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October 29, 2024

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As part of today’s coverage of the Magnificent Seven we remind you when the big mega-caps are reporting and give you are current perspective of each. We also cover all of the Magnificent Seven in the short and intermediate terms with daily and weekly charts.

Carl gives us his opinion on where the market is headed and what DecisionPoint signal tables are telling us about market conditions. He also covers asset classes Gold, Dollar, Gold Miners, Crude Oil, Bonds and Yields.

Erin takes the controls and enlightens us on current sector rotation trends. Momentum may be failing on some of the sectors, but Silver Crosses are still intact.

The pair finish with a look at viewer symbol requests that included RIVN, ON, SMCI and more!

01:52 DP Signal Tables

04:44 Market Overview

14:50 Magnificent Seven

24:48 Questions

30:09 Sector Rotation

35:49 Symbol Requests

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In this video, Dave digs into five market breadth indicators every investor should track as we navigate a volatile period including Q3 earnings, the US elections, and the November Fed meeting. He breaks down key insights on each of the five charts, talks about why breadth indicators are equal-weighted, and relates all of this back to the most important chart of all: the daily S&P 500 chart.

This video originally premiered on October 28, 2024. Watch on our dedicated David Keller page on StockCharts TV!

Previously recorded videos from Dave are available at this link.

After reaching a 17 year high of US$106 per pound in early January, the uranium spot price has spent the rest of the year consolidating, remaining rangebound between US$79 and US$85 since mid-June.

‘The uranium markets continue to digest last year’s 88.54 percent gain and have remained apathetic to ever-strengthening fundamentals,” wrote Sprott Asset Management’s Jacob White in a July market update.

White, who is the company’s exchange-traded fund product manager, went on to note that Kazakhstan’s tax hikes, increased M&A activity and geopolitical risks are adding volatility to the supply side.

Although prices faced consolidating headwinds for much of Q3, White pointed to uranium’s five-year performance history as evidence of broader positive market trends.

“Over the longer term, physical uranium and uranium miners have demonstrated significant outperformance against broad asset classes, particularly other commodities. For the five years ended August 31, 2024, the U3O8 spot price has risen a cumulative 212.25 percent compared to 24.78 percent for the broader commodities index (BCOM),” he wrote in a September update.

Below are the best-performing Canadian uranium stocks by share price performance so far this year. All data was obtained on October 24, 2024, using TradingView’s stock screener, and all companies had market caps above C$10 million at the time. Companies on the TSX, TSXV and CSE were considered, but no TSX stocks made the list this time.

Read on to learn what factors have been moving their share prices.

1. CanAlaska Uranium (TSXV:CVV)

Company Profile

Year-to-date gain: 79.22 percent; market cap: C$107.25 million; share price: C$0.69

CanAlaska Uranium is a self-described project generator with a portfolio of assets in the Saskatchewan-based Athabasca Basin. The region is well known in the sector for its high-grade deposits.

The company’s portfolio includes the West McArthur property, which is situated near sector major Cameco (TSX:CCO,NYSE:CCJ) and Orano Canada’s McArthur River/Key Lake mine joint venture. In 2018, Cameco signed on as a joint venture partner for CanAlaska’s West McArthur project, and it retains a 16.65 percent stake.

In mid-April, CanAlaska acquired the Intrepid East and Intrepid West projects in the Northeastern Athabasca Basin. The two projects cover a combined 58,747 hectares and are 20 kilometers north of the high-grade Hurricane uranium deposit.

During the second quarter, CanAlaksa conducted airborne surveys at its projects near Cameco and Orano’s Key Lake mill — the Key Extension, Enterprise, Voyager and Nebula projects — as well as at its Frontier project.

In July, a summer drill program at West McArthur’s Pike zone made two significant intersections.

On July 9, hole WMA082-7 intersected 3.44 percent equivalent U3O8 (eU3O8) over 21.6 meters, including 10.9 percent eU3O8 over 5.4 meters. Then, on July 16, CanAlaska reported that hole WMA082-8 had intersected 6.87 percent eU3O8 over 16.9 meters, including 11.62 percent eU3O8 over 9.3 meters.

In mid-September, CanAlaska raised C$5 million through a non-brokered private placement.

2. Greenridge Exploration (CSE:GXP)

Company Profile

Year-to-date gain: 74.47 percent; market cap: C$24.48 million; share price: C$0.82

Canada-focused Greenridge Exploration is engaged in the exploration of the Nut Lake uranium project in the Thelon Basin in Nunavut, Canada, and has acquired several uranium projects this year.

According to the company, Nut Lake is strategically positioned near the Angilak uranium deposit, which was recently acquired by Atha Energy (TSXV:SASK,OTCQB:SASKF) as part of a three way merger with Latitude Uranium and 92 Energy.

Nut Lake is a new property for Greenridge. On January 18, the company entered into an option agreement with three parties to acquire a 100 percent stake in the asset. Historic drilling at the polymetallic deposit has identified “significant” uranium mineralization, with intersections of up to 9 feet containing 0.69 percent U3O8.

Nut Lake isn’t Greenridge’s only addition this year. In May, the company acquired the Carpenter Lake uranium project, which covers 13,387 hectares near the Athabasca Basin’s southern margin. Greenridge ended the quarter by acquiring the Snook Lake and Ranger Lake uranium projects in Ontario. The Ranger Lake project covers 20,782 hectares in the Elliot Lake region, while the Snook Lake project spans 4,899 hectares in Northwestern Ontario.

In mid-August, the company released an updated technical review for Nut Lake. For the new review, Greenridge focused on gathering and analyzing historical data for the project, including digitizing drill hole information, georeferencing maps and extracting data from historical reports related to the Nut Lake property.

Shortly after, Greenridge announced plans to acquire Canadian uranium company ALX Resources (TSXV:AL,OTC Pink:ALXEF). The merger will create a major Canadian uranium exploration company with 15 projects across 276,000 hectares in key uranium districts, along with interests in 13 other resource properties.

3. District Metals (TSXV:DMX)

Company Profile

Year-to-date gain: 68.75 percent; market cap: C$35.18 million; share price: C$0.27

District Metals is an energy metals and polymetallic explorer and developer with a portfolio of nine assets, including five uranium projects in Sweden. It’s currently focused on its Viken property, which hosts a uranium-vanadium deposit.

Historic estimates conducted in 2010 and 2014 peg the indicated resource at 43 million metric tons with an average grade 0.019 percent U3O8, with another 3 billion metric tons with an average grade 0.017 percent U3O8 in the inferred category. According to the company, Viken is one of the “world’s largest in terms of uranium and vanadium mineral resources.’

Shares of District spiked to a year-to-date high of C$0.49 on May 21. The jump coincided with the company announcing that its subsidiary, Bergslagen Metals, had received final approvals for its mineral license applications in Jämtlands and Västerbottens Counties in Sweden to explore for metals including vanadium, nickel, molybdenum and rare earths.

“We are very pleased with the timely approvals for our eight mineral license applications that cover a total of 91,470 hectares of ground that is highly prospective for Alum Shale deposit targets,” said Garrett Ainsworth, CEO of District. “Alum shales are the host rocks of our Viken Energy Metals Deposit, which represents a potentially significant source of critical and strategic metals and minerals for the green energy transition.”

4. Myriad Uranium (CSE:M)

Company Profile

Year-to-date gain: 45.95 percent; market cap: C$13.75 million; share price: C$0.27

Myriad Uranium is an exploration company with a 75 percent earnable interest in the 1,911 acre Copper Mountain uranium project in Wyoming, US. The property holds several known uranium deposits and historic mines, including the past-producing Arrowhead mine, which previously produced 500,000 pounds of eU3O8.

The company also holds a 50 percent interest in the Millen Mountain property in Nova Scotia, Canada, alongside Probe Metals (TSX:PRB,OTCQB:PROBF), as well as an 80 percent interest in uranium exploration licenses in Niger.

Focusing on its Copper Mountain asset, Myriad conducted a geophysical survey targeting the Canning deposit in July. The goal of the survey was to update the resource potential and lay the early groundwork for further exploration.

That was followed by a magnetometer survey in September, an important precursor to a maiden exploration drill program and subsequent maiden mineral resource estimate, slated for completion by the end of Q1 2025.

As Myriad worked to advance its US asset, the company announced it was exiting Niger. In a July 23 statement it said that it would immediately ‘quit or relinquish, as appropriate,’ any interests in the country.

CEO Thomas Lamb explained the decision to leave the African country.

“Myriad has been prevented by reasons beyond its control from conducting operations in Niger since the July 2023 coup d’etat,” he said. “We are now focusing all our attention on the Copper Mountain uranium project in Wyoming, USA., a project with significant past production, a large historical uranium resource, and exciting exploration upside.”

5. Premier American Uranium (TSXV:PUR)

Company Profile

Year-to-date gain: 16.13 percent; market cap: C$69.96 million; share price: C$1.80

Premier American Uranium is engaged in consolidating, exploring and developing uranium projects across the US.

The company holds large land packages in two major uranium-producing areas: Wyoming’s Great Divide Basin and Colorado’s Uravan Mineral Belt. Additionally, Premier took over control of the advanced Cebolleta uranium exploration project in New Mexico when it acquired American Future Fuel in June of this year.

Other highlights from the first nine months of 2024 include the closing of a C$5.77 million private placement in May, and the commencement of an inaugural drill program at the Cyclone in-situ recovery uranium project in Wyoming.

FAQs for investing in uranium

What is uranium used for?

Uranium is primarily used for the production of nuclear energy, a form of clean energy created in nuclear power plants. In fact, 99 percent of uranium is used for this purpose. As of 2022, there were 439 active nuclear reactors, as per the International Atomic Energy Agency. Last year, 8 percent of US power came from nuclear energy.

The commodity is also used in the defense industry as a component of nuclear weaponry, among other uses. However, there are safeguards in effect to keep this to a minimum. To create weapons-grade uranium, the material has to be enriched significantly — above 90 percent — to the point that to achieve just 5.6 kilograms of weapons-grade uranium, it would require 1 metric ton of uranium pre-enrichment.

Because of this necessity, uranium enrichment facilities are closely monitored under international agreements. Uranium used for nuclear power production only needs to be enriched to 5 percent; nuclear enrichment facilities need special licenses to enrich above that point for uses such as research at 20 percent enrichment.

The metal is also used in the medical field for applications such as transmission electron microscopy. Before uranium was discovered to be radioactive, it was used to impart a yellow color to ceramic glazes and glass.

Where is uranium found?

The country with the greatest uranium reserves by far is Australia — the island nation holds 28 percent of the world’s uranium reserves. Rounding out the top three are Kazakhstan with 15 percent and Canada with 9 percent.

Although Australia has the highest reserves, it holds uranium as a low priority and is only fourth overall for production. All its uranium output is exported, with none used for domestic nuclear energy production.

Kazakhstan is the world’s largest producer of the metal, with production of 21,227 metric tons in 2022. The country’s national uranium company, Kazatomprom, is the world’s largest producer.

Canada’s uranium reserves are found primarily in its Athabasca Basin, and the region is a top producer of the metal as well.

Why should I buy uranium stocks?

Investors should always do their own due diligence when looking at any commodity so that they can decide whether it fits into their investment plans. With that being said, many experts are convinced that uranium has entered into a significant bull market, meaning that uranium stocks could be a good buy.

A slew of factors have led to this bull market. While the uranium industry spent the last decade or so in a downturn following the 2011 Fukushima nuclear disaster, discourse has been building around the metal’s use as a source of clean energy, which is important for countries looking to reach climate goals. Nations are now prioritizing a mix of clean energies such as solar and wind energy alongside nuclear. Significantly, in August 2022, Japan announced it is looking into restarting its idled nuclear power plants and commissioning new ones.

Uranium prices are very important to uranium miners, as in recent years levels have not been high enough for production to be economic. However, in 2024, prices spiked from the US$58 in August 2023 to a high of US$106 per pound U3O8 in February 2024. They have since consolidated at around US$85, meaning this could be a buying point for those looking to get into the sector.

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF), an exploration and development company advancing sustainable lithium projects in Chile, is pleased to update that the industrial forward osmosis (‘iFO’) unit has arrived and is being installed at the facilities of Condutive Energy in Chicago, USA, where concentrated eluate from the Company´s pilot plant will be converted into battery-grade lithium carbonate. This marks the final piece of equipment required for the downstream conversion process to begin.

Figures 1 to 3: iFO demonstration unit with capacity to process 35 m3/day of eluate arriving at Conductive Energy’s site in Chicago, USA

Using iFO has several benefits to the downstream conversion processs, as communicated previously (RNS 19th Sept 2024), such as higher water recovery and lower energy consumption and CO2 emissions compared to using conventional thermal evaporators. This further enhances the potential environmental benefits and process efficiency that the Company aims to achieve in applying Direct Lithium Extraction (‘DLE’) to produce lithium from brine.

The initial volume of 88m3 of concentrated eluate from Laguna Verde, equal to approximately one tonne of lithium carbonate equivalent (‘LCE’), is at Conductive Energy´s facility, with the conversion process to battery-grade lithium to begin in the coming days. With this product, the Company plans to engage with strategic partners for product qualification.

For further information contact:

CleanTech Lithium PLC

Steve Kesler/Gordon Stein/Nick Baxter

Jersey office: +44 (0) 1534 668 321

Chile office: +562-32239222

Or via Celicourt

Celicourt Communications

Felicity Winkles/Philip Dennis/Ali AlQahtani

+44 (0) 20 7770 6424

cleantech@celicourt.uk

Beaumont Cornish Limited (Nominated Adviser)

Roland Cornish/Asia Szusciak

+44 (0) 20 7628 3396

Fox-Davies Capital Limited (Joint Broker)

Daniel Fox-Davies

+44 (0) 20 3884 8450

daniel@fox-davies.com

Canaccord Genuity (Joint Broker)

James Asensio

+44 (0) 20 7523 4680

About Reach announcements

This is a Reach announcement. Reach is an investor communication service aimed at assisting listed and unlisted (including AIM quoted) companies to distribute media only / non-regulatory news releases into the public domain. Information required to be notified under the AIM Rules for Companies, Market Abuse Regulation or other regulation would be disseminated as an RNS regulatory announcement and not on Reach.

Notes

CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and development company advancing sustainable lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium’s mission is to produce material quantities of sustainable battery grade lithium products using Direct Lithium Extraction technology powered by renewable energy. The Company plans to be a leading supplier of ‘green’ lithium to the EV and battery manufacturing market.

CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and hold licences in Llamara and Salar de Atacama, located in the lithium triangle, a leading centre for battery grade lithium production. The two major projects: Laguna Verde and Viento Andino are situated within basins controlled by the Company, which affords significant potential development and operational advantages. All four projects have direct access to existing infrastructure and renewable power.

CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction with reinjection of spent brine. Direct Lithium Extraction is a transformative technology which removes lithium from brine, with higher recoveries than conventional extraction processes. The method offers short development lead times with no extensive site construction or evaporation pond development so there is minimal water depletion from the aquifer. www.ctlithium.com

Source

Click here to connect with CleanTech Lithium PLC (AIM:CTL, OTCQX:CTLHF, Frankfurt:T2N), to receive an Investor Presentation

This post appeared first on investingnews.com

The cleantech industry is poised for growth, but the upcoming US election will have implications for its future.

The two candidates, former US President Donald Trump and current Vice President Kamala Harris, hold divergent views on climate change, the importance of clean energy and the impact the sector has on the economy.

What do Harris and Trump think about climate change?

As vice president, Harris has supported President Joe Biden’s various climate initiatives.

The Inflation Reduction Act (IRA), enacted by Biden in 2022, is regarded as the largest climate investment in US history, and Harris cast the tie-breaking vote for it to pass. It has helped launch over 330 new climate projects.

King Lip, chief strategist at Baker Avenue Wealth Management, told Reuters in August that he expects Harris to continue supporting the clean energy initiatives outlined in the Democratic Party platform if she wins.

According to the platform, a Democratic administration will “continue to invest in clean energy research and development,” with plans to establish a laboratory for climate research and an Advanced Research Projects Agency for Climate, while also continuing to eliminate carbon from the transportation sector.

The Republican Party platform promises “reliable and abundant low-cost energy” and outlines measures it will take to support the oil and gas industry. Trump has a history of denying climate change — in August 2020, the Brookings Institution published an article that counted 74 actions his administration took to weaken environmental protections.

More recently, Washington Post sources alleged that, during a May dinner with the country’s wealthiest oil executives, Trump promised to reverse several of Biden’s environmental policies in exchange for campaign donations. An investigation was subsequently launched by the Committee on Oversight and Accountability.

Harris vs. Trump: Cleantech funding and tax policies

Federal funding to support research and development (R&D) will play a pivotal role in shaping the future of US cleantech innovation, and tax policies may influence venture capital (VC) investments.

Here’s what Harris and Trump have said about cleantech funding and tax policies.

Harris and the Democrats

Democrats remain committed to preserving and advancing Biden’s climate and clean energy agenda, and will continue encouraging investment in the sector while dedicating federal resources to climate R&D. By providing tax incentives and rebates, the administration aims to make sustainable infrastructure and energy-efficient technologies more affordable.

Democrats will also expand workforce training initiatives through the American Climate Corps to ready the workforce for well-paying union jobs in the clean energy sector. Furthermore, promoting competition between big oil and clean alternatives will contribute to achieving climate goals and advancing the clean energy transition.

VCs have been quick to support Harris. Among them is Chris Sacca of Lowercarbon Capital, a firm that backs companies developing technologies to reduce carbon emissions. However, increasing the corporate tax rate to 28 percent from 21 percent could have implications for VC investments. Higher taxes would lower the expected returns for both VC firms and entrepreneurs, potentially leading to reduced investments or engagement with startups.

Trump and the Republicans

Trump has pledged to end inflation and stimulate the economy by streamlining government spending and boosting domestic energy production, with a focus on traditional sources like oil and fossil fuels.

He has also discussed his intention to permanently cut the corporate tax rate to 21 percent.

To achieve their economic vision, the Republicans aim to eliminate the “socialist” Green New Deal, a set of policy proposals introduced in 2021 by Representative Cori Bush (D-MO). It was reintroduced in 2023 by Senator Edward J. Markey (D-Mass.) and Congresswoman Alexandria Ocasio-Cortez (D-NY-14). While the Green New Deal hasn’t been fully implemented, its policies influenced the IRA, which includes investments in clean energy and climate initiatives.

Project 2025, a presidential transition operation developed by the Heritage Foundation, a conservative think tank, includes a roadmap that calls for a repeal of the IRA, as well as major budget cuts to departments that oversee renewable energy projects. Trump has denied any involvement with Project 2025, but many of the manifesto’s authors worked for the former president during his last term. Trump also called for a 3 percent reduction in funding to the Department of Energy’s Office of Energy Efficiency and Renewable Energy in his 2019 budget request.

However, the Republican emphasis on corporate tax cuts could have positive implications for cleantech startups. A study conducted in October 2023 by economists associated with the National Bureau of Economic Research and the Treasury Department found that the Tax Cuts and Jobs Act (TCJA), which Trump signed into law in 2017, boosted corporate investments by about 20 percent over two years.

While a significant portion of the increased cash flow from the TCJA was directed toward share buybacks and dividends, it’s worth noting that a portion of the funds was also reinvested in R&D.

Harris vs. Trump: Renewable energy, nuclear power and CCS

The US is experiencing a surge in renewable energy adoption, particularly wind and solar power.

The country is behind only China when it comes to installed wind capacity, and July data from the US Energy Information Administration shows that for the first time ever, wind and solar produced more energy year-to-date than coal.

There is also expanding interest in nuclear power generation.

According to a recent Axios report, the first seven months of 2024 saw a surge in investment in advanced nuclear technology, reaching US$3.9 billion compared to the US$355 million invested in all of 2023.

Here’s what Harris and Trump have said about renewable energy, nuclear power and more.

Harris and the Democrats

A Harris administration would likely present a more formidable challenge to big oil interests compared to Trump. The former prosecutor has a history of promoting industry reform. As attorney general of California, Harris defended AB32, a state law requiring a reduction of greenhouse gas emissions, from the Rocky Mountain Farmers Union, which argued that the law conflicted with the Clean Air Act and created an illegal barrier to interstate commerce in 2012.

In addition, the Democrat platform promises to raise taxes and close loopholes for big oil companies and save families money at the pump, all while driving growth in the renewable energy sector.

While the Democratic Party has historically had mixed views on nuclear energy, attitudes have shifted in recent years as members recognize that power demand is heavily increasing.

Biden’s policies have unlocked funding for nuclear power, expanding tax credits to include nuclear power projects.

Trump and the Republicans

The Republican Party platform calls to end restrictions on oil and natural gas in a bid to lower energy costs, and Trump has been vocal about his intention to continue using fossil fuels. He has also said that the US would exit the Paris Agreement again if he is re-elected, and has proposed federal spending cuts that could affect funding for Department of Energy and Environmental Protection Agency programs that support renewable energy initiatives.

It’s possible that Trump’s plans will face pushback from energy companies that have made investments in clean energy projects. In particular, carbon capture and storage (CCS) technology has generated jobs in Republican states, and they could be at risk if the IRA is rolled back by Trump and his administration.

“I think that reality is making this particular carbon management piece of legislation — not untouchable, but I think very stable,” CarbonCapture CEO Adrian Corless told Politico in June. Even Mike Sommers, president of the American Petroleum Institute, has voiced his support for the parts of the IRA that are good for business.

While his stance on clean energy has been largely skeptical, Trump does show support for one type in particular: nuclear power. ‘We have to produce massive electricity,’ he said, referencing the power demands of artificial intelligence during an interview with Shawn Ryan, a former Navy SEAL and host of “The Shawn Ryan Show.’

“If I’m president,” he continued, “we’ll do it through natural gas and nuclear.’

In terms of legislation, in July, the House Appropriations Committee passed House Bill 8997, legislation that would funnel US$9 billion into two nuclear reactor demonstration projects and fund the deployment of one small modular reactor.

The bill was developed by Energy-Water Appropriations Subcommittee Chair Chuck Fleischmann, who has endorsed and aligned himself with Trump on multiple occasions.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Uranium prices slid lower during the third quarter, sinking from US$85.68 per pound at the start of July to US$81.76 by the end of the September. All in all the energy commodity shed 4.58 percent.

While prices briefly fell as low as US$78.83 in late August, for most of the quarter they remained above the US$80 threshold, supported by positive fundamentals. Even so, levels are well off 2007’s spot price high of US$136.

“The uranium market’s price action, both in the spot market and among miners, has been frustrating for much of the last few months,” wrote Jacob White, ETF product manager at Sprott Asset Management, in a September update.

“Uranium miners, in particular, have been reacting to exogenous factors, despite ever-strengthening fundamentals.”

Although prices remained some 20 percent off this year’s February highs during the third quarter, the US$80 level is an important measure, according to Lobo Tiggre, CEO of IndependentSpeculator.com.

Uranium price, January to September 2024.

Chart via Cameco.

Gerardo Del Real, co-founder of Digest Publishing and editor of Daily Profit Cycle, also mentioned the significant relationship between the uranium spot price and long-term contract prices.

“We’re starting to see higher contract prices, higher contract prices than the spot price. And anytime you see that (it) is a pretty telling indicator of what’s to come. And I think what’s to come is absolutely higher prices in the uranium space.”

“I think the utilities, being the largest consumer as usual, have been slow to come off the sidelines,” he said.

Uranium production problems constraining supply

Looking forward, production issues in leading uranium producer Kazakhstan may add to price tailwinds.

Early in the year, state miner Kazatomprom (LSE:59OT,OTC Pink:NATKY) reduced its 2024 production guidance to 54 million to 58 million pounds of U3O8, down from its previous forecast of 65 million to 66 million pounds.

The 20 percent cut was the result of difficulties sourcing sulfuric acid and delays in new construction.

The decreased output out of Kazakhstan has impacted supply, and has been further compounded by a coup in Niger, the seventh largest uranium-producing nation. In January of this year, Niger’s military government announced plans to reform the mining sector with the aim of boosting revenues for the country. As part of the overhaul, it temporarily suspended the issuance of new mining licenses and began a review of existing mining licenses.

In June, the African nation revoked French nuclear fuel cycle company Orano’s mining permit for the Imouraren uranium project. Imouraren boasts reserves of over 174,000 metric tons of uranium, making it one of the largest deposits.

A month later, exploration company GoviEx Uranium (TSXV:GXU,OTCQB:GVXXF) suffered a similar fate when the mining permit for its Niger-based Madaouela uranium project was canceled.

Tiggre sees 2024 bringing increased production as companies ramp up output. “My guess is that global production will be net higher in 2024 than 2023, but it won’t matter as fast as demand is piling up,” he said

AI data center demand for uranium piling up

Uranium’s strong demand story is no secret as the world looks to transition to clean energy. But this year artificial intelligence (AI) data centers have emerged as another major demand driver in the space.

AI data centers are specialized facilities designed to handle the intensive computational needs of AI applications like machine learning. They rely on high-performance hardware, including GPUs and CPUs, to process vast amounts of data. These centers are highly energy intensive, requiring significant power for both computing and cooling systems.

As AI workloads increase, energy consumption has become a growing concern, leading to efforts to boost efficiency and integrate renewable energy solutions to manage their substantial carbon footprint.

“One query to ChatGPT uses approximately as much electricity as could light one light bulb for about 20 minutes,” tech researcher Jesse Dodge commented to NPR in July. “So, you can imagine with millions of people using something like that every day, that adds up to a really large amount of electricity.”

To meet the massive energy needs posed by data centers, the tech sector is looking to nuclear energy.

In late September, Constellation Energy (NASDAQ:CEG) announced plans to revive Three Mile Island (TMI) Unit 1 under a 20 year power purchase agreement with Microsoft (NASDAQ:MSFT). The deal will deliver 835 megawatts of clean energy to the grid, create 3,400 jobs and add over US$3 billion in taxes and US$16 billion for Pennsylvania’s economy.

As part of the agreement, Constellation will restart of TMI Unit 1, which closed in 2019. TMI Unit 2, the site of a 1979 nuclear accident, is independently owned and being decommissioned.

“This has made big waves, but the need was already baked in the cake before this announcement,” said Tiggre, noting that he has written about the potential for AI to be a uranium play. “Short version: data centers need lots of 24/7/365 power — just the sort of thing that nuclear is best at (not windmills or solar),” he added.

Less than a month later, Amazon (NASDAQ:AMZN) subsidiary Amazon Web Services (AWS) unveiled partnerships with both Dominion Energy (NYSE:D) and Energy Northwest. Under the agreements, it will spend US$500 million to develop advanced small modular reactors (SMRs) for powering AWS data centers.

In mid-October, Google (NASDAQ:GOOGL) made a move to secure nuclear energy supply when it penned an agreement to purchase power from multiple SMRs that will be developed by Kairos Power. The deal will supply up to 500 megawatts of carbon-free electricity to US grids, aiming to support the rising energy demand driven by AI.

The first reactor is expected to go live by 2030, with further expansions planned through 2035.

“I think the Microsofts and the Googles of the world are tipping their hand because they have to,’ said Del Real.

He went on to explain that other companies in the tech space will likely follow suit given the limited resources available. These circumstances are creating a “perfect storm” in the uranium market.

“The trend is absolutely clear as day to me, and that trend is higher prices. Companies that can find uranium, make significant discoveries and produce it at a decent margin are going to do extremely well for a very long time,” he said.

In a report, IDC forecasts that data center electricity consumption will “more than double” between 2023 and 2028. “AI datacenter energy consumption is forecast to grow at a CAGR of 44.7 percent, reaching 146.2 Terawatt hours by 2027 with AI workloads consuming a growing portion of total datacenter electricity use,” it states.

Uranium M&A heats up, experts calling for more

To fuel global energy demand growth, new uranium projects will need to be developed.

Although the approval process can be more cumbersome for uranium than other commodities, one way majors can circumvent the waiting period is by purchasing companies or deposits that are already permitted.

The third quarter of 2024 saw notable uranium-centric deals, a trend Del Real expects to continue. Right now he sees similarities between uranium M&A and the rising number of transactions in the gold and lithium markets.

“I absolutely see the exact same scenario playing out in the uranium space, especially in light of the amount of energy that’s going to be required if we’re going to have this AI revolution, per se,” he said.

Uranium M&A activity ramped up in June, when Blue Sky Uranium (TSXV:BSK,OTCQB:BKUCF) expanded its exploration portfolio through the acquisition of two new projects in Argentina’s Neuquén Basin.

A few days later, the sector saw a mega deal, when Australia’s Paladin Energy (ASX:PDN,OTCQX:PALAF) announced plans to acquire Saskatchewan-focused Fission Uranium (TSX:FCU,OTCQX:FCUUF) in a C$1.14 billion transaction.

In early July, uranium excitement was further piqued when the US Department of Energy announced plans to spend US$2.7 billion on low-enriched uranium from domestic sources. The news sent prices to a Q3 high of US$86.30.

Deals continued when Indigo Exploration (TSXV:IXI,OTCQB:IXIXF) acquired the Hot property, a uranium project located in the Shirley Basin of Wyoming, US. The mid-July purchase was followed by news that US producer Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) was planning on increasing its annual uranium output.

“We have a long history of producing uranium, (and) we produced approximately two-thirds of uranium in the US over the last six to seven years,’ Mark Chalmers, CEO of Energy Fuels, said during the firm’s earnings call. ‘We’ve also been one of the largest producers of uranium over the last 10 or 15 years.’

On a similar note, Uranium Energy (UEC) (NYSEAMERICAN:UEC) announced in mid-August that it was restarting uranium production at its Christensen Ranch in-situ recovery operations in Wyoming.

Looking to grow it Wyoming portfolio, UEC purchased Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) America’s Wyoming assets, including the Sweetwater plant and a portfolio of uranium-focused projects, in late September.

M&A activity continued into Q4 as IsoEnergy (TSX:ISO,OTCQX:ISENF) started the period with the acquisition of US-focused Anfield Energy (TSXV:AEC,OTCQB:ANLDF). By late October, IsoEnergy had formed a joint venture with Purepoint Uranium (TSXV:PTU,OTCQB:PTUUF) to explore and develop uranium projects in the Athabasca Basin.

Advancing into Q4 and 2025, Del Real expects deals involving production-ready facilities and deposits to continue.

While heightened M&A is good for the news cycle, Tiggre is skeptical that it will address the looming supply shortage. Although he foresees more M&A, noting that it is “almost inevitable,” he also warned, “Just remember that ‘buying isn’t building.’ Consolidating known mine reserves doesn’t bring any new pounds to the table.’

Investor takeaway

As the excitement in the uranium market builds, Del Real offered tips for investors looking to capitalize on projected demand growth for energy. He advised building a solid portfolio by diversifying into companies at various stages — that means a mix of producing companies, along with developers and explorers.

Producers tend to rise first when prices start to increase, while explorers may take longer, but offer greater potential upside if they are successful. In his view, a well-balanced mix of stocks allows for steady gains from established producers and the possibility of significant returns from exploration companies.

“I think triple-digit uranium prices are right around the corner,” he said. “And then I think it’s going to be the kind of party everybody wants to be at. And that’s going to lead to probably the sector overheating for a bit, the way it always does, but it’ll be fun. We have great, great days ahead in the uranium space.”

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

For a long time, most of the world’s lithium was produced by an oligopoly of producers often referred to as the Big Three: Albemarle (NYSE:ALB), Sociedad Quimica y Minera de Chile (SQM) (NYSE:SQM) and Arcadium Lithium (NYSE:ALTM), formerly called Livent.

These US-listed companies remain major entities in the lithium sector; however, the space has expanded significantly in recent years, and interested investors should cast a wider net to look at global companies — in particular those listed in Australia and China, as companies in both countries have become major players in the industry.

While Australia has long been a top-producing country when it comes to lithium, China has risen quickly to become not only the top lithium processor and refiner, but also a major miner of the commodity. In fact, China was the third largest lithium-producing country in 2023 in terms of mine production, behind Australia and Chile.

Chinese companies are mining in other countries as well, including top producer Australia, where a few are part of major lithium joint ventures. For example, Australia’s largest lithium mine, Greenbushes, is owned and operated by Talison Lithium, which is 51 percent controlled by Tianqi Lithium Energy Australia, a joint venture between China’s Tianqi Lithium (SZSE:002466,HKEX:9696) and Australia’s IGO (ASX:IGO,OTC Pink:IPDGF). The remaining 49 percent stake in Talison is owned by Albemarle. Joint ventures can offer investors different ways to get exposure to mines and jurisdictions.

Mergers and acquisitions are common in the lithium space, with the biggest news in the industry recently being Allkem and Livent’s announcement of a US$10.6 billion merger of equals in May 2023. The resultant company, Arcadium Lithium, now has a production capacity of 248,000 metric tons (MT) of lithium carbonate equivalent per year.

As for Chile, the country’s lithium landscape is changing following the announcement of its National Lithium Strategy in mid-2023, which will result in future lithium projects having public-private partnerships.

All in all, lithium investors have a lot to keep an eye on as the space continues to shift. Read on for an overview of the current top lithium-producing firms by market cap. Data was current as of September 13, 2024.

Biggest lithium-mining stocks

1. SQM (NYSE:SQM)

Company Profile

Market cap: US$10.66 billion
Share price: US$38.38

SQM has five business areas, ranging from lithium to potassium to specialty plant nutrition. Its primary lithium operations are in Chile, where it is a longtime producer, and it is working to bring production online in Australia as well.

In Chile, SQM sources brine from the Salar de Atacama; it then processes lithium chloride from the brine into lithium carbonate and hydroxide at its Salar del Carmen lithium plants near Antofagasta. SQM is expanding production at the Salar del Carmen from 180,000 MT to 210,000 MT starting this year. To help lessen its environmental impact, the company has announced it will invest US$1.5 billion into the Salar Futuro project, a technology upgrade that includes advanced evaporation technologies, direct lithium extraction and a seawater and desalination plant.

Chile’s aforementioned National Lithium Strategy has created some uncertainty for SQM, but the government has stated it will respect its current contracts, which run through 2030. In early 2024, the Chilean government said that state-owned mining company Codelco and SQM have formed a ‘common partnership’ in which Codelco will hold a 50 percent stake plus one share to give it majority control.

Outside of South America, SQM is developing the Mount Holland lithium project in Australia; the project is known as one of the world’s largest hard-rock deposits. Mount Holland is a joint venture with Wesfarmers (ASX:WES,OTC Pink:WFAFF), which took over Australian lithium-mining company Kidman Resources in 2019. The company stated in its 2022 annual report that it expects lithium hydroxide production to commence by H1 2025.

SQM said in November 2023 that its lithium carbonate capacity was set to reach 210,000 MT by the beginning of 2024.

In mid-June, SQM penned a long-term supply deal with Hyundai (KRX:005380) and Kia (KRX:000270) to provide lithium hydroxide for electric vehicle batteries. SQM, which already has supply agreements with Ford Motors (NYSE:F) and LG Energy (KRX:373220), said it will provide Hyundai and Kia with a portion of their future lithium hydroxide supply.

2. Albemarle (NYSE:ALB)

Company Profile

Market cap: US$10.27 billion
Share price: US$87.42

North Carolina-based Albemarle underwent a realignment in 2022, dividing the lithium company into two primary business units, one of which — the Albemarle Energy Storage unit — is focused wholly on the lithium-ion battery and energy transition markets. It includes the firm’s lithium carbonate, hydroxide and metal production.

Albemarle has a broad portfolio of lithium mines and facilities, with extraction in Chile, Australia and the US. Looking first at Chile, Albemarle produces lithium carbonate at its La Negra lithium conversion plants, which process brine from the Salar de Atacama, the country’s largest salt flat. La Negra has been in operation since 1984 and now consists of three plants, with the latest, La Negra III/IV, coming online in 2022. The newest plant includes a thermal evaporator that reduces water consumption by up to 30 percent. Going forward, Albemarle is hoping to implement direct lithium extraction technology at the salt flat by 2028 or 2029, a move that would help further reduce water usage.

Albemarle’s Australian assets are both joint ventures. The company and Mineral Resources (ASX:MIN,OTC Pink:MALRF) own the MARBL joint venture, which owns and operates the Wodgina hard-rock lithium mine and on-site Kemerton lithium hydroxide facility in Western Australia. Albemarle previously held 60 percent interests in both Wodgina and Kemerton; now, following multiple changes to their joint venture agreement this year, the two companies each have 50 percent interests in Wodgina, and Albemarle has 100 percent ownership of Kemerton. The company’s other Australian joint venture is the aforementioned Greenbushes mine, in which it holds a 49 percent interest alongside Tianqi and IGO.

As for the US, Albemarle is working to expand its role in domestic production and processing in line with the government’s Inflation Reduction Act. The company owns the Silver Peak lithium brine operations in Nevada’s Clayton Valley, which is currently the country’s only source of lithium production; it plans to double the site’s lithium production by 2025.

In September 2023, Albemarle received a US$90 million critical materials award from the US Department of Defense to boost its domestic lithium production and support the country’s burgeoning EV battery supply chain.

In its home state of North Carolina, Albemarle is planning to bring its past-producing Kings Mountain lithium mine back online, subject to permitting approval and a final investment decision. In late 2022, Albemarle received US$150 million in funding from the US government to support the building of a commercial-scale lithium concentrator facility on site. This lithium would then supply the company’s planned lithium hydroxide Mega-Flex facility, which will be nearby in Chester County, South Carolina. It is also developing the upcoming Albemarle Technology Park in North Carolina, which will serve as an advanced R&D facility for the acceleration of lithium innovation.

In early June of this year, Albemarle unveiled its project plan for the proposed mine to the community. The mine is expected to produce around 420,000 MT of lithium-bearing spodumene concentrate annually.

3. Tianqi Lithium (SZSE:002466,HKEX:9696)

Press ReleasesCompany Profile

Market cap: US$6.72 billion
Share price: 25.82 Chinese yuan

Tianqi Lithium, a subsidiary of Chengdu Tianqi Industry Group, is the world’s largest hard-rock lithium producer. The company has assets in Australia, Chile and China. It holds a significant stake in SQM — Tianqi paid US$209.6 million for a 2.1 percent stake in SQM in September 2016, which it then boosted to 23.77 percent for US$4.07 billion in 2018.

In Australia, Tianqi has the Greenbushes mine, which it acquired in 2012 when it purchased Talison Lithium, beating out Rockwood Holdings. However, it subsequently sold a 49 percent interest in Talison to Rockwood, which, as mentioned, is now owned by Albemarle. The company also developed a lithium hydroxide plant in the Kwinana Industrial Area south of Perth in Western Australia. The facility launched production in Q3 2019, and first output took place in mid-2021.

Ownership of Greenbushes became further divided in 2020, when Tianqi sold a stake in its Australian assets to IGO in a US$1.4 billion deal, giving a boost to the then financially troubled Chinese company. The deal gave IGO a 25 percent interest in Greenbushes and a 49 percent interest in Kwinana.

Rising lithium prices later helped further buoy Tianqi, which listed in Hong Kong in 2022, raising about US$1.7 billion in its debut. Commercial production at Kwinana began in December 2022 from Train 1 of the facility, and Train 2 is expected to be commissioned in 2024. The hydroxide plant is being fed by lithium from Greenbushes, and should have a production capacity of 48,000 MT per year once both trains are online.

In February this year, Tianqi Lithium updated its total mineral resources at Greenbushes to 447 million MT with the average grade of lithium oxide at 1.5 percent, or approximately 16 million MT of lithium carbonate equivalent.

4. Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460,HKEX:1772)

Company Profile

Market cap: US$6.29 billion
Share price: US$2.09

Founded in 2000 and listed in 2010, Ganfeng Lithium has operations across the entire electric vehicle battery supply chain. Even though it is relatively new compared to some on the list, the company has become one of the world’s largest producers of both lithium metals and lithium hydroxide. This is due to its strategy of investing heavily in overseas projects to secure long-term lithium resources, with its first coming in 2014.

Ganfeng now has interests in lithium resources around the world, from Australia to Argentina, China and Ireland; its operations include a 50/50 joint venture with Mineral Resources (ASX:MIN,OTC Pink:MALRF) for the Mount Marion mine in Western Australia.

In the last half decade alone, Ganfeng has made multiple significant deals. As mentioned, in 2018, the company bought SQM’s stake in Lithium Americas’ Caucharí-Olaroz lithium brine project in Argentina, and two years later it upped its interest in Caucharí-Olaroz to 51 percent, taking a controlling stake in the asset.

In 2021, Ganfeng continued to expand. The company agreed to buy the shares it did not already own in Mexico-focused Bacanora Lithium for US$264.5 million; it also bought a 50 percent stake in a lithium mine in Mali for US$130 million, as well as a 49 percent stake in a salt lake project in China owned by China Minmetals for 1.47 billion yuan. The company continued its purchasing spree in 2022 when it bought private company LitheA, which owns the rights to two lithium salt lakes in Argentina’s Salta province, for US$962 million.

In May 2023, Ganfeng entered into a cooperation agreement with Leo Lithium (ASX:LLL,OTC Pink:LLLAF). The giant invested AU$106.1 million into Leo, which will go toward ramping up the latter company’s Goulamina project in Mali. Ganfeng now holds a 9.9 percent interest in the company.

Ganfeng has supply deals with companies such as Tesla (NASDAQ:TSLA), BMW (OTC Pink:BMWYY,ETR:BMW), Korean battery maker LG Chem (KRX:051910), Volkswagen (OTC Pink:VLKAF,FWB:VOW) and Hyundai.

5. Pilbara Minerals (ASX:PLS,OTC Pink:PILBF)

Press ReleasesCompany Profile

Market cap: US$5.83 billion
Share price: AU$2.90

Pilbara Minerals operates its 100 percent owned Pilgangoora lithium-tantalum asset in Western Australia, which achieved commercial production in 2019. The operation consists of two processing plants: the Pilgan plant, located on the northern side of the Pilgangoora area, which produces a spodumene concentrate and a tantalite concentrate; and the Ngungaju plant, located to the south, which produces a spodumene concentrate.

In 2021, the company acquired Altura Lithium following a cash payment of US$155 million. Pilbara has partnerships with Ganfeng Lithium, General Lithium, Great Wall Motor Company (OTC Pink:GWLLF,HKEX:2333), POSCO (NYSE:PKX), CATL (SZSE:300750) and Yibin Tianyi. In the December quarter of 2023, Pilbara announced commissioning activities at its South Korean-based lithium hydroxide processing plant, a joint venture with partner POSCO. Early in 2024, Pilbara extended its offtake agreements with Gangeng and Chengxin Lithium Group.

Pilbara is currently working on multiple expansion projects at Pilgangoora. Its P680 expansion is for a primary rejection facility and a crushing and ore-sorting facility; while the P1000 expansion is targeting a spodumene production increase at the site to 1 million MT per year.

In August 2023, Pilbara and its joint venture partner Calix made a final investment decision to develop a midstream demonstration plant at Pilgangoora for value-added lithium output. Using Calix’s electric kiln technology, the plant’s goals include ‘decarbonising spodumene processing, decreasing transport volumes and improving value-add processing at the mine site.’ The plant is on track to reach initial production in the June quarter of the company’s 2025 fiscal year.

Pilbara completed a pre-feasibility study in June 2024 at its Pilgangoora operation demonstrating that an expansion project could provide an average of 1.9 million MT of spodumene concentrate per year for the first 10 years, including more than 2 million MT per year over the first six years after ramp up.

This August, the company made a move to expand its footprint in Brazil with a pending acquisition of Latin Resources (ASX:LRS,OTC Pink:LRSRF) and its Salinas lithium project. The project’s resource estimate, which covers the Colina and Fog’s Block deposits, stands at 77.7 million MT at 1.24 percent lithium oxide. If approved, the potential AU$560 million deal could close by late November or early December.

6. Mineral Resources (ASX:MIN,OTC Pink:MALRF)

Company Profile

Market cap: US$4.98 billion
Share price: AU$38.33

Australia-based Mineral Resources (MinRes) is a commodities company mining lithium and iron ore in the country. As mentioned, both of MinRes’ lithium mines are joint ventures with other companies on this list.

MinRes owns 50 percent of the Mount Marion lithium operation, which is a joint venture with Ganfeng Lithium. The joint venture was originally between MinRes and NeoMetals (ASX:NMT,OTC Pink:RRSSF) when it commenced in 2009, but the agreement changed over the years, eventually becoming the 50/50 agreement with Ganfeng that it is today. Production of lithium concentrate began at Mount Marion in 2017 and all mining is managed by MinRes, which also has a 51 percent share of the output from the spodumene concentrator at the site.

In June 2023, MinRes and Ganfeng mutually terminated their agreement to convert spodumene concentrate from Mount Marion into lithium battery chemicals, although MinRes will continue to sell its spodumene to Ganfeng. The company completed the expansion of Mount Marion’s processing plant last year, and recently reported increased lithium production as it ramped up activities in the first half of its FY 2024.

The company’s also has the Wodgina mine in Western Australia, which is operated under the MARBL joint venture with Albemarle. Put on care and maintenance in 2019, Wodgina was restarted by the joint venture and entered production in May 2022. The Kemerton lithium hydroxide plant reached mechanical completion in late 2022.

As explained, the two companies restructured the MARBL joint venture in February 2023. Under the new terms, MinRes owns 50 percent of Wodgina, up from 40 percent. The restructure originally saw Albemarle up its interest in the Kemerton plants from 60 percent to 85 percent, but in July 2023 it was amended to 100 percent in exchange for a payment of around US$400 million. In addition, MinRes acquired a 50 percent stake in the Qinzhou and Meishan plants from Albemarle.

Wodgina reached a record 10,700 MT of lithium battery chemicals sold in the first half of MinRes’ financial year 2024.

In late August, Mineral Resources decided to weather the storm of lithium’s low demand environment by reducing its operations at Mount Marion to between 1,50,000 and 170,000 MT of spodumene production in its financial year (FY) 2025 compared to the 218,000 MT of output achieved in FY 2024.

In late 2023, Mineral Resources acquired the Bald Hill lithium mine, which is also located in Western Australia. According to the company’s Q3 2024 results released in April, the mine’s first full quarter of production yielded 30,000 dry metric tons of spodumene concentrate. In Q4 2024, that figure came in at 35,000 dry metric tons.

7. Arcadium Lithium (NYSE:ALTM)

Press ReleasesCompany Profile

Market cap: US$2.61 billion
Share price: US$2.10

Arcadium Lithium was formed in January 2024 following the US$10.6 billion merger of equals between Allkem and Livent. Both a lithium miner and lithium processor, this vertically integrated company’s business model spans hard-rock mining, conventional pond based brine extraction, direct lithium brine extraction (DLE) and lithium chemicals manufacturing.

Its broad range of lithium chemicals products target the growing demand for portable electronics, electric vehicles and large-scale energy storage. Aside from that, Arcadium Lithium has operating resources in Argentina and Australia, as well as downstream conversion assets in the United States, China, Japan and the United Kingdom. Multiple development projects are underway in Argentina and Canada. In North Carolina, the company operates the only integrated high-purity lithium mine-to-metal production facility in the Western Hemisphere.

For 2024, Arcadium plans to increase its lithium carbonate and lithium hydroxide production by 40 percent to between 50,000 MT and 54,000 MT of lithium carbonate equivalent. It is ramping up lithium carbonate expansion activities at several assets including its Olaroz and Fénix brine operations in Argentina.

However, there will be reduced spodumene production at Mt. Cattlin in Australia due to lower lithium prices. Hard rock lithium operations typically have lower margins than brine. In early September, Arcadium announced it plans to ‘suspend Stage 4A waste stripping and any expansionary investment beyond Stage 3.’ The company will also move to place Mt Cattlin into care and maintenance by the end of H1 2025 following the completion of Stage 3 mining and ore processing.

Other lithium companies

Aside from the world’s top lithium producers, a number of other large lithium companies are producing this key electric vehicle raw material. These include Sigma Lithium( TSXV:SGML,NASDAQ:SGML), Liontown Resources (ASX:LTR,OTC Pink:LINRF), Jiangxi Special Electric Motor (SZSE:002176), Yongxing Special Materials Technology (SZSE:002756), Sinomine Resource (SZSE:002738) and Youngy (SZSE:002192).

FAQs for investing in lithium

Is lithium a metal?

Lithium is a soft, silver-white metal used in pharmaceuticals, ceramics, grease, lubricants and heat-resistant glass. It’s also used in lithium-ion batteries, which power everything from cell phones to laptops to electric vehicles.

How much lithium is there on Earth?

Lithium is the 33rd most abundant element in nature. According to the US Geological Survey, due to continuing exploration, identified lithium resources have increased to about 105 million MT worldwide. Global lithium reserves stand at 28 million MT, with production reaching 180,000 MT in 2023.

How is lithium produced?

Lithium is found in hard-rock deposits, evaporated brines and clay deposits. The largest hard-rock mine is Greenbushes in Australia, and most lithium brine output comes from salars in Chile and Argentina.

There are various types of lithium products, and many different applications for the mineral. After lithium is extracted from a deposit, it is often processed into lithium carbonate, lithium hydroxide or lithium metal. Battery-grade lithium carbonate and lithium hydroxide can be used to make cathode material for lithium-ion batteries.

What country produces the most lithium?

The latest data from the US Geological Survey shows that the world’s top lithium-producing countries are Australia, Chile and China, with production reaching 86,000 metric tons, 44,000 metric tons and 33,000 metric tons, respectively.

Global lithium production reached 180,000 metric tons of lithium in 2023, up from 146,000 MT in 2022, according to the US Geological Survey. About 87 percent of the lithium produced currently goes toward battery production, but other industries also consume the metal. For example, 4 percent is used in ceramics and glass, while 2 percent goes to lubricating greases.

Who is the largest miner of lithium?

The world’s largest lithium-producing mine is Talison Lithium and Albemarle’s Greenbushes hard-rock mine in Australia, which put out 1.49 million MT of spodumene concentrate in 2023. The top-producing lithium brine operation was SQM’s Salar de Atacama operations in Chile, with 2023 production of 166,000 metric tons of lithium carbonate.

Who are the top lithium consumers?

The top lithium-importing country is China by a long shot, and second place Korea is another significant importer. China is also the top country for lithium processing, and both are home to many companies producing lithium-ion batteries.

Why is lithium so hard to mine?

The different types of lithium deposits come with their own challenges.

For example, mining pegmatite lithium from hard-rock ore is known for being expensive, while extracting lithium from brines requires vast amounts of water and processing times that can sometimes be as long as 12 months. Lithium mining also comes with the difficulties associated with mining other minerals, such as long exploration and permitting periods.

What are the negative effects of lithium?

Both major forms of lithium mining can have negative effects on the environment. When it comes to hard-rock lithium mining, there have been incidents of chemicals leaking into the water supply and damaging the local ecosystems; in addition, these operations tend to have a large environmental footprint.

As mentioned, lithium brine extraction requires a lot of water for the evaporation process, but it’s hard to understand the scope without numbers. It’s estimated that approximately 2.2 million liters of water are required to produce 1 metric ton of lithium, and that can sometimes mean diverting water from communities that are experiencing drought conditions. This form of lithium extraction also affects the condition of the soil and air.

Will lithium run out?

Although future demand for lithium is expected to keep rising due to its role in green energy, the metal shouldn’t run out any time soon, as companies are continuing to discover new lithium reserves and are developing more advanced extraction technologies. Additionally, there are companies working on technology to recycle battery metals, which will eventually allow lithium from lithium-ion batteries to re-enter the supply chain.

What technology will replace lithium?

Researchers have been working on developing and testing a variety of lithium alternatives for batteries. Some of these options include hydrogen batteries, liquid batteries that could be pumped into vehicles, batteries that replace lithium with sodium or magnesium and even batteries powered by sea water. While nothing looks ready to replace lithium-ion batteries right now, there is potential for more efficient or more environmentally friendly options to grow in popularity in the future.

How to buy a lithium stock?

Investors are starting to pay attention to the green energy transition and the raw materials that will enable it.

When it comes to choosing a stock to invest in, understanding lithium supply and demand dynamics is key, as there are unique factors to watch for in lithium stocks. The main demand driver for lithium is what happens in the electric vehicle industry, which is expected to keep growing, and also the energy storage space. Analysts remain optimistic about the future of lithium, with many predicting the market will be tight for some time.

Investors interested in lithium stocks could consider companies listed on US, Canadian and Australian stock exchanges. They can also check out our guide on what to look for in lithium stocks today.

Securities Disclosure: Melissa Pistilli and Georgia Williams hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

A German-Iranian national and longtime US resident has been executed in Iran after being convicted of terrorism offences, according to Iranian state media citing the country’s judiciary-affiliated Mizan news agency.

Jamshid Sharmahd, 69, was executed Monday morning for “planning and orchestrating a series of terrorist acts,” state-run IRNA and Press TV reported. His execution sparked condemnation from the United States and Germany.

Sharmahd’s daughter Gazelle has repeatedly said her father is innocent and that he faced a sham trial due to his political activism and criticism of the Islamic Republic.

Sharmahd was arrested in 2020 by Iranian authorities who claimed he headed a group accused of a deadly 2008 bombing in the city of Shiraz, according to state-run news agencies ISNA and IRNA.

He was sentenced to death in 2022 for “corruption on Earth”, sparking widespread condemnation from human rights groups and Western governments.

“He has been sentenced to death after a legal proceeding that has been widely criticized as a sham trial,” Vedant Patel, the US State Department’s principal deputy spokesperson said in a briefing last fall. Amnesty International also described the trial as “grossly unfair.”

Following the news of his execution, German foreign minister Annalena Baerbock said that Sharmahd’s “murder” showed Tehran to be an “inhumane regime” that “uses death as a weapon.”

Baerbock said the execution would have “serious consequences.”

The United States’ Office of the Special Envoy for Iran said it was looking into reports of Sharmahd’s execution and said his killing would “represent the latest abhorrent act in the regime’s long history of transnational repression and accelerating rate of executions.”

Sharmahd’s “kidnapping and rendition, as well as sham trial and reports of torture, were reprehensible,” the envoy’s office added.

Abram Paley, the US Deputy Special Envoy, last year met with Sharmahd’s family to discuss his imprisonment and death sentence.

This post appeared first on cnn.com

Israel’s parliament has voted to ban a nearly eight-decade-old United Nations agency that provides essential services for Palestinian refugees, a move that could have devastating consequences for millions of Palestinians living under Israeli occupation.

On Monday, the Knesset passed two bills; one barring UNRWA from activity within Israel, and another banning Israeli authorities from any contact with UNRWA – revoking the 1967 treaty that allows UNRWA to provide services to Palestinian refugees in areas under Israel’s control.

The move is expected to severely restrict the UN Relief and Works Agency for Palestine Refugees (UNRWA) from operating in territories Israel occupies.

Following the passing of the first law, Boaz Bismuth, a member of Likud, the architect of the bill, said: “Anyone that behaves like a terrorist has no rights in Israel…. UNRWA equals Hamas, period.”

Before the passing of the second law, another member, Yuli Edelstein, claimed the directive “does not in any way harm humanitarian aid to the Gaza Strip” and insisted Israel was acting within the framework of international law.

The move went ahead despite heated opposition from Arab members of the Knesset and strong international pressure from Western nations. The first law was approved with 92 votes in favor, 10 against. The second was approved with 87 votes in favor, 9 against.

Several countries, including the United States, have expressed deep concerns about the controversial ban, which could impact the education, food, healthcare and livelihoods of millions of Palestinians who depend on the agency.

Prior to the vote, the US State Department had urged Israel not to pass the legislation, saying the agency plays “an irreplaceable role right now in Gaza.” Secretary of State Antony Blinken has previously warned Israel that passing the legislation could “have implications under US law and US policy.”

Israel has long sought to dismantle the UN body, arguing that some of its employees are affiliated with Hamas, and that its schools teach hate against Israel. UNRWA has repeatedly denied these accusations, saying there is “absolutely no ground for a blanket description of ‘the institution as a whole’ being ‘totally infiltrated.’”

Here’s what we know about UNRWA, and the implications of the Israeli ban.

What is UNRWA and what does it do?

UNRWA was founded by the United Nations a year after the 1948 creation of Israel that led to the displacement of hundreds of thousands of Palestinians from their homes in an event known by Palestinians as the “Nakba” (catastrophe).

The agency, which began by assisting about 750,000 Palestinian refugees in 1950, now serves some 5.9 million across the Middle East, many of whom live in refugee camps in Jordan, Lebanon, Syria, the Gaza Strip, the West Bank and East Jerusalem.

In the Gaza Strip, which has been ravaged by a devastating Israeli war for more than a year, UNRWA serves some 1.7 million Palestinian refugees. In the West Bank and East Jerusalem, it assists around 871,500 refugees.

The agency provides a wide range of aid and services to Palestinian refugees and their descendants, including shelter, healthcare, food and education. It is also a major source of employment for the refugees, who make up most of its more than 30,000 employees across the Middle East, and has representative offices in New York, Geneva and Brussels.

More than 13,000 of its employees are stationed in Gaza alone. In the West Bank and East Jerusalem, it employs nearly 4,000 workers.

UNRWA is unique in that it is the only UN agency dedicated to a specific group of refugees in specific areas. While its purpose is to support Palestinian refugees, UNRWA does not have a mandate to resettle them

The UN High Commission for Refugees (UNHCR) is the body that is tasked with resettlement of refugees, but its mandate does not extend to areas UNRWA operates in.

Why does Israel want to ban UNRWA?

Israel has long opposed the agency and sought to dismantle it even before October 7 last year, when Hamas-led militants killed 1,200 people in Israel and took more than 250 hostages. Israeli officials have rejected UNRWA’s definition of which Palestinians are eligible for refugee status, arguing that descendants of the 1948 refugees do not qualify and thus don’t have the right to return to their ancestral homes in what is now Israel.

An Israeli member of parliament behind the bills accused UNRWA on Sunday of “educating kids to hate Israel and spreading antisemitism.”

But since the war started, Israel has launched an intense campaign to delegitimize the UN body, including accusing some of UNRWA’s employees of association with Hamas’ attack, alleging they took part in varying capacities.

UNRWA strongly denied the allegations, but several governments, including the US, suspended funding for the agency earlier this year while the allegations were being investigated. In January, the agency terminated the contracts of those Israel named and launched an investigation into its claims. Most nations have since restored funding with the exception of the US, its biggest donor.

UNRWA said that that as of October 20 of this year, 233 of its workers were killed. And last month, the agency said that an UNRWA staffer “was shot and killed on the roof of his home by a sniper during an overnight Israeli military operation” in El Far’a Camp in the occupied West Bank, marking the first time a member of the UN agency was killed in the West Bank in more than 10 years, UNRWA said.

What would the impact of UNRWA’s banning be?

UN Secretary-General António Guterres said earlier this month that “in midst of all the upheaval, UNRWA – more than ever – is indispensable… is irreplaceable.”

The UN chief said he sent a letter to Israeli leader Benjamin Netanyahu, telling him that the proposed bill would “suffocate efforts to ease human suffering and tensions in Gaza, and indeed, the entire Occupied Palestinian Territory.”

“It would be a catastrophe,” Guterres said, “in what is already an unmitigated disaster.”

But his calls appear to have fallen on deaf ears. The UN chief has been declared persona-non-grata, or an unwanted person, by Israel, whose officials have repeatedly accused Guterres of being sympathetic to Israel’s adversaries.

UNRWA is the primary humanitarian aid group in Gaza. Nearly 2 million Gazans rely on the agency for aid, with 1 million people using UNRWA shelters for food and healthcare in the enclave. The agency has provided Gazans with everything from food and healthcare to education and psychological support for decades.

Along with the Palestinian Red Crescent, UNRWA handles almost all distribution of UN aid coming into the territory. The agency has 11 food distribution centers for 1 million people in Gaza, more than half of whom UNRWA assesses to live below the abject poverty line of US$ 1.74 per person per day.

The agency has also helped implement an emergency polio vaccination campaign in Gaza, alongside other UN bodies, in a bid to stop the infectious virus that can cause paralysis from spreading. Last week, the third phase of the polio vaccination campaign in Gaza was postponed due to escalating violence in north Gaza, the World Health Organization (WHO) said.

In the West Bank, UNRWA provides services for 19 refugee camps, more than 90 schools and a number of health services, including prenatal care. It distributes basic food supplies, loans, as well as emergency cash grants and shelter, according to the agency’s website.

It is unclear who would assume assistance for the millions of Palestinian refugees who rely on UNRWA, if it wasn’t able to. Israel has previously tried to dismantle the agency and called for the merging of its responsibilities with the UNHCR.

Aida Touma-Suleiman, an Israeli-Arab politician and member of the Arab-majority Hadash party, said the “bills stem from a long time ambition of the Israeli right – to strip Palestinian refugees from their status.”

“Israel is in effect creating new refugees every day while questioning the legitimacy of that very status,” Touma-Suleiman said on X.

What is the international community saying?

On Monday, foreign ministers of seven countries – Canada, Australia, France, Germany, Japan, South Korea and the United Kingdom – called on Israel to halt the legislation, expressing “grave concern” over its implications.

“UNRWA provides essential and life-saving humanitarian aid and basic services to Palestinian refugees in Gaza, East Jerusalem, the West Bank and throughout the region,” the foreign ministers said in a joint statement.

Despite its suspension of funding to UNRWA, the US has also opposed the ban. In a letter sent to two senior members of the Israeli government earlier this month, US Secretary of State Antony Blinken and US Defense Secretary Lloyd Austin said the Biden administration was “deeply concerned” about it.

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A Russian guided bomb attack on Kharkiv on Monday shattered much of the Derzhprom building, one of the most celebrated landmarks in Ukraine’s second city, dating from the 1920s.

Six people were injured in the 9 p.m. local time (3 p.m. ET) strike, adding to 13 wounded in an earlier overnight bomb attack on the city.

In the central Ukrainian city of Kryvyi Rih, a Russian missile struck a three-story residential building, killing one person and wounding at least 11.

President Volodymyr Zelensky denounced the strike on Kharkiv’s Derzhprom (State Industry) building, one of the most striking examples of Soviet-era constructivism architecture and dubbed the Soviet Union’s first skyscraper.

Writing on X, he also deplored the attack on Kryvyi Rih, his hometown, and called for renewed efforts to force Kremlin leader Vladimir Putin to halt the more than two-and-a-half-year-old war.

“Every handshake with war criminal Putin boosts his confidence. Every pleasant smile convinces him that he can get away with his crimes,” Zelensky wrote.

“Instead of cozying up to him, we must force him into peace through our collective decisiveness.”

Reuters news agency video showed parts of the Derzhprom building reduced to rubble and virtually all of its windows shattered.

“The occupiers have struck an iconic symbol of the city, known to all residents of Kharkiv,” Oleh Syniehubov, governor of the Kharkiv region, wrote on Telegram. He said several floors had been destroyed.

The Derzhprom building, placed on the “tentative” list of UNESCO World Heritage Sites, was completed in 1928 when Kharkiv was the capital of Soviet Ukraine.

The evening attack also hit a medical facility. Earlier strikes damaged an apartment building and storage space.

Eight were hurt in the city of Chuhuiv just to the southeast, Syniehubov said, an attack prosecutors said involved a multi rocket-launch system was used in Chuhuiv.

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