FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., Feb. 22, 2021 /PRNewswire/ -- Owing to the improved battery technology, policy incentives, and the growing consumer interest to reduce vehicle carbon footprint, the share of Electric Vehicles (EVs) in the passenger car industry has increased over the past few years. The key determinant for increasing the driving range per recharge and reducing the cost of EVs is the development of electric vehicle batteries. To store more energy and to make them lighter and smaller, new cell chemistries are being developed for these batteries which would enable EVs to compete with the conventional vehicles. Currently, the primary source of power for EVs is lithium-ion batteries. According to a study published by the U.S. International Trade Commission in 2018, lithium-ion batteries account for more than 70% of the rechargeable battery market. Additionally, the battery costs per kilowatt-hour (kWh) have declined to less than 200 USD in 2019 from around 1000 USD in 2010. Moreover, owing to the advancement of the battery pack manufacturing techniques and cell chemistry, battery costs are likely to decline below 100 USD/kWh by the end of the forecast period. Hence, a reduction in the prices of battery packs which are responsible for around 35% to 45% of EV manufacturing costs are expected to drive the growth of the market. A report from Fortune Business Insights projected that the global electric vehicle battery market size was USD 71.83 billion in 2019 and is projected to reach USD 82.20 billion by 2027, exhibiting a CAGR of 6.6% during the forecast period. Active stocks in the markets this week include QMC Quantum Minerals Corp., (TSX-V: QMC) (OTCPK: QMCQF), Lithium Americas Corp. (NYSE: LAC) (TSX: LAC), Piedmont Lithium Limited (NASDAQ: PLL), American Lithium Corp. (OTCQB: LIACF) (TSX-V: LI), Livent Corporation (NYSE: LTHM).
The Fortune Business report continued: "Electric vehicles hold a significant emission advantage over the conventional internal combustion engine vehicles attributed to the lack of transit-related emissions and the potential to utilize and develop renewable energy resources… Furthermore, the increasing awareness regarding climate change has compelled policymakers to implement stringent fuel economy regulations and actively promote the development of electric vehicles via initiatives such as incentivizing cell manufacturing for batteries. Hence, vehicular emission concerns are anticipated to propel the adoption of EVs which would boost the growth of the market of electric vehicle battery."
QMC Quantum Minerals Corp. (TSX-V: QMC) (OTCPK: QMCQF) BREAKING NEWS: QMC 7.5 MILLION SHARE FINANCING FULLY SUBSCRIBED - QMC Quantum Minerals Corp., ("QMC" or "the Company"), further to its February 12, 2021 news release, the Company has received conditional approval from the TSX Venture Exchange for its a non-brokered private placement for $2.1 million. The private placement will consist of issuing 7.5-million units at $0.28 per unit, where each unit will consist of one common share and one common share purchase warrant exercisable at $0.37 per warrant for a period of 24 months. In the event that the closing price of the Company's shares as quoted on the TSXV exceeds $0.50 per share for ten consecutive trading days, the Company may accelerate the expiry date of the warrants by giving notice to the holders, within five days of such event, thereof, and in such case, the warrants will expire on the 30th day after the date on which such notice is given by the Company.
Balraj Mann states: "We are now seeing the rapid transition to electric vehicles. Just last week, Land Rover Jaguar announced its Jaguar brand vehicles will be all-electric by 2025 joining the list of manufactures who have determined this is the future. QMC has the potential to supply not only lithium, but nickel, copper, gold and various rare-earth metals to the markets. We are in close proximity to the new EV car plants of southern Ontario (Fiat-Chrysler, Ford, GM), Michigan (GM, Rivian) and Ohio (Lordstown,), as well as the battery-manufacturers: Samsung SDI with a plant in Michigan and LG Energy Solution with plants in both Michigan and Ohio. QMC can and will be an important part of the supply chain."
All securities issued pursuant to this private placement will be subject to a four-month hold. The private placement is subject to final acceptance by the TSX Venture Exchange. Finders' fees may be paid by the company in conjunction with the completion of the private placement in accordance with TSX Venture Exchange policies. The Company reserves the right to accept, reject or partially fill any subscriptions received up to the aggregate amount permitted by the TSX-V.
Certain insiders are expected to participate in the private placement. The participation of such directors and officers in the offering will constitute a related party transaction for the purposes of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company will be exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the offering in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101. The Company intends to use the net proceeds from the private placement for working capital, advancing its mineral properties, and general corporate purposes. Read this release for the QMC Quantum Minerals Corp. news at: https://www.financialnewsmedia.com/news-qmc/
Other recent developments in the markets include:
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) recently announced the closing of its previously announced underwritten public offering (the "Offering") of shares of its common stock (the "Common Shares"). The Company issued 18,181,818 Common Shares, including 2,272,727 Common Shares following the exercise in full by the underwriters of their over-allotment option. The shares were issued at a price of US$22.00 per Common Share for gross proceeds to the Company of approximately US$400 million.
Canaccord Genuity acted as lead book-running manager for the Offering, Deutsche Bank Securities, Evercore ISI and Stifel acted as joint book-running managers and National Bank Financial and Cormark Securities acted as co-managers. The net proceeds from the Offering are intended to be used to fund development of the Thacker Pass lithium project and for general corporate and working capital purposes, as further described in the Prospectus Supplement.
Piedmont Lithium Limited (NASDAQ: PLL) recently announced that it has entered into agreements ("Agreements") to establish a strategic partnership with Sayona Mining Limited ("Sayona") through the purchase of equity stakes in Sayona and its 100% owned Quebec subsidiary, Sayona Quebec Inc ("Sayona Quebec"), as well as a binding supply agreement for at least 50% of Sayona Quebec's planned spodumene concentrate production.
Piedmont will acquire an initial 9.9% equity interest in Sayona for approximately US$3.1 million ("Share Placement") and two unsecured convertible notes ("Convertible Notes") for approximately US$3.9 million that upon conversion would result in Piedmont acquiring an additional 10.0% equity interest in Sayona. Piedmont will appoint one director to Sayona's Board of Directors. Piedmont will also purchase a 25.0% stake in Sayona Quebec for approximately US$5.0 million in cash ("Project Investment"). Sayona Quebec owns the DFS-level Authier lithium project, the highly prospective Tansim lithium project, and is pursuing a bid to acquire Quebec-based North American Lithium's ("NAL") assets.
American Lithium Corp. (OTCQB:LIACF) (TSXV:LI) and Plateau Energy Metals Inc. (TSXV:PLU | OCTQB:PLUUF) recently announced that they have entered into a definitive arrangement agreement to consolidate two significant and strategic undeveloped lithium assets in the Americas at a time of rapidly growing lithium demand in the context of increasing focus on electric vehicles, energy storage and renewable energy generation. It is expected that Plateau shareholders will hold approximately 21% of American Lithium's shares on an outstanding undiluted basis upon completion of the Transaction.
Livent Corporation (NYSE: LTHM) recently reported results for the fourth quarter and full year of 2020. Fourth quarter 2020 revenue was $82.2 million, a sequential improvement over the third quarter of 13% driven by higher volumes sold and better realized pricing. Reported GAAP net loss was $5 million, or a loss of 3 cents per diluted share. Fourth quarter 2020 Adjusted EBITDA was $5.6 million and adjusted loss per share was 2 cents per diluted share, with both sequential improvements due to higher sales and lower costs from reduced third-party carbonate usage.
For the full year, Livent reported revenue of $288.2 million and GAAP net loss of $19 million, or a loss of 13 cents per diluted share. Full year Adjusted EBITDA was $22.3 million and adjusted loss per share was 5 cents per diluted share. "We are encouraged by the strong growth in electric vehicle sales in 2020, setting record highs despite significant COVID-19 related disruption to global supply chains and the end-consumer," continued Graves. "We expect the positive lithium market conditions that started to appear in the fourth quarter will continue in 2021. The extent of demand growth for lithium over the coming years is becoming more certain, behind the increasing support for electrification from OEMs, governments and consumers alike. Given Livent's differentiated position and global capabilities, we believe we will continue to be a partner of choice and are well positioned to take advantage of this opportunity for years to come."
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