Nevada Set to Become Lithium Capital of America as Industry Heats Up
FN Media Group Presents USA News Group News Commentary
VANCOUVER, BC, Feb. 8, 2023 /PRNewswire/ -- USA News Group - The domestic lithium scene is heating up in the desert of Nevada, as the state makes a strong pitch to become the Lithium Capital of America. Hundreds of millions of dollars are flowing into the state, including a $700 million government loan into a Nevada lithium mine, and a $650 million investment by General Motors Company (NYSE:GM) into Lithium Americas Corp. (NYSE:LAC) (TSX:LAC) and its upcoming Thacker Pass Lithium Mine. There are several developments occurring at the same time within Nevada's lithium scene, including expansions from Tesla, Inc. (NASDAQ:TSLA) (NEO:TSLA), ongoing production from Albemarle Corporation (NYSE:ALB), and the continual development of the Jackpot Lake lithium brine project of Usha Resources (TSXV:USHA) (OTCQB:USHAF).
Comprised of 140 mining claims totaling 2,800 acres, Usha Resources's (TSXV:USHA) (OTCQB:USHAF) Jackpot Lake project is located only 35km NE of Las Vegas, and was previously classified as a "drill-ready lithium brine project" targeting an underground lake with a total closed basin of approximately 10,900 acres—as identified by gravitational surveying.
According to 3D modeling contained in a previous statement from the company, Usha's geophysical target is open for expansion in all directions towards the margin of the basin it's situated within—leaving an opportunity for the company to expand its holdings should it see value in scaling up its operation.
Now Usha has announced the completion of its first hole on the project, and confirmed that Jackpot Lake has a similar geologic setting to that of Clayton Valley, which hosts the Silver Peak Nevada Lithium Mine of Albemarle Corporation (NYSE:ALB), which to-date is still the only producing lithium mine in North America.
"The significance of evidence supporting the geologic setting coupled with the geological similarities and notable proximity to the sole domestic producer of lithium in the United States bodes well for USHA's future potential – both near and long-term," said Deepak Varshney, CEO of Usha Resources. "We have been very pleased with the findings of our maiden drilling program."
Usha has essentially just finished drilling a hole that goes 1,723ft deep into the ground that found that there are some special rocks that show that the area used to have a lot of water, known as evaporitic crystallization. The company also found a layer of sand and rocks identified as "higher porosity zone comprised of sand and conglomerate with evaporite crystallization" that have a lot of space for water, and this is an important discovery because it means that water can easily move into this space.
As per the preliminary Economic Assessment (PEA) completed by Pure Energy Minerals for their Clayton Valley project, a sand-conglomerate zone was identified in their project to contain a large volume of brine with superior grades of lithium.
"Shallow basins with the characteristics of Jackpot are uncommon and to be able to validate our thesis for the project on the first hole is very exciting," added Varshney. "Brine projects have the ability to move towards production much quicker than their counterparts in the hard rock space and the identification of heavily crystallized core overlaying permeable pumpable sands and conglomerate shows that Jackpot has the potential to meet this demand in the coming decade."
Varshney went on to add that the fact that the Biden Administration's critical mineral requirements will quickly come into effect approximately one year from now is not lost on him, as 50% of battery components will be manufactured or assembled in North America starting in 2024 and increasing to 100% by the end of 2028.
"With the demand for lithium resources accelerating and no capital constraints holding us back, we will drill smartly, test expeditiously, and play to win," emphasized Varshney.
Albemarle Corporation's (NYSE:ALB) Silver Peak Nevada Lithium Mine remains the only current North American lithium producer, and thus has already allowed the lithium producer to establish itself as one of the crucial providers of the metal to Tesla, Inc. (NASDAQ:TSLA) (NEO:TSLA) and other EV makers.
As per Albemarle's Q3 2022 financials, new wells and expansion projects at Silver Peak continue to progress ahead of schedule, while Kings Mountain mine studies continue to progress positively. A new update from Albemarle's Q4 2022 is due for release on Feb 15, 2023.
"The U.S. is at the start of really expanding and developing its supply chain domestically for this critical mineral lithium, as well as the broader supply chain for electric vehicles and electrification," said Karen Narwold, Executive VP and Chief Administrative Officer at Albemarle. "From Albemarle's perspective, we think the United States can bring the full supply chain here."
Beyond its Nevada operations, Albemarle wants to restart a lithium mine in Kings Mountain, North Carolina. The project is seen as a crucial component of a plan by automakers to create the US's first complete supply chain for electric vehicle batteries, thus reducing the industry's dependence on China.
Trying to get out ahead of its EV competitors, General Motors Company (NYSE:GM) struck the largest investment by an automaker into a lithium project, through a $650 million investment in Lithium Americas Corp. (NYSE:LAC) (TSX:LAC) and its Thacker Pass lithium project in Humboldt County.
"The agreement with GM is a major milestone in moving Thacker Pass toward production," said Lithium Americas President and CEO Jonathan Evans. "We are pleased to have GM as our largest investor and we look forward to working together to accelerate the energy transition while spurring job creation and economic growth in America."
Through the terms of the deal, GM earned exclusive access to the first phase of a mine planned near the Nevada-Oregon line with the largest known source of lithium in the USA.
"GM has secured all the battery material we need to build more than 1 million EVs annually in North America in 2025 and our future production will increasingly draw from domestic resources like the site in Nevada we're developing with Lithium Americas," said GM Chair and CEO Mary Barra.
After two additional Nevada companies received tens of millions of dollars in grants as part of US President Joe Biden's Infrastructure Law, Tesla, Inc. (NASDAQ:TSLA) (NEO:TSLA) announced they too will be making an addition $3.6-billion Nevada investment of its own, into a new 4,000,000 sq ft facility, dubbed Giga Nevada. It will include a 100 GWh 4680 cell factory as well as the company's first high volume Semi factory.
Tesla's initial Nevada investment came in 2014 for its $3.5 billion gigafactory in Sparks in 2014. According to the company, since then, they have invested another total of $6.2 billion in the state, building a 5.4-million-square-foot facility that has produced 3.6 million drive units, 1.5 million battery packs and 7.3 billion battery cells.
For more information please visit: https://usanewsgroup.com/2022/12/06/charging-along-the-highway-towards-domestic-lithium-dominance/
Article Source:
USA News Group
http://USAnewsgroup.cominfo@usanewsgroup.com
DISCLAIMER:
Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has been paid a fee for Usha Resources Ltd. advertising and digital media from the company directly ("the Company"). There may be 3rd parties who may have shares of Usha Resources Ltd., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. MIQ reserves the right to buy and sell shares of Usha Resources Ltd. at any time hereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company which were purchased through a private placement and in the open market that we will sell commencing immediately, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Contact Information:
FN Media Group, LLC
Media Contact e-mail:
editor@financialnewsmedia.com
U.S. Phone: +1(954)345-0611
View original content: https://www.prnewswire.com/news-releases/nevada-set-to-become-lithium-capital-of-america-as-industry-heats-up-301741615.html
SOURCE USA News Group
