Cutting-Edge Lithium Co. Reviews Big Year, Sets 2024 Goals

Volt Lithium Corp. (VLT:TSV;VLTLF:US), focused on becoming a leader in the use of Direct Lithium Extraction (DLE) technology, is noting its 2023 accomplishments and goals for the coming year.

DLE uses chemical processes to speed up the process of lithium production compared to traditional methods, like brine extraction and hard rock mining, for the metal important to batteries for electric vehicles (EVs) and electronics.

In a release highlighting milestones from the past year and looking forward to 2024 catalysts, The company noted that it consistently achieved between 90% and 99% lithium extraction through various tests during pilot plant operations in the first half of 2023 and its permanent Demonstration Plant commissioned in the fourth quarter.

"The delivery of industry-leading innovation and results, on-time and on-budget, has positioned Volt as a natural solution to economically and environmentally address complexities associated with oilfield brines, for both governments and the North American oil and gas sector," said Volt President and Chief Executive Officer Alex Wylie.

Also in 2023, the company released its Preliminary Economic Assessment (PEA) of its 430,000-acre Rainbow Lake lithium project in Alberta, demonstrating a pre-tax IRR of 45% and and a NPV of US$1.5 billion. 

The reservoir there is estimated to have 99 billion barrels of lithium-infused brine with concentrations up to 121 mg/L, and the company said its proprietary DLE technology is giving recoveries of up to 90%.

Volt said an independent resource report also published in 2023 for Rainbow Lake asset indicated an inferred mineral resource of 4.3 million tonnes (Mt) of lithium carbonate equivalent in the stacked reservoir.

Newsletter writer Michael Ballanger recently changed his rating of the stock from Hold to Buy even though the EV market has started to cool. Volt's DLE process and leadership makes it stand out from other companies, he said.

"Volt has a superb management team so my heart lies in their ability to shrug off this (hopefully) temporary lag in lithium demand and strike a number of U.S. DLE deals that can supersede the bearish narrative and vault them to the top of the pack," Ballanger wrote. "At a CA$23 million valuation, Volt is valued substantially below its peers and remains solidly good speculation at these levels."

DLE techniques, including Volt's proprietary method, could "significantly" impact the lithium industry, wrote a series of Goldman Sachs analysts in a research note released in April.

"Much like shale did for oil, DLE has the potential to significantly increase the supply of lithium from brine projects, nearly doubling lithium production/yield (taking recoveries from 40-60% to 70-90%+) and improving project returns," the analysts wrote.

The Catalyst: Battery Storage 'Critical' to Reducing Carbon

According to Energy5, battery storage will be "pivotal" to reducing carbon footprints worldwide.

"As the demand for clean energy continues to rise, it is crucial to invest in research, development, and implementation of battery storage technologies," the company wrote. "Embracing such innovative solutions will not only help combat climate change but also create a more resilient and sustainable energy infrastructure for generations to come."

The metal itself is soft and silvery with highly reactive and flammable properties. It's also used to strengthen alloys, as a high-temperature lubricant, and as a drug to treat bipolar disorder.

The market for lithium is projected to grow from US$2.5 billion in 2023 to US$6.4 billion by 2028 at a compound annual growth rate (CAGR) of 20.4% from 2023 to 2028, according to a report by Markets and Markets.

Much of the world's supply of the metal comes from South America's "Lithium Triangle," a vast area of salars (salt-encrusted depressions) at the intersection of Argentina, Bolivia, and Chile.

"This concentration poses a potential risk to the global supply chain of lithium, impacting the availability and pricing of lithium metal," Markets and Markets noted. "The reliance on a few countries for lithium production increases vulnerability to geopolitical tensions, trade disruptions, and regulatory changes. Any disruptions in these countries' production or export capabilities can lead to supply shortages and market volatility."

Up to 90% Lithium Recovery

While traditional brine extraction involves solar evaporation in huge ponds, DLE's filtering processes cut out that step. According to the Goldman Sachs report, it reduces the time needed for lithium production from months to years with evaporation to just hours to days for DLE.

Evaporation only recovers 40% to 60% of the lithium from brine, while DLE can recover as much as 70% to 90%, the analysts said.

"While we believe there is increasing awareness of the technological implications of DLE around increased recoveries/production and accelerated ramp-up of projects, the economics of its implementation, along with the implementation of the various technologies in other mineral commodity extraction, remain underappreciated, in our view," the analysts wrote.

Volt said its proprietary DLE is "focused on allowing the highest lithium recoveries with lowest costs."

The company noted its IES-3000 technology achieves up to 90% recoveries from oilfield brine.

Vision for 2024

For 2024, Volt believes it "is well positioned to make a meaningful contribution to the energy Transition." The company said it plans to:

• Continue to refine and enhance its technology and pursue commercial arrangements.
• Strengthen its team through strategic hires.
• Produce lithium in-house.
• Focus on securing partnerships with oilfield operators that can use Volt's DLE technology to extract the metal.
• Apply for grant funding from the Canadian government's Critical Minerals Strategy backed by nearly CA$4 billion.
• Further engage with First Nations for partnerships and opportunities for several identified grants.

The company said on its website that commercial lithium production is expected in the second half of 2024.

"The Volt team is rapidly pursuing opportunities to apply the Company’s DLE technology to extract lithium from brines that have been produced from other basins across North America," Volt said in a release.

Ownership and Share Structure

Management and insiders own approximately 16.48% of the company. President and CEO James Alexander Wylie owns 8.73%, Director Martin Scase owns 4.94%, Director Warner Uhl owns 0.75%, CFO Morgan Tiernan owns 0.39%, Director Maury Dumba owns 0.49%, and Director Kyle Robert Hookey owns 1.18%.

Reuters reported that institutions own 1.01% of the company with 1 million shares in the form of U.S. Global Investors, Inc.

There are 99.46 million shares outstanding, with 77.81 million free float traded shares. The company has a market cap of CA$20.85 million and trades in a 52-week range of CA$0.55 and CA$0.155. 

Important Disclosures:

1. Volt Lithium Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Volt Lithium Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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