- Global demand for electric vehicles expected to grow at annual rate of 15.6 percent over next five years, presenting huge opportunities for lithium producers
- Demand for lithium, key ingredient in lithium-ion batteries powering EVs, projected to more than double by 2022
- Promising results from original exploration holes on Ollague Property are basis of additional, deeper drilling efforts
- Lithium Chile owns 15 projects in heart of world’s highest-grade lithium district
- Global lithium-ion battery market expected to reach $93.1 billion by 2025, growing at a CAGR of 17 percent
Lithium Chile Inc. (TSX.V: LITH) (OTCQB: LTMCF), the largest private owner of lithium-rich land in Chile, is deep into an aggressive multi-project drill program that, to date, has provided encouraging results from sampling tests. The company’s efforts at its wholly owned Ollague project, located in the Antofagasta Region of Chile, are being rewarded, according to a recent news release (http://nnw.fm/YZ0oI).
Of the first four exploration holes that are now completed, results indicated grades in the brine ranging up to 480 mg/l of lithium, with the grades steadily increasing from 120 meters to the final depth of 300 meters. Based on this preliminary information, Lithium Chile is pursuing a fifth hole in the center of the basin, just north of the third and fourth holes, and has scheduled a deeper target depth of 500 meters.
“Drilling a fifth hole at Ollague not only reflects the encouraging data we have collected on our first four holes but also reflects our belief that Ollague has the potential to be an exciting new lithium discovery,” Lithium Chile’s president and CEO Steve Cochrane said in the release.
Global demand for lithium is expected to more than double from 26,700 tonnes in 2018 to 58,300 tonnes in 2022, according to data and analytics company GlobalData, as reported in an article published by Proactive Investors Australia (http://nnw.fm/EI8Io). Most of that demand is tied to the future of electric vehicles as nations begin to wean their citizens off of vehicles powered by the combustion engine and on to EVs energized by lithium-ion batteries and similar rechargeable battery components.
According to McKinsey’s Electric Vehicle Index, global sales of new electric vehicles passed one million units in 2017, with EV producers expecting a surge in the appetite for their products (http://nnw.fm/0rCdJ). An article in Forbes (http://nnw.fm/kqO1Z) points out that China leads market share in this space by purchasing 48 percent of the EVs sold today, followed by European customers at 26 percent.
Lithium Chile’s own analysis of the market agrees that EVs are driving lithium growth, which underpins the reason for the company’s accelerated exploration program. Grand View Research projects that the global lithium-ion battery market will reach $93.1 billion by 2025, growing at a compound annual growth rate of 17 percent (http://nnw.fm/P3KJf). Increased usage of lithium-ion batteries in electric vehicles, portable consumer electronics and grid storage systems owing to its high energy density and high safety level is expected to drive market demand.
Increased consumption of lithium and support investment in mine expansions across Chile and Australia, as well as new mine development such as that underway in Lithium Chile’s Ollague project area, could eventually help meet the demands of green technology as global leaders continue efforts to reduce greenhouse gas emissions and affect climate change.
For more information, visit the company’s website at http://nnw.fm/LTMCF
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