If there is one factor that has remained relatively constant during these decades of accelerated growth and advancement in technology is how the nearly infinite variety of devices, from laptops to cellphones and even medical care equipment, is powered. Nowadays, it is probably more challenging to find a device that is not powered by a lithium-ion battery, or a variation of the same technology, since they are constantly being improved to increase their capacity while maintaining or even reducing their size, leading to more functional and portable power solutions.
This creates an obviously higher demand for lithium, not only for the development process but also for the mass production of the final design. International Lithium Corp. (ILC) is a lithium exploration and development company which also owns royalty with mineral assets in Argentina, Canada, and Ireland, and have plans to become an important name in the industry.
More Applications, More Demand
The increase in devices and components that rely on lithium-ion batteries is not only clear to everyone, but it has also accelerated drastically in the last decade. With the release and popularization of devices like smartphones, tablets, smart watches, wireless headphones and others, lithium-ion batteries usage is at an all-time high and will continue to rise as these devices become more financially accessible to potential users.
In addition to that, another factor that will boost the popularity and market value of lithium is the widespread of electric vehicles. Since these vehicles require batteries that last significantly more than handheld devices while also supplying more power, which translates into a field that will experience a lot of research and development in the near future.
With both brine and pegmatite (hard rock) lithium projects in their portfolio, ILC already has an incredibly high supply of lithium ready to be extracted, to the point of becoming one of the largest lithium brine exploration stage properties in the world. Their first plan is to prove the resource size of their Raleigh Lake project (Ontario, Canada), of which they are the sole owners and that, if the expectations are met, might prove to be a turning point for the short- and long-term future of the company.
ILC is also focused on working in other projects in a parallel way. The first is to preserve and enhance their investment in Mariana, Argentina by exercising an available back-in right during 2021, while looking at strategic options for the shareholding of the project. They will also continue to review and explore other projects that could be potential world-class lithium deposits.
Working Smart
One great advantage that ILC has when facing their potential competitors is that their projects are located near already existing infrastructure: their main Raleigh Lake project can take advantage of the transport solutions that are built in the area surrounding the Great Lakes (border between the U.S. and Canada). This frees them from the responsibility of planning and building roads through the harsh Canadian Arctic, nor will they need to design and implement camps, railways, power plants, hundreds of kilometers of power lines, which are factors that usually make their competitors into less attractive investment opportunities.
On top of these advantages, ILC has also gained some momentum due to a research done in the grounds for their Mariana Project in Argentina, of which they own 12.8%, that showed that the potential lithium content could be 253% higher than what was initially projected in 2018. This project also benefits from existing infrastructure, like the Taca Taca Cu-Au-Mo and the Lindero Gold projects nearby and existing roads and rails for the Socompa border crossing and the Salta-Antofagasta railway. This means that an early implementation can be key in making the highest amount of revenue from this incredibly rich deposit.
Other lesser projects include Mavis Lake (Canada), Avalonia (Ireland) and Forgan Lake (Canada), of which they own 49%, 45% and have an option to earn 100%, respectively. The first project counts with a strategic partnership with Pioneer Resources (Australia) in order to provide a major railway network, electric power grid and skilled labor force. The other two projects are still in exploratory stages.
With well-established plans for development and exploitation of their sources, advantages over their competitors, strategic partnerships and the recent increase of their projected reserves in Argentina, ILC has an overall wide variety of projects in different regions and stages that work as the foundation for a solid future in the short and long term, and the inevitable increase in demand for a resource like lithium could be the spark to launch them to unprecedented heights.