–News Direct–
In the fast-paced world of electric vehicles (EVs), the global race for lithium supply is intensifying and recent developments are reshaping the landscape. The suspension of operations by the world's largest lithium producer SQM due to protests is a stark reminder of the industry's volatility.1 This event, among others, underscores the fragile balance between supply and demand in the lithium market.
Chile's SQM has suspended operations at the Atacama salt flat due to protests by the indigenous Toconao community.2 Approximately 500 protesters disrupted roads in the southern region of the salt flat, the world's largest lithium deposit, impeding workers and equipment movement. Local groups are demanding inclusion in discussions between SQM and the government.
Meanwhile Chile, a key player in the lithium sector, is undergoing significant changes under President Gabriel Boric's vision to nationalize the industry. His plan to boost the economy and protect biodiversity involves forming a new state lithium company to manage public-private partnerships. This move towards state control, as Chile negotiates with companies like SQM and Albemarle, signals a potential shift in how lithium resources are managed and distributed globally.
Chile's initiative to increase state influence over its lithium sector have triggered investors' concerns, as reflected in an 18% decline in SQM's shares.3
At the same time, strategic acquisitions are shaping the future of lithium supply. EV giant BYD is eyeing a takeover of a major lithium producer to expand its battery business and strengthen its supply chain control.4
As the global race for lithium supply continues to intensify, all eyes are on exploration companies like Grounded Lithium Corp. (TSXV:GRD) (OTCQB:GRDAF), a lithium brine exploration and development company that controls 1 million metric tonnes of Measured & Indicated lithium carbonate equivalent (LCE) mineral resource and approximately 3.2 million Mt of Inferred LCE resource in Southwest Saskatchewan.
Strategic Partnership Catalyzes Premier Lithium Project Development"
On January 16, Grounded Lithium (GLC) entered into a pivotal agreement with Denison Mines, marking a significant milestone in its journey towards developing its Kindersley Lithium Project (KLP) into a premier lithium project in a top mining jurisdiction.
Under the terms of the agreement, Denison has the option to acquire a 75% working interest in the Kindersley project by providing financing of up to $15.15 million, including cash payments totaling $3.15 million to Grounded Lithium Corp. (GLC) (TSXV:GRD) (OTCQB:GRDAF) and project expenditures of up to $12 million through a structured earn-in option.
This partnership not only provides immediate funding for GLC but also adds to the overall worth of the company by associating with a reputable and experienced partner in the mining sector. The influx of capital and the strategic alliance with Denison significantly bolster GLC's market standing and enterprise value.
The agreement between Grounded Lithium and Denison Mines significantly boosts the Kindersley Lithium Project (KLP), setting it up for a well-funded pilot phase. Denison's structured earn-in option not only eases financial pressures on GLC but also empowers it to focus on efficient project execution and operational excellence. Furthermore, the deal enables both parties to recommend additional drilling activities, ensuring the maintenance of lithium rights associated with KLP permits.
With Denison committing to fund substantial project expenditures, GLC can accelerate its exploration activities, moving swiftly towards production. This is crucial for leveraging the growing global demand for lithium, especially in the electric vehicle and renewable energy sectors, positioning the KLP as a vital contributor in these markets.
Click on this link or read their corporate presentation to learn more about Grounded Lithium (TSXV:GRD) (OTCQB:GRDAF).
Footnotes:
[1] https://oilprice.com/Energy/Energy-General/Largest-Lithium-Deposit-in-the-World-Suspends-Output.html
[2] https://oilprice.com/Energy/Energy-General/Largest-Lithium-Deposit-in-the-World-Suspends-Output.html
[3] https://www.afr.com/policy/energy-and-climate/chile-s-plans-to-nationalise-lithium-industry-spooks-investors-20230423-p5d2lu
[4] https://electrek.co/2024/01/15/byd-eyes-lithium-giant-takeover-expands-ev-battery-business/
Disclosure:
1) The author of the Article, or members of the authors immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.
2) The Article was issued on behalf of and sponsored by, Grounded Lithium Corp. Market Jar Media Inc. has or expects to receive from Grounded Lithium Corp.s Digital Marketing Agency of Record (Native Ads Inc) one thousand one hundred USD for this article.
3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.
4) The Article does not constitute investment advice. All investments carry risk and each reader is encouraged to consult with his or her individual financial professional. Any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.'s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on pressreach.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on pressreach.com.
5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.
6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, forward-looking statements), which reflect management's expectations regarding Grounded Lithium Corp.s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as predicts, projects, targets, plans, expects, does not expect, budget, scheduled, estimates, forecasts, anticipate or does not anticipate, believe, intend and similar expressions or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Grounded Lithium Corp.s industry; (b) market opportunity; (c) Grounded Lithium Corp.s business plans and strategies; (d) services that Grounded Lithium Corp. intends to offer; (e) Grounded Lithium Corp.s milestone projections and targets; (f) Grounded Lithium Corp.s expectations regarding receipt of approval for regulatory applications; (g) Grounded Lithium Corp.s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Grounded Lithium Corp.s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of managements experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Grounded Lithium Corp.s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Grounded Lithium Corp.s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Grounded Lithium Corp.s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) Grounded Lithium Corp.s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Grounded Lithium Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Grounded Lithium Corp.s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Grounded Lithium Corp.s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Grounded Lithium Corp.s business operations (e) Grounded Lithium Corp. may be unable to implement its growth strategy; and (f) increased competition.Except as required by law, Grounded Lithium Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Grounded Lithium Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Grounded Lithium Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Grounded Lithium Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Grounded Lithium Corp. or such entities and are not necessarily indicative of future performance of Grounded Lithium Corp. or such entities.
8) Investing is risky. The information provided in this article should not be considered as a substitute for professional financial consultation. Users should be aware that investing in any form carries inherent risks, and as such, there is a possibility of losing some or all of their investment. The value of investments can fluctuate significantly within a short period, and investors must understand that past performance is not indicative of future results. Additionally, users should exercise caution as transactions involving investments may be irreversible, even in cases of fraud or accidental actions. It is crucial to acknowledge that rapidly evolving laws and technical issues can have adverse effects on the usability, transferability, exchangeability, and value of investments. Furthermore, users must be cognizant of potential security risks associated with their investment activities. Individuals are strongly encouraged to conduct thorough research, seek professional advice, and carefully evaluate their risk tolerance before engaging in any investment endeavors. Market Jar Media Inc. is neither an investment adviser nor a broker-dealer. The information presented on the website is provided for informative purposes only and is not to be treated as a recommendation to make any specific investment. No such information on PressReach.com constitutes advice or a recommendation.
Contact Details
James Young
+1 800-340-9767
Company Website
View source version on newsdirect.com: https://newsdirect.com/news/protests-policy-shifts-and-power-plays-reshape-the-global-lithium-market-858234550
MarketJar
COMTEX_446675564/2655/2024-01-22T08:29:33
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Current Hue journalist was involved in the writing and production of this article.