Nova Mining, the aggressive lithium developer that has been around now for seven years pursuing a growth-focused international strategy centered on the acquisition of high-value mineral interests to supply the burgeoning Li-ion battery and ancillary markets (battery market alone projected to reach $43B by 2020 according to MarketResearch.com), was clearly satisfied today by the news regarding a major initiative from Korea, France, and Japan to secure enough lithium for the future of their own manufacturing sectors.
With events like the three major deals announced in the last three weeks between NVMN and Chinese battery manufacturers, it is apparent to all that China has taken an extremely proactive approach to shoring up supply shortfalls of this strategically crucial metal, and now the rush is on for relative latecomers, a dynamic which should delight NVMN shareholders. Li-ion long life batteries go in just about every mobile device on the market today. Laptops, smartphones, and other consumer electronic usage of the batteries has exploded in recent years. Tack on the swelling global electric vehicle market, which requires hefty Li-ion batteries as a major component and looks to grow rapidly over the next several decades, and you’ve got a perfect storm of demand.
Nova is one of the companies standing in the eye of the storm today, diligently getting out there and developing supplies of lithium in key international locations, and standing alongside larger players like FMC Corporation. Korea, France, and Japan all require inputs and recent closing of the marathon talks between Korea and Bolivia aimed at securing secure lithium supply should be a solid indicator to investors of the metrics and importance of lithium/lithium development in general these days.
With corporate buyers like Samsung SDI and LG Chem eager for more lithium, Korea (or rather a Korean consortium, led by Korea Resources Corp.) was forced to handle a tough negotiation environment, but it is worth it because of how vital the lithium supplies are to Korea’s extensive tech sector. Again though, this should tell investors how high the stakes are already getting and should alert them to the potential inherent in a company like NVMN, even ahead of the demand spike coming as electric vehicles and portable electronics move into even longer-life configurations in the immediate future (especially vehicles, where charge up-time is key).
Staring down the upcoming iPhone 5 launch from Apple and still in the grips of the tablet boom, we are currently seeing lithium prices climb ever higher. Nova is banking on the surge from Apple’s new product roll outs and secured those China deals well ahead of the real baselines kicking in. But of course, Apple is just one component of a much larger field and NVMN’s tactical approach to securing lithium sources benefits tremendously from globally widespread tech manufacturing. In fact, Korea and Japan are perfect examples of economies that, without a stable supply of lithium, will be forced to shear profit margins in the technology sales loop across entire industries.
President of NVMN, James Dilger personally spearheaded the recent China deals and took a good long look at opportunities while he was over there for additional lithium mining infrastructure acquisition targets, in addition to getting all the company’s ducks in a row with other battery manufacturers/end markets. This foresight and market savvy has characterized Nova’s operations from the outset and the company typically has been able to get out ahead of demand, strategically positioning for optimal growth in the lithium sector, which is increasingly a seller’s market.
For more information on this aggressive lithium development firm, please visit the Nova Mining Corp. website at: www.Nova-Mining.com
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