For anyone who’s been on the road in the last ten years, it’s evident how drastic the automotive landscape has evolved. Electric vehicles (EVs) have provided arguably one of the most significant strides in technological advancements in recent memory. This pivot away from fossil fuels has been a long time coming, and key industry figures have been waiting for the general public to catch up with the innovations that are already here.
Now that the industry is at the crest of a sea change in consumer behaviour, and government regulations have reached a tipping point towards renewable energy, the groups keeping manufacturing processes in motion, like those in mineral exploration and mining, are in a sweet spot for dramatic expansion.
Lithium shortage on the horizon
While EVs don't rely on the energy sources of old, they are beholden to specific naturally occurring minerals like lithium and nickel. Lithium is a critical component when it comes to EV batteries due to its unique ability to efficiently store and release electric energy. Whereas nickel contributes to higher energy density, cost-efficient energy storage, and longer vehicle drive range.
However, despite being in the new age of electric power on the road, analysts are predicting a lithium shortage as early as 2025. It’s a deficit that looms large as the global demand for the metal is forecasted to reach over 3 million metric tons needed by 2030, with EV sales expected to reach over 30 million by the same year.
Canadian mining company ready to start drilling in Nevada
That leaves it to companies like Grid Battery Metals Inc. CELL EVKRF NMK to keep the worldwide demand for lithium satiated. Grid, who has over ten years of mining exploration behind them, holds a promising portfolio of land development to their name, and a solid management team of players who know the mining landscape inside and out. Not to mention a market cap of $17 million and close to $9 million in cash and marketable securities.
One of the reasons for the looming shortage is that there are only 101 producing lithium mines in the world at the time of this writing. Grid is, therefore, in an advantageous position with their properties of drill sites and project areas.
Of these assets, it’s their Nevada properties that are making investors in the know take note. Volt Canyon, Clayton Valley and Texas Spring are all located in the Northern Nevada area, a hotbed for lithium exploration. Of the three, Texas Spring is currently Grid’s main focus. Already surveyed and ready to drill as soon as next year, the approximately 400 hectares/988 acres is located in what's known as the Granite Range.
Notably, Texas Spring is adjacent to Surge Battery Metals’ Nevada North Lithium Project, a prolific stretch of land that, in Grid's exploration surveys, shows an even richer source of lithium than was once thought. The area is looking especially fertile for opportunity now that lithium mining has advanced to include extracting the metal from brine and clay instead of just rock.
Recent technical strides give new life to lithium mining
"Even four years ago, people didn't believe that you could take lithium out of clay-based materials," CEO of Grid Battery Metals, Tim Fernback, says. "But now, all of these projects that might not have been economical four years ago are now becoming viable as the technology is readily available.” In another four years, companies might be able to further reassess the hurdles that once blocked progress. What is clear though, is how Grid is poised to navigate each juncture of the road as it comes, especially in terms of mining in Nevada.
"We know the state of Nevada and the regulatory regime there. We know the mining jurisdiction inside and out, and we have dedicated people exploring so we can fast-track our plans," Fernback adds. It's that dedicated team that Fernback has cultivated over the years that looks like just as much an asset as the resources that are ready to leave the ground.
Before his time at Grid, Fernback also founded Surge Battery Metals Inc., another mining exploration company with a business plan to navigate an increasing demand for sustainable fuel sources, pivoting from a gold and copper company to its current focus of being a lithium and energy company.
Grid Battery Metals’ Texas Spring Project is adjacent to Surge Battery Metals’ Nevada North Project, with both projects situated on a high-grade lithium clay deposit.
Having been active in the Nevada mining exploration space for over a decade now, Fernback and Grid have a scope of the long-term benefits to shareholders of acquiring these energy metal assets in a mineral exploration company. It's a wealth of experience that has served Grid well in acquiring under-explored areas and reaping the rewards.
And along with the promise of Texas Spring ready to break ground in the coming months, Grid also has further developments to secure a fruitful future for their shareholders.
An added bonus for shareholders
Nickel mineralization was first discovered in the Grid Nickel Group’s set of properties in 1983.
Grid recently announced their nickel project in British Columbia, Canada is being spun into a subsidiary to better distribute focus and resources. While each project stands to benefit from the move, Fernback says that investors will feel the most significant boost in value from it. "The reason why we're doing it is to give our shareholders a bonus — a share in another public company for no cost. Nickel mining in BC and lithium mining in Nevada are quite a bit different in terms of processes, so focusing budgets and efforts on both sides will make sure that each project is in the best shape it can be."
For a bit of added perspective, that nickel property is located beside what is considered the world's eighth-largest undeveloped nickel resource. So, the added shares are far more than just a casual perk. It's a tactful reappraisal of resources that has underlined Grid's agility in the exploration space.
With these valuable metals both being key factors in the continuing uptick of the EV industry, and Grid being fully funded for their current and future exploration plans, it’s no wonder Fernback and his team are hopeful about the future. "Over the next 50 years, you've got this many vehicles that are going to be on the road, that are going to be purchased, and you need this much lithium and nickel to put into those batteries. That alone will sustain our work moving forward.”
Learn more about Grid Battery Metals Inc. on its website as well as on:
This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice.
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