Beyond the insatiable demand currently brewing for electric vehicles (EVs) is the looming threat of dwindling global lithium supplies that could dent the world’s chance of meeting its climate goals.1
In fact, the lithium market is predicted to remain in structural shortage until 20252, while its global value is set to increase to $8.2 billion by 2028.3
All over the world, nations are scrambling to find new sources of lithium, in places such as Australia, South America, and even Africa. However, according to Canaccord, it’s Canada (in particular Québec and Ontario) that’s positioned to become a key lithium player in the medium-term.4
Which is why groups like FE Battery Metals (CSE:FE) (OTCQB:FEMFD) that are active in the region are gaining interest due to their prime real estate with exceptional infrastructure in a mining-friendly jurisdiction, and located directly next to the region’s next North American Lithium Mine that’s set for its first spodumene lithium production in Q1 2023.
Investors Should Keep a Watchful Eye on FE Battery Metals (CSE:FE) (OTCQB:FEMFD)
Lithium is the Next Gold Rush – a ‘WHITE GOLD’ Rush: Lithium demand is increasing more than ever,5 and while lithium production increased 21% in 2021, global lithium consumption was up 33%. The gap will only get worse, as the West distances itself from China’s lithium supplies, causing calls for a minimum of $42 billion to be invested in the lithium sector over the next 6 years in order to meet 2030’s forecasted demand of 2.4 million tons a year.6
Quebec is a World-Class Mining Jurisdiction for Numerous Minerals, Including Lithium: For over a decade, mining in Quebec has come with several benefits that make investing in the province one of the most business-friendly jurisdictions in the entire industry. Abundant and economic hydropower, a trained and experienced workforce, upcoming spodumene mines, and a detailed Critical and Strategic Minerals development plan7 in place since 2020 make Quebec a perfect destination for lithium miners to remain economically competitive for EV manufacturing.8
Top-Tier, Low-Risk Jurisdictions are in HIGH DEMAND: The August Lithium Prospect sits just west of the North American Lithium Mine, and is supported by exceptional infrastructure with excellent road networks, railway, electricity, water and is near to local mining expertise. Mining companies often dream of having so many infrastructure pieces already in place before commencing operations. FE Battery holds interests in TWO of the world’s top-tier mining jurisdictions, which are both low risk with a rich history of mining resources that ranked 6th (Quebec) and 12th (Ontario) in the latest Fraser Institute 2021 Mining survey of select jurisdictions.9
Large Land Position with Multiple Lithium Targets: Despite having secured one of the largest land holdings in the region, FE Battery is still at an early stage of its journey, with plenty of blue sky ahead through drilling and other efforts to come on its promising projects. Because of the stage that it’s still at, investors currently have an opportunity to get involved at a price point that’s reflective of the stage of development.
BETTER ESG Implications: Despite its role in the green revolution, lithium production often gains a bad reputation for the footprint of evaporation pools. However, with a spodumene operation, lithium projects such as FE Battery’s wouldn’t require the same type of footprint, and can be extracted through conventional hard rock means. Hard rock spodumene lithium mining is faster, higher-quality, with more flexibility.10 In short, mining lithium is more future-compliant11 than evaporating brines.
STRONG Project Economics: On average, lithium hard-rock operations cost less than half that of brine operations.12 Due to many factors, including economic factors, Piedmont Lithium switched its focus from its North Carolina brine operation to its Quebec and Ghana hard rock operations,13 including the North American Lithium mine which sits just to the east of FE Battery’s Augustus Lithium Prospect.
EXPERT Leadership Team: Leading the way towards FE Battery’s goals is a team that includes resource industry experts, with international mining experience with large companies such as Zijin Mining, Teck Mining, and even overseeing Piedmont Lithium’s North Carolina project development that built a resource to over 25 million tons of lithium and a 30-year mine life.
On November 3, FE Battery Metals announced a name change (formerly First Energy Metals) and consolidated its issued and outstanding shares on the basis of one post consolidated common share for every 3.8 preconsolidated common shares.
This will result in the company’s outstanding shares to be reduced to roughly 22,385,320 shares.14
Lithium Truly IS The Next Gold Rush
Earlier this year, the US White House committed to deploying $3 billion to boost domestic output of EV batteries and the minerals that make them.15
Because of its friendly business jurisdiction, and diplomatic ties, that ‘domestic’ label will likely also apply to Canadian mining operations, almost equally as those in the USA.16,17,18
According to Benchmark Intelligence, the lithium sector needs $42 billion—invested annually at $7 billion over 6 years—by the end of the decade in order to meet battery-making materials demand.19
Lithium consumption has already QUADRUPLED since 2010.20
Rystad Energy has sounded the alarm about a lithium supply deficit, projecting annual lithium demand from EVs to rise more than 20x by 2030.21
By 2035, the lithium supply gap is projected to see production fall short of demand by at least 1.1 million metric tons, or 24% less than needed.22
With large hard rock spodumene deposits and brine-based lithium resources in place, Canada is currently positioning itself to be a major player in the global lithium stage.23
FE Battery Metals (CSE:FE) (OTCQB:FEMFD) is ideally set up with a significantly large land position in the mining-friendly Abitibi district in Quebec, located directly next door to Canada’s next lithium mine—North American Lithium (NAL).
FE Battery Metals (CSE:FE) (OTCQB:FEMFD) is Perfectly Located in Canada’s Next Big Lithium Regions: Quebec and Ontario
To help wean his country’s dependence away from China, President Joe Biden’s Administration has been open about its intent to fund more mining in Canada.24
Earlier this year, the Government of Québec responded by submitting a testimony on behalf of the province’s Ministry of Energy and Natural Resources, Office of Mines, which detailed all of the benefits of a US+Québec mining collaboration.25
Knowing the jurisdiction well, analysts at Canaccord have made a clear case that Canada (in particular Québec and Ontario) is positioned to capitalize on an abundance of lithium deposits, and emerge as a key producer of the battery metal to global markets.26
FE Battery Metals (CSE:FE) (OTCQB:FEMFD) has the potential to become the next significant discovery in the region.
On the ground, Québec has been VERY accommodating to the development of lithium mining in the province, including building an access road dubbed “Lithium Road” to connect the North American Lithium mine’s administration building and plant.
The Québec government is targeting $7 billion in private and public investment in the lithium battery sector during this decade,27 with companies such as BASF,28 General Motors and POSCO29 already announcing new facilities in the province.
Later this year, Australian lithium miner Sayona Mining gave its stamp of approval on its Québec project, by awarding a four-year $200 million contract to a local company for mining operations—believed to be one of the largest such contracts ever signed in Québec and expected to create 120 new jobs.30
So, where Fitch Solutions analysts have noted a “sharp uptick” in community opposition to brine-based lithium projects in Latin America,31 Québec very clearly appears to be embracing the potential for development.
And the market is taking notice and witnessing how the timing is finally right for Québec’s lithium miners.32
Strategically located amid multiple other promising projects, FE Battery Metals (CSE:FE) (OTCQB:FEMFD) has the potential to become the next significant discovery in the region.
The most prominent lithium project in Canada today is the North American Lithium mine, set to be opened and operated by a partnership between Piedmont Lithium and Sayona Mining.
FE Battery’s Augustus Project is approximately 7 km away from the project and is directly located next door—and within 10km of an Abitibi processing plant.
And FE Battery Metals has a noteworthy project in Ontario, through its 2,490-hectare North Spirit Lithium Project, which is directly adjacent and parallel to Frontier Lithium’s Electric Avenue projects.
It’s worth noting that another nearby Ontario player is Rock Tech Lithium with its plans to source raw material from its own Canadian mineral project, to sell to automotive customers with high-quality lithium hydroxide made in Germany.33
Now let’s look at how FE Battery at its current stage of development compares to other lithium miners with Canadian projects underway:
TWO Promising Projects
AUGUSTUS LITHIUM PROJECT — QUÉBEC
With the original core claims comprising of approximately 927.07 hectares, FE Battery Metals (CSE:FE) (OTCQB:FEMFD) has secured the dominant land position just northwest of Val d’or, Québec, that contains several historical finds and new lithium prospects. The company’s footprint currently sits at approximately 27,000 hectares in a growing Lithium district.
Since acquiring the project, FE Battery has located numerous spodumene pegmatites on its ground, all while keeping a focus on its Augustus Lithium project just west of the North American Lithium Mine.
In 2021, FE Battery launched its Phase I exploration project on Augustus, which included prospecting, stripping, grab and channel sampling as well as the completion of a Phase One diamond drill program of 5,847.15m within 32 drill holes—27 of which intersected significant spodumene bearing lithium.
Some of the important prospects/mines nearby are: Mine Québec Lithium, (formerly owned by RB Energy); Authier Lithium (owned by Sayona Mining), Valor Lithium, Duval Lithium, Lacorne Lithium, International Lithium, Vallee Lithium, and Moly Hill Mine.
Total lithium resources for this region are over 50 million tonnes at 1% lithium oxide out of which Mine Québec Lithium 32 Mt at 1.19% Li2O Measured plus Indicated (M+I), Authier 17.18 million tonnes at 1.01% Li2O (M+I) are the most significant.
All these projects/prospects are at various stages of exploration and development, out of which the Québec Lithium Mine is the most advanced project followed by Authier lithium project.
The geology and the mineralization of the Augustus Property are similar to the geology and mineralization of Québec Lithium mine located approximately 7 kilometers to the southeast of the Property.
NORTH SPIRIT LITHIUM PROJECT — ONTARIO
Covering 2,490 hectares, FE Battery Metals’ (CSE:FE) (OTCQB:FEMFD) North Spirit Lithium Project lies directly adjacent and parallel to Frontier Lithium’s Electric Avenue projects that include the PAK and SPARK lithium deposits.
The projects sit directly within (and along) a large NW-SW crustal scale structure associated with the emplacement of granites and spodumene-rich lithium bearing pegmatites.
Only discovered in 2018, Frontier’s nearby SPARK project has continually delivered excellent drill results and newer discoveries like the BOLT pegmatite in the area in late 2020—leading to a resource of 14.4 Mt of 1.40% Li2O Indicated and 18.1 Mt of 1.37% Li2O Inferred for SPARK, making it one of the richest pegmatite occurrences in North America.39
To date, the North Spirit Lithium Project remains a blue-sky bonus project for FE Battery Metals, as it prepares to perform its own development work in the future.
In the News
- Lithium Giant Says Global Lithium Demand Will Increase by 40% This Year – Yahoo Finance
- Lithium Giant SQM Anticipates Prices to Stay High Into 2023 – The Globe and Mail
- Three Chinese Companies Barred From Mining Lithium in Canada – MarketWatch
- Canada Kicks Chinese Companies Out of Lithium Mining – Yahoo Finance
- Leading Lithium Producing Countries Seek To Exert More Control Over Prices As Demand Soars – Barchart
Expert Leadership Team
The current FE Battery Metals (CSE:FE) (OTCQB:FEMFD) leadership and advisory team brings many decades of experience and accomplishments in the mining industry, and includes:
Investors Should Keep a Watchful Eye on FE Battery Metals (CSE:FE) (OTCQB:FEMFD)
Lithium is a New WHITE GOLD Rush
Québec is the PERFECT Place to Mine Lithium
Top-Tier, Low-Risk Jurisdictions Are in HIGH DEMAND
Low-Entry Point in a Growing Lithium District
BETTER ESG Implications
STRONG Project Economics
EXPERT Leadership Team
With the growth in EV demand and surging lithium prices, it’s a great time to consider getting involved in the lithium space, as the industry heads into a period of unprecedented demand, and fears over whether there will be enough supply.
However, not all lithium investments are equal, especially given the varied stages of entry that investors have to choose from.
Unprecedented Lithium Supply Demand Fundamentals make THIS IS an ideal TIME to follow the ongoing FE Battery Metals (CSE:FE) (OTCQB:FEMFD) story—because it’s really just getting started.
FE has plenty of potential to make a big lithium impact with its large land holdings directly adjacent to Canada’s next lithium mine in Québec, and one of North America’s richest pegmatite occurrences located in Ontario.