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Lithium Testing Likely To Lift Battery Miners Fortunes

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Battery capacity is the defining load measure of the green economy. Ensuring its circularity is the key to an ecologically-sound mining future.

One company at the forefront of this notion is Global Battery Metals Ltd. (GBML:TSX; REZZF:OTCMKTS), an exploration concern working in close consideration with Technology Minerals Plc., the first listed U.K. company focused on creating a sustainable circular economy for battery metals.

The two firms operate under an exclusive option and earn-in agreement to advance the Leinster Lithium Project.

This prospect, located in the counties of Wicklow and South Carlow, in the Republic of Ireland, is a lithium pegmatite project comprising 16 prospecting license areas located southwest of Dublin, adjacent to the Ganfeng Lithium/International Lithium Corporation Blackstairs Lithium Project.

Lithium mineralization has been confirmed across all project areas explored to date, with the potential discovery of up to six LCT pegmatite dikes and assay results of 66 rock samples released by ALS Laboratories returning Li2O% lithium contents ranging up to 3.75 % Li2O / 17,410 ppm Li at the so-called Knockeen Prospect.

The Project's maiden Drill Program, now underway.

The Catalyst: New Samples Currently Testing

On June 7, Global Battery Metals announced an update on its inaugural drilling campaign at the Leinster lithium project. The company reported that multiple pegmatite intercepts were intersected in initial drill holes and that surface geochemistry targets tested as part of the current drilling campaign already provide strong corroboration of the firm's geological interpretation.

The company explained that successive holes would target different parts of the anomalous deep overburden geochemistry grid and that the already-drilled pegmatite core samples are in transit to ALS Laboratories for analysis.

According to the International Energy Agency (IEA), demand for electric vehicle batteries remains hot and is expected to grow, which makes sense, as the expected transition to electric vehicles underpins many "green economy" dreams.

Global Battery Metals CEO Michael Murphy explained, "So far, our initial drill holes have delivered very promising pegmatite intercepts that excite the on-site teams."

"While there's still more work to accomplish, we are making good progress hitting close-to-surface pegmatite intercepts and processing core for analysis. We will continue to follow what we are finding and optimize our drill plans accordingly."

Phase 1 of the Leinster Drill Program focuses on the Knockeen Prospect and its prospective lithium pegmatite trend targets, including up to six potential dikes that the company believes are proximal to the historically reported trenched bedrock occurrence.

No drilling has ever been carried out at this prospect previously, and hitting bedrock pegmatites in the first hole drilled is considered by the company to be a major technical success. Exploration contracting company Aurum Exploration Limited manages the drilling for Global Battery Metals.

Why This Sector? Batteries Power the Circular Green Economy

According to the International Energy Agency (IEA), demand for electric vehicle batteries remains hot and is expected to grow, which makes sense, as the expected transition to electric vehicles underpins many "green economy" dreams.

Specifically, the IEA's Global EV Outlook 2023 states that "Automotive lithium-ion (Li-ion) battery demand increased by about 65% to 550 GWh in 2022, from about 330 GWh in 2021, primarily as a result of growth in electric passenger car sales, with new registrations increasing by 55% in 2022 relative to 2021."

"In China," the report continues, "battery demand for vehicles grew over 70%, while electric car sales increased by 80% in 2022 relative to 2021, with growth in battery demand slightly tempered by an increasing share of PHEVs. Battery demand for vehicles in the United States grew by around 80%, despite electric car sales only increasing by around 55% in 2022."

"The time is believed to have arrived when it should be bought back or fresh purchases made. Global Battery Metals is therefore rated an immediate strong Buy here," Technical Analyst Clive Maund said. 

"While the average battery size for battery electric cars in the United States only grew by about 7% in 2022, the average battery electric car battery size remains about 40% higher than the global average, due in part to the higher share of SUVs in US electric car sales relative to other major markets, as well as manufacturers' strategies to offer longer all-electric driving ranges."

"Global sales of BEV and PHEV cars are outpacing sales of hybrid electric vehicles (HEVs)," the report concludes, "and as BEV and PHEV battery sizes are larger, battery demand further increases as a result."

Providing raw materials for the expanding EV market is only part of how Global Battery Metals is putting the needs of the circular green economy first. As the press release about the latest drilling explains, "All mineral exploration activities in Ireland take place under the auspices of the GSRO, a division within the Government Department of the Environment, Communications & Climate Change." 

"Exploration is governed under the framework of both Irish and EU legislation that has been implemented to ensure that the environment is protected during exploratory work. The company is pleased to confirm that it adheres to the highest standards of good practice in relation to its ongoing exploration activities."

Why This Company? Battery Precursor Focus

While many modern junior mining exploration companies claim a general relationship with the emerging green energy economy, few have Global Battery Metals' obvious commitment to a specific market segment.

The firm focuses on lithium and other metals requisite for the rapid evolution to battery power in transportation and industrial scenarios. It currently maintains economic interests in four battery metal projects:

By securing various lithium resources across the Western world, Global Battery Metals has positioned itself well to become a key supplier of "friend-shored" battery precursors for greening economies throughout the neoliberal hemisphere.

Why now? The Price is Right

On March 20, Technical Analyst Clive Maund explained why he is back into Global Battery Metals after making a nice profit from the stock earlier in the year. "We made a nice quick profit in this one which we bought on January 11 at about CA$ 0.14 and sold less than a month later at about CA$ 0.23 on the ninth of February, resolving to buy it back after due to consolidation or reaction."

"It has gone from being very overbought where we sold it to oversold, and with volume having become light again and the Accumulation line now looking positive relative to price, the time is believed to have arrived when it should be bought back or fresh purchases made."

Streetwise Ownership Overview*

Global Battery Metals Ltd. (GBML:TSX; REZZF:OTCMKTS)

*Share Structure as of 6/14/2023

"Global Battery Metals is therefore rated an immediate strong Buy here," Maund opines.

Ownership and Share Structure

According to Reuters, 9.30% of Global Battery Metals' stock is held by management and insiders. President, CEO, Director Michael Murphy has 4.68%, with 3.66 million shares. Director Craig Roberts has 4.05%, with 3.16 million. Director Alan F. Matthews has 0.51%, with 0.40 million, and Director Cameron Bell has 0.06%, with 0.05 million.

The rest is held by retail investors. 

Global Battery Metals has a market capitalization of CA$ 13.29 million. The company has 68.9 million shares outstanding (73% of the ownership base), with 17.3 million warrants and options comprising the other 22% and CA$5, respectively.

The firm has US$1.1 million in cash and no debts.

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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Global Battery Metals Ltd. 
  2.  Owen Ferguson wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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