Typically, once lithium spodumene is mined from a hard rock, it is sent to China to be processed into lithium hydroxide or lithium carbonate, as China processes 60% of globally mined lithium. With an increasing demand in electric vehicles and electronic consumer products, the current market for lithium-ion EV batteries is a $27 billion per year business, with expectations to increase to $127 billion by 2027. The top 10 battery manufacturing plants are currently in China. Europe and North America are looking to reduce their reliance on Asia, eager for a domestic source for battery metal suppliers who can provide critical battery metals and manufacture batteries locally. Foremost Lithium is looking to be part of the fulfillment of this need and ensure local and international manufacturers have access to higher quality refined products that will be processed locally creating great value and profitability.
Rise of the Gigafactories
With lithium carbonate and lithium hydroxide commodity pricing reaching all-time highs in China in the winter of 2021, expectations are high that pricing will continue to increase as analysist forecast that that the demand for lithium will outpace supply for years to come. President Biden recognizes the importance of green energy and a future clean environment so with an effort to shore up the domestic supply chain in the EV market, including battery metals, and components needed to create batteries, he pledged his support by offering tax incentives and grants. Biden set his sights on ensuring a significant expansion in the production of lithium-ion batteries in the United States, and with it more gigafactories including already 12 more in current production. “Giga factories” was coined in 2013 by Elon Musk and essentially is just a massive battery production plant. Foremost Lithium’s two lithium projects in Snow Lake Manitoba are strategically right within the North American corridor to fulfill the battery metal supply chain in the essential lithium requirements to aid in the production needs of these gigafactories.