Lithium prices are up more than 600% over the past couple of years. With governments pushing consumers into electric vehicles, demand for the battery-making ingredient has skyrocketed without any signs of slowing down. As a result, investors looking to capitalize on renewable energy-focused commodities may want to take a closer look at the space.
In this article, we’ll look at what’s driving lithium prices higher and why investors might want to consider Manning Ventures Inc. (CSE: MANN) (OTC: MANVF) to capitalize on these trends.
What’s Driving Lithium Prices?
Lithium prices have soared more than 600% over the past two years thanks to rising demand from electric vehicles and limited supplies – particularly in China. China produces three-quarters of all lithium-ion batteries and has 70% of the production capacity for cathodes and 85% for anodes. And last year, more than half of all EVs were assembled in China.
On the demand side, global electric vehicle sales more than doubled in 2021 to 6.6 million. While China plans to cut new energy subsidies for battery manufacturers and halt cash subsidies and tax breaks for citizens purchasing EVs, the U.S. Inflation Reduction Act could offset these cuts with a new EV tax credit, and it aims to bring manufacturing into the U.S.
On the supply side, refiners in the Jiangxi production hub – known as the lithium capital of Asia – suspended activity due to environmental scrutiny and disruptions to infrastructure. In 2021, the region produced upwards of 81,000 tons of lithium carbonate, or more than a quarter of the country’s total. And it’s unclear how long the supply disruptions will last.
Manning Ventures’ Properties
Manning ventures has been actively pursuing projects in lithium space over the past several years and is laser-focused on two highly prospective properties in Newfoundland and Quebec.
The company’s Dipole, Newfoundland, project sits on a 450 kilometer pegmatite belt. The company’s 997.3-hectare project is located approximately 50 kilometers along strike of the Sokoman/Benton Kraken Lithium discovery made by Sokoman Minerals and Benton Resources – a discovery with surface sampling of up to 1.93% Li20.
After completing a ground surface sampling and reconnaissance program at the property with positive visual results, including pegmatite outcrops, in October, the company plans an aggressive exploration program to fast-track exploration for lithium at the site.
Manning Ventures also owns the Bounty Lithium project, with 89 mineral claims totaling 4,659 hectares in the James Bay Region of West-Central Quebec. In August, the company’s first-pass exploration confirmed the presence of very anomalous lithium (greater than 201ppm), including seven samples that contained up to 425 ppm.
After completing a brief follow-up program in October 2022, with analytical results still pending, the company plans an expedited and aggressive follow up exploration program over the coming months to explore the site’s lithium potential.
Alex Klenman, CEO, Manning Ventures states: “Lithium Mineral deposits are in very high demand and are receiving a generous flow of funds to expedite new discoveries. Manning’s Dipole Lithium and Bounty Lithium projects are in the heart of two of the most prospective lithium belts in Canada and we are hyper focused on aggressively exploring and uncovering the lithium potential at these projects. We expect the coming months to be a very active time with steady updates on the progress of these exploration efforts and we look forward to keeping our shareholders up to date.”
Why Investors Should Take Note
Manning Ventures is well-positioned in the lithium space for several reasons.
First, the U.S. and other western nations are keen to reduce their reliance on China for lithium resources and battery manufacturing. Manning Ventures’ properties are located in Canada, which is ideal for export to the United States to meet growing demand, as the country tries to move more battery and EV manufacturing inside its borders.
Second, the company has two promising properties that are highly prospective for lithium mineralization. With exploration underway, investors could see near-term catalysts from the sampling results. And longer term, positive results could lead to a partnership with a major to conduct the mining and ultimately generate cash flow from the properties.
And third, Manning Ventures is relatively unknown among lithium stocks. With a market capitalization of just C$3.5 million, investors have an opportunity to get involved on the “ground floor” if it’s successful. And positive results from exploration could help close the gap between its market cap and that of other exploration-stage lithium companies.
The Bottom Line
Manning Ventures Inc. (CSE: MANN) (OTC: MANVF) offers investors a compelling way to capitalize on rising lithium prices over the long-term. With two promising lithium projects in active exploration, investors could see near-term catalysts from sampling results and potential long-term success through a commercialization partnership.
For more information, visit the company’s website or fill out the form below to download the investor presentation.
