This Nobel Prize-winning breakthrough is leading to the world’s ability to transition to EV…
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In 2019, 97-year-old John B. Goodenough received the Nobel Prize for his groundbreaking work on developing lithium-ion batteries
His discovery more than 40 years ago led to a massive breakthrough, giving us the rechargeable batteries hidden inside devices we use every day…
From smartphones and computers to power tools and medical equipment.
But today, it’s led to a boom that’s signaling the biggest shift in the auto industry in over 100 years.
It’s expected to change the landscape of our cities… What vehicles we buy… And how we travel throughout the day.
That’s why Tesla has built a 1.9 million square foot factory to ramp up production of the lithium-ion batteries for their electric vehicles…
With plans to produce batteries for over 500,000 vehicles per year.
Given the amount of lithium required to support this huge projected market, lithium mining companies are experiencing a major boost.
While North America has largely been explored already over the last 50 to 100 years…
Europe’s seeing new opportunities that could prove to be extremely lucrative in the days ahead.
And United Lithium is preparing to dive in at their new Bergby Project in Sweden, once their purchase closes. They’ll jump right on it, because the deal terms call for United to spend at least $1M on the property in the first 18 months after closing.
Located near the world-famous Woxna Graphite mine and the new Northvolt lithium battery gigafactory, it’s in the perfect location…
This is why over the last year, shares have already shot up an incredible 371%.
But as they prepare to close on Bergby and begin their new drill program, there could be far more exciting news in store in the coming months.
1 – High-grade Lithium Near Surface
The new Bergby property covers an enormous 1,903 hectares of land.
And it hasn’t taken long for them to get an idea of what they may find in their upcoming drill program.
That’s because much of this untapped lithium deposit outcrops on the surface.
This means the production costs shouldn’t be driven up by deep holes just to test what they’re sitting on.
They’ve got more promising data on the property from historical testing in recent years as well.
In 2017, 33 holes were drilled in the Bergby property, and 27 of them struck lithium.
But even with 27 of 33 holes delivering positive results, this number could have been even higher if these initial holes went deeper under the surface.
While they’ve got an idea as to where this lithium-rich ore lies already, the project could grow much larger.
The deposit is open along strike to both the north and the south, so there’s no telling how much further the deposit could run in either direction.
Plus, this historical data is showing they may be sitting on extremely high-grade lithium deposits.
While miners in Canada may be happy with 1.5% to 2% lithium in the deposits, several of the holes have tested at 3% to 3.5% lithium on United’s new soon to be purchased property.
To put that into context, the theoretical maximum for lithium concentration in ore is up to around 7.5%…
But it would be nearly impossible for grades to run that high unless you were manually sorting the rocks and picking out lithium crystals by hand.
This may become incredible news for United, as not only are they sitting on several holes that have already proven up lithium ore…
But it’s shaping up in some places to be very high-grade lithium which could be extremely valuable.
The discovery has already been made on the Bergby property. Now United needs to define how big this discovery could be, prove up its commercial grade and determine economics.
2 – The Numbers Are Working In Their Favor
Other junior miners have fallen into the trap of chasing big discoveries…
Only to come up empty-handed in terms of profits because they’re not accounting for holes in the bucket.
While it’s important to find a lucrative opportunity on the front-end, it’s just as important to keep expenses low while pursuing these huge discoveries.
That includes lowering costs for drilling, processing, and transportation.
And in United’s case, they’re planning on keeping costs down for all three.
With the deposit already showing lithium outcrops at the surface, they won’t waste precious cash wondering where to drill down in many cases.
Plus, they’ll be able to use more traditional methods to process the mineral, which helps lower their costs in that area as well.
In other parts of the world like in Argentina, they need expensive technology to help extract the lithium on a large scale.
But with United’s Bergby play, they can move ahead using traditional mining methods…
Using simple flotation processes to help them keep more of their money in hand.
And the location of their property in Sweden is making it quick and easy to transport whatever lithium they might develop there.
With the largest highway in Sweden running through their property, the infrastructure leading to and from Bergby is incredible.
And while they’re just an easy drive away from the massive Northvolt lithium battery gigafactory, making it easy to transport by truck…
They’re also close to a major deep seaport, helping deliver it to other gigafactories in nearby markets when the time comes.
This cannot be overstated as Europe’s EV markets have driven demand for lithium for EV batteries high sky high.
That’s helping United lock down the capital they need much easier than it would in other parts of the world.
They recently raised $4 million and have plans to raise an additional $8 million in the near future.
With the additional capital they expect to lockdown, they’ll have their drill program funded and ready to get started.
3 – Rapid Sale to the Massive European Market Without Tariffs
As they’re settled within 5 km of a deep seaport, this gives them easy access to ship lithium to nearby gigafactories in Poland, Germany, and other countries investing heavily in batteries.
And their location in central Sweden also puts them closer to Stockholm than any other lithium mine in the country.
With the biggest highway in the country leading through the property, it couldn’t be easier to deliver the mineral to their nation’s capital to take advantage of the demand there, once the company is producing commercial quantities.
This is all coming at a time when the EU just approved billions more in subsidies to help develop the booming EV battery industry, helping them cut their reliance on China and Asian markets.
With this move, the EU have approved 2.9 billion euros to be granted to 12 countries throughout Europe, including Sweden…
And it’s set to “cover the whole production chain, from mineral extraction to design, battery manufacturing and recycling.”
That means United could have easier access to additional capital for this and other projects in the area as they move ahead.
As the lithium battery markets are expected by some analysts to hit $1 trillion in the next 5 years, investment in lithium mining is flowing heavily, particularly in Europe.
That places United (CSE:ULTH; OTCMKTS:ULTHF) in an excellent spot as they move forward with a promising, potentially high-grade lithium exploration project in a prime location to deliver throughout the region.
By. Olivia Keegan
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