In addition to the engine, the heart of every electric vehicle is of course the rechargeable battery, which contains a lot of lithium. However, there are significantly more areas of application for so-called lithium-ion batteries, such as in centralized electricity storage, for example for photovoltaic or wind power plants. More and more powerful batteries are needed for this too!
In all of these applications, the lithium-ion battery has so far emerged as the clear favorite. According to market insiders, nothing will change in the foreseeable future! Due to their very high energy density, lithium-ion batteries provide constant power over the entire discharge period and do not have a so-called ‘memory’ effect, which means that they do not suffer a gradual loss of capacity even with long-term use and frequent partial discharge.
Since lithium is becoming increasingly scarce with advancing electrification in road traffic, tools and also in mining, and will consequently rush into a huge deficit, commodity companies that have placed their focus on the battery metals lithium, nickel, cobalt and graphite will benefit accordingly.
In order to get a better idea of the consumption, one should know that if the plans for all battery factories are implemented, the demand for lithium will increase sevenfold, according to the experts at Benchmark Minerals.
Source: Millennial Lithium
This means that with the currently insufficient availability of lithium, the main component of all batteries and accumulators manufactured in large series, the current goals of electrification will not even come close to being achieved. This requires a very strong expansion of lithium production! In order to avoid unreliable sources of supply, one reads more and more that manufacturers buy the rare raw material directly from the producer. The topic at Tesla’s “Battery Day” is also “boiled”, which is why lithium and lithium stocks are currently under “fire”!
Source: Millennial Lithium
Lithium carbonate production started! The most important milestone has been reached!
One company that will become a major battery grade lithium supplier is Millennial Lithium (ISIN: CA60040W1059 / TSX-V: ML)!!! The latest awesome news catapults the company into the league of producers!
Because as the company announced, its lithium carbonate pilot plant on the ‘Pastos Grandes’ project in Argentina has been successfully put into operation. From now on, up to 3 tons of lithium carbonate per month will be produced in battery quality! Unfortunately, this peak message ran on the ticker last week on the day when the prices collapsed the most! Due to this market turbulence, in our opinion, this important corporate milestone was not properly perceived!
With the completed connection work and the filled pilot ponds required for production, all the prerequisites have been created to supply the pilot plant with lithium-rich brine concentrate. For us investors that means buckle up! Because production starts and the market will have to reassess the change from exploration company to production company! The course has still barely responded to the producer report, which is good for those who have not yet got on board. Even those who want to replenish their inventory can add one more cheaply.
Farhad Abasov, President and CEO of Millennial Lithium, a man with an amazing track record, has done it again! This man just always delivers!
Strictly speaking, the groundbreaking milestone that the team around the flagship manager Farhad Abasov has reached is not just a start of production, as it appears at first glance, but rather a huge breakthrough! Because this production, which initially only started on a smaller scale, is the springboard for a significantly larger and extremely high-margin production! Because with the income from the pilot plant you will make a large contribution to the financing of the large plant with a production capacity of 24,000 tons per year!
So it is not surprising that Farhad Abasov said with justification and with pride:
“Millennial Lithium is pleased to announce the commissioning of its pilot facility, which will produce up to 3 tons per month of battery grade lithium carbonate. Despite COVID-19 restrictions and minor delays, our team got the pilot plant into production. Lithium and plant material were concentrated in the evaporation ponds and the first stage of the plant, the solvent extraction unit for removing boron, was installed and successfully tested. We assume that we will be able to sell the first lithium carbonate in battery quality this year, which is another important and not to be underestimated milestone for our company. “
The production facility!
The pilot plant is fed with concentrated lithium-rich brine from smaller feeder ponds, which have reached a Li content of 2.7% and are run up to 3% Li, with naturally reduced impurities. The beginning of the high evaporation season in spring, which was exacerbated by the beginning of the dry season, has led to a significant increase in Li concentration and the natural precipitation and reduction of impurities in the system of full ponds. The brine chemistry, especially the potassium (K), boron (B), calcium (Ca), manganese (Mg) and sulfuric acid (SO4) concentrations, are in perfect agreement with the process and system design parameters. The optimization of the pilot system and the test runs also show that all components work almost perfectly.
The first phase of the process, the solvent extraction system, which is intended to facilitate the removal of boron, has also started successfully. Smaller pre-operational design adjustments to the carbonation reactors for brine cleaning as well as the ion exchange and the CO2 cleaning system have also already been completed.
Source: Millennial Lithium
Such a huge company progress naturally also means that one has to increase personnel. That’s why Millennial Lithium has positioned itself accordingly, hiring process engineers, supervisors and production workers.
In order to ensure the best possible operational flow, employee training courses for plant operation as well as health and safety at work continue to take place in order to obtain the best possible qualified and motivated staff with an insight into the entire production process, including future commercial operations. To further comply with health and safety regulations, additional extractors were installed and extensive health, safety and environmental protocols were introduced.
The initial production from the pilot plant will take place in ‘batch’ mode in order to further test and optimize the individual step processes before the more efficient transition to continuous flow production.
Standstill equals regression, which is why Millennial Lithium will not rest on what has been achieved so far, but rather, well financed, push ahead with their work quickly towards large-scale production!
And it’s worth it tremendously, because a net present value of over USD 1 billion is looking for its equal! With a targeted production of 24,000 tons per year, the mine will run for over 40 years. The planned investment costs are around 400 million USD, which, however, already includes 50 million USD for eventualities! You can continue to build on such a robust foundation!
Source: Millennial Lithium
Millennial Lithium (ISIN: CA60040W1059 / TSX-V: ML) will likely reach its targets and production status at the most favorable time in the lithium market. Because now the automobile and battery manufacturers are increasingly looking for reliable sources with whom direct contracts can then be concluded.
With production costs of USD 4,000 per tonne of lithium, a margin of 100% remains at today’s prices! This means that with a well-adjusted plant and the sale of 3 tons of lithium carbonate at a price of around 8,000 USD per ton, sales of up to 24 million USD can be generated. With a production cost of $ 4,000 per tonne, Millennial would have a monthly pre-tax profit of $ 12 million. The margin will be correspondingly higher if lithium prices continue to rise, which we assume!
The analysts at Cantor Fitzgerald also see it that way, who believe the share has a price potential of almost 170%!
Source: Raw Material TV
As they say? Numbers don’t lie! And on the numbers available so far Millennial Lithium (ISIN: CA60040W1059 / TSX-V: ML) continue to build up excellently. However, we would not be surprised if, alongside us, automobile and battery manufacturers are already doing the math, or even larger producers have their eyes on millennial lithium.
In any case, the fact is that the company has never been more exciting than it is now! Making an investment in a company that delivers permanently, such as Millennial Lithium, which is also active in a market that is only just becoming the focus of major customers, should prove to be a worthwhile investment in the long term!
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