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From powering electric vehicles to storing solar and wind energy, lithium plays a critical role in the transition to a greener world. So it’s not surprising demand for Lithium-Iron-Phosphate (LFP) batteries is exploding – as are the market values of its key publicly traded producers.
With energy and food prices still high and weather-related calamities occurring far too often, everyone from companies to consumers is looking for greener alternatives across the board. Electric vehicles have driven a lot of the demand, but lithium is also used in storing captured wind and solar for the power grid and residential solar power systems.
LFPs Gaining Traction
For years, North American EV makers relied on lithium-ion batteries made of lithium, cobalt and nickel to power this greener vision. But cobalt and nickel are scarce and expensive – not to mention controversial.
Companies looking for an alternative have turned to LFPs. These batteries are highly stable, longer lasting, and more resistant to heat degradation. They also require less lithium.
In 2022, about 737,000 tons of lithium was produced globally. That’s expected to increase to 964,000 tons in 2023, reaching 1.17 million tons by 2024. The LFP market is projected to exceed
Beyond EVs, there’s another big opportunity for LFPs: energy storage systems and powerwalls. These are designed to store energy from solar or the grid to be used later. Some are portable while others are connected. Tesla, Inc.(NASDAQ: TSLA) is increasingly using LFPs in its energy storage products, which bodes well for the industry.
Northern Exposure
Evidently, this isn’t lost on investors, and many investors are watching publicly traded lithium companies keenly. Some of the key players include Albemarle Corp. (NYSE: ALB), Sociedad Química y
But they aren’t cheap. Albemarle currentlytrades at around
Fortunately, there are cheaper ways to get exposure to the lithium battery market, such as through the miners that provide the minerals needed to make batteries.
But, as its phosphate is snapped up by producers of everything from EVs to solar storage systems, that may not be the case for long.
Deposits Set it Apart
Arianne’s Lac à Paul project in
There is also pro-mining legislation that helps companies like Arianne. The White House’s American Battery Materials Initiative is aimed at securing a reliable and sustainable supply of critical minerals used for power, electricity, and EVs. Meanwhile, the
Judging by how the market is moving, LFPs could well be the future. A cheaper way to play this exploding market is with phosphate, of which Arianne appears to be a well-positioned producer.
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This information contains forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralisation and reserves, exploration results and future plans and objectives of
Contact Details
brian.ostroff@arianne-inc.com
Company Website
https://www.arianne-inc.com
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