AmeriLithium (AMEL) Capitalizes on Growing Lithium Demand

AmeriLithium (AMEL) Capitalizes on Growing Lithium Demand

AmeriLithium Corp. (OTCBB: AMEL) is a lithium exploration stage company committed to progressively developing into one of the leading American players in the global lithium industry. Competing alongside companies like Li3 Energy, Inc. (OTC:LIEG) and Rodinia Lithium, Inc. (TSXV:RM, OTC:RDNAF), AMEL is well positioned to capitalize on the global increase in lithium demand.

Lithium Demand Projected to Skyrocket

Lithium is a unique green mineral that is perfect for use in alternative energies. Unlike traditional battery storage minerals, like lead acid, lithium production from brine often utilizes the natural processes of solar and wind evaporation. Though lithium reserves are spread all over the world, making it an ideal source of energy storage, actual production of lithium is not widespread. In essence, there has been a lag between the demise of underground or open pit lithium mines (too expensive to be profitable in the market conditions of the 1980’s and 90’s) and the fairly recent proliferation of brine extraction.

Adoption of lithium is being driven by a combination of oil dependency, global warming and consumer mobility, according to one research report prepared by Global X Funds. The report projects that batteries and other applications will drive lithium demand growth 10%+ per year over the next 13 years to nearly 500,000 tonnes by 2025.

Lithium prices are also expected to continue their upward trend, given these favorable demand projections. Between 2000 and 2011, prices tripled from $2,000 per metric ton to $6,000 per metric ton. Continued growth in numerous end markets should ensure the stability of this upswing as supply remains relatively steady. [1] In fact, a current major producer of lithium, Rockwood Lithium, recently announced a significant price increase of up to $1000/tonne.

AmeriLithium Offers a Domestic Source

AmeriLithium is headquartered in Nevada, dedicated to exploring one of the world’s richest mineral deposits. With an experienced management team at the helm, the company has amassed one of the largest North American lithium portfolios in the industry with some 681,000 acres. The company’s Nevada properties are located in and around the Clayton Valley, home to the only producing lithium company in the U.S. (run by Chemetail Foote Corporation, a subsidiary of Rockwood Holdings, Inc. (NYSE:ROC).

The company is proceeding with its Nevada drilling program after carefully reviewing the result of its recent Gravity and CSMAT Geophysical Surveys. Look for drilling results later this summer that should further define the potentially large lithium resource suggested by those surveys. All signs point to a very positive outcome but, of course, the proof is in the pudding.

Moreover, the firm intends to finalize, with the assistance of its strategic partner, exploration on its Australian lithium and gold property. In a recent press release Matthew Worrall, the company’s CEO, stated: “Our joint venture with Strategic Resource Management continues to enable us in exploring and developing our Australian holdings. And with the geophysical study pointing to the potential for gold mineralization, we’re looking forward to moving ahead with our 2012 drilling program to better assess the gold and lithium potential of our holdings.” Diversification of this sort only helps the company’s prospects for success.

As a U.S. company, AmeriLithium is poised to benefit from a number of incentives for domestic producers. For instance, the government has set aside $2 billion worth of loans, grants and tax credits to develop large-scale lithium-ion battery production for the domestic hybrid vehicle marketplace in addition to a $2.4 billion tax credit for battery plants.

A Great Investment Opportunity

AmeriLithium Corporation (OTCBB: AMEL) represents a great ground floor investment opportunity. With significant North American lithium reserves, the company is well positioned to capitalize on both strong long-term demand in the global market, as well as U.S. subsidies designed to support the growth of a domestic lithium-ion battery industry.

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  1. http://globalxfunds.com/commodities/lithiumetf/whitepaper/Lithium%20Presentation%2004-23-12.pdf
  2. http://www.amerilithium.com/Amerilithium_Q2.pdf