This is a paid advertisement sponsored by Alpha Lithium
This Lithium Asset Is So Valuable They’re Trying To Steal It
James Hyerczyk is a Florida-based technical analyst, market researcher, educator and trader. James began his career in Chicago in 1982 as a futures market analyst for floor traders at the Chicago Board of Trade, the Chicago Mercantile Exchange, and numerous brokerage firms. He has been providing quality analysis for professional traders for 40 years.
We’re facing an energy crisis. Only, it’s not the one you think.
This isn’t about oil or natural gas.
I’m not talking about the price at the pump.
Within a decade, 1 in every 3 cars in the United States will be electric. By 2040, there won’t be any new gas vehicles for sale in America.[1]
Every one of those EVs needs a lithium battery.
We’re talking millions of tons of lithium, every single year.
In two years, global demand will outstrip supply for the first time in history.[2]
Benchmark Mineral Intelligence warns we need 74 NEW lithium mines by 2035.[3]
Nobody knows how we’ll fill the gap.
Not Elon Musk. Not Joe Biden. Nobody.
Competition to build and acquire these assets is heating up.
Without a solution, Tesla megafactories will be forced to mothball production lines.
That’s what makes companies like Alpha Lithium (APHLF) so critical. With their new resource update, they’re sitting on over 3.6 million tons of indicated lithium…[4]
And that’s just on one of their properties.
That’s why one of the world’s most successful lithium executives has bet $14.9 million on this under the radar company.[5]
It’s also why they’re now the target of a hostile takeover bid.[6]
If Alpha Lithium (APHLF) isn’t on your radar, you need to pay attention starting today.
Because the clock is ticking down to a lithium crisis.
Companies like Alpha (APHLF) could be the biggest winners when it strikes.
UPDATE: Alpha Lithium (APHLF) Is The Target Of A Hostile Takeover Bid
Investors, analysts and producers alike recognize the value in Alpha’s properties.
The value proposition for Alpha Lithium’s (APHLF) investors is so compelling, one major industrial company is effectively trying to steal it.
On June 8th, Tecpetrol Investments S.L. announced an unsolicited hostile takeover bid for Alpha at a share price of $1.24 per share.
Its closing price that day was $1.42 per share.
That’s a 12.6% discount.
Worse – this offer represents an even bigger discount on the value of just the Tolillar property, if priced at $163 per tonne of resource.
In a July 10th analyst report, Echelon Capital Markets accused Tecpetrol of playing dirty.
“We maintain that Tecpetrol is intentionally circumventing Alpha’s bid process with an inadequate full company hostile takeover offer of $1.24/shr cash.
Tecpetrol’s offer provides less value than for a Tolillar asset sale and special dividend, remaining cash, and potential further upside from the Company’s Hombre Muerto project.”[7]
Needless to say, management is recommending a “NO” vote on the ‘stink bid’ takeover attempt. They see a lot more potential upside for shareholders.[8]
But Tecpetrol isn’t the only party paying close attention to Alpha Lithium (APHLF).
Lithium Mining Legend Places $14.9M Bet On Alpha Lithium
Kyle Stevenson has been a player in the lithium triangle since 2016. He was President, CEO and a director of Millennial Lithium Corp.[9]
He helped discover and develop the Pastos Grandes lithium brine project in Argentina, 70 kilometers northeast of Alpha’s Tolillar project.
The company was acquired in 2022 for $CAD 491 million.[10]
Safe to say, Mr. Stevenson knows what he’s talking about when it comes to Lithium. And he has the exit to prove it.
Stevenson is also Alpha Lithium’s (APHLF) largest single shareholder.
He owns 9,200,000 shares and securities convertible to acquire 1,300,000 additional shares of Alpha. That represents a $14.9 million bet on the stock.[11]
In a letter to shareholders he wrote:
“The Tecpetrol bid is an opportunistic attempt to seize both Alpha’s Tolillar and Hombre Muerto assets at an indefensible discount to their true value.
I do not intend to tender any of my shares.”[12]
This is one of the sharpest minds in Argentinian Lithium. He’s refusing to sell.
And it’s not because of Tollilar, or what it might fetch in a competitive seller’s market.
It’s because of what Stevenson and other industry insiders know about the coming supply crunch, and what that could do to already high lithium prices.[13]
The Inflection Point Is Here:
EV Demand Driving Soaring Lithium Demand
We know a supply crunch is coming. Here’s why…
Electric vehicles are finally bigger than Tesla. They’re no longer a niche product for the rich and climate conscious in LA or New York.
If you don’t own one yet, you will soon.
Since 2015, the EV global market has grown at a staggering rate of 50% a year.[14]
American auto giants such as GM, Ford, Volkswagen and others have pledged to transition to 100% EVs by 2035[15].
In fact, GM invested a whopping $650,000,000 USD into Lithium Americas to secure their own lithium supply.[16]
According to MotorTrend Magazine, “We’re seeing new electric vehicles pop up like weeds.” Luxury EV cars are being made by Mercedes, BMW and Jaguar.[17]
In a recent survey, 71% of American drivers are interested in owning an electric car.[18]
The “inflection point” hit in 2022.
That’s when EV sales in the U.S. exceeded 5% of all auto sales.[19] Global EV sales are now 9% of the auto market, accounting for all the growth in car sales last year.[20]
In 2023, U.S. EV sales are set to top 7.1% of all auto sales – up a staggering 162% since 1st quarter 2021.[21]
Automakers are expected to sell over 14 million EVs this year worldwide, a 35% increase over 2022.[22]
There’s 17.5 pounds of lithium in your average EV battery.[23] However, bigger cars need more lithium. The Tesla model S is said to use 138 pounds of lithium per battery.[24]
So we’re talking about needing a total of 1,088,500,000,000 pounds of lithium for 2023 production alone. [25]
And that is just for cars!
For companies like Alpha Lithium (APHLF) that’s historic news.
UPDATE: Alpha Lithium (APHLF)
Is The
Target Of A Hostile Takeover Bid
Investors, analysts and producers alike recognize the value in Alpha’s properties.
The value proposition for Alpha Lithium’s (APHLF) investors is so compelling, one major industrial company is effectively trying to steal it.
On June 8th, Tecpetrol Investments S.L. announced an unsolicited hostile takeover bid for Alpha at a share price of $1.24 per share.
Its closing price that day was $1.42 per share.
That’s a 12.6% discount.
Worse – this offer represents an even bigger discount on the value of just the Tolillar property, if priced at $163 per tonne of resource.
In a July 10th analyst report, Echelon Capital Markets accused Tecpetrol of playing dirty.
“We maintain that Tecpetrol is intentionally circumventing Alpha’s bid process with an inadequate full company hostile takeover offer of $1.24/shr cash.
Tecpetrol’s offer provides less value than for a Tolillar asset sale and special dividend, remaining cash, and potential further upside from the Company’s Hombre Muerto project.”[7]
Needless to say, management is recommending a “NO” vote on the ‘stink bid’ takeover attempt. They see a lot more potential upside for shareholders.[8]
But Tecpetrol isn’t the only party paying close attention to Alpha Lithium (APHLF).
A $1 Trillion EV Market By 2030 Set To Spike US Lithium Demand 10x
US EV Sales are expected to reach nearly 30% of all car sales by 2030. In 2022 the US EV market was $ 194 billion… and is expected to topple $694 billion by 2030.[26]
Global sales of EVs are expected to reach nearly $1 trillion by 2030.[27] And The World Resources Institute predicts that 100% of cars could be electric by 2040.[28]
Americans buy 13.75 million cars every year.[29]
That’s 1.06 billion pounds of lithium in the U.S. alone.[30]
And of course it won’t stop with cars.
The International Energy Agency (IEA) proclaims that “cars are just the first wave. Electric buses and trucks will follow soon.”[31]
Demand for lithium will explode!
Since lithium is in every EV battery, solid state or not, lithium demand is not going to slow down. U.S demand for EV lithium batteries will jump 10 TIMES by the end of the decade.
And the opportunity is bigger than just electric vehicles.
That’s why investors are now paying close attention to potentially blockbuster lithium plays like Alpha Lithium (APHLF).
Lithium Is The New Oil…
…It Powers Modern Life
You already use Lithium Ion batteries every day!
Lithium batteries are the leading technology in solar energy storage, laptops, tablets, computers, mobile phones, drones, even remote-control toys.
Just last year, 1.2 billion smartphones were sold globally in 2022… and sales are growing 16.4% annually.[32]
Each one runs on a lithium ion battery.
One million PCs are sold every day.[33]
Even global sales of drones for 2023 are expected to be 2.4 million – a staggering 66.8% increase over last year.[34]
In fact, not a day goes by when you’re not relying on lithium.
Chatting on your cell phone, glancing at your watch, using your personal drone or other remote toys are just a few of the many ways you use lithium batteries.
Alpha Lithium (APHLF) can play a vital role in that supply chain.
The applications go well beyond personal devices too.
Lithium Is The Backbone Of Our $125 Trillion Green Revolution
The green energy transition is a $125,000,000,000,000 infrastructure project.
That’s what the United Nations projects we’ll need to spend by 2050 to hit world net zero targets. It’s also 5 times US GDP.[35]
$21.4 trillion will be spent on the electricity grid alone.[36]
The backbone of that grid: Lithium Ion grid batteries.
Renewable energy sources are intermittent. Solar panels and wind turbines generate electricity when the sun shines, and the wind blows.
In down periods, the grid needs energy storage.
Without it, nothing works. Grid batteries are perhaps the most overlooked industry where lithium is desperately needed.
The U.S. Energy Information Administration (EIA) projects electricity generated by renewable sources, such as solar and wind to double to 44% by 2050.[37]
And researchers at the National Renewable Energy Laboratory estimated that 120 gigawatts of storage would be needed across the continental United States by 2050, when the scenario imagined a future where 80% of electricity will come from renewable resources.[38]
The biggest challenge is storing the energy from these renewable energy sources when the sun isn’t shining and the wind isn’t blowing.
The preferred battery of choice for grid-scale energy storage units is lithium iron phosphate batteries, a subset of lithium-ion batteries.[39]
That’s why stationary energy storage systems are a fast-developing second market for lithium.
Global investment in battery energy storage reached $10 billion in 2021 and doubling to $20 billion in 2022.[40]
Without lithium, the green economy is dead on arrival.
America’s growth engine needs companies like Alpha Lithium (APHLF).
And, this isn’t merely an economic problem.
It’s quietly becoming a national security crisis.
By 2030, Every Vehicle In The U.S. Military Arsenal Will Be Electric[41]
The U.S. military has been using lithium batteries in radios, thermal imagers and other portable devices for over a decade.
The military loves the lithium battery. It’s lightweight, practically maintenance-free, and more powerful, safer, and more reliable than lead-acid batteries.
Lithium batteries have proven to be the most reliable power source for the military’s portable electronics.[42]
Today’s modern military relies on wearable computers, such as communication devices, health monitors and tracking devices.
It’s used in radios, cell phones, night vision goggles, satellite communications, lasers, sensors, drones, and land missiles[43]… just to name a few.
Over the next five years, the Department of Defense (DOD) will expand the use of lithium batteries in military vehicles, ships, aircraft, and missiles.
The DOD has already mandated that all military branches convert all non-combat vehicles to electric by 2035.[44]
Energy Secretary, Jennifer Granholm is requesting the military transition to an all-EV military fleet – non-combat and combat — by 2030.[45]
“Lithium batteries are predicted to be one of the key technologies of the 21st century.”
– National Defense Magazine
A report by Brigadier General John Adams (U.S. Army, Retired) sounded the alarm over America’s critical material supply lines a decade ago.[46]
If new sources of minerals like lithium aren’t found and found quickly…
U.S. national security could be in dire jeopardy.
“This report is a wake-up call to pay attention to this growing threat,”[47] Gen. Adams cautions.
America must find new sources of lithium to power the military’s growing reliance on lithium batteries. But America is now facing a critical lithium supply.
With the demand for lithium skyrocketing, the U.S. government has officially classified it as “essential” and “critical” to our economic and national security[48].
Discoveries like the ones being proven up by Alpha Lithium (APHLF) are more important than ever to America’s defense industrial base.
We’re Facing A Permanent Lithium Supply Shortage
74 New Mines[49] Are Required Before 2035
The IEA warns a lithium shortage may occur as soon as 2025[50].
Both Presidents Trump and Biden have declared it a “national emergency” for the U.S.
According to BMI analyst George Miller, “Unless we see significant and imminent investment into large, commercially viable lithium deposits, these shortages will extend out to the end of the decade. There is huge anxiety about where lithium supply is going to come from.”[51]
Benchmark Mineral Intelligence warns that to meet the world’s skyrocketing demand, 74 NEW lithium mines with an average output of 45,000 tons are needed by 2035.[52]
That’s nearly 7 new operational mines every year! Just to keep up with current demand.
There’s a rush to get assets like those owned by Alpha Lithium (APHLF) into production.
Because if we don’t hit those supply thresholds, prices could spike.
America faces a critical lithium shortage — a shortage that could soon derail the green revolution. It’s already in a life or death fight for supply.
And right now? China is winning that battle.
China’s Lithium Companies Are In An Acquisition Frenzy
China dominates the global supply chain for lithium-ion batteries. Now rival countries are scrambling for more control over “white oil.”
But Beijing has a massive head start.
Their share of the Lithium-Ion battery market is around 80%.[53]
If you drive a hybrid or fully electric car manufactured by BMW, Volkswagen, and Tesla – chances are you have a Chinese battery sitting under the hood.[54]
And Chinese lithium domination isn’t slowing down.
In 2022, China’s lithium imports increased by 1404%. A trend that is expected to continue.[55]
Tianqi Lithium is China’s lithium giant.
They own stakes in most of the major global players.
Over the last few years, they’ve been signing deals and closing acquisitions around the world.
In just the South American Lithium Triangle alone, Chinese acquisitions have totaled a whopping $2.563 Billion Dollars.[56]
They’re also beefing up their lithium reserves…
Just 80km away from Alpha Lithium’s assets, China added 13.3 million tonnes of just measured and indicated LCE to its armory.[57]
See for yourself:
- Pozuelos Pastos Grandes (Litica) – 3,400,000 tonnes of measured and indicated LCE
- Rincon – 5,800,000 tonnes of measured and indicated LCE
- Millennial Lithium – 4,100,000 tonnes of measured and indicated LCE
Total: 13,300,000 tonnes
And these figures don’t even include the remaining millions of tonnes of inferred lithium that could be present.[58]
And with Alpha Lithium (APHLF) already the target of a hostile takeover attempt, the China M&A trend only makes them more interesting.
China’s efforts to ramp up lithium extraction could see it accounting for nearly a third of the world’s supply by the middle of the decade, according to UBS AG.[59]
American oil made it an energy superpower for much of the last century.
It needs to move fast on lithium to avoid a crisis.
“White Gold” In The Lithium Triangle:
America’s Last Chance To Own Its Energy Future
There’s no question: lithium demand is poised to rocket. To keep up, the world economy needs a “Manhattan Project” of mine construction.
China is rapidly buying up what little supply exists.
Lithium prices have spiked as high as $71,315 per tonne.[60] They’re still sitting at prices that would’ve been historic highs prior to 2022.
Even the tiniest supply crunch could launch lithium back into the stratosphere.
Yet the good news is…
There is no shortage of lithium on the planet.
The problem is getting lithium out of the ground. Fortunately, lithium-rich deposits are found at the U.S.’s back door in the “Lithium Triangle” in South America.
That’s where Alpha Lithium (APHLF) comes in.
The triangle spans the borders of Argentina, Bolivia, and Chile and contains 67% of the world’s lithium resources.[61]
According to the U.S. Geological Survey, Argentina contains a staggering 19.3 million tons of proven lithium. That doesn’t even include all of the assets that are currently in exploration.
“Argentina is now on the forefront of a global scramble for lithium.”[62]
Thanks to favorable mining regulations, Argentina is the fastest-growing player in the region.
Lithium supply from Argentina is expected to grow a whopping 10 TIMES by 2037.[63]
This is the last, best hope for America’s green energy future.
Alpha Lithium (APHLF) could be perfectly positioned to capitalize on it.
That’s why I’m so excited about this story.
Meet The #1 Play In Argentina’s Lithium Triangle
Most people have never heard of this region. It’s largely uninhabited.
You can think of it like the Saudi Arabia of lithium.
Beneath the remote salt flats of Argentina (known as salars), experts claim this area contains the world’s third-largest reserves of “white gold.”
“Salta province [in Argentina] has the most lithium projects in the pipeline. It could produce 200,000 metric tonnes of lithium carbonate equivalent annually by 2025.”
– Salta’s Secretary of Mining and Energy, Flavia Royon
These salt flats of Argentina are ideal for mining lithium.
They’re literally in the middle of nowhere, high in the Argentinian mountains with little to no environmental concerns.
That could mean faster, easier and cheaper permitting.
Lithium is brought to the surface through drilling, like you would for oil.
It’s pumped into large brine pools, where the moisture evaporates in the hot Argentinian sun – leaving behind tons of light white lithium.
Alpha Lithium (APHLF) has planted itself smack dab in Argentina with two properties surrounded by multi-billion dollar lithium producers and established infrastructure.
Major lithium producers are already onsite, uncovering millions of tons of untapped lithium in these underground brine reserves.
And this upstart junior has 80,000 acres of prime lithium-rich land.
Their lithium triangle projects are so valuable, the company is now the target of a hostile takeover attempt.[64]
Top Reasons To Pay Attention To Alpha Lithium (APHLF)
-
Reason #1: 230 Million EVs by 2030
Lithium demand is driven by a global move to electric vehicles (EVs) and is expected to soar from US $7 Billion in 2022 to US $22.6 Billion by 2030.[65]Over 40 automakers are making EVs today, and the International Energy Agency (IEA) predicts 230 million new EVs could be on the road by 2030.[66]
-
Reason #2: We Need 74 New Lithium Mines By 2035
The world will need 4.5 million tons of lithium by 2030 to power the future. Lithium production is expected to reach only 1.5 million tons by the end of the decade.[67]To meet skyrocketing demand, Benchmark Mineral Intelligence estimates 74 NEW lithium mines with an average output of 45,000 tonnes are needed by 2035.[68]
That’s nearly 7 new operational mines every year! -
Reason #3: In The Heart Of The Lithium Triangle
Alpha’s neighbors are multi-billion lithium giants, such as Livent and POSCO, who have been mining or exploring lithium in this spot for years.With its friendly mining regulations and millions tonnes of lithium deposits, Argentina is on the “forefront of a global scramble for Lithium”,[69] according to TIME magazine.
-
Reason #4: A Massive De-Risked Land Package
Alpha Lithium has a 68,000 acre de-risked lithium asset in its Tollilar salar property, part of its 80,000 acres of Argentinian holdings.The company also has the second-largest position in the Salta province of Hombre Muerto, second only to multi-billion mining giant Posco. And Alpha continues to pursue additional land in this province.[70]
Hombre Muerto is considered one of the best and most coveted lithium brine salars on the planet.
-
Reason #5: Multi-Million Tons in Estimated Lithium Deposits
Tolillar’s resource estimates are a jaw-dropping 3,626,000 tonnes of indicated and 1,393,000 tonnes of inferred lithium.[71]
-
Reason #6: Infrastructure in Place
Lithium production has taken place in Argentina’s Hombre Muerto salar for more than two decades. As such, extensive infrastructure already exists.This alone could save Alpha Lithium millions of dollars and speed up lithium production and delivery by a decade or more.
-
Reason #7: Hostile Takeover Attempt Highlights Value
As of June 8th, 2023 - Tecpetrol has launched an unsolicited hostile takeover attempt of Alpha Lithium at a price of $1.24 per share.[72]Management is recommending a “NO” vote on the stink bid.[73]
CEO Nichols and his team assess the value of Alpha’s assets, including both the Tollilar and Hombre Muerto projects, dramatically exceeds the bid price.[74]
-
Reason #8: Backed By A Lithium Legend
Kyle Stevenson is Alpha Lithium’s largest shareholder and the former CEO of Millenium Lithium. He sold his last company for $CAD 491 million.[75]He’s placed a $14.9 million bet on the company and its prospects in Argentina, and is refusing to tender his shares to Tecpetrol.
-
Reason #9: Game-Changing DLE Technology
New technology such as Direct Lithium Extraction (DLE) promises to be a faster and more efficient way to extract lithium.Alpha Lithium is in the forefront of scaling this technology.
Its new pilot plant will take DLE from the lab into the field. DLE projects in the Lithium Triangle could quickly dominate the global market.[76]
-
Reason #10: Professional and Focused Management Team
Headed by CEO Brad Nichol, Alpha’s industry professionals have decades of experience in mining, exploration and capital markets.In-country manager, David Guerrero, is on-site in Argentina to keep a close eye on operations. David has $280 million in M&A experience in the lithium space.[77]
One Of The Last Undeveloped Salars In The Heart Of Argentinian Lithium Country
With $16 Billion Neighbors Next Door
Alpha Lithium (APHLF) has amassed 80,000 acres of exploration territory in the heart of the Argentine corner of the lithium triangle.
Their first major project is Salar Tollilar.
68,000 acres nestled right next to projects from[78]:
Livent – $5.8 Billion Market Cap
Allkem – $8.85 Billion Market Cap
Posco – $16.19 Billion Market Cap
Alpha has 100% ownership of the Tolillar Salar, one of the last remaining undeveloped salars in Salta Province, Argentina.[79]
Alpha Lithium wasted no time in getting to work in Tollilar.
Since initiating the first steps of an exploration program in 2020, Alpha Lithium has drilled more than 20 wellbores in Tolillar Salar.[80]
They’ve constructed an in-house brine chemistry research laboratory, developed a proprietary Lithium Carbonate production process.[81]
They’ve also begun construction of a pilot plant.[82]
Brad Nichol, Alpha’s President and CEO is proud to say, “Visitors to Tollilar Salar last year would not recognize it today.
With five drilling rigs operating for the last several months, we now have twenty-four wells drilled on the northern part of the property.[83]
Eagle-eyed investors have taken notice since Alpha Lithium (APHLF) went public. It’s share price is up +2.5X from August 2021 to July of 2023.[84]
And they’ve just released some of their biggest news of the year…
Will This 70% Resource Increase Make Tollilar An Acquisition Target?
On July 17th, Alpha Lithium reported a major revision to their indicated and inferred resources in the Tolillar Salar in Salta, Argentina.[85]
The updated resource estimate includes 3,626,000 tonnes of indicated and 1,393,000 tonnes of inferred lithium carbonate equivalents.[86]
That’s a stunning 70% increase to the “indicated resource” category and a 20% increase to the “inferred resource” category.
Nichol commented, “a 70% increase in the indicated resources of Tolillar clearly demonstrates the very high quality of this resource.”
According to him, “comparable assets in close proximity to Tolillar have been sold at an average of US$163 per tonne of measured and indicated resources.”[87]
“We are pleased to have seen significant interest from multinational parties in our strategic review process.”
At $163 per tonne, that’s a $591 million resource.
Today Alpha Lithium (APHLF) has a market cap of just $195 million.
Analysts anticipate it could make the Tollilar asset a prime acquisition target for any of the lithium majors operating in the region.
It’s also a key reason why Tecpetrol is so eager to snag it in their hostile takeover, valuing the project at mere pennies on the dollar.
And Tollilar might not even be Alpha Lithium’s (APHLF) best asset.
I’m talking about Hombre Muerto.
The Jewel Of The Lithium Triangle
Hombre Muerto is considered one of the best and most coveted lithium brine salars not only in Argentina… but also globally.
It’s also recognized as having world-class lithium brine quality and purity, which makes mine economics highly attractive.
That’s because of the high concentrations of lithium and significantly low concentrations of impurities at shallow depths.
Thanks to its unique chemistry and location, Hombre Muerto is ideal for the production of high-quality, battery-grade lithium.
This is exactly what Tesla, GM, Ford and other automakers need to power their clean, green EVs to meet soaring demand.
Hombre Muerto is also Argentina’s longest lithium-producing operation.[88]
Alpha Lithium (APHLF) is sitting on over 12,000 acres in the heart of this prime lithium territory and says they’re shopping for more.[89]
Fifty-six recent detailed Vertical Electrical Sounding (VES) surveys reveal significant underground brine presence on their property.[90]
Expected lithium grades range up to 1,200 mg/L of significant high-purity brine.[91]
As with Tollilar, Alpha Lithium’s Hombre Muerto project borders many of the largest and longest-producing lithium mining companies in Argentina.[92]
Those include Livent Corp with a market cap of $4.9 billion as of June 2023[93], Allkem Ltd with $10.4 billion and Posco with its impressive $25.3 billion[94] market cap.
Those are all attractive comparables for APHLF.
Plus, these mining operators have a 25 year production history in the area.
Hombre Muerto already has extensive infrastructure such as roads, rail lines, a massive natural gas pipeline, and airstrips to get equipment in and lithium out.
This is a huge cost savings.
CEO Brad Nichol was very enthusiastic about Alpha Lithium’s prospects in Hombre Muerto.
“The Hombre Muerto salar is world-famous for its extremely high lithium concentrations, very low levels of impurities, and high flow rates from production wells.
We are fortunate the Alpha team has assembled assets in this highly prospective basin, during a time of unprecedented competition for lithium assets in Argentina.”[95]
Millions of Tonnes of Undiscovered Lithium Deposits?
How much lithium could exist in Alpha Lithium’s (APHLF) Hombre Muerto salar?
The company filed its NI 43-101 Independent Technical Report, outlining what could be a very promising drill program.[96]
These findings are also comparable to the other billion-dollar mining companies in the area! As Nichol acknowledges:
“With proven existence of lithium deposits in Hombre Muerto, this drastically reduces Alpha Lithium’s exploration risk.”
Alpha Lithium moved fast in Tollilar. They’re moving even faster in Hombre Muerto. They’ve already received drilling licenses for 12 wells and are busy preparing drill sites.[97]
CEO Nichol outlined his drilling plans, “We’re going to drill in Hombre Muerto over the next twelve to 18 months.
We’ll have a resource estimate within the year, and I believe the results will blow Tollilar out of the water.
And even those estimates could be conservative as Alpha Lithium’s new tech investments begin to pay off.
New Technology Set To Revolutionize The Economics Of Lithium Extraction
Remember how fracking turned the U.S. into an oil & gas superpower overnight? Sparking a “black gold rush” in tiny rust belt towns across America?
The same thing is about to happen for lithium.
Alpha Lithium (APHLF) is at the forefront of this new technology.
It’s called Direct Lithium Extraction, or DLE for short.
As we speak, it’s about to burst on the scene and reduce lithium production time from 18 months to one week.[98]
Go back and read that again.
We’re talking 77x faster than how it’s done currently.
DLE promises to revolutionize the way lithium is produced for EV batteries. Energy Secretary, Jennifer Granholm, calls this new technology a “game-changer!”[99]
Today, lithium is extracted from huge brine pools through evaporation – a long and tedious process that can take up to two years. [100]
Plus, only half of the lithium is currently extracted from the brine. DLE could speed up the extraction to mere weeks and increase efficiency to 90%![101]
How?
DLE technologies extract the white metal from brine using filters, membranes, ceramic beads or other equipment that can typically be housed in a small warehouse.[102]
It also reduces the environmental footprint of the huge evaporation pools used to produce lithium.[103] That potentially saves time and capital on permitting.
This Technology Isn’t Hypothetical
It’s Already Live In The Field
Alpha Lithium Is An Early Adopter
For instance, Livent uses a hybrid model of evaporation and DLE.
If you’ll recall, their property is right next door to Alpha Lithium’s Tollilar project.
Starting in 2024, investors should expect to see wide scale use of DLE and Alpha Lithium (APHLF) is at the forefront of DLE technology.[104]
Imagine being early to fracking.
That’s how Alpha Lithium is positioned with DLE. They’re nearing completion of a pilot plant capable of processing 120 tonnes of high-quality lithium.[105]
The objective of the pilot plant is to demonstrate Alpha’s promising laboratory DLE results can be scaled up and maintained under salar conditions.[106]
Testing has already begun.
Now is the time for investors to consider the opportunities presented by DLE technology in the Lithium Triangle, specifically in Argentina.
I believe once you do your research and discover the facts for yourself, Alpha Lithium (APHLF), could be a worthwhile choice.
The Smart Play Is To Look Into Alpha Lithium (APHLF) Now — Before The Looming Demand Crisis Starts*
I believe Alpha Lithium (APHLF)’s stock is currently undervalued given their potential — but that situation likely won’t last much longer*, especially with their most recent company news.
Do your research on Alpha Lithium (APHLF) and make sure to show this opportunity to your investment advisor or broker.
I fully expect they will love this great high-potential story; however, a word of caution is in order.
Most companies with great stories and unlimited upsides are young and can carry a significant amount of risk.
That’s why I urge you to always observe my three rules for accepting microcap investing risk:
Risk Reduction Rule #1: Never invest more than I can afford to lose.
Risk Reduction Rule #2: Do not chase losses. That means if prices slide I resist all temptation to “average down.”
Risk Reduction Rule #3: I don’t put all of my dreams on one microcap. Allocate your risk capital among a handful of stocks.
With that in mind, I stand by my analysis that forecasts Alpha Lithium (APHLF) as having a potentially huge upside.*
– James Hyerczyk | EdgeOnTheStreet.com
Brad Nichol
President & CEO, Director, P. Eng., MBA
Throughout his +25-year career he has served as both senior executive and director of a number of public and private enterprises across the finance and resource sectors.
He has led successive organizations through multiple rounds of private and public project financings, initiated and executed dual listings.
Nichol also established key international and domestic financial relations, oversaw M&A, technical, operational, HR, investor relations, legal and regulatory functions.
More importantly, he has a long track record of closing several accretive asset acquisitions and financings in multiple jurisdictions.
Mr. Nichol earned his MBA at the London Business School (Honors 2003) and also holds a BSc. in Mechanical Engineering from the University of Alberta.
He’s been a registered Professional Engineer since 1994.
Nathan Steinke
Chief Financial Officer
Mr. Steinke is a well-respected finance professional with over 15 years of experience for both public and private companies in the international resource sector.
Since 2003, Mr. Steinke’s responsibilities have comprised all financial aspects of companies. There isn’t any class of major transaction he isn’t intimately familiar with.
David Guerrero
Country Manager
Mr. Guerrero brings 20 year’s worth of international experience in the mining industry, with 12 of them in lithium.
He has held various roles with mining major Rio Tinto as well as senior management positions with Canadian Lithium 1 and was the president of Galaxy Resources (now Alkem).
At Galaxy he played a key role in a recent USD $280 million M&A transaction with giant Korean steelmaker POSCO for mineral resources at Hombre Muerto.
P.S. Still want more information on Alpha Lithium (APHLF)?
I’d like to offer you access to Alpha Lithium’s Investor Presentation, which you can have at no charge.I’ll also begin a free subscription for you to our online investor newsletter, Edge On The Street.
Sign up below to learn about this investment opportunity.
By signing up above you will receive the Edge on the Street newsletter and 3rd party advertisements. Expect up to 5 messages per week from us. You can unsubscribe at any time at the bottom of any of our emails.
ADVERTISEMENT DISCLAIMER
To more fully understand the Edge on The Street website or service, please review its full Disclaimer and Disclosure Policy.
* See our Important Notice and Disclaimer above for a detailed discussion on compensation, risks, atypical results, and more.
[1] https://electrek.co/2022/06/26/exxon-no-new-gas-cars-by-2040-wolf-in-sheeps-clothing-co2/
[2] https://www.weforum.org/agenda/2022/07/electric-vehicles-world-enough-lithium-resources/
[3] https://www.emergingtechbrew.com/stories/2023/02/16/a-by-the-numbers-look-at-lithium-a-key-commodity-for-automakers
[4] https://alphalithium.com/alpha-lithium-significantly-increases-resource-at-tolillar-salar-argentina/
[5] https://alphalithium.com/alpha-lithium-comments-on-shareholder-support/
[6] https://alphalithium.com/alpha-lithium-comments-on-unsolicited-and-non-binding-acquisition-proposal/
[7] https://www.protectalphalithium.com/
[8] https://alphalithium.com/alpha-lithium-files-directors-circular-recommending-shareholders-reject-tecpetrols-hostile-stink-bid/
[9] https://alphalithium.com/alpha-lithium-comments-on-shareholder-support/
[10] https://alphalithium.com/alpha-lithium-comments-on-shareholder-support/
[11] https://alphalithium.com/alpha-lithium-comments-on-shareholder-support/
[12] https://alphalithium.com/alpha-lithium-comments-on-shareholder-support/
[13] https://www.emergingtechbrew.com/stories/2023/02/16/a-by-the-numbers-look-at-lithium-a-key-commodity-for-automakers
[14] Since 2015, the EV global market has grown at a staggering rate of 50% a year.
[15] https://www.roadandtrack.com/news/a42732700/automakers-pledge-to-go-all-in-on-evs-but-the-numbers-arent-adding-up/
[16]https://www.prnewswire.com/news-releases/gm-and-lithium-americas-to-develop-us-sourced-lithium-production-through-650-million-equity-investment-and-supply-agreement-301734300.html
[17] https://www.motortrend.com/features/electric-car-future-not-simple-or-cheap/
[18] https://energy5.com/new-study-shows-71-of-drivers-are-interested-in-buying-an-electric-car
[19] https://www.emergingtechbrew.com/stories/2023/02/16/a-by-the-numbers-look-at-lithium-a-key-commodity-for-automakers
[20] https://www.weforum.org/agenda/2022/07/electric-vehicles-world-enough-lithium-resources/
[21] https://cleantechnica.com/2023/04/27/us-electric-vehicle-sales-up-66-in-1st-quarter/
[22] https://www.iea.org/news/demand-for-electric-cars-is-booming-with-sales-expected-to-leap-35-this-year-after-a-record-breaking-2022
[23] https://energyx.com/blog/where-do-electric-vehicle-ev-batteries-come-from/#:~:text=A%20typical%20EV%20battery%20(NMC532,(30%20lbs)%20of%20cobalt.
[24] https://blog.evbox.com/ev-battery-weight#:~:text=A%20typical%20EV%20battery%20has,(138%20pounds)%20of%20lithium.
[25] Average between 17.5 and 138 = 77.75, 77.75 x 14,000,000 = 1.08B
[26] https://www.globenewswire.com/en/news-release/2023/02/27/2616006/0/en/EVs-Market-Projected-to-Reach-USD-957-06-Billion-at-a-24-50-CAGR-by-2030-Report-by-Market-Research-Future-MRFR.html
[27] https://www.globenewswire.com/en/news-release/2023/02/27/2616006/0/en/EVs-Market-Projected-to-Reach-USD-957-06-Billion-at-a-24-50-CAGR-by-2030-Report-by-Market-Research-Future-MRFR.html
[28] https://www.wri.org/insights/what-projected-growth-electric-vehicles-adoption?_gl=1*1sr6559*_up*MQ..&gclid=Cj0KCQjw7uSkBhDGARIsAMCZNJvLPePgLfzx2NqvXkLSGMkHklXprvJbxGYuQ9QjslNRJQfo0nURoXgaAj55EALw_wcB
[29] https://www.statista.com/statistics/199983/us-vehicle-sales-since-1951/
[30] 13,750,000 x 77.75 (average lithium battery and Tesla Model S average) = 1.06B
[31] https://www.fuelsandlubes.com/iea-expects-sales-of-evs-to-reach-14-million-units-in-2023/
[32] https://www.zippia.com/advice/us-smartphone-industry-statistics/
[33] https://www.tomshardware.com/news/over-1-million-pcs-sold-every-day#:~:text=Despite%20the%20massive%20ongoing%20semiconductor,currently%20being%20sold%20every%20day
[34] https://www.insiderintelligence.com/insights/drone-industry-analysis-market-trends-growth-forecasts/
[35] https://climatechampions.unfccc.int/whats-the-cost-of-net-zero-2/
[36] https://about.bnef.com/blog/global-net-zero-will-require-21-trillion-investment-in-power-grids/
[37] https://www.eia.gov/todayinenergy/detail.php?id=51698
[38] https://www.nrel.gov/news/features/2020/declining-renewable-costs-drive-focus-on-energy-storage.html
[39] https://www.iea.org/reports/grid-scale-storage
[40] https://www.iea.org/reports/grid-scale-storage
[41] https://www.michigancapitolconfidential.com/washington/granholm-envisions-all-ev-military-by-2030
[42] https://www.marketwatch.com/press-release/military-battery-market-2023-expected-to-witness-the-highest-revenue-growth-over-forecast-to-2030-2023-06-19?mod=search_headline
[43] https://www.epsilor.com/blog24082017/
[44] https://wusfnews.wusf.usf.edu/transportation/2023-04-15/the-military-is-converting-to-electric-vehicles-on-bases-but-charging-them-remains-a-challenge
[45] https://www.michigancapitolconfidential.com/washington/granholm-envisions-all-ev-military-by-2030
[46] https://www.americanmanufacturing.org/blog/report-says-u-s-military-dangerously-dependent-on-foreign-suppliers/
[47] https://www.americanmanufacturing.org/blog/report-says-u-s-military-dangerously-dependent-on-foreign-suppliers/
[48] https://www.iea.org/policies/15271-final-list-of-critical-minerals-2022
[49] https://www.emergingtechbrew.com/stories/2023/02/16/a-by-the-numbers-look-at-lithium-a-key-commodity-for-automakers
[50] https://www.weforum.org/agenda/2022/07/electric-vehicles-world-enough-lithium-resources/
[51] https://www.reuters.com/business/energy/shortages-flagged-ev-materials-lithium-cobalt-2021-07-01/
[52] https://www.emergingtechbrew.com/stories/2023/02/16/a-by-the-numbers-look-at-lithium-a-key-commodity-for-automakers
[53] https://www.nasdaq.com/articles/how-china-is-transforming-the-global-lithium-industry
[54] https://www.visualcapitalist.com/chinas-dominance-in-battery-manufacturing/
[55] https://finance.yahoo.com/news/china-lithium-carbonate-import-industry-172300680.html#:~:text=In%202021%2C%20China%20imported%2081%2C000,%245.05%20billion%2C%20up%201404.3%25
[56] https://www.bnamericas.com/en/news/chinas-ganfeng-seals-us960mn-lithium-deal-in-argentina, https://www.afr.com/chanticleer/cautious-rio-tinto-bets-on-china-s-strength-and-lithium-20220727-p5b551, https://www.wsj.com/articles/rio-tinto-forges-deal-with-chinafor-2-billion-iron-ore-mine-11663147665, https://www.theguardian.com/business/2009/jun/04/rio-tinto-chinalco-investment, https:// www.google.com/search?q=How+much+of+lithium+ americas+is+owned+by+CHina&rlz=1C1CHBF_enUS759US759&sxsrf=ALiCzsb TXJMshKDf-GtcvLe7a4VCc2n7ew%3A1665171422470&ei=3n9AY9qOHNWIptQP7 dSl4A4&ved=0ahUKEwja9YD57s76AhVVhIkEHW 1qCewQ4dUDCA4&oq=How+much+of+lithium+ americas+is+owned+by+CHina&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQDDIFCAA QogQyBQgAEKIEMgUIABC iBDIFCAAQogQ6 CggAEEcQ1gQQsAM6BAghEApKBAhBGA BKBAhGGAB QsBNY3qIBYL2xAWgCcAF4A IABdYgBgwiSAQM4LjOYAQCgAQHIAQjAAQE&sclient=gws-wiz-serp, https://www.spglobal.com/marketintelligence/en/news-insights/ trending/v9z-oxbimxb3ycolaum61w2, https://www.globenewswire.com/news-release/2019/01/15/1691509/0/en/LSC-Lithium-EntersInto-Definitive-Arrangement-Agreement-to-be-Acquired-by-Pluspetrol.html
[57] https://alphalithium.com/wp-content/uploads/2023/05/alpha-lithium-market-comparables-v01.pdf
[58] https://indianexpress.com/article/explained/lithium-inferred-in-jk-how-significant-is-this-find-what-next-8437757/#:~:text=The%20%E2%80%9Cinferred%E2%80%9D%20mineral%20resource%20is,quality%2C%20and%20also%20of%20lower
[59] https://www.bloomberg.com/news/articles/2023-03-13/china-could-control-a-third-of-the-world-s-lithium-by-2025
60] https://finance.yahoo.com/news/lithium-prices-hit-record-high-131601067.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAD3IM0AkDLGrJEh261v2wW6Lbwg4yVycEdKyXpeOHfNKJvMzerk3lmbUMtKjPOKAVWTCc0j8zMhhNGSaXysuvKKI1XqURUoOKLxl9vgH-TVZgPlBwnkiSEMTomwRsCg5JTooqclRxqOk32M4S9HKEIGD95yM3hvQ-0QszPJ6AEoi
[61] https://www.iadb.org/en/improvinglives/lithium-white-gold-regions-development#:~:text=Argentina%2C%20Bolivia%20and%20Chile%20make,to%20the%20U.S.%20Geological%20Survey
[62] https://time.com/6200372/lithium-mining-technology-argentina-gold/
[63] Page 7 of https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
[64] https://alphalithium.com/alpha-lithium-files-directors-circular-recommending-shareholders-reject-tecpetrols-hostile-stink-bid/
[65] https://www.globenewswire.com/news-release/2023/03/08/2623219/0/en/Global-Lithium-Market-to-Reach-22-6-Billion-by-2030.html
[66] https://www.iea.org/reports/global-ev-outlook-2021
[67] https://www.emergingtechbrew.com/stories/2023/02/16/a-by-the-numbers-look-at-lithium-a-key-commodity-for-automakers
[68] https://www.emergingtechbrew.com/stories/2023/02/16/a-by-the-numbers-look-at-lithium-a-key-commodity-for-automakers
[69] https://time.com/6200372/lithium-mining-technology-argentina-gold/
[70] https://alphalithium.com/alpha-lithium-files-technical-report-for-highly-prospective-hombre-muerto-project-in-argentina/
[71] https://alphalithium.com/alpha-lithium-significantly-increases-resource-at-tolillar-salar-argentina/
[72] https://alphalithium.com/alpha-lithium-advises-shareholders-to-take-no-action-on-tecpetrols-significantly-undervalued-takeover-bid/
[73] https://alphalithium.com/alpha-lithium-advises-shareholders-to-take-no-action-on-tecpetrols-significantly-undervalued-takeover-bid/
[74] https://alphalithium.com/alpha-lithium-advises-shareholders-to-take-no-action-on-tecpetrols-significantly-undervalued-takeover-bid/
[75] https://alphalithium.com/alpha-lithium-comments-on-shareholder-support/
[76] https://alphalithium.com/alpha-lithium-nears-completion-of-pilot-plant-at-tolillar-salar-argentina/
[77] https://alphalithium.com/our-company/
[78] Companies taken from page 4 of AL Corporate Presentation Q22023
[79] https://alphalithium.com/our-company/
[80] https://alphalithium.com/alpha-lithium-nears-completion-of-pilot-plant-at-tolillar-salar-argentina/
[81] https://alphalithium.com/alpha-lithium-nears-completion-of-pilot-plant-at-tolillar-salar-argentina/
[82] https://alphalithium.com/alpha-lithium-nears-completion-of-pilot-plant-at-tolillar-salar-argentina/
[83] https://alphalithium.com/alpha-lithium-nears-completion-of-pilot-plant-at-tolillar-salar-argentina/
[84] APHLF?p=APHLF”>https://finance.yahoo.com/quote/APHLF?p=APHLF Share price of .40 8/1/20 to $1.07 7/16/23
[85] https://alphalithium.com/alpha-lithium-significantly-increases-resource-at-tolillar-salar-argentina/
[86] https://alphalithium.com/alpha-lithium-significantly-increases-resource-at-tolillar-salar-argentina/
[87] https://alphalithium.com/alpha-lithium-significantly-increases-resource-at-tolillar-salar-argentina/
[88] https://alphalithium.com/alpha-lithium-granted-drilling-licenses-for-hombre-muerto-salar-in-argentina/
[89] https://alphalithium.com/alpha-lithium-files-technical-report-for-highly-prospective-hombre-muerto-project-in-argentina/
[90] Page 15 of AL Corporate Presentation Q22023 https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
[91] Page 15 of AL Corporate Presentation Q22023 https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
[92] Companies taken from page 4 of AL Corporate Presentation Q22023
[93] https://www.google.com/search?q=Livent+Cap+market+cap&oq=Livent+Cap+market+cap&aqs=chrome..69i57j0i546l4.671777439j0j15&sourceid=chrome&ie=UTF-8
[94] https://www.google.com/search?q=posco+market+cap&ei=TiGTZIXiD7ag5NoP77mN4A4&oq=POSCP+market+cap&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQARgAMgcIABANEIAEMgcIABANEIAEMgYIABAeEA0yBggAEB4QDTIICAAQCBAeEA0yCAgAEAgQHhANMggIABAIEB4QDTIICAAQCBAeEA0yCAgAEAgQHhANMggIABAIEB4QDToKCAAQRxDWBBCwAzoGCAAQBxAeOggIABCKBRCGA0oECEEYAFDQH1idKWCbQWgCcAF4AIABbYgByQOSAQM0LjGYAQCgAQHAAQHIAQg&sclient=gws-wiz-serp
[90] https://alphalithium.com/alpha-lithium-files-technical-report-for-highly-prospective-hombre-muerto-project-in-argentina/https://alphalithium.com/alpha-lithium-files-technical-report-for-highly-prospective-hombre-muerto-project-in-argentina/
[91] https://alphalithium.com/alpha-lithium-files-preliminary-economic-assessment-for-tolillar-salar-argentina/
[92] Opinion based on Tollilar’s NI 43-101 estimate indicating 2,119,000 tonnes of indicated, and 1,158,000 tonnes of inferred lithium
[93] Page 16 of Alpha Lithium’s Corporate Presentation https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
[94] https://seekingalpha.com/article/4595507-who-is-leading-race-achieve-successful-direct-lithium-extraction-dle?utm_campaign=%7Clogin_now_link&utm_medium=email&utm_source=seeking_alpha
[95] https://ca.finance.yahoo.com/news/lithium-gold-rush-2-0-134200159.html
[96] https://seekingalpha.com/article/4595507-who-is-leading-race-achieve-successful-direct-lithium-extraction-dle?utm_campaign=%7Clogin_now_link&utm_medium=email&utm_source=seeking_alpha
[97] https://seekingalpha.com/article/4595507-who-is-leading-race-achieve-successful-direct-lithium-extraction-dle?utm_campaign=%7Clogin_now_link&utm_medium=email&utm_source=seeking_alpha
[98] https://jpt.spe.org/direct-lithium-extraction-a-21st-century-dot-com-boom-or-bust
[99] https://jpt.spe.org/direct-lithium-extraction-a-21st-century-dot-com-boom-or-bust
[100] https://seekingalpha.com/article/4595507-who-is-leading-race-achieve-successful-direct-lithium-extraction-dle?utm_campaign=%7Clogin_now_link&utm_medium=email&utm_source=seeking_alpha
[101] https://alphalithium.com/alpha-lithium-nears-completion-of-pilot-plant-at-tolillar-salar-argentina/
[102] https://alphalithium.com/alpha-lithium-nears-completion-of-pilot-plant-at-tolillar-salar-argentina/
https://alphalithium.com/alpha-lithium-files-technical-report-for-highly-prospective-hombre-muerto-project-in-argentina/