LEXG Expects to Address Lithium Supply Shortage Caused by Future Demand for Car Batteries
May 15 2014 - 11:40AM
InvestorsHub NewsWire
Scottsdale, Arizona – May 15, 2014 -
Tesla has announced plans to build a gigafactory, a massive battery
plant which will bring with it supply constraints in the lithium
markets. With demand for lithium-ion batteries expected to grow in
the coming years, Lithium Exploration Group (LEXG.OB) is working
hard to be in a position to supply part of this demand.
To address the supply issue, Tesla is
scouting sites for the gigafactory to cut their production costs by
30 percent. “We’re actually quite comfortable that we’re heading
toward a final agreement sometime later this year,” stated JB
Straubel, Tesla’s Chief Technology Officer, on their earnings call.
“Groundbreaking could begin as early as next month,” said Elon
Musk. Tesla has named Arizona, Nevada, New Mexico and Texas as
possible factory sites and said it will break ground in at least
two of these states.
Elon Musk has stated that he believes
that more than 50% of all vehicles sold by 2030 will be fully
electric. If his prediction is correct, this will equate to 75
million vehicles requiring nearly 3,000,000 tons of lithium per
year. The worldwide production
of lithium in 2013 was around 160,000 tons.
“We have two active facilities that are
bringing brine water in every single day. We have already begun
navigating the regulatory requirements to produce minerals from
these brines; we are merely waiting for the field testing data from
our Ultrasonic Technology to determine the optimal salinity level
for the unit so that we can move to bench scale testing and begin
small production batches of lithium carbonate,” commented CEO Alex
Walsh. “We have known that there is lithium in the Alberta brine
for years; the only questions are: how much can we capture and at
what price is it profitable to produce. We believe our technology
will be game-changing as it pertains to those metrics.”
About
Lithium Exploration Group
Lithium Exploration Group is a US-based
exploration and development company focused on the acquisition and
development potential of lithium brines and other precious metals
that demonstrate high probability for near-term production.
Currently the company is focused on its Western Canada lithium
assets, testing its Ultrasonic Generator Technology and the
acquisition of oil and gas related assets in Western Canada.
Lithium Exploration Group is a fully reporting company traded on
the OTCQB under the symbol LEXG. Website:
www.lithiumexplorationgroup.com.
Safe Harbor Statement
This news release contains "forward-looking
statements". Statements in this press release that are not purely
historical are forward-looking statements and include any
statements regarding beliefs, plans, expectations or intentions
regarding the future testing of the ultrasonic
technology.
Actual results could differ from those projected
in any forward-looking statements due to numerous factors. Such
factors include, among others, the inherent uncertainties
associated with mineral exploration and difficulties associated
with obtaining financing on acceptable terms. We are not in control
of lithium prices and these could vary to make development
uneconomic. These forward-looking statements are made as of the
date of this news release, and we assume no obligation to update
the forward-looking statements, or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
Although we believe that the beliefs, plans,
expectations and intentions contained in this press release are
reasonable, there can be no assurance that such beliefs, plans,
expectations or intentions will prove to be accurate. Investors
should consult all of the information set forth herein and should
also refer to the risk factors disclosure outlined in our most
recent annual report for our last fiscal year, our quarterly
reports, and other periodic reports filed from time-to-time with
the Securities and Exchange Commission.
Contact Info
Shanon Chilson
480-641-4790
info@lithiumexplorationgroup.com