The price of lithium quadrupled by 2021; Biden’s $3 billion investment in the industry
The price of lithium has quadrupled since 2021.
The Biden administration is investing $3 billion in the commodity, which is critical to electric car batteries.
According to Gianni Kovacevi, director and founder of LithiumBank Resources (TSX.V: LBNK), there is a lot of opportunity in lithium production.
Kovacevic spoke to David Lin, anchor and producer of Kitco News.
“People may have seen that headline where Elon Musk… said, ‘Hey guys, if you’re in business, if you want to make a lot of money, get into the lithium game.
Currently, lithium mining and refining is a slow and costly process.
“Traditionally, [lithium] Most of that comes from large evaporation ponds… I’m talking about Chile and Argentina,” explains Kovacevi.
“Another Form of Lithium” [extraction] Hard rock mining. We are talking about Australia and different parts of North America.”
To make lithium production faster, cleaner and less expensive, LithiumBank plans to use Direct Lithium Extraction (DLE).
DLE is a new technology. Kovacevic is optimistic that DLE can produce higher grade lithium.
“The future is going to be in direct lithium extraction where you can take this sparkling water … sparkling water may be eighty or a hundred parts per million … but there’s a chemical process. And then grade a thousand or two thousand It’s like parts per million bumped up – just like you’d find in South America.”
DLE requires a specific type of lithium brine found in western Canada, which Kovacevic calls “the Saudi Arabian type”. [lithium] deposit.”
He continues: “What’s the difference for LithiumBank? After LithiumBank puts all these studies to market, we’re still going to have $5 million in cash, which means we don’t need to raise money ”
“And most importantly: it only has 37 million shares outstanding. There are three companies in our peer group that have a market cap of over a billion Canadian dollars. So, if you take our 37 million shares outstanding … they’re less here.” are trading in the dollar range, and I think this is an opportunity.”

According to Kovacevic, the higher price of lithium will drop as more companies enter the lithium production market.
“We don’t need these advanced [price] Level. This is something that is driven by excessive demand and not enough production… and when more of these products are going to be able to deliver to the market [then prices will correct],
Tesla CEO Elon Musk recently indicated that he might invest in lithium production. Kovacevic says automakers and other automakers in particular will love DLE.
,[The automakers’] The next step is to get down to business,” says Kovacevi. “Not in the lithium mining business… not in the lithium evaporation business. In DLE.”
On Biden’s proposal for 50 percent of American vehicles to be electric by 2030, Kovacevic said, “He’s going to have to do something like the Manhattan Project … Canada has $3 billion allocated, $2 billion. It’s nothing .It’s a rounding error… you’re going to see something huge.”
As political appetite increasingly favors economic independence, Kovacevic sees room for lithium, which is mostly produced outside of North America.
“We were already during the Trump administration – it was time to have more freedom. It continues even when the Democratic Party is now in charge … so that’s why it has to be a North America comprehensive solution.”
To hear Kovacevic’s lithium price prediction, and whether LithiumBank intends to be acquired by an auto maker, watch the video above.
Follow David Lin on Twitter: @davidlin_TV

Follow Kitco News on Twitter: @KitcoNewsNOW

Disclaimer: The views expressed in this article are those of the author and may not reflect those views Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article is not liable for damages and/or damages caused by the use of this publication.

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