The lithium story is only set to accelerate. In fact, according to Bloomberg, “Availability and costs of crucial battery materials like lithium, cobalt and nickel have been key concerns for years among EV makers trying to build out their electric lineups. The issue has gained more urgency in recent months due to rising competition to strike supply pacts with miners and project developers and by wild swings in raw material costs. The spot value of lithium consumption alone surged to about $35 billion in 2022, from $3 billion in 2020.” That should help fuel further upside for companies such as Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), Livent Corporation (NYSE: LTHM), American Lithium (NASDAQ: AMLI) (TSXV: LI), Lithium Americas (NYSE: LAC) (TSX: LAC), and Albemarle (NYSE: ALB).
We also have to remember that governments all over the world are pushing for a greener future. The U.S. just promised to cut emissions by up to 52%. Europe says it’ll cut emission by up to 55%. China will stop releasing CO2 in the next 40 years. In doing so, they all want millions of electric vehicles on the roads. But to do so, more lithium is required. It’s also the reason
major auto companies, like General Motors is investing in lithium miners.
Look at Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), For Example
Usha Resources Ltd., a North American mineral acquisition and exploration company focused on the development of drill-ready battery and precious metal projects, is pleased to report it is pursuing a listing of its securities on the Australian Securities Exchange.
The Company’s push for a fourth exchange listing comes on the heels of recent news announcing an upcoming share distribution record date of March 24, 2023, with respect to the plan of arrangement among the Company, Formation Metals Inc. and the shareholders of the Company, whereby USHA Shareholders of record at the close of business on March 24, 2023 will receive one (1) common share of FMI with respect to every five (5) common shares of USHA held on the Record Date, with fractions rounded down to the nearest whole number. For example, upon completion of the Arrangement, for each 10,000 common shares of USHA owned on the Share Distribution Record Date, the USHA Shareholder will own 2,000 common shares of FMI. USHA Shareholders must hold their USHA common shares on the Record Date in order to receive their pro rata portion of the FMI common shares being distributed pursuant to the Arrangement.
“We intend to tap into the significant pool of Australian investors who have been expressing interest in Usha and are looking for new investment opportunities and portfolio exposure into North America’s lithium markets,’ said Deepak Varshney, CEO of Usha Resources. “Additionally, the ASX provides access to a range of specialized mining and resource sectors that are highly sought after by investors worldwide. We are committing to growth and expansion beyond our home market.”
The Board of Directors (the “Board”) believes that seeking a listing on the ASX will provide greater lithium project visibility in a key strategic resources market as the Company transitions towards development. As a Canadian company in the process of expanding its investor base and global accessibility, the ASX is a well-established and highly regarded stock exchange with a strong track record of performance and investor confidence.
“An ASX listing will help deliver both access to a broader pool of informed capital along with greater opportunities for Australian retail investors to participate in the Company’s advancements,” Varshney continued. “Completing a listing on ASX will be another important milestone towards realizing the Company’s transformation and maximizing long-term shareholder value.”
Investors are cautioned that there is no assurance that listing on the Australian Stock Exchange will conclude successfully.
Other related developments from around the markets include:
Livent Corporation reported results for the fourth quarter and full year of 2022. Fourth quarter revenue was $219.4 million, down 5% and up 79% from the third quarter of 2022 and the prior year’s quarter, respectively. Continued strength in lithium market conditions and customer demand resulted in higher sequential volumes, the impact of which was partially offset by a less favorable customer mix. For the full year, Livent reported revenue of $813.2 million, nearly double 2021 results. Full year Adjusted EBITDA was $366.7 million, over five times higher than the prior year, and adjusted earnings per share were $1.40 per diluted share. This significant improvement was a result of higher average realized prices across all lithium products.
American Lithium provided operating and financial highlights for the third-quarter. “During the quarter, the Company made strong progress and delivered on several key milestones,” stated Simon Clarke, CEO of American Lithium. “Successful drilling at TLC allowed us to deliver new and expanded resources, forming the foundation for the Company’s maiden PEA announced yesterday.” During the quarter, the company continued to receive strong drill results from its 2022 drill program as it intersected high grade sections at TLC.
Lithium Americas announced it entered into a purchase agreement with General Motors pursuant to which GM will make a $650 million equity investment in Lithium Americas. In connection with the Transaction, the Company has provided an update on the construction plan for the Thacker Pass lithium project in Humboldt County, Nevada, including the release of an independent National Instrument 43-101 feasibility study. The agreement represents the largest-ever investment by an automaker to produce battery raw materials, with GM to become Lithium Americas’ largest shareholder. Lithium Americas to receive $650 million equity investment from GM consisting of $320 million first tranche investment for common shares representing 9.999% of Lithium Americas before separation; and $330 million second tranche investment, contemplated to be invested in the Company’s U.S. business following the separation of its U.S. and Argentine businesses.
Albemarle, a leader in the global specialty chemicals industry, announced the official brand launch of Ketjen, its wholly owned subsidiary that crafts tailored, advanced catalyst solutions for the petrochemical, refining and specialty chemicals industries. The company shared the new name of its catalysts business in November 2022 after announcing plans to operate the business as a subsidiary. As a distinct brand, Ketjen will continue to support customers in their unique energy transition journeys from fluidized catalytic cracking to clean fuels to hydro-processing to organometallics and curatives. “As the industry responds to global market dynamics, our customers need innovative solutions to help them navigate their changing landscapes,” said Ketjen President Raphael Crawford. “Ketjen will continue to provide its portfolio of advanced catalyst and specialty chemicals solutions, which are unique to each customer’s needs, to increase production performance and business value.”
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