskill is projecting major near-term growth of global EV production and sales.[16]
Global EV Production & Sales Scenarios, 2019-2029
Source: Roskill
The global lithium-ion battery market size is projected to grow to $94.4 billion by 2025 at a CAGR of 16.4%.[8]
Lithium-Ion Battery Market by Region (USD Billions)
Source: Industry Expert, Secondary Research, and MarketsandMarkets Analysis
While overall global car sales slumped by 20% in 2020, EV sales actually jumped by 43%.[1]
Driving this rapid adoption of EVs are tightening emissions rules and increasing consumer demand that’s resulted in manufacturers developing new models capable of driving longer ranges.[9]
Lithium-Ion Battery Market by Region (USD Billions)
Source: www.ev-volumes.com
World leaders are also driving growing EV adoption, with promises of a “green recovery” from the pandemic.
The major-economy countries plan to end the sale of fossil fuel powered vehicles within very short timelines, including the UK bringing its ban forward from 2040 to 2030:
- By 2030: UK, Germany, Israel, India[2]
- By 2035: The Netherlands, Norway, Sweden[2]
- By 2040: France, Ireland[2]
North American leaders are jumping on board the EV revolution as well:
- US President Biden plans to build 500,000 electric charging points across the country and establish a $7500 tax credit for buying EVs[10]
- Canadian Prime Minister Trudeau announced in Q4 2020 a C$590-million investment in a single Ford plant toward EV manufacturing[11]
With ongoing increases in EV manufacturing and sales, Roskill’s Lithium Outlook to 2030 points to strong growth for lithium demand at 18% per year to 2030.[12]
To meet that demand, energy consultancy Wood Mackenzie says $50 billion needs to be invested in lithium over the next 15 years.[13]
“As global demand for electric vehicles grows, North American automotive manufacturers are seeking to regionalize their supply chain for greater security and sustainability.”
– Mining.com, Jan. 7, 2021[14]
Fortunately, the US represents one of the largest resources of lithium in the world[22] and tremendous potential to provide massive lithium supplies that are domestic and secure.
Lithium Resources by Country (metric tons)
Source: USGS Mineral Commodities Summary, 2021
The domestic industry is actively working on bringing America’s abundant lithium resources to an ever-growing market. Nevada continues to lead that progress, including:
Albemarle
Announcing plans in Q1 2021 to invest $30 to 50 million to double capacity at their Silver Peak mine in Nevada[17], the only lithium producing mine in the US.[18]
Lithium Americas
Their Thacker Pass lithium mine in Nevada hosting one of America’s largest known lithium resources and expected to have a 46-year mine life with production expected to start in late 2022.[19]
Tesla
Securing rights to 10,000 acres in Nevada, home of their Gigafactory lithium battery manufacturing complex, where it says it intends to produce lithium from clay deposits.[20]
Bonnie Claire hosts significant lithium potential from lithium-bearing sediments and is one of the largest lithium deposits in North America. Further, large portions of the project remain to be explored, including lithium brine targets.
The Bonnie Claire sediment-based mineralization is a potential key advantage over other projects in Nevada because it isn’t tied up in the clay that hosts much of the lithium in the state, which can be more difficult and costly to process.[21] Learn more here.
Bonnie Claire Project
18.37 Mt Lithium Carbonate Equivalent*
Tesla Gigafactory
Growing local lithium demand [13]
Silver Peak Mine
Only current US lithium production[18]
Thacker Pass
One of the largest known lithium resources in the US[19]
Sources:
- https://www.theguardian.com/environment/2021/jan/19/global-sales-of-electric-cars-accelerate-fast-in-2020-despite-covid-pandemic
- https://resourceworld.com/battery-minerals-poised-for-increased-demand-with-dozens-of-new-evs-planned/
- https://financialpost.com/pmn/business-pmn/albemarle-sees-four-fold-growth-in-lithium-demand-in-next-five-years-exec
- https://www.powermag.com/tesla-mining-companies-look-for-advancements-in-lithium-technology/
- https://www.cbc.ca/news/business/general-motors-electric-oilpatch-1.5905637
- https://www.caranddriver.com/news/a35519105/jaguar-land-rover-ev-only/
- https://www.barrons.com/articles/news-updates-51613741711
- https://www.marketsandmarkets.com/Market-Reports/lithium-ion-battery-market-49714593.html
- https://www.theguardian.com/business/2020/dec/03/more-than-500000-full-electric-cars-sold-in-europe-in-10-months
- https://www.greencarreports.com/news/1130224_why-biden-presidency-electric-cars-auto-industry-10-talking-points
- https://www.cbc.ca/news/business/ford-oakville-government-1.5754974
- https://www.roskillinteractive.com/reportaction/LIT17/Marketing
- https://www.ft.com/content/b13f316f-ed85-4c5f-b1cf-61b45814b4ee
- https://www.mining.com/albemarle-to-double-lithium-production-in-nevada/
- https://www.globalxetfs.com/lithium-explained/
- https://publications.jrc.ec.europa.eu/repository/handle/JRC123439
- https://roskill.com/news/lithium-producers-developers-target-lioh-growth-in-north-america
- https://www.albemarle.com/locations/north-america/nevada
- https://www.mining.com/lithium-americas-shares-up-on-thacker-pass-approval/
- https://www.ft.com/content/b13f316f-ed85-4c5f-b1cf-61b45814b4ee
- https://www.bnnbloomberg.ca/how-this-lithium-company-is-riding-the-ev-trend-to-new-heights-1.1572812
- https://www.usgs.gov/centers/nmic/mineral-commodity-summaries
- Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth, June 2021, Page 162
*Source: “Preliminary Economic Assessment NI 43-101 Technical Report, Bonnie Claire Lithium Project, Nye County, Nevada” (Effective date of August 20, 2021, and Issue date of September 23, 2021). The Qualified Person for the mineral resource estimate is Terre Lane of Global Resource Engineering Ltd., of Denver, CO, USA. The Mineral Resource estimate, based on borehole mining methods, is 3,407.3 Mt at 1,013 ppm Li (inferred) for 18.372 Mt of Lithium Carbonate Equivalent (LCE). The estimate is based on an assumed lithium price of 13,400 $/tonne Li2C03, a cut-off grade of 700 ppm Li, and Li2C03 to lithium ratio of 5.323. The borehole constraint assumes a 68% mining recovery and 5% dilution. Numbers have been rounded to reflect the accuracy of the estimate and may not sum due to rounding. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves. It is reasonably expected that the majority of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. The technical report is filed, as required by NI 43-101, on the Company’s SEDAR profile at www.sedar.com.”
The disclosure on this page includes statements containing forward-looking information within the meaning of applicable Canadian securities law (“forward-looking statements”). Forward-looking statements are frequently characterized by words such as “develop”, “plan”, “continue”, “expect”, “intend”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “potential”, “propose” and other similar words, or statements that certain events or conditions “may” or “will” occur, and on this page include the statements regarding the Company’s expectations concerning: market demand for lithium and EVs; shifts in the automotive industry from gas to electric vehicles; the positioning of the Bonnie Claire Lithium Project in Nevada and globally. Forward-looking statements are only predictions based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Factors that could materially affect such forward-looking information are described under the heading “Risk Factors” in the Prospectus, including the schedules attached thereto, that is available on the Company’s profile on SEDAR at www.sedar.com. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.