We at Tematica have long acknowledged that pain points tend to give rise to opportunities that can benefit properly positioned companies. With interest in growing storage needs and the expanding electric vehicle market driving demand for batteries, we spoke with Principal Geologist Phil Thomas at Recharge Resources. As we learned, in 2019, demand from EV batteries was 17 kt for lithium, 14.4 kt for cobalt, and 65 kt for nickel; by 2030, it is expected to jump to 185 kilotons (kt) for lithium, 90 kt for cobalt and 925 kt for nickel.
We chat with Phil about the various end markets that consume lithium, including construction and ceramics, but as will come as little surprise he shares Recharge is preparing for the expected ramp in global EV demand. The why behind that is the expected mismatch between lithium demand and supply. By 2038, the world is expected to buy more passenger electric vehicles than fossil fuel cars, a path we take advantage of with our EV Transition investment theme and strategy.
During our conversation, Phil shares the intricacies of lithium mining, and why Recharge opted for the locations it has, a key consideration for mining companies. We also discuss the steps ahead for Recharge, which is a pre-revenue company. Folks that want to know more about the lithium market should review Recharge’s latest investor relations presentation and the forecasts shared for lithium demand.
Please note, that while we find the Recharge Resources story a very interesting one from a thematic perspective, listeners should use this interview for informational purposes only. In no way does this conversation constitute investment advice of any kind. For more see the following disclosure: https://rb.gy/kvfisc. Listeners who want to learn more about Recharge Resources can visit its Investor Relations website.
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Thematic Signals Vol 7, #10