More Stable Li-ion Batteries Could Mean Even Greater Demand for Lithium

Just released research findings could lead to safer and more powerful lithium-ion batteries. That according to Virginia Commonwealth University researchers who are working to improve conductivity and safety in lithium-ion batteries.

At this point, every forecast increase in demand for lithium is helping drive prices for lithium companies including NRG Metals Inc. (TSXV: NGZ) (OTC: NRGMF), Albemarle (NYSE: ALB), Sociedad Quimica y Minera de Chile (NYSE: SQM), and Lithium Americas Corp. (TSX: LAC) (OTC: LACDF).

Lithium-ion batteries are used to power many electronic devices around the world, including laptops, iPods, satellites, artificial hearts and cell phones to name a few. More recently, they’ve gained heightened media attention as the new source of power to the booming Electric Vehicle (EV) market.

Market watchers contend that the massive increase in demand brought on by automakers, power storage systems and new applications is creating the potential for a considerable shortfall by 2020. The demand was not expected to get this large this fast.

Lithium companies are responding to the demand by generating more high quality lithium, including new lithium resources.

One of the most aggressive among these is NRG Metals Inc. (TSXV: NGZ) (OTCMKTS: NRGMF) that is moving in on the most prolific region for lithium. NRG Metals is developing a potentially huge lithium brine projects in South America right next to the majors.

Other lithium companies that have seen their share prices rising with the tide of demand include giants Albemarle (NYSE: ALB) and Sociedad Quimica y Minera de Chile (NYSE: SQM), along with Lithium Americas Corp. (TSX: LAC) (OTC: LACDF), a junior company with lithium projects in Argentina and Nevada, USA.

SAFER, BETTER LI-ON BATTERIES

Manufacturers are well aware that the Instability in lithium-ion batteries due to liquid-state electrolytes that help carry charges from one battery electrode to another poses a potential hazard in lithium-ion batteries.

But now, in theoretical studies released by Jena and colleague Hong Fang at the Department of Physics Virginia Commonwealth University, show it is possible to design solid-state electrolytes not only to be as conductive as their liquid counterparts, but also very stable.

To improve the conductivity in solid-state electrolytes, the researchers produced a computational model in which a single negative ion is removed. Negative cluster ions—groups of atoms with more electrons than protons—replace the absent ion.

They say that replacing the chlorine ion with cluster ions improves conductivity because these ions are larger and allow the lithium ions to move quickly, as if they were in a liquid.

The researchers are now looking to test their computational model in lab for downline lithium-ion battery applications.

This is great news for the lithium-ion power cell developers and manufacturers since it, could lead directly to safer and more powerful lithium-ion batteries.

BETTER TECHNOLOGY WILL ADD TO DEMAND

A number of very large manufacturers of products that could utilize lithium-ion power cells have been reluctant to adopt the technology due to certain potential hazards.

Based on this new breakthrough, the market for lithium-ion batteries could see additional expansion over the next several years as improvements come in to play.

Roskill, the industry watcher calculating supply stocks, estimate 785,000 tonnes of lithium carbonate equivalent a year will be needed by 2025. That amounts to a 26,000-tonne shortfall from anticipated supply. Demand this year was 217,000 tonnes compared to 227,000 tonnes of supply.

Lithium companies are moving quickly to increase their ability to deliver more pure lithium, but so far the forecast looks to be outpacing producers. The answer is going to also require new sources of pure lithium.

Based on the current sources for lithium, analysts suggest we’re going to need one new lithium mine coming into production every year through 2025. That is to account for the demand prior to new EV requirements announced in the last quarter and any added demand driven by better Li-ion technology.

NRG METALS ON TRACK WITH LITHIUM

South America and Australia are the two big regions for new or near-term producers in the lithium market. And while Australia is currently producing more lithium, South America’s “Lithium Triangle” holds considerably more lithium reserves.

It seems logical that emerging lithium company NRG Metals would develop its lithium prospect in the Puna Region of Argentina. That’s the area considered to be one of the most productive in a country that produces about 50% of the world’s lithium.

NRG Meta’s has two lithium projects; The Salar Escondido and the Hombre Muerto North, which could both be well timed to take advantage of the push for new lithium resources.

The Salar Escondido is a well-developed project that NRG Metals is now drilling to establish what it believes is a large brine type lithium deposit. The company is releasing results frequently.

At the Hombre Muerto North lithium project in the province of Salta, the company’s prospect is in the same basin as the existing FMC Lithium Fenix Mine that has been producing lithium carbonate during the past 20 years. It is also adjacent to the Galaxy Resources Sal de Vida Project, rated as a best undeveloped lithium project in the region.

NRG Metals is certainly moving toward production. They just entered an agreement with Chengdu Chemphys Chemical Industry Co., Ltd. of Chengdu, China, regarding the further exploration and development of the Hombre Muerto North Lithium Project, including a Lithium Offtake Sales Agreement.

There appears to be plenty of room for growth.

This news of major innovations toward better performing, more stable Li-ion batteries is just one of several drivers that are pushing the need for a metal that was little-known less than a decade ago, but now commands a huge premium.

It’s also shedding a lot of attention on the producers and near-term producers of lithium right now.

In order to gear up to meet the new and added demands for pure lithium, the likely producers, especially those in South America, will have to play a major role. NRG Metals is worth note for its rapidly advancing lithium projects.

POTENTIAL COMPARABLES

Albemarle (NYSE: ALB)

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. The company offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and lithium specialties and reagents for applications in lithium batteries, high performance greases, thermoplastic elastomers for car tires, rubber soles and plastic bottles, catalysts for chemical reactions, organic synthesis processes, life science, pharmaceutical, and other markets; cesium products for the chemical and pharmaceutical industries; and zirconium, barium, and titanium products for pyrotechnical applications. Albemarle Corporation was founded in 1994 and is based in Charlotte, North Carolina.

Sociedad Quimica y Minera de Chile (NYSE: SQM)

Sociedad Quimica y Minera de Chile S.A., is a producer of potassium nitrate and iodine. The Company produces specialty plant nutrients, iodine derivatives, lithium and its derivatives, potassium chloride, potassium sulfate and certain industrial chemicals. Its segments include specialty plant nutrients, industrial chemicals, iodine and derivatives, lithium and derivatives, potassium, and other products and services Lithium and its derivatives are used in batteries, greases and frits for production of ceramics. Potassium chloride is a commodity fertilizer that is produced and sold by the Company across the world.

Lithium Americas Corp. (TSX: LAC) (OTC: LACDF)

Lithium Americas Corp., a resource company, engages in the acquisition, exploration, and development of mineral properties in Nevada. The company explores for lithium deposits. It primarily holds interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina; and the Lithium Nevada Project covering approximately 15,233 hectares of area located in northwestern Nevada. The company was formerly known as Western Lithium USA Corporation and changed its name to Lithium Americas Corp. in March 2016. Lithium Americas Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.

For a more in-depth look into NGZ you can view the in-depth report at American News Group: http://usanewsgroup.com/2017/11/06/how-south-americas-lithium-triangle-is-gearing-up-to-feed-our-battery-addiction-3-2-2-2/

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