The electric vehicle revolution cannot be stopped. As per Meticulous Research, the EV battery market is projected to grow to $155 billion by 2028 globally. That's 7 TIMES bigger than it was in 2020. According to Benchmark Intelligence, lithium demand is expected to reach 2.4 million tonnes LCE (lithium carbonate equivalent) in 2030. The Biden Administration mandated that by 2035, most federal vehicle purchases must be through zero-emission vehicles (such as electric). As a result, the demand for electric vehicles could grow 20–30% CAGR over the next ten years, and the need for Lithium is anticipated to grow 22x in the next seven years. As a result, governments are aware of Lithium's significance, and the US Department of Energy even promotes this element as a key material. The story behind the lithium market is highly compelling. It's no surprise to investors that we're right on the horizon of this unique opportunity. With demand for lithium rapidly outpacing supply, Grounded Lithium (TSX.V:GRD)(OTCQB:GRDAF) is poised to benefit.

Grounded Lithium is dedicated to generating value through a balanced model of exploration, production, and strategic acquisitions of formations bearing lithium-rich brines in Western Canada. The company's focus lies in the province of Saskatchewan. Their objective is to extract lithium from the production of underground brines in the unexplored region of Western Canada to feed it to the fast-expanding electricity-powered economy. The company has set several objectives for 2023, intending to become a significant lithium producer in Canada.

Company Overview

Grounded Lithium's approach aims to offer manufacturers along the supply chain for lithium batteries with feedstock. Critical mineral feedstock suppliers in North America also profit from government assistance, convenient access due to rail, large highways, etc., and a strategic price advantage compared to worldwide suppliers.

The company owns the Saskatchewan-based Kindersley Lithium Project. The project benefits from enormous shallow water carbonate structures that serve as ideal conduits for massive lithium-rich brine reserves that are part of the Leduc formation, which is found in Southern Alberta and Saskatchewan. 3.7M tonnes of lithium carbonate equivalent were implied in an NI 43-101 report produced by Sproule Associates. The region has numerous favourable characteristics, including intriguing geology. High lithium concentration studies validate the trapping mechanism for brines enriched in lithium, and the shallow depth of the reservoir significantly lowers drilling costs. There, the business actively purchases additional land; as a result, it already has 300 sections and enough acreage for numerous projects. Because it has a much smaller environmental impact than solar evaporation and traditional hard rock mining, it helps the company align with an ESG political agenda. Utilizing modular DLE plants reduces construction time, permit risks, and capital costs. Additionally, compared to solar evaporation ponds, faster production with higher recoveries.

The fact that Grounded Lithium owns land that will support several 20,000 tonnes/year projects demonstrates how under appreciated the company is right now. The Direct Lithium Extraction method, known as the future of clean energy in Western Canada, will be used by Grounded Lithium to operate. This method yields the highest-quality product while removing impurities, making the results repeatable and reliable. The company extracts lithium from brine water using a highly selective absorbent. High-grade lithium carbonate and lithium hydroxide are produced by polishing the solution obtained from the brine water after it has been extracted. The company contracted Hatch to advance its technology selection process.

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The business will select the DLE technology for 2023, which is anticipated to be finished by the end of Q2, 2023. It will be used in conjunction with a preliminary economic assessment("PEA"). The PEA is expected to support an increase in the Company's valuation. Additionally, by Q2 2023, lab results for Grounded Lithium are anticipated. Utilizing third party lab facilities will result in significant cost savings over building and maintaining a lab on-site. The Company plans to start designing, engineering and building a Commercial Demonstration Facility by the first quarter of 2024.

Share Structure/Financials

"Grounded advanced our business on all fronts extremely quickly from our humble roots in a little over two years," commented Gregg Smith, President and CEO. "Although pleased with our progress to our current position, we remain hyper-focused on the full value proposition, and it is our responsibility to move the business forward to achieve both near and long-term milestones. Combined with further understanding of the Lithium from brine industry by the wider investment community, 2023 promises to be a very exciting time for all GLC stakeholders."

The business was able to have a clean balance sheet and a conservative share structure. For a total of 90.6M fully diluted shares, only 68.9M shares have been issued and are currently outstanding. With 12 million warrants at a price of $0.50, Grounded Lithium can gain an additional $8 million from the exercise of all dilutives. The business has no debt and currently has $3M in cash reserves. It will give Grounded Lithium some room to operate while preventing a potential further dilution of the share structure. It will be crucial to examine the Company's upcoming financial statements in order to determine what its expenses will be. Insiders hold 14% of the ownership, institutions hold 17%, and retail investors hold the remaining 69%. A good thing to know is the management invested at every level of financing to date and intends to participate in every round in the future.

As of writing this, the stock price hovers at $0.30, and witnessed a 52-week range from $0.33 to $0.50.

Bottom Line

Investing in Grounded Lithium (TSXV: GRD, OTC:GRADF) offers the chance to support the early stage of a business that aims to become a major Canadian supplier of battery-grade Lithium. The company has adequate short- to medium-term funding to carry out the businesses plan's first phases and offer ongoing catalysts. The organization, led by an experienced team, has all the tools necessary to succeed and could provide investors with a strong return on investment.

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