Is Your Portfolio Positioned For A Lithium “White Gold” Rush?

Is your portfolio positioned for a “white gold” rush?

In North America and the U.S. specifically, the hunt for lithium, a key component of batteries used in electric vehicles (EVs), has historically trailed a handful of other countries. That includes Australia, which mines more “white gold” than all other countries combined, and China, the leader in both lithium refining and lithium-ion battery production.

But with last week’s announcement that the White House is deploying nearly $3 billion to boost domestic output of EV batteries and the minerals used to make them, it may be time for investors to take notice.

In an October 19 press release, the Biden Administration said it was awarding $2.8 billion in grants to as many as 20 U.S.-based companies to “expand domestic manufacturing of batteries for electric vehicles and the electrical grid.” The lion’s share of the investment—part of the $1.2 trillion Bipartisan Infrastructure Law, signed in November 2021—will go to three companies involved in the production of critical minerals including lithium.

Fedral Grants Awarded to U.S. Lithium Explorers, Producers and Refiners

More than $114 million is set aside for Talon Metals, which will use the grant to support the construction of a battery minerals processing facility in North Dakota. In January of this year, the Minnesota-based company entered into an agreement with Tesla to supply 75,000 metric tonnes of nickel concentrate from its Tamarack Nickel Project in Minnesota.

Piedmont Lithium, one of our favorite industry plays, was selected to receive $141.7 million. The North Carolina-based company says the investment will go toward the construction of a new lithium project in Tennessee, which aims to supply up to 30,000 metric tonnes of lithium hydroxide per year.