February 17, 2022

European Battery Making Capacity Outweighs Supply | United Lithium $ULTH $ULTHF

Midas Letter
Midas Letter
European Battery Making Capacity Outweighs Supply | United Lithium $ULTH $ULTHF

Lithium has been the hottest commodity since sliced bread this year. The surge for the metal comes from it being one of the key components used in rechargeable batteries powering electric vehicles (EV). With the massive adoption of EVs over the last few years, the lithium supply is struggling to keep up with demand.

Although there is no shortage of lithium in the ground, it isn’t easy to process. Extraction of the battery metal requires a lot of investment in infrastructure. It is extracted either from underground brine reservoirs called salars or extracted from spodumene rocks.

United Lithium Corp (CNSX:ULTH, OTCMKTS:ULTHF) concentrates on spodumene hard rock mining. Spodumene’s high lithium content makes exploration of spodumene deposits attractive. Lithium extraction from spodumene also typically offers lower capital costs and a shorter time from discovery to production in comparison to brine operations.

“We have three projects in the arctic circle. We have Canada, Finland and Sweden. We are really targeting the battery gigafactory market. We are not really too concerned with what’s going on in China, but we are concerned with what’s going on in North America and Europe. There’s quite a bit of exploration going on in North America now with the clays, the brines, and the direct lithium extraction from groundwater, and then you’ve got all the pegmatites in Manitoba, Ontario, Quebec, and the Carolinas. But, when you go to Europe there just aren’t a lot of projects and the demand is higher in Europe than it is in  North America. we made a conscious decision just over a year ago to just focus on Europe and look to feed those gigafactories.” – United Lithium CEO Michael Dean interview

United Lithium has decided to concentrate on satisfying battery gigafactory demand in Europe, where demand is higher and supply is lower. The company is actively working on prospective locations in Sweden, Finland and Canada. Those regional deposits, mining operations, and advanced infrastructures allow for rapid and cost-effective exploration, development, & production opportunities.


00:00 – United Lithium $ULTH $ULTHF CEO Michael Dean
00:51 – Business overview
02:21 – European battery making capacity
02:30 – Timeline until projects produce lithium
03:16 – Mining projects
04:15 – Sweden & Finland mining environmental considerations
06:22 – Cost of producing lithium from spodumene
07:39 – Cash on hand & financings


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