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Is anyone else following the lithium market?

 

Yes loosely, because of an article I read about huge battery demand from China. Then I looked for stocks I could trade. Came up with this one.

 

http://www.westernlithium.com/

 

Aside from plugging them(well you did ask :D ) their website gives a fairly basic guide as to the market needs and what the demand potential entails.

 

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Yes loosely, because of an article I read about huge battery demand from China. Then I looked for stocks I could trade. Came up with this one.

 

http://www.westernlithium.com/

 

Aside from plugging them(well you did ask :D ) their website gives a fairly basic guide as to the market needs and what the demand potential entails.

Thanks Riggerbeautz. Western is on my radar;it's had a very quick run up. There are some others where I have nibbled on a pull back. If it's your cup of tea have a look at 1st Lithium (used to be called Mountain Capital). What I like about this one is that it's now had a nice pull pack; also, and more importantly it is sitting on some interesting ground in Manitoba. This was drilled by Inco in 1986 and a non-43-101 estimate of resources 9m tonnes with a grade between 1.14 and 1.27%. Have a look at their website http://www.firstlithiumresources.com/. The way I read it is that they could be sitting on a resource worth $12.00 per share; all to be had for 20cents. If the drills can prove more at greater depth as indicated by the Inco guy in 1986 it could double this resource.What do you think?

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Initially thought the website did nothing for my eyesight! :blink:

 

Seems they are due an update soon? Like now-ish but when would they be producing. You got me searching juniors again though and might consider another. Take your pick, heres a few Canadian ones.

 

Avalon Rare Metals Inc (T.AVL), Neo Material Technologies Inc (T.NEM), Commerce Resources Corp (V.CCE), Canada Lithium Corp (V.CLQ), Great Western Minerals Group Ltd (V.GWG) , Hudson Resources Inc (V.HUD) Lithium One Inc (V.LI), MATAMEC EXPLORATIONS INC (V.MAT), Quest Uranium Corp (V.QUC), Rare Element Resources Ltd (V.RES), Ucore Uranium Inc (V.UCU)and Western Lithium Canada Corp (V.WLC).

 

Was mean't to throw you off your pick or dismiss it, just not that sure about them to be honest. Do keep posting the theme and company news though.

 

Riggers

 

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Initially thought the website did nothing for my eyesight! :blink:

 

Seems they are due an update soon? Like now-ish but when would they be producing. You got me searching juniors again though and might consider another. Take your pick, heres a few Canadian ones.

 

Avalon Rare Metals Inc (T.AVL), Neo Material Technologies Inc (T.NEM), Commerce Resources Corp (V.CCE), Canada Lithium Corp (V.CLQ), Great Western Minerals Group Ltd (V.GWG) , Hudson Resources Inc (V.HUD) Lithium One Inc (V.LI), MATAMEC EXPLORATIONS INC (V.MAT), Quest Uranium Corp (V.QUC), Rare Element Resources Ltd (V.RES), Ucore Uranium Inc (V.UCU)and Western Lithium Canada Corp (V.WLC).

 

Was mean't to throw you off your pick or dismiss it, just not that sure about them to be honest. Do keep posting the theme and company news though.

 

Riggers

 

Thanks for the list. I stumbled on this website:

http://madisonaveresearch.com/lithiummkt09.htm. I am not sure who is behind the site but they have done a case study on First Lithium. It seems they also have a large lithium brine deposit in Alberta. A brine deposit could probably be exploited much more quickly than the old Inco resource I mentioned.

Sincerely

Hogwild

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I've seen WLC recommended.

 

Thanks Mr P

 

I have found one of the world's largest lithium carbonate producers - Sociedad Quimica y Minera de Chile (SQM ticker on the NYSE). They must be an immediate beneficiary of any increase in demand. Problem is the price already up 3 times from the Oct 2008 low. But, the company reported recently that there has been compounded annual growth of 5-7% over the past 5 years and 2008 demand for lithium carbonate equivalent is estimated to have been in the range of 115000 to 118000 tonnes -2% above 2007 levels.

With the rush to find a new environmentally friendly ways of powering vehicles, and encouragement from various governments it should be an interesting number in 2009. If we have a government induced lithium battery technology boom perhaps the best way to play it is via the resource market?

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Here is another interesting lithium prospect -significanly right on the doorstep one of the world's largest producers:

Lomiko Metals Inc. Accelerates Purchase of Lithium Brine Project in Chile

 

21 September 2009 14:16:03 (GMT+01:00)

 

Provided by: MarketWireMW

 

VANCOUVER, BRITISH COLUMBIA, Sep 21 (MARKET WIRE) -- LOMIKO METALS INC. (TSX VENTURE: LMR)(PINK SHEETS: LMRMF) September 18, 2009. Lomiko Metals Inc. (the "Company") announces it has entered into an accelerated purchase agreement for the exclusive rights to develop 100% of the 1,900 hectares of Chilean mineral claims at the Salar de Aguas Caliente. The Company now owns eight (8) of nine (9) claims that make up the Salar. One claim of 400 Ha is currently owned by Sociedad Quimica y Minera de Chile S.A. (NYSE: SQM), a world leader in Lithium production. Discussions regarding the remaining claim at the salar continue in Chile. A Google Earth image and claim map of the salar is available at www.lomiko.com.

 

The Company has amended the terms of the Letter of Intent announced on June 22, 2009 whereby the amended consideration for such shall be payments in the aggregate amount of CAD $50,000, of which $20,000 has been paid to date, and the issuance of 1 million common shares at a deemed value of $0.065 per share. Also, the requirement for a 43-101 compliant report within three months has been removed pending consultant review and further transactions. The transaction is non-arms length as the parties involved are business associates and directors of the same public companies.

 

 

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Is anyone else following the lithium market?

 

If we are going to have a proper look at Lithium, lets give the general prospects a look. Found this article and slideshow by TRU of interest. Naturally bullish, but strongly reinforces the demand driver of batteries to the market.

 

http://trugroup.com/Lithium-Market-Conference.html

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Not sure about the global demand for lithium picking up based on figures here, but looks likely due to pricing pressure supply may fall if this summary from Roskill earlier in March is to be believed

 

Once again though the emphasis seems to be on batteries and Chineese demand, although other drivers are mentioned.

 

Global GDP and industrial production are expected to enter a recovery phase in 2010/11. Roskill forecasts that demand for lithium will pick up in 2010 and quickly return to a strong growth trend. Current lithium producers are well-placed to supply the world's lithium needs for the period to 2013 and beyond. The major lithium brine producers inSouth America are planning capacity expansions and the potential for increased production and improved product quality from brine-based lithium producers inChina cannot be ruled out. Potential new producers of lithium compounds from minerals can expect strong competition from lower cost brine sources of lithium and it is possible that existing supply from lithium mineral conversion inChina may decline, particularly if prices come under pressure as growth in demand stagnates.

 

Lithium demand to be driven by automotive battery uses

 

The recent large increases in lithium consumption have come both from traditional and high-tech applications. The major industrial markets for lithium - ceramics and glass, greases, aluminium and rubber - are widely used in both construction and in the manufacture of consumer and industrial goods, market segments that have benefited from high levels of industrialisation and urbanisation in developing countries, particularlyChina. Growth in demand for lithium in these end-uses will improve in line with GDP, which is forecast to recover from 2010/2011. With the ongoing drive to reduce energy demand and decrease CO2 emissions in basic industries, consumption of lithium in ceramics, glass and aluminium could benefit from regulatory controls given its use as an energy-saving additive.

 

Although tempered by current low oil prices and declining sales of existing models, legislation to reduce CO2 and particulate emissions will see demand for hybrid and electric vehicles increase in the early-2010s, aided by fiscal stimulus packages. Most of the major automotive manufacturers are now in the late stages of development and/or early production of lithium battery powered hybrid and electric vehicles. Production of large, high-power, lithium batteries used to power the latest generation of hybrid and electric vehicles is forecast to increase markedly from 2010.

 

Demand for lithium in portable batteries for consumer goods such as mobile phones and laptop computers is also expected to show strong growth in demand over coming years, although growth will be considerably less than the >20%py increase seen in the mid-2000s because of lower consumer confidence in the current economic climate. Other areas of growth for lithium are in the synthesis of pharmaceuticals and fine chemicals and, perhaps towards the mid-2010s, from aluminium-lithium alloys for aerospace.

 

Lithium prices to come under pressure

 

In the early 2000s, the average export value for Chilean and Argentinean lithium carbonate remained around US$2,000/t. That changed in 2005, when prices for lithium carbonate began to increase sharply. Average export values for lithium carbonate reported by major producing countries in 2008 were more than double those seen in 2004. Prices for lithium hydroxide and lithium minerals also increased over this period, however average values of lithium chloride actually declined following the start of production inChile.

 

The key characteristic of the lithium market in the mid-2000s has been the resurgence of mineral conversion, a process which had been rendered unprofitable in most instances following the emergence and dominance of brine production of lithium in the late 1990s.

 

Roskill's view is that the increase in lithium carbonate prices is due to the higher cost of mineral conversion.

 

Stagnating demand in 2009 is likely to put downward pressure on lithium carbonate prices and competition between producers could increase. The producers of lithium from brines inSouth America will are likely to increase their market share and any increased supply from brines inChina, if the quality of Chinese lithium carbonate produced from brines improves, could provide additional competition in the market and put further downward pressure on prices. Lower prices are likely to negatively impact the amount of lithium carbonate produced by mineral conversion going forward, given the higher costs involved.

 

 

http://newsblaze.com/story/200903190923040...w/topstory.html

 

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Article from Electronic Manufacture & Test

Lithium Ion batteries to be a $1 billion industry

 

21 October 2009

 

The ability to capture and store energy for later use is an elusive goal that utilities and other companies in the power generation business have long pursued.

 

Energy storage will be especially important in compensating for the intermittent nature of wind and solar energy sources, which is often out of synch with customers' electricity demand.

 

 

 

Of the eleven competing energy storage technologies analysed in a recent report from Pike Research, the cleantech industry analyst firm forecasts that Lithium Ion (Li-ion) batteries will be the fastest growing category for utility-scale applications, growing to a $1.1 billion worldwide business by 2018.

 

 

 

"Utilities will be the downstream beneficiaries of innovation and investment in Lithium Ion batteries for the transportation sector," says Senior Analyst David Link. "While Li-ion was once limited to consumer electronics devices, it is quickly becoming the battery of choice for electric vehicle manufacturers. Improved storage capacity and economics will lead the utility sector to adopt Li-ion, as well – we anticipate that 2011 will be the inflection point for growth in this category."

 

 

 

Pike Research forecasts that revenue from Lithium Ion batteries will represent 26% of the $4.1 billion global stationary energy storage business by 2018. Important storage technologies also include other advanced batteries such as Sodium Sulfur (NAS), as well as kinetic storage techniques like Pumped Hydro and Compressed Air Energy Storage (CAES).

 

 

 

Pike Research's study, Energy Storage Technology Markets, analyses the opportunity for several key technology categories including advanced batteries, pumped hydro, compressed air, flow batteries, and frequency regulation for utility-scale applications. The report assesses energy storage market drivers, challenges, and regulatory/legislative issues, and also provides detailed market forecasts and profiles of key industry players.

 

 

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My WLC play has doubled(just off recent highs), up 60 % since mentioned here; will see how they go early next week, but now looking for another sector play.

 

Just been looking at First Lithium again, might be interested now they seem to be back down from the euphoria spike are you still following Hogwild?

 

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Interesting! Anyone know TNR and this Int Lithium deal? Lots results on Google...not to mention they seem to be JV partners with Latin America (Lithium America starters...)

http://www.vancouversun.com/life/Trading+f...7726/story.html

Magna International climbed 58 cents, or one per cent, to $60.60 after it reportedly made a $10.5 million equity investment in Lithium Americas that gives the auto-parts maker guaranteed access to lithium in exchange for an interest-free loan. Vancouver-based TNR Gold jumped a nickel, or 16 per cent, to 36.5 cents, its highest level since April 2008. The company plans this quarter to spin out its lithium exploration properties in Argentina, Ireland, Nevada, northern Ontario and the Northwest Territories into a new public company called International Lithium.

 

I covered TNR Gold / Int Lithium on Green Energy since $0.05 its' now trading at $0.35. Good luck all longs!

Several other lithium deals on TSX has gone to $1.5+ already, look at WEstern Lithium. I'd keep an eye out on TNR, shareholders get a dividend share in new IPO company soon

 

RM and WLC's ok too, TNR has better projects in Nevada that surround RM's!

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look at WEstern Lithium.

 

Been trying to resist gloating, but as you mention it YEEEEE HAAAAAAA :lol:

 

EDIT: Looking on for a finish around c$2.20ish - going to take half away as profits, since near trebled for me. Volume down a bit, don't know whether thats Friday effect but playing it safe.

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My WLC play has doubled(just off recent highs), up 60 % since mentioned here; will see how they go early next week, but now looking for another sector play.

 

Just been looking at First Lithium again, might be interested now they seem to be back down from the euphoria spike are you still following Hogwild?

 

 

Hi Riggerbeautz

 

Sorry about the tardy response. Corn, sugar have had too much of my attention.

 

Yes, I have my First Lithium holding still; been volatile - almost as trying as corn! There should be some news shortly - the old Inco drilling results must be worth something!

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First Lithium's and various Alberta oil field brines have no merit. I would be shorting if I had more cash when it hit $0.30

 

Real deals are Argentina/Chile brines. I'd pick up TNR Gold shares before IPO of International Lithium - 8 or 9 projects worldwide, it's going to be the next Western Lithium (same spin off like Western Uranium where TNR shareholders get shares of ILC)

 

They were also in the recent technical conference - not some promo play like American Lithium

http://www.metalbulletin.com/Events/1045/A...Conference.html

 

3 lithium brines around NEvada's only producer, Chemetall Foot

http://www.tnrgoldcorp.com/i/pdf/factsheet.pdf

 

1 large lithium brine they are sampling and establishing resource on in Argentina. This will be very interesting.

 

If you didn't know, Toyota and Magna both have separate deals in ARgentina recently, $5 million and $10 million initial investments, respectively.

 

http://www.financialpost.com/m/story.html?id=2465243

Automakers race to secure lithium supply

 

Scott Deveau, Financial Post

Wednesday, Jan. 20, 2010

 

 

Automakers are spurred by the high cost of lithium-ion batteries used in electric and hybrid vehicles. - Reuters

 

The race to control the lithium supply chain is in high gear as auto manufacturers ramp up the use of the mineral in their electric and hybrid vehicles.

 

Toyota Tsusho Corp., the sister company of Toyota Motor Corp., announced Wednesday it was forging a new joint venture to develop a lithium deposit in Argentina in partnership with Australia's Orocobre Ltd. Under the terms of the deal announced Wednesday, Toyota Tsusho will take a 25% stake in the project with the aim of making Toyota Motor its primary customer, spurred by the high cost of lithium-ion batteries used in its electric and hybrid vehicles.

 

It's not that lithium deposits are scarce. In fact, the mineral is as common as lead or nickel worldwide.

 

But there are few commercially viable sources and even fewer players in the emerging market. Chile's SQM; Chemetall, a division of Rockwood Holdings Inc., and FMC Corp. are the biggest producers of the mineral, which is principally mined in Chile, Argentina, Australia, and China at this point.

 

Partnerships, like the one struck by Toyota Wednesday, are aimed at controlling the supply chain, introducing more players and increasing competition with the goal of lowering the price of lithium for those who expect sizeable demand in the future, said James Calaway, Orocobre chairman.

 

"The technology is moving so rapidly in the area of lithium-ion batteries," he said in an interview. "The automobile industry is really taking this a lot more seriously than most people might think."

 

He noted that while overall demand for lithium is increasing at an annual rate of 7%, demand for the mineral is increasing 35% annually for use in batteries. This is driven by automakers moving towards electrifying their vehicles to meet the increasingly rigid emissions standards set by governments around the globe.

 

Toyota, for example, plans to launch eight new hybrid models in the coming years with the goal of this style of engine its primary powertrain in just a few years. It also plans to launch an all-electric and a plug-in hybrid vehicle by 2012 - all of which will use lithium-ion batteries.

 

Toyota is not alone. Major manufacturers around the globe are adapting the technology, including to General Motors Corp., which will launch its own electric vehicle, the Volt, later this year.

 

The Toyota deal follows another $10.5-million equity investment in December by Magna International Inc. and Mitsubishi Corp. in Toronto-based Lithium Americas Corp. to help develop another lithium deposit in Argentina.

 

Magna, Mitsubishi, and Toyota have all secured rights to purchase a percentage of the lithium produced at the sites under the terms of their deals.

 

Magna showcased its own lithium-ion battery in an all-electric Ford Focus earlier this month at the North American International Auto Show in Detroit.

 

Ted Robertson, Magna's chief technical officer, said the Aurora, Ont., parts maker has been in talks with manufacturers around the globe about the technology. But he acknowledged at $10,000 to $20,000 each, the price tag of the batteries remain an issue.

 

"Magna wants to be on the leading edge of any new technology, and so we jumped on this technology a few years ago," he said. "The high-cost is the battery. So, working on the supply chain, getting the price down, and working on new composites for the battery are all things we are working on."

 

Eric Zaunscherb, Canaccord Adams analyst, has a "speculative buy" on Canadian juniors Lithium One Inc., Western Lithium Corp., and Canada Lithium due to an expected increased demand for lithium spurred by the auto industry.

 

"With forecast 10% to 20% penetration rates by 2020 for pure and hybrid electric vehicles, we expect an incremental increase in demand of 286,000 tonnes of lithium carbonate equivalent, significantly outstripping current supply," he said in a note to clients.

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I have been researching lithium. I looked at all the above plus others. I think the market is too dependent on future trends and fashion and demand for high tech which may not come off if the global economy turns down. There are some spectacular gains though. Like uranium not having a clear spot pricing mechanism and an oligopolistic market structure make determining the price direction of the resource and the share prices difficult to assess. On this basis and since I wanted some exposure I went for SQM the major producer and the Global X Lithium ETF NYSE:LIT which includes most of the potential players anyway. I think juniors should be avoided based on my previous comments and I am looking for a 2-3 year return rather than day trading. I may rethink this strategy if trens change.

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I have been researching lithium. I looked at all the above plus others. I think the market is too dependent on future trends and fashion and demand for high tech which may not come off if the global economy turns down. There are some spectacular gains though. Like uranium not having a clear spot pricing mechanism and an oligopolistic market structure make determining the price direction of the resource and the share prices difficult to assess. On this basis and since I wanted some exposure I went for SQM the major producer and the Global X Lithium ETF NYSE:LIT which includes most of the potential players anyway. I think juniors should be avoided based on my previous comments and I am looking for a 2-3 year return rather than day trading. I may rethink this strategy if trens change.

 

Pleased you bumped this thread, another i'd forgot about since I cut and run form WLC.

 

Having just read their January presentation I might have another look at them this year, since they had a good run on completion of successful pilot test's (peaking near 50% from their summer 09 low). Currently 1.42c and trending back up.

 

SQM are undoubtedly the class producer, but I still think the explosive gains will be from those yet to exploit their potential. Be interesting how the tracker performs in comparison to junior's.

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I came to the conclusion that over the next 2 to 3 years better to bide time with exposure to sold producer and a basket through ETF. In reading up its not a forgone that lithium is the next battery tech.

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Belated I know but have they not recently done a deal with one of the big producers? or been taken over.

 

As an update the LIT ETF has hardly moved and SQM have gone backwards!

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Having just read their January presentation I might have another look at them this year, since they had a good run on completion of successful pilot test's (peaking near 50% from their summer 09 low). Currently 1.42c and trending back up.

 

It looks like a laser beam in the downward direction all the way through 2011. It is, however, at a key resistance point now with good volume exhaustion for the downtrend and higher volume on the way up now. In addition, the ABC structure on the way down from January 2010 is nearly complete.

 

Lots of junior Lithium companies had a good bounce from December 2011 lows. The question is: how long is it going to last?

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