How China Lost the Lithium Battle to a $25M Tech Firm

Written By Alex Koyfman

Posted October 3, 2023

Dear Reader,

For three decades, the Chinese Communist Party has been developing a secret weapon.

Unlike stealth technology, guided missiles, spy satellites, and next-generation submarines, this is a technology that the West has put very little into in terms of investment. 

Quietly, but also in plain view, the CCP — which has ruled over the world’s only other superpower since 1949 — has gradually developed a near monopoly on this technology and, without firing a single shot, has taken the entire world hostage. 

It all started as far back as the late '80s, during the Xiaoping era.

deng

I’m talking not about the kind of weapon that goes boom but something far, far more sinister…

I’m talking about a resource. 

Three decades later, Deng Xiaoping's predictions are coming true. 

This resource, the metal that sits on the periodic table between hydrogen and sodium, is now the single most important commodity known to man. Everything we rely on in our day-to-day lives, from public transportation all the way down to the devices you use to send and receive information, absolutely depends on this metal to function.

Want a Look at China's Most Dangerous Weapon? Reach Into Your Pocket

I’m talking about lithium — the principal material inside the vast majority of rechargeable batteries on the market today.

When it comes to lithium, the Chinese absolutely own the vertical, from mining exploration all the way up to battery production. 

They’ve bought up lithium mines in South America, they’ve invested billions in processing and refinement, and they’ve built the world’s biggest battery producers. 

The efforts of the CCP have been so overwhelming and so thorough that even our own electric vehicle producers — including the biggest one of them all, Tesla (NASDAQ: TSLA)  are completely reliant on Chinese suppliers to keep things running. 

That’s what three decades of planning and execution gets you, and it should come as no surprise that the Chinese were the ones to do it. 

They knew full well that competing against the U.S. militarily and diplomatically was futile, so they worked around our unparalleled defense budgets and won the war of supply and demand.

Today, their plan is approaching the endgame. 

There is no dishonor in admitting that this was a genius move on the part of Beijing’s ringleaders. 

Why Go to War When Your Enemy Is Already Your Slave?

Because, after all, why bother with military hostilities when you can turn your rival into a slave through the control and eventual denial of a resource he cannot live without. 

It took us some time to realize what was happening, and now there is a full-on campaign for lithium independence. 

Fiery rhetoric aside, it’s a campaign that both sides of our own political aisle fully support — and the fruits of these delayed efforts are starting to become apparent. 

You probably heard about the recent discovery at the McDermitt Caldera on the Oregon/Nevada border. 

mcdermitt

It could be the biggest lithium deposit ever discovered — big enough to double the known global lithium supply. 

The problem with these mega discoveries is that even when we know the lithium is there, getting to it takes about a decade. 

Drilling, assaying, mining, refining… It’s a lengthy, complicated, and very expensive process, and that doesn’t even take into consideration things like legal hurdles

The McDermitt Caldera project is already facing substantial political resistance from Native American groups, which claim the area as sacred ground. 

The entire future of this massive deposit is therefore in question. 

The Only Way to Win the Lithium Game… Is to Change the Rules

If we want to truly stand up to the Chinese, and pick away at the monumental advantage they’ve been building since the early '90s, something else needs to be done…

Something new, something radical. Something that can shift the paradigm in months, not years, and forever change a game that we simply didn’t bother playing in the first place. 

That something is now in the final stages of development at a small technology company headquartered in Calgary, Canada. 

This company isn’t a mining company. It doesn’t explore, drill, or process lithium in giant evaporation pools like every other lithium producer in the world. 

Instead, this company is the proprietor of a unique process that allows for the extraction of lithium from fracking brine. 

You read that correctly. Fracking brine, the solution that oil and gas companies use to squeeze fossil fuels from deep within the earth, has long been known to contain small concentrations of lithium metal. 

It accumulates there, through leaching, over years of usage. 

When the volume of brine in question is big enough, the lithium wealth within can be truly massive — I'm talking about millions upon millions of tons, just waiting to be grabbed.

Today, this company has an agreement with a private oil and gas producer to filter hundreds of brine pools on a 671-square-mile property in northwestern Alberta. 

Pools just like the one pictured below:

MI Black Lithium Image 2

Forget Lithium Mining — Lithium Extraction Technology Is the Answer

All told, this agreement gives this company access to 99 billion barrels of brine containing an estimated 4.3 million tons of lithium — enough to supply global demand all by itself for three years. 

The process is as brilliant as it is efficient. There is no exploration or mining necessary, as the lithium is already captured. 

Using this unique process, this company simply diverts the brine and filters it, and out comes some of the cleanest lithium available anywhere. 

MI Black Lithium Image 18

The entire process takes weeks, not years, and is highly scalable. It can literally be applied to most any oil-and-gas-bearing operation anywhere in the world. 

Like I said, this is a technology company, not a mining company, and the technology in question has the potential to shift the balance of power away from the Chinese. 

It's exactly the silver bullet we've been looking for, and it's arrived not a moment too soon.

I’ve been researching this company for months. I’ve spoken to the CEO on multiple occasions, and I have to say, this must be one of the most explosive investment opportunities I’ve ever seen. 

There is already a pilot plant in operation, and commercial production is expected to kick off in less than 12 months. Yet as of today, this company, with its hands on a technology potentially worth hundreds of billions if not trillions of dollars, trades at a market capitalization of just $25 million. 

The Best Lithium Pure Play Trading Today?

Starting to see the potential yet?

One year from now, if things go according to plan, this firm could easily be producing hundreds of millions of dollars' worth of lithium annually. 

Two years from now, that number will likely be in the billions… and that’s just the beginning. 

With so much to gain, major oil and gas producers will likely be lining up to license the technology to diversify their existing fossil fuel operations into lithium production. 

It’s a win-win for everyone involved — except, of course, the old men ruling over the growing Chinese empire. 

Want to learn more? I recently released a video that explains everything…

From the history, to the problem we face, to the solution, to the long-term potential. 

It’s eye-opening, to say the least, and if it doesn’t get you excited as an investor, I doubt anything will. 

For instant access to my presentation, enter here.

Fortune favors the bold,

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Alex Koyfman

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His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.

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