Dear Reader,
This past Tuesday, the Biden administration announced that it was offering a small lithium miner operating in the Western United States a $2.26B loan to develop a record-breaking geological discovery sitting on the border between Oregon and Nevada.
The Department of Energy aims to finance the construction of a refining facility capable of producing 40,000 tons of lithium bicarbonate annually, or enough to produce about 800,000 electric vehicle battery packs.
The news is starting to pick up steam now, with most of the major media outlets carrying the story. But the size of the loan isn’t what should be raising eyebrows.
It’s the size and nature of the lithium reserve found on this property, and how it came to be there.
Approximately 16 million years ago, when the property in question was sitting overtop the region of the Earth’s mantle which currently lies underneath northwestern Montana — a vast area commonly known as Yellowstone National Park — the massive volcano which resides there erupted.
The event was cataclysmic and likely led to mass extinctions on at least a continental level, but some of the after-effects were more subtle and reached through time to affect us today. Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
Yesterday’s Magma… Today’s Fuel
The caldera of this volcano eventually cooled, and with the movement of the Earth’s crust over the mantle, gradually drifted away from the hot-spot that we refer to today as the Yellowstone Supervolcano.
Last summer, during a geological survey of the caldera’s remnants, this giant funnel of long-cooled Earth’s innards spewed upwards from the depths was found to contain enormous deposits of lithium metal.
Likely north of 40 million tons is the estimate, with some going as high as 120 million.
Just to put things into perspective, today’s current proven reserves, worldwide, total less than 30 million tons.
Global demand for the metal has already started to slowly outstrip current production capacity.
A “Strategic” Investment?
If proven true, and this Federal loan should be a good barometer of credibility, this single geological formation will completely disrupt today’s lithium markets both from a supply and a demand point of view.
With the Chinese standing to lose the most in the resulting shift, it’s exactly this sort of disruption that the Biden administration may be seeking.
Like I said, the MSM is picking up on this story… But I’ve been writing about the beneficiary of the loan for months now.
My readers have known about the company and its incredible asset since last year, and we’ve been watching it every step of the way.
Since this announcement became public, shares have popped more than 30%, but that’s just a drop in the bucket compared to what this $700M mining outfit could become once the historic discovery is goes into full-scale production.
You can get the full story with all the details the MSM will never bother with right here. Fortune favors the bold, Alex Koyfman His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.
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