How Lithium is Driving the Global Push to End Gas-powered Vehicles

NEW YORK, October 25, 2017 /PRNewswire/ --

In business for over 100 years, the automotive industry is about to embark on a radical, convulsive transformation. The Washington Post (http://nnw.fm/0P4Do) recently pegged 2017 as the year electric vehicles (EVs) went from a promising fad to an industry-wide inevitability due to broader economic and cultural developments. With the forecast demise of the internal combustion engine, the demand for lithium, a crucial component of Li-ion batteries, is certain to surge as EVs proliferate. Lithium demand has already been projected to grow over 300% in the coming years, but that figure could prove to be a woeful underestimation given the massive transportation transformation that's now on the horizon. The global race for much-needed lithium is on, and it's being led by several established producers and prospective miners like Standard Lithium Ltd. (TSX-V: SLL) (OTC: STLHF) (FRA: S5L) (STLHF Profile), Albemarle Corporation (NYSE: ALB), FMC Lithium (NYSE: FMC) and Sociedad Quimica y Minera (NYSE: SQM), all of which are being driven further by current EV makers like Tesla, Inc. (NASDAQ: TSLA).

One development tilting the scale toward EVs is the fact that at least seven countries plan to ban the use of internal combustion engines. With an air pollution problem that has hit critical levels, the Chinese government is seeking to cap carbon emissions by phasing out vehicles using gasoline and diesel. Led by China's 2030 fiat, the impending changes will prove momentous. India is on a similar trajectory. With a population nearly as large as China's and an auto industry that ranks sixth-largest in the world, authorities in India are hoping that only fully electric vehicles will be sold after 2030. Norway wants to advance that target within its own borders by 2025. Germany, with the fourth-largest auto manufacturing industry in the world, plans a total ban on all internal combustion engines by 2030, while the UK has set its deadline for 2040. The Netherlands is mulling similar plans, and France wants all petrol and diesel cars off its roads by 2040. In addition to air pollution, oil spills are also a great global concern, posing ravishing and long-lasting economic and environmental consequences (http://nnw.fm/kwHt0).

Naturally, more electric vehicles on the road means more lithium-powered batteries, and, consequently, demand for the metal is climbing. Standard Lithium Ltd. (TSX.V: SLL) (OTCQX: STLHF) (FRA: S5L) is gearing up to play its part in boosting supplies. The Canada-based junior exploration company is intent on acquiring more domestic lithium-rich properties, looking to unlock value from overlooked U.S. lithium assets by applying new technologies and processes. Its first project in San Bernardino County, California, at the Bristol Dry Lake has already started to show signs of promise. Test results from a new geophysical survey of the 25,000-acre Bristol Lake site indicate that high concentrations of lithium-bearing brines are present throughout the company's mineral lease agreement claims.

In a recent interview (http://nnw.fm/K0Srt), CEO Robert Mintak explained why the company is excited about Bristol Lake:

"The project had, he said, ticked off all the boxes. "It had low geological risk for us because we knew we had access to brine that we could immediately begin analyzing for lithium values. It had infrastructure in place because it is a producing mine. It has a paved highway right up to the front door; power and water and, as I mentioned, most importantly, we are working with a permitted mining partner. So a lot of the initial challenges that companies face in getting permits and access to sites to begin work are out of the way."

The permitted mining partner at Bristol Lake is National Chloride Corporation of America (NCCA), a well-established and permitted brine producer. NCCA's presence at the site means that the entire necessary infrastructure is in place to give Standard Lithium immediate access to conduct exploration brine sampling, lithium extraction, evaporation and processing activities, all within a fast-track project development schedule. Importantly, it also means that Standard Lithium reduces much of the exploration risks to which junior mining companies are typically exposed.

To improve the quality assurance standards necessary to produce battery-grade lithium compounds, Standard Lithium has appointed a Scientific Advisory Council (SAC) comprised of lithium extraction scientists and process engineers who will oversee and direct all required lithium extraction testing. In addition to the Bristol Lake Brine Project, Standard Lithium in August signed a Memorandum of Understanding with an unnamed NYSE-listed company on an option for Standard Lithium to acquire lithium exploration and productions rights on 30,000 net brine acres overlying the Smackover formation in a region with a history of commercial-scale brine processing. Management said it believes that lithium-bearing brines are likely present in this area. Smackover brines are metal-rich brine anomalies in reservoir rocks along the Gulf Coast from east Texas to Florida that are known to be a prime lithium resource. This asset may be one of the most promising to develop, given that a large-scale brine extraction, processing and re-injection industry is already well established.

Albemarle Corp. (NYSE: ALB) is also poised to benefit from the global governmental promotion of EVs, touting itself as the industry leader in lithium and lithium derivatives." In 2015, it acquired Rockwood Lithium and started a new production plant for lithium sulfide in Langelsheim, Germany, triggering a steady rise in share price. Over the past year alone, shares of Albemarle have risen about 69%. South American miner Sociedad Quimica y Minera de Chile (NYSE: SQM) has also experienced a rise in share price, gaining more than 100 percent over the last year. According to S&P Global Market Intelligence, 'SQM's "lithium and lithium derivatives" business earns gross profit margins of better than 38%.' FMC Corp. (NYSE: FMC), the parent company of FMC Lithium, is enjoying a similar run, with shares increasing nearly 100 percent over the past year. Meanwhile, Tesla (NASDAQ: TSLA), which in June 2014 created its Tesla Gigafactory in an effort to supply enough batteries to support its mission of producing 500,000 EVs per year by 2018, is also on the rise. A year ago, it was trading at $199.10; now, it is up 75% at $349.48.

Tesla's Model 3 is the company's first mass-market EV, and, with a relatively affordable starting point of $35,000, it has garnered considerable consumer interest and market buzz. The popularity and accessibility of the Model 3 is another factor against internal combustion engines.

Other major automakers including Audi, BMW, Ford, Mercedes, Volkswagen and Volvo are also on the EV bandwagon with plans to enter the EV market. General Motors has set a goal of producing 20 new EVs by 2023, demonstrating industry acknowledgement that the tide is turning toward an all-electric future. With the odds stacked against combustion engines, there's little doubt that fossil fuel-powered vehicles will be phased out and replaced by EVs. This powerful macro trend makes lithium assets ever more valuable and lithium companies an interesting investment opportunity.

For more information on Standard Lithium please visit: Standard Lithium Ltd. (TSX.V: SLL) (OTCQX: STLHF) (FRA: S5L)

About NetworkNewsWire
NetworkNewsWire (NNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) NetworkNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. NNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today's market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer

DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with NNW or any company mentioned herein. The commentary, views and opinions expressed in this release by NNW are solely those of NNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW and FNM for any investment decisions by their readers or subscribers. NNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment.

NNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW and FNM undertake no obligation to update such statements.

NetworkNewsWire (NNW) is affiliated with the Investor Based Brand Network (IBBN).

About IBBN
Over the past 10+ years we have consistently introduced new network brands, each specifically designed to fulfil the unique needs of our growing client base and services. Today, we continue to expand our branded network of highly influential properties, leveraging the knowledge and energy of specialized teams of experts to serve our increasingly diversified list of clients.
Please feel free to visit the Investor Based Brand Network (IBBN) http://www.InvestorBasedBrandNetwork.com.

Corporate Communications Contact:
NetworkNewsWire (NNW)
http://www.NetworkNewsWire.com  
+1-212-418-1217 Office
Editor@NetworkNewsWire.com    

Media Contact:
FN Media Group, LLC
NNW@FinancialNewsMedia.com  
+1-(954)345-0611

SOURCE NetworkNewsWire