Keep an eye on lithium stocks, like Lithium Americas (LAC).
All as lithium runs into a severe supply-demand situation again.
All thanks to electric vehicle (EV) sales that are growing much faster than anyone expected.
In fact, “By 2030, the world will see 125 million EVs on the road, which will only drive further demand for lithium supply. In fact, “It is anticipated demand for vehicle battery metal will increase sharply over the next several years as automakers abandon internal combustion engines for EVs,” says Resource World.
Even the International Energy Agency just warned:
“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. At least 30 times as much lithium, nickel and other key minerals may be required by the electric car industry by 2040 to meet global climate targets.”
Lithium Americas Approves Commencement for Expansion
To help meet higher demand, Lithium Americas – in partnership with Ganfeng Lithium have approved the commencement of development planning for a second stage expansion of at least an additional 20,000 tonnes per annum of lithium carbonate equivalent production capacity from Caucharí-Olaroz.
“Caucharí-Olaroz is on track to become the largest new lithium brine operation in over 20 years,” commented George Ireland, Chairman of Lithium Americas, as quoted in a company release. “With construction for Stage 1 expected to be complete within the next year, together with Ganfeng Lithium, we are beginning to plan our next phase of growth in Argentina.”
Lithium Americas Posts First Quarter 2021 Results
According to the company’s press release:
“During the quarter ended March 31, 2021, total assets and cash increased primarily due to the $377.4 million net proceeds raised from the underwritten public offering of common stock, partially offset by expenditures in the period. Total long-term liabilities increased primarily as a result of a $13.4 million drawdown on the Company’s senior credit facility.
Net loss for the quarter ended March 31, 2021 was $9.9 million compared to net loss of $14.0 million for the comparative period. The lower net loss in Q1 2021 is primarily attributable to a foreign exchange gain and timing of Thacker Pass and other expenditures.”
At the time of this writing, Ian Cooper did not hold a position in Lithium Americas.