“Lithium to the Max” – New Player in Lithium Sector Has Big Vision
Authored by Lemuel Daher
Toward the end of 2022, the Canadian government began an initiative to accelerate its efforts in reducing greenhouse gas emissions to “net-zero” by 2050.
And this initiative segues seamlessly into MAX Power Mining (CSE: MAXX), the investment opportunity we’d like to highlight in this month’s Commentary Corner. See, with the Government of Canada supporting the transition of its automotive sector to the ultimate goal of net-zero… critical minerals such as lithium —which power electric vehicles — are looking more attractive by the minute.
Basically, lithium production in Canada is about to experience a massive surge.
Lithium production everywhere is. And there is a large ramp up in exploration activities in the hopes of meeting the growing supply crunch.
If you hadn’t already noticed — today’s world has developed a voracious appetite for the mineral. Which shouldn’t be particularly surprising, considering that the lithium industry will require as much as 42 billion dollars of investment by the end of this decade to satisfy the increasing demand for the material.
And, sure, we’ve got plenty of time to delve into why market demand for the mineral has skyrocketed so sharply in recent years… but, for just now, it’s equally important to understand that almost all lithium mining at present occurs in Australia, Latin America, and China.
Now, China is an especially dominant force within the lithium supply chain — with something like 80% of total lithium-ion battery production coming from the nation. An incredible level of expertise, competence, as well as low labor and energy costs have given the country a stranglehold on the mineral, driving both North America and Europe to look toward reducing their dependency on Chinese lithium imports.
So, at a time when domestic lithium production has become a critical, paramount need — MAX Power emerges onto the scene: MAXX, the exploration-stage resource opportunity that now targets domestic lithium resources in order to advance North America’s renewable energy prospects.
But this isn’t some timely coincidence. No, MAXX’s decision to switch gears into lithium isn’t so much to enter the lithium exploration space serendipitous as it is eruditeis very deliberate and well planned. We know that MAX Power is led by a savvy management team, we know that the experts in charge of navigating the proverbial MAX Power ship are endowed with a canny sense of direction, and we know that they’re well aware of which way the market winds are blowing.
Folks, that wind is blowing toward commodities. Toward lithium; which is not only a key ingredient in batteries, but a mineral which is currently in the midst of a tremendous supply shortage.|
And it is for this reason that, late last year, MAXX launched their North American-focused lithium strategy with two impressive acquisitions.
That’s right, the Company presently maintains a 100% interest in two large properties, both of which are located within close proximity to Patriot Battery Metals’ (PMET) Corvette Property lithium discovery.
Now, if you’re unfamiliar with the prolific CV Lithium Trend and PMET’s Corvette Lithium Camp in the James Bay District of Quebec… there are just a few important things you need to know. First, that the area has excellent infrastructure and — as it’s located within 19 km from all-weather road access, and 18 km from James Bay Hydro power lines — is optimally placed.
And, speaking of location, it’s equally important to understand that Quebec is a heavily favored jurisdiction when it comes to providing lithium to North America. This is one major reason why the James Bay district has seen such a marked increase in investor attention.
Finally, understand that the CV Lithium Trend — as discovered by PMET some six years prior — is an emerging spodumene pegmatite district. The notable quantity of well-mineralized pegmatites in this particular core area of the trend indicates a strong potential for a series of closely spaced, spodumene-bearing pegmatite bodies.
More pegmatite? Odds are, more lithium.
Which brings us to MAX Power’s Corvette Lake North and South properties. They cover 189 mineral claims, to a total of 9,709 hectares. The reasoning behind these acquisitions is solid: MAXX has access to the historical reports, government data, and recent reconnaissance work conducted on these properties. And, folks, all that data is telling the same compelling story…
…that there are documented pegmatite occurrences on Corvette Lake North, indicating that pegmatites can occur within a variety of rock types. What’s more, both of MAXX’s Corvette properties are located in the La Grande geological sub-province which are underlain by 20km of strike length of underexplored intrusive and sedimentary rocks.
Corvette North, of course, has seen historical mineral exploration — primarily for gold. But in addition to the documented pegmatite occurrences found at Corvette Lake North, the property is situated just a mere five kilometers south of PMET’s CV5 pegmatite discovery… where, just days ago, drilling returned 156.9 meters at 2.12% Li2O.
By the way, if you’re only just now thinking about adding a lithium stock to your portfolio… you ought to know that it’s about as safe a bet as a bet can get.
You see, the future is fueled — so to speak — by lithium. CEO of MAX Power, Rav Mlait, never misses a chance to iterate just how critical lithium is when it comes to making the batteries that power our lives.
More than that, this recent surge in popularity for electric vehicles is not a transient, passing thing. Given that Lithium is needed to produce virtually all traction batteries used in EVs and most consumer electronics — it only stands to reason that lithium metal prices would skyrocket.
And skyrocket they have.
In 2022, lithium surged from $6,000 per tonne to over $78,032. Folks, that’s a 13-fold increase in less than two years. Worldwide EV sales are expected to increase from 6.5 million units to 51 million by 2030… which means almost 400 new mines will be needed to meet this demand by 2035.
And we know that MAX Power is prepared.
We know this, because we know that the Company has three things which will enable MAXX to position themselves handily in the rapidly expanding lithium sector: a fantastic share structure, over $4 million in cash, and a two-phase exploration program, set to take place later this year at their James Bay properties.
‘Lithium to the MAX’ is the Company motto.
And, here at MarketSmart, we know they mean it.