After rallying >700% since 2020, lithium prices have continued to hold steady, despite ongoing fears of global
recessions, market sell-offs, and negative sentiment seen across global markets. Since the brief pullback in midQ2/22, lithium chemical prices have generally ticked back up, with prices up ~100-140% YTD. On the back of this rally, fueled by increasing demand for Li-ion batteries (particularly from EVs), we have seen increasing investment into Direct Lithium Extraction (DLE) technologies and DLE project developers. With potential for fantastic project economics and production capabilities that are disruptive to the global lithium sector, we expect more DLE companies to emerge, and more lithium companies to use the technology as it continues to be de-risked. With this report, we hope to educate our readers on DLE in the context of the global lithium market and provide a guide as to what we believe mining investors should look out for when evaluating DLE project developers. We are also initiating coverage on two of our favourite DLE Li-brine developers, HeliosX Lithium & Technologies Corp. (TSXV:HX, BUY (S), Koby Kushner) and Grounded Lithium Corp. (TSXV:GRD, BUY, C$0.85 target, Koby Kushner). We also provide an overview on three other top picks in the DLE space, E3 Lithium Ltd. (TSXV:ETL, BUY, C$8.20 target, Koby Kushner), Lake Resources NL (ASX:LKE, BUY, A$3.15 target, David A. Talbot), and LithiumBank Resources Corp. (TSXV:LBNK, Not Rated, Koby Kushner).
Red Cloud’s 2024 Pre-PDAC Showcase – Conference Recap
This week, Red Cloud hosted its in-person Pre-PDAC Showcase which featured 88 presenting companies and four keynote presentations. The conference had over...