With EV sales increasing, lithium is a big hot commodity right now – one that there’s just not enough of being produced. With us, we have Jonathan Buick, CEO of Champion Electric Metals (CNSX: LTHM). He’s here to explain why lithium is a big, big play for potential investors.
Prior to this week, Champion Electric Metals was trading as Idaho Champion Gold Mines Canada Inc. Feeling the change would better reflect the company’s transition into battery metals, the new name was voted upon at the recent company AGM. The new name began to trade on the Canadian Securities Exchange as of May 29, 2023. Why the transition, though? Champion Electric Metals acquired over 500 km2 of prospective lithium properties in the James Bay corridor of Quebec. This compliments their existing cobalt property package in Idaho.
James Bay has quickly become the hottest spot for lithium globally over the last 24 months by transactions. Buick even likens it to being the Klondike Gold Rush of lithium. Mineral exploration company Patriot Battery Metals (TSXV: PMET) is an example where they’re operating in the area, and the company itself has grown from a $20m market cap company to now a $1.6 billion dollar market cap in just 16 months. Champion Electric Metals’ construction site will be located just 2.4 miles away from its peers, and you can read more on the James Bay lithium deposits here.
There’s another reason for the spike in interest in James Bay; Jonathan Buick also shares that by 2024 companies that do not have a trade agreement with America, and who are drilling for traditional resources like cobalt, will face heavy fines and tariffs based on recent government mandates concerning the environment. So companies are being pushed to move quickly.
Lithium is a global resource that is in high demand by governments all across the world. With management owning 30% of the share float, here’s why we found this story really grabbed our attention.