Nvidia had been producing computer chips for more than 20 years until the “AI” revolution turned it into one of the most valuable companies on the planet. (3)
Nvidia had been producing computer chips for more than 20 years. (3)
It was known and loved among video game players and computer geeks.
But among the broad public, few have ever heard about the company.
Until the winter of 2022, when an unknown software company released chatGPT(4) - the first retail application of artificial intelligence for the everyday computer user.
It was the beginning of one of the biggest tech trends since the creation of the Internet.
And it turned Nvidia into one of the most valuable companies in the world with a $3 trillion market value. (5)
Nvidia’s stock went up 2,800% in just five years. (5)(6)
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Before AI, Nvidia already had the product. But it took time for the market to develop for Nvidia to become truly successful.
Is history about to repeat itself with this little-known lithium explorer?
Recent Market Activity: In the U.S. market, Li-FT Power Ltd. (OTCQX: LIFFF) has experienced significant growth, with shares moving approximately 60% from $1.38 on August 6, 2024, to $2.22 on September 5, 2024. With fewer than 43 million shares issued and under 44 million fully diluted, these sharp price movements may be attributed to the company's share structure.(8)
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Similarly, in Canada, the stock surged 59%, rising from $1.97 on August 9, 2024, to $3.14 on September 4, 2024, reflecting a strong increase in investor interest across both markets.(9)
Lithium: The Metal Powering the Future of Electric Vehicles and Clean Energy
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Lithium, a crucial metal for the manufacturing of batteries that power electric vehicles, wind turbines, and solar panels, is emerging as a key resource in the fast-growing battery technology sector. (2)
Its significance extends beyond just electric vehicles and lithium plays a central role in various consumer devices and technologies, including:
- Electric Vehicles (EVs): Lithium is a key element in the manufacturing of the EV Lithium-Ion battery.
- Energy Storage Systems: Lithium supports efficient energy storage, crucial for renewable energy solutions.
- Smartphones: Lithium-ion batteries help power our smartphones, keeping us connected.
- Tablets and Laptop Computers: Portable computing devices rely on lithium for extended battery life and functionality.
- Wireless Earbuds and Wearable Technologies: Lithium contained inside the rechargeable lithium-ion battery fuels the latest advancements in personal tech.
However, according to Benchmark Mineral Intelligence, a leading research firm focusing on critical metals, it is important to note that EV growth will account for more than 90% of the demand for lithium by 2030. (13)
At the heart of every electric vehicle lies a rechargeable battery, often based on lithium-ion or lithium-polymer technology.
These batteries are prized for their high energy density relative to their weight, making them ideal for use in electric vehicles.
The chemical composition of these batteries typically includes lithium, cobalt, manganese, steel, graphite, and nickel, each contributing to enhanced battery efficiency.
Among these, lithium stands out due to its lightweight nature and electrochemical potential. (14)
As electric vehicles become more common, the need for lithium is anticipated to grow.
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This momentum is mirrored in the global electric vehicle (EV) battery market, which is projected to expand dramatically, with its market size expected to grow from about $76 billion in 2024 to $573 billion by 2033. (16)
North America's growing presence in the industry is evident from the expansion of the EV battery market in the United States, which is projected to increase from around $9 billion in 2024 to $78 billion by 2033. (16)
This trend is shaped by factors such as rising fuel prices, heightened environmental awareness, and a move towards more sustainable transportation options.
Lithium, a key component in EV batteries, plays an important role in this shift.
Government incentives, subsidies and policies that support green technologies are encouraging the use of electric vehicles. (16)
Technological advancements and decreasing battery costs are contributing to the wider acceptance of electric vehicles. (16)
Major automotive companies such as General Motors (NYSE: GM), BMW (ETR: BMW), Volkswagen (ETR: VOW3), and Ford Motor (NYSE: F) are scaling their efforts to meet the interest in lithium-powered batteries. (16)
This shift is influenced by both consumer preferences and new government regulations focused on reducing carbon emissions.
As pollution levels rise and environmental concerns grow, governments are introducing stricter policies to reduce vehicle emissions. This shift could influence a greater interest in electric vehicles and, consequently, in lithium. (17)
Efforts towards urbanization, including the expansion of EV charging stations could contribute to the development of the electric vehicle market. (17)
With more people living in urban areas and daily commutes becoming shorter, a preference for compact and energy-efficient electric vehicles (EVs) is emerging. (17)
In response to this trend, Ford Motor (NYSE: F) recently announced a strategic shift towards smaller, more affordable EVs, investing $1.9 billion to prioritize the development of these cost-effective vehicles over larger SUVs in North America. (18)
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This move aligns with Ford's belief that the highest adoption rates for EVs will be in the affordable, compact vehicle segment, allowing the company to better compete against emerging global players. (18)
This strategy not only meets growing consumer demand but also supports government efforts to reduce carbon emissions, further contributing to the expansion of the electric vehicle market. (18)
Additionally, advancements in battery technology, such as increased ranges and faster charging times, are making EVs more practical for longer trips, driving higher demand for lithium. (16)
Lithium Crunch: U.S. Needs 40-Fold Production Increase to Meet Renewable Energy Goals
Historically, the United States was a global leader in lithium production, with the industry originating in the U.S. and dominating the market for nearly 50 years. (20)
However, the situation has drastically changed.
Today, the U.S. relies heavily on lithium imports from countries like Argentina, Chile, China, and Russia, with domestic lithium production accounting for just 1% of the global total. (20)
Despite having substantial lithium reserves—approximately eight million metric tons embedded in U.S. soil—the country has seen a steady decline in active lithium mines over the past decade. (20)
The International Energy Agency (IEA) predicts that lithium production must increase 40-fold by 2040 to support the full transition to renewable energy technologies like EVs. (1)
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U.S. and Canada Commit Billions to Bolster Clean Energy and Domestic Lithium Supply Chains
To address the growing demand for electric vehicles (EVs) and promote sustainable transportation, the U.S. and Canada have implemented comprehensive plans to expand their clean energy infrastructure. (20)(21)
In the U.S., efforts include the installation of 500,000 new EV charging stations nationwide, with over $24 billion allocated to various green initiatives. (20)
Public EV charging stations are expected to surpass the number of gas stations within the next eight years, fueled by nearly 9,000 fast-charging sites currently in operation. Investment in charging infrastructure is projected to reach $6.1 billion this year, with forecasts indicating this figure will double by 2030. (22)
A crucial aspect of this plan is ensuring a steady domestic supply of lithium and other critical minerals needed for EV batteries. The Inflation Reduction Act introduces a phased approach to increase domestic production and recycling of these minerals.
In 2024, 50% of battery minerals must be sourced domestically or through free-trade agreements, with the requirement rising to 80% by 2027. This gradual approach aims to strengthen supply chains and reduce dependence on foreign sources while allowing industries time to adjust. (20)
Canada has similarly committed to accelerating its clean energy transition by introducing a federal budget that includes billions in tax credits for clean technology. (21)
Over the next decade, C$80 billion in tax incentives will be made available, with C$25 billion specifically earmarked for clean electricity investments. (21)
Canada’s strategy focuses on fostering investment in clean technologies to maintain competitiveness in the global low-carbon economy.
The Canadian plan includes tax credits for non-emitting electricity generation, manufacturing equipment for renewable energy projects, and critical mineral extraction.
With a goal of achieving a net-zero electricity grid by 2035 and doubling clean electricity demand by 2050, Canada is also promoting investments in hydrogen, carbon capture, and other advanced clean technologies. (21)
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Both the U.S. and Canada are focused on boosting investment in clean energy infrastructure while ensuring that critical supply chains—such as lithium for EV batteries—are sourced domestically or from trusted partners.
These coordinated efforts aim to position both countries as leaders in the global transition to sustainable energy.
As lithium becomes the cornerstone of this transformation, companies like Li-FT Power Ltd. (TSXV: LIFT) (OTCQX: LIFFF) are emerging as key players in the exploration of the vital resources needed to fuel the EV revolution. (24)
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As demand for renewable energy and electric vehicles (EVs) surges, lithium is taking center stage as one of the most indispensable commodities.
Li-FT Power Ltd. (TSXV: LIFT) (OTCQX: LIFFF) stands poised to capitalize on this trend with its extensive hard-rock lithium assets in Canada.
Its aggressive exploration programs and strategic focus are positioning the company for significant growth.
Hard Rock Lithium Assets in Canada
Li-FT Power Ltd. (TSXV: LIFT) (OTCQX: LIFFF)’s portfolio includes three key projects: the Yellowknife Lithium Project, the Cali Project, and the Quebec Greenfields Project. Each of these holds substantial lithium resources and offers the company a solid foundation for growth. (24)
Yellowknife Lithium Project (Northwest Territories): (24)
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This is Li-FT Power’s flagship project and one of the most significant hard-rock lithium projects in North America. (24)
The project is located in the Northwest Territories, a region known for its rich spodumene pegmatites, which are highly desirable for lithium production.
The project covers several pegmatite formations, which are clearly visible from space due to their near-surface exposure, offering a unique advantage in terms of resource identification.
With 50,000 meters of drilling already completed, Li-FT Power has made substantial progress in defining its resource base. (24)
The next major milestone is the Maiden Mineral Resource Estimate (MRE), expected in the second half of 2024.
Li-FT’s upcoming mineral resource is expected to further solidify Yellowknife as one of North America’s largest hard-rock lithium resources.
The Yellowknife project also benefits from proximity to key infrastructure. Spodumene concentrate can be transported to rail via road or barge, facilitating easier access to markets.
Cali Lithium Project (Northwest Territories and Yukon):
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Situated on the border of the Northwest Territories and the Yukon, the Cali project is another promising lithium exploration area.
Recent fieldwork has identified multiple spodumene pegmatite corridors, with some grab samples returning grades above 1% Li₂O.
The Cali project holds strong potential, similar to Latin Resources’ Colina lithium deposit in Brazil, suggesting that future exploration could yield significant discoveries. (24)
In a recent game-changing move, the company quadrupled the size of its Cali Property by staking an additional 9,681 hectares in the Little Nahanni Pegmatite District, Northwest Territories, Canada. (28)
This massive land acquisition positions Li-FT Power at the forefront of lithium exploration, as the company strengthens its hold on one of the most sought-after lithium districts in North America. (28)
The discovery of outcropping spodumene pegmatites in this new territory underscores the incredible potential for large-scale lithium resource development.
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Expanding Horizons: The Cali Project Breakthrough
Li-FT’s expansion at the Cali Project is nothing short of monumental. By quadrupling the land size, the company has significantly enhanced its potential for future lithium production. (28)
CEO Francis MacDonald highlighted the strategic foresight behind this move, noting,
“Acquiring new areas through staking is the most cost-effective way to increase a company’s land position.” (28)
This expansion couldn’t have been more perfectly timed.
Following the Canadian government's June 2024 amendment to the Sahtú Land Use Plan, which opened new staking opportunities, Li-FT quickly capitalized to secure contiguous claims in a region teeming with lithium-rich spodumene deposits. (28)
This newly acquired land connects seamlessly with Li-FT's existing claims and provides access to outcropping spodumene pegmatites—the continuation of the Cali dyke swarm already identified by the company. (28)
With road access to Fort Nelson, British Columbia, the Cali Project’s strategic location enhances its logistical and economic potential.
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Cali Project: The Heart of North America's Lithium Future
The Cali Project is set to become a cornerstone of North America’s hard rock lithium industry. Exploration results have been nothing short of extraordinary, with 124 of 163 grab samples showing lithium oxide (Li2O) grades above 1%. (24)
This high-grade spodumene content demonstrates the project’s vast potential, making it one of the most exciting lithium projects in the region.
The pegmatite dyke swarm, covering an expansive area of 1.5 km by 1 km, offers a tantalizing glimpse of what could be a substantial lithium resource. (24)
With the newly expanded land position and proximity to road infrastructure, the Cali Project is ideally poised to scale quickly and efficiently, positioning Li-FT Power as a dominant force in the growing global lithium market. (24)
As demand for lithium surges, Li-FT's aggressive staking and exploration strategy at Cali ensures the company is ahead of the curve, ready to meet the world's hunger for this critical battery metal. (24)
Quebec Greenfields Project (James Bay, Quebec):
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The Quebec Greenfields project is a greenfield lithium exploration initiative targeting spodumene pegmatites. Spanning over 2,282 square kilometers, it covers regions near known lithium-rich areas such as the Whabouchi deposit. (24)
The project is road-accessible, enhancing its attractiveness as a large-scale lithium exploration prospect.
In addition, geochemical sampling has already revealed a 13 km by 6 km spodumene anomaly, which could lead to major discoveries in the near future.(24)
Metallurgical Testing and Early Results (24)
Li-FT Power has also made strides in understanding the quality of its lithium resources. Metallurgical testing on spodumene pegmatites at the Yellowknife project has returned highly favorable results.
Historical testing indicates that the spodumene concentrate could achieve a lithium oxide (Li₂O) grade between 5-6% with an overall recovery rate of 80%. The low iron content in these concentrates makes them highly valuable for the battery industry, particularly in electric vehicles. (24)
The company’s most recent metallurgical testing is ongoing, with the results expected soon. These tests will help to further define the quality of the lithium resources and guide future development efforts. (24)
Strategic Advantage: Infrastructure and Access
One of the major challenges for lithium exploration companies is access to infrastructure. Li-FT Power has strategically positioned itself in regions with robust infrastructure. (24)
The Yellowknife Lithium Project is easily accessible by road via a government-maintained paved highway, with transportation routes directly connecting to rail lines that lead to major markets. (24)
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This strategic location ensures that any spodumene concentrate produced from the project can be efficiently shipped to customers. (24)
Furthermore, Li-FT Power’s projects benefit from proximity to the Canadian National Railway and ports, enabling global access for lithium exports. This infrastructure advantage could significantly reduce logistics costs and accelerate the development of future mining operations. (24)
A Well-Timed Entry into the Lithium Market
Li-FT Power’s exploration strategy is underpinned by favorable market timing. Lithium prices, though down from their peak in 2022, remain strong, and global demand is set to soar in the coming decades. (1)(12)(24)
The International Energy Agency (IEA) predicts that lithium production will need to increase 40-fold by 2040 to meet the needs of the renewable energy sector. (1)
With electric vehicles (EVs) entering their mass adoption phase, demand for lithium-ion batteries is projected to drive a significant bull market for lithium.
Li-FT Power aims to capitalize on this demand with a portfolio of projects that could become some of North America’s largest lithium resources. The company’s expedited drilling programs and Maiden Mineral Resource Estimate (MRE) set for 2024 make it well-positioned to meet future market demands. (24)
Environmental, Social, and Governance (ESG) Commitments
Li-FT Power has made significant efforts to align its operations with Environmental, Social, and Governance (ESG) standards. The company has developed strong relationships with local Indigenous communities and is committed to prioritizing Indigenous employment and procurement. (24)
In 2023, the company initiated baseline environmental and socioeconomic data collection at the Yellowknife project, laying the groundwork for future environmental assessments. (24)
Li-FT Power’s ESG focus extends to long-term sustainability, aiming to navigate the regulatory framework while maintaining positive relationships with local stakeholders. This commitment is crucial as governments and investors increasingly prioritize responsible mining practices. (24)
CEO Francis MacDonald, an exploration geologist with 15 years of industry experience, co-founded Kenorland Minerals, a North American-focused exploration company. His career includes significant work with Newmont Mining, where he led greenfield exploration efforts in Nunavut, West Africa, and East Africa. (31)
President Alex Langer is a public markets specialist with a strong background in equity financing. He has been involved in funding over 100 private and publicly listed companies across various sectors, including mining and technology. Langer played a key role as VP of Capital Markets at Millennial Lithium, helping secure global financial support and industry partnerships. He currently also serves as CEO & President of Sierra Madre Gold & Silver. (31)
Chief Financial Officer Andrew Marshall brings 20 years of accounting and financial experience to the team, having served in senior roles for TSX- and NYSE-listed companies. He has extensive expertise in corporate reporting, risk management, M&A transactions, and strategic support for junior mining companies, with a focus on projects in Mexico, Canada, and Europe. (31)
Senior Vice President of Geology David Smithson is an ore deposit geologist with a wealth of experience in generating exploration opportunities throughout the Americas. He has worked globally with Newmont, contributing to gold reserve expansions in West Africa and South America, and co-founded Tier One Silver, a silver-focused explorer in Peru. (31)
Chief Sustainability Officer Dr. April Hayward has over 25 years of experience in the fields of environment and sustainability. She has dedicated more than a decade to leading sustainable development initiatives in the mining industry in northern Canada. Dr. Hayward has a proven track record of building collaborative relationships with stakeholders and successfully guiding projects through the regulatory system to obtain operating permits for projects such as the Ekati mine and Mountain Province Diamonds. (31)
With their collective expertise, Li-FT Power’s leadership team is well-equipped to advance its exploration projects and move closer to defining its substantial lithium resources. (31)
