Lithos Group Ltd. (LITS:CBOE.CA;LITSF:OTCMKTS;FSE:YU8;WKN:A3ES4Q), with its focus lithium production technologies, has joined the Alabama Mobility and Power (AMP) Center. This partnership places LiTHOS among industry leaders, including Alabama Power and Mercedes-Benz U.S. International, driving innovation in the electric vehicle (EV) and mobility sector. The AMP Center, a premier research and development hub located at the University of Alabama, focuses on advancing EV and battery technologies, economic development, and workforce training.
Scott Taylor, CEO of LiTHOS, expressed enthusiasm for the collaboration, stating, "We are thrilled to collaborate with AMP and our fellow Consortium partners. Alabama has proven to be an excellent location for our testing and R&D lab facilities, thanks to its talented workforce and supportive government. AMP will enable more companies to recognize the potential we've seen here, facilitating connections with industry partners and government agencies, and crucially, fostering the development of the skilled workforce we need as we scale up and expand our operations in the state."
Lithium Outlook
Sector Overview
According to Energy and Capital, the lithium sector is poised for exponential growth, driven by the surging demand for electric vehicles (EVs) and advancements in battery technology. According to Energy and Capital, Goldman Sachs has dubbed lithium "the new gasoline," while The Economist refers to it as "the world’s hottest commodity." Energy experts have labeled it the "oil of the future," highlighting its crucial role in the evolving energy landscape.
Demand for lithium is expected to soar in the coming years, primarily due to the rechargeable battery sector. Energy and Capital notes that the rising prices of lithium, cobalt, and carbon are not indicative of a bubble but are instead underpinned by the rapid growth in EV sales and tight supply chains. Data compiled by Allied Market Research suggests that the global lithium-ion battery market is projected to grow at a compound annual growth rate of 18%, reaching US$129.3 billion by 2027.
The strong performance of lithium stocks further underscores the sector's potential. According to Energy and Capital, lithium stocks have outperformed the S&P 500 this year, with companies like Pilbara Minerals and Orocobre expected to see their stock prices rise as demand continues to increase. The Global X Lithium & Battery Tech ETF is highlighted as an excellent way to track the overall lithium market, providing investors with diversified exposure as the sector grows in the coming decades.
Stockhead reports a significant boost in lithium demand due to the increasing penetration of new energy vehicles (NEVs) in China. The Chairman of Chinese EV giant BYD predicts that NEV sales in China are about to surge, which will significantly drive up lithium demand. Wang Chuanfu, Chairman of BYD, stated at the China EV 100 Forum that the NEV penetration rate recently crossed 48.2% and could exceed 50% within the next three months. Even a rise from 35% last year to 45% in 2024 would result in an additional 2 million NEV sales, which would be a substantial boost for lithium demand.
Company Catalysts
LiTHOS’s inclusion in the AMP Center represents a significant catalyst for the company’s growth and development. By leveraging the center's extensive network of industry, government, and academic partners, LiTHOS aims to advance its patent-pending AcQUA technology. This innovative approach addresses critical challenges in lithium extraction and battery technology, contributing to the sustainability and growth of the EV sector.
Brad Whisenant, Consortium Development Manager at the AMP Center, emphasized the importance of this partnership, stating, "The AMP Center was created to unite the best minds from industry, academia, and government to drive innovation in the EV and battery sectors. We are excited to welcome LiTHOS to our consortium and anticipate groundbreaking projects that will benefit the entire EV ecosystem."
Judson Lacapra, Chief Development Officer at LiTHOS, also highlighted the strategic importance of this collaboration, noting, "We at LiTHOS believe it's important to be part of a collaborative approach to solving some of the industry's largest issues, such as the elimination of evaporation ponds and pre-treatment of brines to improve the efficiency of lithium extraction. It is an honor to be part of AMP, and we look forward to contributing to its growth and ultimate success."
LiTHOS's commitment to sustainable lithium production and its strategic partnerships position the company for significant advancements and expansion in the EV market. The AMP Center’s focus on innovative research, workforce training, and economic development further supports LiTHOS's mission to produce lithium efficiently and sustainably, reinforcing its role as a leader in the evolving EV and battery technology landscape.
Expert Opinions on Lithos
Industry experts have been notably optimistic about Lithos Group Ltd. Clive Maund recently highlighted significant developments for the company: "The reason for this update is to draw your attention to the positive news just released by the company that Lithos has commenced manufacturing of AcQUA™ field system for two contracted Tier 1 lithium producers." This advancement underscores why the stock has been under strong accumulation, with Maund noting, "This news makes clear why the stock has been under strong accumulation, the evidence of which we have observed in recent weeks and this will put the company in a position to earn revenue in the fourth quarter of this year, and this is the point at which to remind you that this patented system does away with the need for evaporation ponds."
Maund also pointed out the promising technical aspects of Lithos's stock performance, stating, "The latest stock chart for Lithos, shown below, makes clear that it is very well placed to begin another strong upleg, and the news just out is thought likely to trigger its commencement." Reflecting his confidence in the company's prospects, Maund concluded, "Lithos Group is therefore strongly recommended for immediate purchase."
Supporting this optimistic outlook, Keith Schaefer of the Investing Whisperer commented on March 5: "Lithos Group Ltd. is doing a CA$0.70 financing with a full CA$0.90 warrant for three years . . . the company has a very real shot at landing a big customer by the time this financing comes free trading in four months." These expert endorsements highlight the strong potential and strategic positioning of Lithos Group Ltd. in the rapidly growing lithium sector.
Ownership and Share Structure
Streetwise Ownership Overview*
Lithos Group Ltd. (LITS:CBOE.CA;LITSF:OTCMKTS;FSE:YU8;WKN:A3ES4Q)
About 60% of Lithos is held by insiders and management, the company said. According to Reuters, this includes CEO Scott Taylor with nearly 15% or 12 million shares, and President Michael Westlake with 0.73% or 1.6 million shares.
About 27% of the company is held by strategic entities. The rest is retail.
Lithos has a market cap of CA$49.04 million with about 83 million shares outstanding. It trades in a 52-week range of CA$0.98 and CA$0.51.
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Important Disclosures:
- Lithos Group Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- In addition, Lithos Group Ltd. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lithos Group Ltd.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- 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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