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Lithium Tech Co. Joins EV Research Group With Mercedes-Benz

Published 20/06/2024, 17:35
MBGAF
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Benzinga - by The Critical Metals Report, Benzinga Contributor.

Source: Streetwise Reports 06/18/2024

Lithos Group Ltd. (OTC: LITSF) announced it has become a member of the Alabama Mobility and Power (AMP) Center, a strategic alliance that includes the University of Alabama, Alabama Power, and Mercedes-Benz U.S International (OTC: MBGAF).

Made up of government, academic, and industry partners, AMP is a research and development hub for battery technologies, dedicated to pioneering solutions across the entire electric vehicle (EV) ecosystem, from raw material extraction to end-of-life battery recycling.

The objective is to stimulate economic development, train a specialized local workforce, and coordinate research into mobility and power to solidify Alabama's status as a leader in the EV industry, the company noted.

"Alabama has proven to be an excellent location for our testing and R&D lab facilities, thanks to its talented workforce and supportive government" LiTHOS Chief Executive Officer Scott Taylor said. "AMP will enable more companies to recognize the potential we've seen here, facilitating connections with industry ad partners and government agencies and, crucially, fostering the development of the skilled workforce we need as we scale up and expand our operations in the state."

Headquartered in Denver, Colorado, LiTHOS Group aims to "become the global standard in economically efficient, sustainable lithium production" the company said.

Co.'s Tech Skips Damaging Evaporation Ponds

The company's AcQUA™ technology allows lithium to be extracted from brine without using water-intensive, environment-damaging evaporation ponds. AcQUA™ spans the whole value chain from the conditioning and pretreatment of raw brines, the primary bottleneck, through the direct lithium extraction (DLE) phase to the polishing and purification of battery-grade lithium feedstock.

DLE could nearly double the production of lithium from brine, Goldman Sachs analysts wrote in a research note last year. It could boost recoveries to 70−90% from 40−60%, thereby improving project returns.

About 70% of global lithium resources are hosted in brine.

DLE could nearly double the production of lithium from brine, Goldman Sachs analysts wrote in a research note last year. It could boost recoveries to 70−90% from 40−60%, thereby improving project returns.

Lithos has two fully operational facilities, a 4,000-square-foot laboratory in Denver and a 55,000-square-foot complex that enables an expansion for the company, permitted to produce pilot-scale lithium hydroxide in Bessemer, Ala.

State Now No. 1 in Auto Exports

The AMP Center is a public-private partnership between the University of Alabama, Alabama Power Company, Mercedes-Benz U.S. International, Inc., and now LiTHOS. Its mission is to drive research and workforce development for the expanding EV market.

Alabama is now the No. 1 auto-exporting state, with international vehicle shipments surging past US$11.2 billion in 2023 to overtake longtime leader South Carolina, according to new trade data, according to a report on the site Alabama News Center.

Exports of cars from the state have climbed 45% in value since 2021, when they totaled US$7.7 billion, according to figures from the Alabama Department of Commerce.

Katusa Research purported the lithium market could have a major breakout this year, citing its use in EVs and storage batteries as key drivers.

"Alabama's auto industry has become an exporting powerhouse, with vehicles produced in the state finding markets around the world" said Alabama Commerce Secretary Ellen McNair.

The state's exported cars landed in 78 countries in 2023, with major trading partners Germany, China, and Canada being the leading destinations, according to Department of Commerce data.

Brad Whisenant, consortium development manager at the AMP Center, stated, "The AMP Center was created to unite the best minds from industry, academia, and government to drive innovation in the EV and battery sectors. We are excited to welcome LiTHOS to our consortium and anticipate groundbreaking projects that will benefit the entire EV ecosystem."

LiTHOS officials said it is important to be part of a collaborative approach to solving the some of the industry's biggest problems.

"It is an honor to be part of AMP, and we look forward to contributing to its growth and ultimate success" said Judson Lacapra, Chief Development Officer at LiTHOS.

The Catalyst: Important Battery Metal Could Break Out This Year

An important component of electric vehicle (EV) batteries, lithium is also used to strengthen alloys, as a high-temperature lubricant, and as a drug to treat bipolar disorder.

Demand for it has been rising steadily since 2020 and is expected to continue until at least 2035, Statista data show. Projections indicate that by then, demand will have reached 3,829,000 metric tons of lithium carbonate equivalent, a 317.5% increase from 917,000 metric tons in 2023.

Similarly, the lithium market is projected to continue growing to US$6.4 billion in value by 2028 from US$2.5 billion in 2023, according to Markets and Markets. This change reflects a 20.4% compound annual growth rate (CAGR).

Katusa Research purported the lithium market could have a major breakout this year, citing its use in EVs and storage batteries as key drivers.

"The opportunity in lithium is more electric than ever" Katusa wrote.

Ownership and Share Structure

About 60% of Lithos is held by insiders and management, the company said. According to Reuters, this includes CEO Scott Taylor with 14.19%, Independent Director Michael Westlake with 0.71%, and Independent Director Kevin McKenna with 0.05%.

About 27% of the company is held by strategic entities. The rest is retail.

Lithos has a market cap of CA$27.9 million with about 84.62 million shares outstanding. It trades in a 52-week range of CA$0.98 and CA$0.24.

Important Disclosures:

  • Lithos Group Ltd. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  • As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lithos Group Ltd.
  • Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  • This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
  • Read the original article on Benzinga

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