We did it again, we have uncovered a stock that is up 32% even in a bearish market and some of the major indicators may reveal the possibility of even more growth!
LiTHOS Energy Ltd. (“LiTHOS”) (CSE: LITS) (LITSF:OTC US) , is building a solution for sustainable lithium production and Wall Street is paying attention and we think you should too.
The lithium market is projected to grow from USD 21 billion in 2021 to USD 83 billion in 2035, according to Benchmark Mineral Intelligence.
Check out this interview with CEO Scott Taylor from LiTHOS explaining this amazing technology!
Scott mentions in his interview that Albemarle is the ONLY US-based brine Lithium producer and they are only meeting 1% of worldwide demand. Let us echo Scott’s sentiment, could you imagine if 99% of oil and gas supply was outside the control of the US?? The company that can deliver sustainable domestic lithium production may be positioned for massive growth that is reminiscent of Tesla or Google!
Albemarle is trading at US$191 per share.
Now let’s look at the supply and demand shortfall in the world -wide market. After 2025, we believe there could potentially be a supply imbalance which exacerbates over the next decade. Someone needs to deliver a new technology to unlock trapped resources in the ground to meet demand.
As you may imagine, not all mines have the same production potential. This is why Benchmark Mineral Intelligence (“BMI”) made its calculations based on annual production averages for each of the necessary mines lithium-ion cell manufacturing requires.
According to BMI, a lithium mine delivers an average of 45,000 metric tons LCE per year. At that production level, the world would demand 74 new mines by 2035, for a total requirement for NEW production of 3.3 million metric tons per year.
That will complement the world’s current annual production capacity for the 4 million metric tons of lithium per year EVs will need by 2035.
As you will see in the technology section of BMI’s report, we believe LiTHOS may have the right technology to help capture a significant market share by 2035.
If you think that isn’t enough to get excited, look at what the Biden administration announced last year.
June 2022
WASHINGTON, D.C.— President Biden today issued presidential determinations providing the U.S. Department of Energy (“DOE”) with the authority to utilize the Defense Production Act (“DPA”) to accelerate domestic production of five key energy technologies:
Critical Materials Defined by the Energy Act of 2020 The Presidential Determination references five minerals associated with large capacity, rechargeable batteries (lithium, nickel, cobalt, graphite, and manganese); these minerals, among others, have been designated “critical minerals” by the U.S. Geological Survey (USGS).
DOE’s Continued Commitment to Bolstering a Domestic Clean Energy Supply Chain
In February, the DOE launched the new Office of Manufacturing and Energy Supply Chains to secure energy supply chains needed to modernize America’s energy infrastructure and support the full transition to clean energy Defense Production Act HERE
Here is a great article on the amazing market advantages to North American energy corporations when the government enacts such legislation.
It is a big deal, let’s recap for (CSE: LITS)(LITSF:OTC US)):
#1 The lithium market is expected to grow by almost $80BN in the next decade!
#2 We believe the DPA intends to accelerate domestic production of lithium
So, why is LITS up almost 32%?
Let’s cover the mundane first, then get to the information that every trader needs to see.
Company Name: LiTHOS Energy Ltd.
Ticker: (LITS:CSE) (LITSF:OTC US)
Exchange: Canadian Stock Exchange (“CSE”) & OTC
Website: https://www.lithostechnology.com/
LiTHOS Energy Ltd. Summary
LiTHOS is delivering the standard for environmentally efficient and economically sustainable brine resource development. LiTHOS’ mission is to eliminate the use of evaporation ponds and enable the lithium industry a step-change in sustainable extraction processes.
The unique brine pre-treatment solution was originally engineered in 2016-18 as a modular oil and gas waste water treatment and recycling solution to turn contaminated water produced, flowback water into purified, particle-free and sanitized frac water for beneficial reuse. The robust system is mobile, highly automated and built for continuous operations under harsh conditions in remote locations.
After more than 6 years and $10 million invested, these systems are fully commercialized and operate in the field at scale. Each modular system can process a throughput feed of 10,000 barrels/day or 1,600 m³/day. AcQUA™, is a patent-pending electro-pressure membrane process which optimizes the pre-treatment of raw brines and then rapidly concentrates a lithium chloride with the use of multiple Direct Lithium Extraction, or ‘DLE’, techniques. Further, Aqueous Resources LLC, a wholly-owned subsidiary of LiTHOS, was recently awarded a $1.3 million grant from the DOE and a $250,000 grant from the state of Colorado to accelerate pilot demonstration testing. LiTHOS operates a fully commissioned lab facility and are working with multiple strategic mineral resource owners in Chile, Argentina, and the United States.
AcQUA™ technology avoids the typical challenges faced by chemically-intensive DLE technologies currently in development phase. AcQUA™ enables lithium brine resource operators to deploy economically viable and sustainable field-ready extraction solutions that seek to substantially reduce water consumption by recycling more than 98% of the input brine water, and substantially eliminate the use of evaporation ponds in the pre-treatment and concentration phases of production. AcQUA™ hopes to enable mining operators to implement economically viable and sustainable water reuse plants.
Without further ado,
The Top 3 reasons we think (CSE:LITS) (LITSF:OTC US) is keenly positioned for 2023:
#1. The Chart!
#2. The Technology Is A Game Changer
#3. Leveraging Massive Efficiencies to Capitalize in a Billion Dollar Market
#1. The Chart!
Our research team at Small Cap Exclusive (“SCE”) is good, really good! Their prospecting has helped lead to some very significant discoveries in the last ten years.
Tens of Thousands of traders trust SCE, the reason why, we help uncover potentially significant investment opportunities before the general population is aware.
We believe LiTHOS (CSE: LITS) (ALMGF:OTC) is yet another diamond in the rough with potential upside. Accordingly, take a look at the chart below!
Keep in mind, the market has been a blood bath lately, why is this stock up so much?
We believe the chart above is an example of a bullish chart with technicals indicating bullish patterns both in the short term and long term and our analysists believe the next bullish pattern has just started to begin.
However, wait until the conclusion, as it’s important to have a foundational research established to understand the significance.
#2. We think the AcQUA™ Technology Is a Game Changer –Lithium Production Without Evaporation Ponds
AcQUA™ is a patent pending technology for an electro-pressure membrane process and method for recovery and concentration of lithium chloride from aqueous sources.
- Unique modular technology is capable of pre-treatment, selective purification, and concentration of lithium-enriched brines prior to extracting lithium chloride.
- Avoids the typical challenges faced by chemically intensive DLE technologies currently in development phase.
- Enables lithium brine resource operators to deploy economically viable and sustainable field-ready extraction solutions that will substantially reduce water consumption by recycling >98% of the input brine water and eliminate the use of evaporation ponds in the pre-treatment and concentration phases of production.
The fundamental DLE technology is a mature, field proven, operational system augmented from produced water management and recycling in the oil & gas sector. A fully operational DLE processing facility has been commissioned in Denver, Colorado, USA.
LiTHOS is currently focused on processing continental brines from several strategic resource owners located in the United States, Argentina, and Chile.
Their ADVANTAGE
1. INDUSTRIAL SCALE PRE-TREATMENT CONTROLS PRODUCTION
- LiTHOS is the only company able to take raw brine out of the ground, whereas other companies require evaporation ponds for pre-treatment. Accordingly, we believe it highly unlikely that the US will ever permit a new lithium mine that is reliant on evaporation ponds.
- By leveraging our established systems, LiTHOS hopes to achieve industrial-scale operations while ensuring seamless performance in field conditions.
2. ELIMINATES EVAPORATION PONDS:
Economics: The primary step which can substantially improve both CAPEX and OPEX.
Volume: How much brine fluid can be extracted and run through the production facility.
Efficiency: Pre-treatment is where 60% of the resource is lost & where massive water consumption occurs.
Simplicity: The ‘cleaner’ the input brine, the simpler the DLE solution: less chemicals – better recovery.
#3. Leveraging Massive Efficiencies to Capitalize in a Billion Dollar Market
Let’s get nerdy for a minute and go over the important processes of lithium extraction.
Currently, most of the world’s lithium reserves are found in continental brines – natural salt water deposits.
Accordingly, two-thirds of the world production of lithium is extracted from these brines; a practice that evaporates on average half a million litres of brine per ton of lithium carbonate. For an average mine, that’s 40 billion litres of water per year. We believe this as being hardly sustainable.
Furthermore, the extraction is chemical intensive, extremely slow, and wastes up to 60% of the lithium resources in place while destroying the land.
However, efforts to increase production from brines have mostly stalled due to environmental and technical problems.
That is a big problem, Lithium brine resource owners need new technology to deliver new production quickly, efficiently, and sustainably.
Traditionally, in a free market economy, the bigger the problem, the bigger the revenue.
Because of these factors, we believe LiTHOS (CSE: LITS) (LITSF:OTC US) is positioning itself as an industry leader with cutting edge technology!
What is the AcQUA™ Technology?
Based on a proven water treatment technology presently used to recycle produced fluids from oil & gas wells:
• Over 6 years of engineering and $10 million in hard investment.
• Commercial, production robust field-proven modular brine processing unit.
• Current design capacity will convert a 300ppm brine with a throughput capacity of 24,000 barrels of raw lithium enriched brine fluid per day into 2,512 mt of Lithium Hydroxide Monohydrate.
• Process has a US published patent. Company has an innovation pathway to deliver more patented intellectual property for shareholders.
The company has a pipeline of $1.55 million USD in awarded State (Colorado Advanced Industries) and Federal (US Department of Energy) grant funding contracted.
LiTHOS has an operational lithium processing facility commissioned in Denver, Colorado and is actively working with multiple major clients to benchmark its technology and deliver comparative results vs. other DLE technologies.
This technology has a potential to clean brines to purified irrigation water, while extracting lithium and other metals.
Above is the revolutionary technology that could transform the extraction of lithium.
The BIG problem: 10X MORE LITHIUM REQUIRED
In order for the western world to deliver the projected production of 3.3 million metric tons of lithium necessary by 2035, each of the 74 new producing mines producing 45,000 metric tons per year, requires approximately:
- 2,500 acres of land
- 10 billion gallons of water Per Year
- produces 250,000 tons of CO2 Per Year
- up to 2 years to evaporate and deliver production.
Let’s recap the 3 Catalysts that Could Send LiTHOS on the Bullish Run of 2023:
#1. The Chart!
#2. The Technology Is A Game Changer
#3. Leveraging Massive Efficiencies to Capitalize in a Billion Dollar Market
We have arrived at the much anticipated “reason” why LiTHOS is getting heightened attention lately.
Top four reasons we believe research is indicating that the lithium sector may potentially experience a boom:
- Lithium has proven to be recession proof.
- Renewable energy thrives during a recession
- The lithium market is expected to grow by almost $80BN in the next decade!
- DPA to accelerate domestic production of lithium
Lithium has proven to be recession proof.
Alex Gluyas of Austrailian Financial Review states, “Lithium is proving to be largely immune from the volatility that has rocked commodity markets as prices soar in the face of a looming global recession, prompting Macquarie to deliver another round of upgrades for producers and developers of the battery metal. Lithium prices have continued to hit record levels this year with spodumene, carbonate and hydroxide surging 243 per cent, 124 per cent and 152 per cent respectively.”
Renewable energy thrives during a recession
The Motley Fool has a report on the renewable energy sector thriving during recessions.
Recessions can be scary for investors because the market can crash and, for some businesses, demand can drop like a rock. But not all businesses are affected the same way during a recession.
In renewable energy, there are major tailwinds driving growth even through recessions. The cost of renewable energy is coming down, fossil fuel costs are rising long term, and there’s a political desire to increase renewable energy production. You can see below that recessions haven’t stopped the growth of wind and solar energy projection, two of the main sources of renewable energy over the last two decades — despite three recessions in that time. For investors renewable energy stocks have a lot going for them, even in a recession.
Small Cap Exclusive is preparing for significant press releases that could come very soon from LiTHOS (CSE: LITS) (LITSF:OTC US).
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Forward-Looking Statements and Legal Disclaimers – Please Read Carefully.
This newsletter contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are forward-looking statements. Forward-looking statements in this material include, but are not limited to statements concerning: the potential growth, increase in share value and other like statements related to possible increases in the business or operations of LiTHOS; the projected growth of the lithium market in the United States and abroad; any similarities between the share prices of Albermale; bullish sentiments towards LiTHOS, its business operations and share price; any advantages LiTHOS may have over its competitors and, in connection therewith, the widespread acceptance and employment of the AcQUA™ technology; that the lithium boom is just getting started and that demand for lithium will continue to increase globally; that supplies of lithium will not be able to meet the growing global demand for lithium; that lithium is immune from market volatility and the effects of an economic recession; and that LiTHOS can obtain sufficient financing or cash flows to continue its explorations, technology development and current operations. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include: that LiTHOS may be unable to successfully implement and rollout the AcQUA™ technology for large scale commercial use; that LiTHOS may be unable to receive patent AcQUA™ technology; that LiTHOS may be unable to commercially extract lithium and/or enter into any deal for the supply of lithium; that the lithium boom may be ending and that demand for lithium may decline due to other alternative energy sources and/or technologies that replace technologies using lithium; that supplies of lithium will exceed growing global demand; that supply will fail to achieve exploration and development success similar to other companies within the lithium extraction sector; that LiTHOS may fail to obtain sufficient financing or cash flows to continue its explorations and operations; that LiTHOS may ultimately fail to successfully implement its business plans, raise capital or generate any significant revenues.
The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
LEGAL DISCLAIMERS
PAID ADVERTISEMENT. This communication is a paid advertisement and is not a recommendation to buy or sell securities. Small Cap Exclusive is owned and operated by King Tide Media, LLC and its owners, managers, employees, and assigns (collectively, “King Tide”) has been paid $100,000 dollars by LiTHOS Engery Ltd. (the “Company”) for an ongoing marketing campaign including this article, among other things. This compensation is a major conflict with our ability to be unbiased. This communication is for entertainment purposes only. Never invest purely based on our communication.
SHARE OWNERSHIP. The owner of King Tide may be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities. This relationship and the compensation to be received by us is a major conflict with our ability to be unbiased. As of the date of this letter, neither King Tide Media, LLC nor Small Cap Exclusive own any securities in LiTHOS.
NOT AN INVESTMENT ADVISOR. King Tide and its principals and agents are not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation.
ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
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