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LITHIUM OPPORTUNITY

Lithium demand is rapidly increasing in response to movement to green technologies and their reliance on battery materials

CRITICAL MINERAL RUSH

In August 2022, President Biden signed the Inflation Reduction Act (IRA). This removes the cap on credit, which is at 200,000 EVs sold per automaker – welcome news for manufacturers such as Tesla, General Motors and Toyota and more.

New sourcing requirements for critical battery minerals and battery components used in eligible EVs.

  • 50% of the critical minerals used in EV batteries by 2024 must be extracted or processed in a country with which the US has a free trade agreement (FTA) in effect 
  • In 2027, the mineral sourcing requirement jumps to 80%
  • By 2029, all battery components of EVs eligible for the tax credits to be made or assembled in North America 

The requirements in the new bill again showcase the US’s determination to cut the dependence of its battery supply chain on China. Hertz Lithium plans to be at the forefront of America’s critical mineral independence. 

WELL TIMED OPPORTUNITY IN LITHIUM

Lithium demand is rapidly increasing in response to movement to green technologies and their reliance on battery materials

  • Lithium is one of the key components in electric vehicle (EV) batteries, but global supplies are under strain because of rising EV demand
  • According to the International Energy Agency (IEA), the world could face lithium shortages by 2025
  • Global demand for Li-ion batteries is expected to soar over the next decade, with the number of GWh required increasing from about 700 GWh in 2022 to around 4.7 TWh by 2030
  • Lithium is the unrivaled charge carrier for electrification as stated by Volkswagen

LITHIUM DEMAND EXPECTED TO INCREASE BY OVER 900%

30X

Electric Vehicle stock projected to be 30 times greater by 2030

40%

Year-on-year growth in electric vehicle sales for over 10 years

60X

Rapid scaling of EV production committed by top auto makers

U.S. HARD ROCK LITHIUM OPPORTUNITY

Insatiable Lithium Demand Fuels Investment Boom

With all net growth in car sales last year coming from EVs, demand for the raw materials in batteries has ramped up suddenly. China dominates the lithium supply chain, so Western nations have sought to develop their own production. Miners in Australia – home to about half the world’s supply, according to the US Geological Survey – are now being courted by automakers waving checkbooks.

WHY HARD ROCK LITHIUM​

PEGMATITES ADVANTAGES

MORE FLEXIBILITY​

The lithium hosted in spodumene can be processed into either lithium hydroxide or lithium carbonate. Brines initially can only be processed into carbonate, and then can be further processed into hydroxide however at an additional cost

Faster & more consistent processing

Brines can take a lot longer to process due to the evaporation required making for an inconsistent process compared to spodumene

Higher quality

Spodumene typically hosts higher lithium content in comparison to most brines

Geography

Rock minerals are way more homogeneously distributed on earth with deposits on each continent’s

Comparable costs

While each mining operation may have its own defining factors regarding profitability the hard-rock operations utilize low-cost traditional mining techniques

What does this really Mean?

Ultimately, the world will increasingly need more lithium regardless of its origin. However, the trend towards battery producers requiring higher quantities of lithium hydroxide derived from hard rock will result in the declining use of lithium carbonate originating from brines. In real terms, the use of lithium carbonate may increase but in terms of market share for the battery industry it will decrease.

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  • 1625 - 1185 W Georgia St, Vancouver BC, Canada
  • info@hertzlithium.com
  • 1-604-805-4602

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