Automakers Realizing this is the Only Way to Guarantee Lithium Supply

Global spending on electric vehicles is accelerating, boosting demand for lithium. In fact, according a new report published by Bloomberg NEF on investment in the energy transition, annual spending on passenger EVs hit $388 billion in 2022, up 53% from the year before. That’s massive. It’s also part of the reason major auto companies, like General Motors are investing millions to secure lithium supply. In fact, the company just announced plans to invest $650 million into Lithium Americas to secure lithium supply. All because “Automakers are starting to realize that the only way to guarantee lithium supplies is to own or have a controlling stake in the source,” added CNBC. With the EV and lithium stories only set to accelerate, keep an eye on stocks, 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).

Here’s what makes that General Motors deal even more attractive. According to Clean Technica, “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. “Direct sourcing critical EV raw materials and components from suppliers in North America and free-trade-agreement countries helps make our supply chain more secure, helps us manage cell costs, and creates jobs.”

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 announce that it has determined March 24, 2023 to be the share distribution record date, with respect to the plan of arrangement among the Company, Formation Metals Inc. and the shareholders of the Company.

Under the terms of the Arrangement and upon completion of the share exchange prescribed by Article 3 of the Arrangement, the USHA Shareholders of record at the close of business on the Record Date 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 common shares will be exchanged for new USHA common shares on a one-to-one basis. USHA Shareholders will continue to own the same number of USHA common shares as they did on the Record Date. The Formation Metals Shares will be issued to the USHA Shareholders on or around April 3, 2023.

The Arrangement is expected to become effective on the Record Date.

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. By way of this news release, the Company is also providing notice to its warrant holders and option holders with respect to the Record Date. To receive Formation Metals Shares pursuant to the Arrangement, a person must be a holder of USHA Shares as of the Record Date. If an option holder or a warrant holder does not exercise his or her warrants or options on or before the Record Date, he or she will not receive Formation Metals Shares and there will be no changes with respect to the number, terms and conditions of the issued warrants and options of the Company.

FMI will then hold the Company’s interest in the Nicobat Nickel Project and will focus on the advancement of this project, while USHA will retain and focus on the advancement of exploration projects in the lithium space, including the Jackpot Lake Lithium Brine Project where the Company is presently undertaking is maiden drill program with a goal of defining a 43-101 resource. For updates on the drill program and its recent land expansion, please see the Company’s news release dated February 7, 2023, February 16, 2023, February 21, 2023 and February 28, 2023.

USHA Shares will trade on a “due bill” basis until the close of trading on the Payment Date, i.e. the Due Bill Trading Period.

Additional information regarding the terms of the Arrangement are set out in the Company’s management information circular dated November 15, 2022, and the news releases dated February 9, 2022, November 17, 2022, November 29, 2022, December 21, 2022 and January 10, 2023 all of which are available for viewing on the Company’s SEDAR profile at www.sedar.com.

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.”

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Usha Resources Ltd. paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Usha Resources Ltd. Please click here for disclaimer.

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