The Biggest Energy Tech Breakthrough Since Fracking

The electric car revolution is driving a lithium-ion battery boom that could be worth $67 billion by 2022 – as long as a supply crunch doesn’t choke it to death. 

Thankfully, International Battery Metals Ltd. (CSE:IBATOTC: RHHNF) is seeking to revolutionize the economics of Lithium extraction.

Traditional solar evaporation technology takes up to 24 months to extract lithium from metal heavy brine. IBAT’s incoming CEO John Burba says he can do it in 24 hours.

Not only that – traditional methods only recover 40 percent of the resource. With their new tech, IBAT can achieve lithium extraction rates of over 90 percent.

Elon Musk even offered $325 million to acquire the CEO’s previous company – which was based on an earlier version of the advanced technology that IBAT’s will use.

A New York Global Investment Bank valued the same company at 7X that number… at $2.5 billion. Fortunately for investors, the deal was never completed.

That’s why we’re so interested in the International Battery Metals story.

Here are 5 reasons why you should be paying attention:

  1. The Coming Lithium Megaboom.
  2. Game Changing Extraction Tech
  3. An $84 Billion partnership Opportunity
  4. Massive Interest From Tesla Motors
  5. A Veteran Team Of Lithium Pioneers

The Lithium Megaboom

We’re witnessing an explosion in global demand for Lithium, and supply isn’t even close to keeping up. That’s why Lithium spot prices have nearly tripled since 2015.

The price per metric ton in Chinese spot markets is up from $6,500 to over $20,000.

Lithium’s wild ride is just beginning. Demand for the metal is set to soar in coming years, and we believe that represents a massive investor opportunity.

The global battery market is set to hit $120 billion in less than two years.

Electric car production is expected to increase more than thirtyfold by 2030, hitting 24.4 million in annual vehicle sales – up from under 1 million today.

The Tesla (NASDAQ:TSLA) 70kWh Model S battery pack contains 63Kg of lithium, equivalent to the amount of lithium in 10,000 cellphones.

The problem? Production capacity is now at a critical juncture. Unfortunately, recovery of Lithium from brine deposits is a painfully slow process.

Traditional solar evaporation technology is an extremely time-intensive process, with a lengthy production cycle that can exceed 18 months.

It takes a minimum of 4 years for an average Lithium brine mine to come online– and another 3-4 years to reach full capacity.

The total investment in new mines will likely range from $350 billion to $750 billion, according to analysts at researcher Sanford C. Bernstein & Co.

Even that won’t bring enough capacity online.

Game Changing Lithium Extraction Technology

International Battery Metals (CSE:IBATOTC: RHHNF) will soon have the solution.

The technology that International Battery Metals has contracted to acquire could be a significant key to unlocking $84 billion in lithium brine resources—by making it faster and cheaper to produce.

Lithium is currently produced through a grueling 18-24-month solar evaporation process that entails slowly extracting all other elements from the brine until only lithium remains.  The biggest problem with this reality is that the expansion of plants to produce more lithium will be painfully slow and require construction of thousands of acres of new evaporation ponds.

IBAT’s soon-to-be-acquired technology is designed to do the opposite, removing evaporation ponds from the equation.

The proven method will reduce extraction times to as little as 24 hours. Better still – it will improve recovery from roughly 40 percent to over 90 percent of all lithium.

As inventor and incoming CEO John Burba puts it: “Our tech has such a high specificity for lithium that it can directly take the lithium out.  Selective Absorption, the core of our process is the only commercially proven technology that can make this claim”.

Instead of going the traditional route of trying to isolate lithium by removing all of those complex ions, the tech removes the Lithium directly.

According to incoming IBAT CEO John Burba, the mastermind of this technology, the process takes the lithium out on a continuous basis.

As the brine goes by, it collects lithium and lets the other impurities continue on and go straight back into the ground. The end-product is a diluted stream of lithium chloride and water that comes out as the brine goes by.

The whole extraction process takes 24 hours, so it would mean the end of 18-24- month residencies. That’s a game changer for lithium.  Burba says: “Once we have proved our patent pending fourth-generation technology, we will be able to expand production in a fraction of the time it will take for solar evaporation.  This ability will be critical to being able to keep up with the expected demand curve for battery grade lithium products”.

Unlocking $84 Billion Worth Of Lithium

Lithium brine deposits are estimated to contain 66 percent of the world’s 14 million metric tonnes (MT) of Lithium. That’s Lithium worth $84 billion at current prices.

With their soon-to-be acquired extraction breakthrough, International Battery Metals (CSE:IBATOTC: RHHNF) could be the fastest-producing lithium company in the world.

Faster means more efficient and cost effective.

While new entrants are struggling with costs, IBAT’s technology could put it on cost par with the Big 3 lithium producers—the lowest-cost producers right now.

That includes Albemarle Corp (NYSE:ALB), Sociedad Quimica y Minera de Chile (NYSE:SQM) and FMC (NYSE:FMC).

But, there’s a bigger opportunity than just production.

If proved up this technology could be highly disruptive, offering one of the fastest-to- production Lithium brine extraction solutions out there.

That’s an enormous opportunity, and the industry is taking notice.

How This Play Was Almost Taken Off The Market

Investors came very close to missing out John Burba’s genius entirely when his previous company was nearly acquired in 2014. 

Tesla Motors will use up the entire world’s supply of battery-grade lithium when it hits annual production of 500K Model 3s in its Nevada Gigafactory later in 2018.

Elon Musk offered $325 million for Burba’s earlier start-up – the lithium extraction company Simbol Materials, in an effort to bolster his supply.

Musk wrote, “this is a compelling opportunity to combine two innovative companies on a mission to advance clean and sustainable energy technologies worldwide.”

A New York Global Investment Bank valued Simbol at $2.5 billion.

Fortunately – the deal never closed.

A Veteran Team Of Lithium Pioneers

Inventor John Burba—a veteran in lithium extraction—is the incoming IBAT (CSE:IBATOTC: RHHNF) Chairman and CEO. He’s an extraction tech pioneer, and he is bringing a Dream Team of engineering experts to further enhance the new extraction technology that IBAT is acquiring.

IBAT’s new to-be-acquired technology is actually based on tech that Burba co-invented and sold in the 1990s when he was a leading technologist at lithium giant FMC.

FMC has been using that same tech for nearly 20 years, and it’s responsible for making some of the purest primary lithium carbonate in the world.

It’s even earned its own lithium label: “FMC-grade” carbonate.

Burba has since made dramatic advancements on the core technology. This has yielded significant improvements in terms of extraction efficiency, cost and purity.

Robert Miller will be working with IBAT on fund raising efforts.

Miller has raised over $500 million in early-stage capital and taken 7 companies public – with listings including both NASDAQ and AMEX.

He’s also founder of one gold-mining company Crystallex.

Burba has already revolutionized lithium processing once. With his new tag team, he has the potential to do it again – unlocking over $84 billion worth of lithium.

CONCLUSION

Globally, demand for lithium is skyrocketing. With battery demand forecast to rise 7.7 percent to $120 billion already in 2019, this is a market on the move.

What the world needs right now is plentiful supply of high-grade lithium to power that growth, and it won’t wait 12-24 months for evaporating ponds.

With electric vehicles rapidly soaring in popularity, the lithium battery market could be at $46 billion by 2022.

The technology to be acquired by International Battery Metals (CSE:IBATOTC: RHHNF) could be a game changer. It could allow extraction of over 90 percent of the metal from lithium brine continuously with a very small environmental foot print.  Additionally, extraction units can be replicated for resource expansion or new resources in a fraction of the time it will take to expand or reproduce solar evaporation plants.

This is the solution the industry has been waiting for.

Other top plays in energy technology and mining:

Newmont Mining Corp (NYSE:NEM, TSE:NMC) Founded over 100 years ago, Newmont Mining Corporation is one of the leading mining companies in the world. The company holds assets in Peru, Australia, Ghana, Indonesia, Mexico, and around the United States. Primarily focusing on gold and copper, Newmont has steadily carved out a name for itself among those in the industry.

Newmont has had an excellent start to 2018, and it is set to keep up the pace as burnt bitcoin buyers move back to gold and silver.

Agnico Eagle Mines Ltd (NYSE:AEM; TSE:AEM) Canadian based gold producer, Agnico Eagle Mines is an especially noteworthy company for investors. Why? Between 1991-2010, the company paid out dividends every year. With operations in Quebec, Mexico, and Finland, the company also is taking place in exploration activities in Europe, Latin America, and the United States. This is certainly a company with tremendous potential that grows better by the day.

Investors have certainly taken note. In the past month, Agnico has seen its share prices climb steadily, and 2018 looks to be shaping up to be a promising year.

Pengrowth Energy Corp. (TSX:PGF, NYSE:PGH): Another company that looks to have halted its falling stock price and is now preparing to ride the bullish sentiment in oil markets. Having shed a lot of excess weight this year in massive asset selloffs, investors can expect a much leaner and meaner Pengrowth in 2018.

For those investors who like to follow the smart money, billionaire investor Seymour Schulich bought millions of extra shares in Pengrowth in early October, boosting his position from 19 percent of the stock to 24 percent. He claims that he is confident that oil and gas is going up.

Franco-Nevada Corporation (TSX:FNV, NYSE:FNVspecializes in securing precious-metal streams, but the company also works in the oil and gas industry. With key assets in some of North America’s most desirable oil and gas plays, including Texas, Oklahoma and Alberta, it is clear that the company has amazing potential in the coming years.

FNV ended 2016 with a relative bang. And as oil and gas prices inch up, investors are watching this diverse company very closely.

Celestica Inc. (TSE:CLS, NYSE:CLSis a manufacturer of electrical devices used in IT, telecommunications, healthcare, defense and aerospace industries. The company has seen strong growth YoY which we expect to continue as the sales expectations are almost 3% better than last year’s.

While many investors thought the stock was overvalued after a stellar run in 2016, the recent correction and volatility in the stock has attracted new buyers and the stock has recovered since.

While telecommunications stocks have been volatile recently, defense, IT and aerospace industries have outperformed and while many see limited upside, these industries continue to surprise both investors and analysts.

By. Ian Jenkins

This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements.  Forward looking statements in this release include that:  IBAT will complete its announced transaction to acquire lithium extraction technology and IP; global battery market is set to hit $120 billion in less than two years; that the lithium market is set to reach $1.7 billion by 2019; that the lithium-ion market is expected to exceed $46 billion by 2022; Tesla’s oncoming production is expected to use the world’s current supply of battery-grade lithium; that the price of lithium could go even higher; that IBAT’s soon-to-be-acquired Lithium extraction process will be cost effective and can work much more quickly than other extraction technologies; that the process can be commercialized for large scale production; that the John Burba and his incoming team will be as strong a team as anticipated; that the total investment in lithium mines will likely range from $350 to $750 billion; that IBAT’s soon-to-be-acquired technology could put it on cost par with the Big 3 lithium producers; that the option to purchase acreage in the Woodbury Carper Lithium Resource Project will be exercised; that IBAT plans to set up a pilot extraction facility in early 2018, and then secure additional licenses for other high-grade lithium brines by this summer; and that by 2020, IBAT anticipates becoming a supplier of various battery metals.  These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.  Risks that could change or prevent these statements from coming to fruition include that: the Company may not complete its technology acquisition; that demand for lithium may not increase as expected or at all; that aspects or all of the extraction process development may not be successful, the process may not be cost effective, the Company may not raise sufficient funds to carry out its plans, changing costs for mining and processing; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on current data that may change with more detailed information or testing; potential process methods and mineral recoveries assumption based on limited test work and by comparison to what are considered analogous deposits that with further test work may not be comparable; high value mineral properties may not be available for IBAT to acquire, or IBAT may not be able to afford them; competitors may offer better technology than IBAT’s to-be-acquired lithium extraction technology; the availability of  labour, equipment and markets for the products produced; that total investment in lithium mines will be less than $350 billion; IBAT may not be able to finance its business plans; and despite the current expected viability of the project, that the minerals cannot be economically extracted with IBAT’s soon-to-be-acquired Lithium extraction process or that the required permits to build and operate the envisaged mines cannot be obtained.  The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

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