Why This Lithium Stock Is The Next Big Win for Investors

Contributor: George T. Gibson

The lithium market is emerging as a profitable opportunity for sustainable energy. LiTHOS Group (Ticker: LITSF), using a unique approach to lithium extraction, is at the heart of this evolution and is yet to be fully valued by the market.

Investing in growing stable sectors is crucial, especially during economic uncertainty. One such sector is lithium extraction, which is vital for powering our shift to sustainable energy solutions. The growing adoption of hybrid and electric vehicles (EVs), new electronics, and energy storage systems has dramatically impacted the growth of the overall market.

LiTHOS Group (LITSF) is actively involved in this expanding sector, aiming to meet the increasing need for sustainably extracted lithium. With its innovative AcQUA™ technology and a prime location near the Smackover reservoir, LiTHOS is considerably undervalued and trading at prices too cheap to ignore.

Investment sites like TradingView are issuing fresh ratings for LiTHOS as a 'Buy' and a 'Strong Buy.'

LITSF could be one of 2024's biggest gainers with up to 500% upside potential.

However, to fully appreciate LiTHOS Group's potential for significant investor returns, let's first explore the broader landscape of the lithium extraction market.

Lithium Market Deficit & Lithium Extraction Opportunities

The United States faces a national security challenge in the lithium market, controlling a mere 1% of global lithium production. With the demand for electric vehicles (EVs) and grid storage poised to require ten times the current lithium supply by 2035, the strategic importance of domestic lithium resources has never been more apparent.

As the lithium market grapples with a predicted deficit of 2 million tonnes of Lithium Carbonate Equivalent by 2030, the pressure to scale up production sustainably is mounting. With EVs and battery storage driving a 50% growth in mineral demand for clean technologies over the next two decades, lithium extraction companies like LiTHOS Technology are preparing to meet the surge.

The lithium extraction industry, vital to the global transition towards renewable energy and electric vehicles, is undergoing significant changes. Historically, lithium extraction has been dominated by methods involving brine pumped to the surface and into evaporation ponds.

Goldman Sachs reported that while brine comprises nearly two-thirds of the available lithium resources,it accounts for only about 40%of actual production. Production from the Lithium Triangle (Bolivia, Chile, and Argentina), which relies on brine evaporation, has yet to catch up with that of spodumene sources.

While widely used, brine evaporation is full of inefficiencies, with up to 60% of the resources lost, high water consumption (2.2 million litres per ton of lithium), and lengthy timelines (9-18 months).

Source: LiTHOS Corporate Presentation, Fall 2023

This traditional method is increasingly viewed as unsustainable, particularly with growing environmental and efficiency concerns. New Chilean policies mandating the elimination of evaporation ponds by 2030 and 2042 for major players like SQM (NYSE: SQM) and Albemarle (NYSE: ALB), respectively, are set to accelerate the adoption of Direct Lithium Extraction (DLE) — a space where LiTHOS's AcQUA™ technology excels.

According to the company, the market size for its process is currently valued at $14 billion and is expected to grow exponentially, reaching an estimated $133 billion by 2035. This surge is fueled by the rising demand for lithium in various applications, notably electric vehicles and energy storage systems.

The LiTHOS Advantage

LiTHOS has distinguished itself as a prominent leader, driven by innovative strategies and pioneering AcQUA™ technology. The company's ability to directly process raw brine from the ground sets a new industry benchmark for efficiency, allowing for seamless scalability and industrial-level control over production.

LiTHOS's innovative efforts are highlighted by a recent US$1.3 million Department of Energy (DOE) grant, endorsing its mission to transform lithium production. This funding significantly advances the development of LiTHOS's Crimson Tide facility, a key site for its lithium extraction operations.

Located next to the Smackover brine reservoir in Alabama, one of the most lithium-rich locations in the U.S., the facility is positioned to streamline the production process from raw material to refined product. The facility's pre-treatment, processing, and refining capabilities give LiTHOS a competitive edge in the market.

The location is also advantageous for production off-take opportunities near other active lithium projects by companies like Exxon Mobil Corp. and Standard Lithium Ltd. With initial joint development agreement terms, LiTHOS is well-placed to leverage these opportunities in a booming industrial area.

Moreover, the facilities are near Birmingham and close to the University of Alabama, providing access to a hub of innovation and a skilled workforce. This proximity offers more than just logistical benefits; it aligns with LiTHOS's vision to foster a sustainable production ecosystem that leverages local expertise and infrastructure.

Additionally, CEO Scott Taylor is at the forefront of LiTHOS Technology's visionary path, whose diverse experience spans over 20 years in the finance, energy, mining, and civil engineering industries. Scott's leadership has been pivotal in scoping, building, and selling over $250 million in technical solutions in his career. This impressive figure underscores his ability to drive innovation and profitability.

By deploying these advantages, LiTHOS is not merely participating in the lithium market; it is actively redefining it, offering investors a unique opportunity to be part of a company that leads with innovation, sustainability, and economic foresight.

LiTHOS's current market valuation does not reflect its true potential, making it a compelling investment opportunity.

8 Reasons to Invest in LiTHOS Group

With its groundbreaking AcQUA™ technology for lithium extraction, LiTHOS Technology establishes itself as a pioneering leader in the rapidly evolving sustainable energy sector.

This game-changer company's current valuation is highly affordable, making it an excellent opportunity for investors to capitalize on a great company in a burgeoning market.

Let's summarize 8 reasons why you should include LiTHOS Group (Ticker: LITSF) in your portfolio:

1. Experienced Leadership:
   The company is spearheaded by CEO Scott Taylor, who has over 20 years of experience in finance, energy, mining, and civil engineering and a track record of over $250 million in technical solutions.
2. Market Growth Prospects:
   Poised for growth in a market projected to increase tenfold by 2035, LiTHOS Technology's advanced methods meet the rising demand for sustainable lithium extraction.
3. Innovative Technology Deployment:
   The patent-pending AcQUA™ technology sets LiTHOS apart. It focuses on electrical processes over chemicals and water, promising operational cost savings, environmental benefits, and a competitive edge over conventional methods.
4. Strategic Facility Location:
   The Crimson Tide facility's proximity to the Smackover reservoir and significant manufacturers in Alabama offers a logistical edge and off-take opportunities.
5. Customer Validation and Sales Pipeline:
   The company's investor presentation showcased imminent customer validations and a building sales pipeline worth over 250 million with major mining and energy companies, underscoring market trust and revenue potential.
6. Award-Winning Technology:
   The DOE's recognition of LiTHOS with a $1.3 million award validates the industry's confidence in its innovative solutions.
7. Financial Stability:
   The company's financial overview reveals a strong base, marked by substantial insider ownership and significant market value, reflecting investor trust and stability.
8. Regulatory Tailwinds:
   New Chilean policies requiring the elimination of evaporation ponds align with LiTHOS's DLE process, potentially increasing demand for their technology. LiTHOS's ability to recycle and repurpose brines at scale provides a significant advantage in meeting these regulatory requirements.

LITSF is extremely undervalued today at under $1 per share, offering a prime investment opportunity to capture gains of up to 500%

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Disclaimer: The author has no stock, option, or similar derivative position in any of the companies mentioned and no plans to initiate such positions. No recommendation or advice is given on whether any investment suits a particular investor. Any views or opinions expressed above do not indicate a bid or proposal. Our analysts are third-party authors, including professional and individual investors who may not be licensed or certified by any institute or regulatory body.