SPEYF gains momentum following successful production of lithium carbonate from lithium chloride
According to a recent article from Barrons, Benchmark lithium prices are up about 200% over the past 12 months and up roughly 12-fold compared with late 2020. Electric vehicles are the reason for the increases – demand of lithium-ion batteries that power EVs has nearly tripled since 2020. Demand is expected to double again between 2022 and 2024.
The Barrons article further states that the supply is scrambling to catch up will all that demand. The supply and demand change make calling long-term lithium prices difficult. Ultimately, commodities tend to move toward the marginal cost of production. Where on the globe that marginal—higher cost—lithium comes from, what the cost of production looks like, and when things normalize, however, is anyone’s guess.
One lithium mining company that we would like to draw your attention to is Spey Resources Corp. (CSE: SPEY) (OTC: SPEYF) (FRA: 2JS).
On October 28th, Spey Resources Corp (OTC:SPEYF) announced that the Chemical Engineering Department at the University of Melbourne, Australia has successfully produced lithium carbonate from lithium chloride extracted from the Company’s brines in Incahuasi Salar at the Candela II Project using the Ekosolve™ process. Spey has acquired the first Ekosolve production licence, which prioritizes the Company to be the first client to commission Ekosolve to complete the construction proposal, preliminary and plant engineering and manufacturing of the plant at Incahuasi. EkoSolve has issued seven other licences to date and will progressively commence engineering after Spey engineering is completed.
As per the press release, Phil Thomas, CEO of the Company, said “we are delighted to achieve these results. This not only proves the validity of the Ekosolve™ process for Incahuasi brines, but also the fast-processing time using columns. Ekosolve Ltd. is planning to build a 100 tonne mini plant in Salta and the Company is in active discussions with Ekosolve Ltd. regarding a potential joint venture opportunity.”
Is it time to buy the dip in SPEYF?
Let’s take a look at the 3-month chart on SPEYF. The stock prices have surged from 0.04-0.06 cents to all the way just shy of 30 cents suggesting increase interest from traders and investors in the company. SPEYF is currently trading at 17 cents and with all the recent development taking place at the company, SPEYF could pick up more steam.
Some of the recent press released by the company that we would like to draw your attention to are a) Commencement of the initial exploration on the Company’s four lithium projects located in the James Bay region of Quebec b) Approval of Company’s drill permits for Pocitos Salar projects 1 and 2 by the Ministerio de Produccion y Desarrollo Sustentable (Minister of Production and Sustainable Development). As mentioned in the Company’s press release dated October 6, 2022, the drill camp, internet, diesel tanks and geological offices have been constructed in the town of Pocitos.
In addition, SPEYF recently also announced the completion of the acquisition of 100% of the issued and outstanding share capital of Lithium Energy Metal Corporation from all of the former shareholders of LEM.
While Tesla sources the vast majority of its battery cells from suppliers, it actually sources a large part of the materials used to build those batteries directly from mines. There seems to be little to no doubt that lithium mining companies could take centerstage as demand for EV’s surge.
Other companies in Tesla’s space includes: XPeng (NYSE:XPEV), Phoenix Motor (NASDAQ:PEV), Fisker (NYSE:FSR), General Motors (NYSE:GM) and Ford Motor (NYSE:F).
Start your due diligence now on Spey Resources Corp. (CSE: SPEY) (OTC: SPEYF) (FRA: 2JS) and as always follow traders vigilance.
Disclaimer: InvestorBrandMedia has been compensated seven hundred and fifty dollars by a 3rd party for content, research, dissemination, and syndication pertaining to SPEYF for 10/31/2022. We own zero shares of SPEYF.