LEXG - Will The Lithium Market Be Driven By An Army Of Micro-Caps?  Lithium Exploration Group Is Betting On It

LEXG - Will The Lithium Market Be Driven By An Army Of Micro-Caps? Lithium Exploration Group Is Betting On It

LEXG - Lithium Exploration Group, Inc. (OTC: LEXG), a fully reporting, audited micro-cap public company, has just published its strategic plan to pursue the Tesla Gigafactory driven Lithium market brewing into what looks to be a coming bull market.  LEXG makes a convincing case that the Lithium bull market will be driven by smaller Lithium projects rather than more Gigafactory sized projects ... and of course, they have an exceptionally smart plan to capitalize on Lithium bull market consisting of an army of micro-caps.  We've republished their plan here below:

LEXG- Lithium Exploration Group Micro-Cap Lithium Production Go-To Market Strategy

The emergence of the Electric Vehicle and Energy Storage markets is being driven by a social interest in reducing carbon emissions and corresponding global regulatory reforms intended to curb carbon emissions.  According to research from Deutsch Bank, battery consumption worldwide is expected to increase 5x over the next 10 years, placing substantial pressure on the battery supply chain.  The same report indicates that lithium demand will increase from 181kt Lithium Carbonate Equivalent (LCE) in 2015 to 535kt LCE by 2025.

Notably, Tesla opened its Gigafactory for business yesterday, January 4, 2017, illustrating the critical shortage of market available lithium resources necessary to support just Tesla’s electric car production, let alone the growing demand for lithium in a variety of other commercial applications.

 

GLOBAL LITHIUM DEMAND FORECAST

Global Lithium Demand.png

Brine Harvesting vs. Hard Rock Mining and The Global Lithium Deficit

Lithium is produced from either brine-based deposits or from hard-rock mineral deposits. Lithium products derived from brine operations can be used directly in end-markets, but hard-rock lithium concentrates need to be further refined before they can be used in value-added applications like lithium-ion batteries.

 

The current lithium supply market is dominated by four major producers: Albemarle, SQM, FMC and Sichuan Tianqi.  The four together accounted for 83% of the global supply in 2015.  In 2015, around 45% of global lithium supply was produced in China through the processing of hard-rock lithium sources.  66% of the worlds Lithium reserves are found in brine.  Expansion of current hard rock reserves is unlikely to meet growing demand.

Illustrations by Virtual Capitalist

In reaction to the obvious time and expense differences, Credit Suisse has anticipated that investor interest will gravitate toward multiple smaller, shorter projects than toward larger, longer projects.

LEXG’s Brine Harvesting Technology Strategy For The Micro-Cap Lithium Producer

Here at LEXG, we expect the anticipated exponential lithium sector growth to be delivered by an army of Micro-Cap Lithium Producers (MCLPs).  Simply stated, our strategy is to provide value added services to the Lithium Harvesting MCLPs that reduce production timeframes, reduce capital expenditures, increase yields and increase profits.  LEXG has been honing a specific technology since 2011 that can do exactly that.

LEXG Proprietary Technology For Cost Effective Lithium Separation From Brine

In 2011, LEXG invested in the development of an Ultrasonic Technology to assist in separating suspended solids from brine water. The technology is based around a transportable ultra-sound reactor using patented technology.

Successful testing in the first quarter of 2014 has enabled LEXG to bring this technology to Western Canada for numerous applications in the oil & gas and mining industries.  The Ultrasonic Generator can desalinate water at a rate of 25-35 cubic meters per hour. The two discharge streams are distilled water and marketable minerals to include Lithium among others.

LEXG, with its technology partner Sonic Cav Ltd, has initiated efforts to further improve the proprietary technology more specifically for Lithium applications.  LEXG is also in discussions to acquire supplementary technologies to complement and enhance existing capabilities.

Income, Assets and Cash-Flow

LEXG intends to engage multiple MCLPs in mutually beneficial relationships that reduce our partner MCLPs’ capex, at the same time increasing our MCLPs’ productivity and profits in exchange for both immediate income to LEXG sufficient to support positive cash-flow while still justifying our equity participation in our partner MCLPs’ projects.

Thank you for taking time to learn more about LEXG.  Check back here frequently for ongoing updates and progress reports.

 

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