China's Lithium Monopoly Gets Bad News

Written By Alex Koyfman

Posted August 30, 2023

Dear Reader,

How do you solve the world’s lithium demand problem, end the Chinese grip on rechargeable battery production, and provide North American electric vehicle-makers with a nearly inexhaustible source of lithium, all at the same time?

Well, believe it or not, right now our best chance for a solution to all three problems lies dormant on a fossil fuel property in northwestern Alberta, Canada. 

It’s there, dissolved in over 1,300 brine ponds, that more than 4.3 million tons of lithium sits waiting, ready to be separated from the solution. 

The problem, up until now, was that there was no economically viable way to do that. 

It took a group of petrochemical engineers and scientists to start a company with the sole purpose of unlocking the secret to doing just that.

As of earlier this year, they have succeeded.

Today this newly formed technology company has in its hands a method to filtrate the solution and remove the precious lithium at a cost of just $4,000 per ton. 

One Proprietary Process Just Opened the Door to a $322 Billion Resource

With lithium currently trading at $70,000 and higher, this company has effectively created a money machine that mints up to $67,000 per ton processed. 

But here’s why this outfit is unlike any lithium production operation you’ve ever heard of. 

On average, it takes a lithium miner 10 years from discovery to end-product commercialization. 

In between, there needs to be drilling, assaying, mining, and refining.  

MI Black Lithium Image 4

It takes two years alone just for the lithium evaporation pools to dry up, leaving behind the concentrated lithium precipitate.

And none of that can even begin until exploration has actually found the resource — a step that all by itself can take years, even decades.

Lithium Shortages Are Here… But Where Is the New Production?

Right now we're nowhere near keeping up with exploding lithium demand.

With this new technology, that exploration phase, plus the decade of preparations that follows, are all erased, replaced by a simple, straightforward process that only takes two months, start to finish. 

Here’s a diagram of how it works:

MI Black Lithium Image 18

There’s no searching, no drilling, no geological surveys. 

The company simply pumps the brine through its facility — brine whose lithium concentration has already been confirmed and measured — and finished lithium is extracted, ready for shipment. 

At the moment, there is only one company in all of North America that is processing oil field brine in such a manner. 

By this time next year, it plans to be producing at a rate of 1,000 tons per year. 

From $20 Million, to $250 Million, to $4 Billion… in Just 3 Years

In the next two–three years, that production will scale up to 20,000 tons per year — representing over $1.4 billion in annual profits. 

Right now, this company — whose stock is already trading actively on two North American exchanges — has a market capitalization of just $20 million. 

Are you starting to see the incongruity yet?

Applying the standard 3x multiplier, we’re looking at a potential market capitalization of over $4 billion within the next 24–36 months. 

That’s 200 times the value of the company today.

Sounds pretty hard to believe, right?

I thought so too when I first picked up the phone to talk to the CEO.

What I learned was simply stunning… and after that call, I put the most eye-opening report of my career through production. 

It explains, in detail, the story of how this startup-stage firm, just a couple years old, is poised to go into commercial production in 12 short months. 

At $0.20 per share, this company might just be the most undervalued stock trading anywhere in the world today. 

By mid-2024, it could easily be trading at 10 times that price. 

Learn everything you can about this opportunity now, before the mainstream financial press gets its hands around this story.

Fortune favors the bold,

alex koyfman Signature

Alex Koyfman

follow basicCheck us out on YouTube!

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.

Angel Publishing Investor Club Discord - Chat Now

Alex Koyfman Premium

Advanced