NEW YORK, February 22, 2017 /PRNewswire/ --
According to a report published by Allied Market Research, the global Lithium-Ion Battery market is expected to reach $46.21 billion by 2022, at a CAGR of 10.8% during the forecasted period. The advantage of lithium-ion batteries is that they easily are rechargeable and therefore are used as a source of power supply in portable devices. "The market for these batteries is expected to witness notable growth because of their increasing application in the automotive sector," the report shows. Other key factors that drive the growth of this market are the growing demand for smartphones, tablets, and other electronic devices. Scientific Metals Corp. (OTC: SCTFF) (TSX-V: STM.V), MGX Minerals Inc. (OTC: MGXMF) (CSE: XMG.CN), Tesla Inc. (NASDAQ: TSLA), Honda Motor Co Ltd (NYSE: HMC) and General Motors Company (NYSE: GM)
The research indicates that earlier 2015, the electronics sector contributed the highest revenue, accounting for around 49% of the overall market revenue. This segment is expected to maintain its dominant position throughout the forecasted period, yet, from a growth perspective, the automotive sector could become the most prominent user of these batteries. The automotive sector is projected to witness the highest CAGR of 13.6% during the forecast period, thanks to rising demand from electric and hybrid vehicles.
Scientific Metals Corp. (OTCQB: SCTFF) (TSX-V: STM.V) just announced this morning that, "it has entered into an arm's length Earn-In Agreement (the "Agreement") with MGX Minerals Inc. (OTC: MGXMF) (CSE: XMG.CN) pursuant to which MGX has been granted the option to acquire a 50% interest in STM's Paradox Basin Lithium Brine property (the "Paradox Property") located in Utah in the western United States.
Under terms of the Agreement, MGX has the option to acquire a 50% interest in the Paradox Property by: (i) making a cash payment of CDN$50,000 to STM upon execution of the Agreement; (ii) issuing 150,000 MGX common shares to STM upon execution of the Agreement; and (iii) incurring minimum exploration expenditures on the Paradox Property of no less than CDN$250,000 over the course of a 12 month period. If MGX earns its 50% interest, the parties will negotiate and enter into a joint venture agreement pursuant to which the parties shall be equally responsible for all future exploration and development expenses on the Paradox Property. Further, MGX will have the right to participate in an amount of up to 15% of the gross proceeds of any equity or debt financings of STM for a period of 18 months from the date of execution of the Agreement.
Scientific Metals Corp. President Wayne Tisdale states: "We are pleased to partner with MGX on our exciting petro lithium project in the Paradox Basin. We benefit from being an early mover in the Paradox Basin and securing what we believe to be key ground which historically demonstrated lithium grades. With deep experience and expertise in the oil and gas sector we feel that MGX is the right partner to help explore this exciting new basin. Cementing this joint venture will allow STM to benefit from their Nanoflotation technology that is exclusive to MGX. We look forward to working together to develop our project."
The Paradox Property consists of an aggregate of 111 mineral claims covering approximately 2,200 acres located approximately four kilometers northwest of Intrepid Potash's Cane Creek operation. Approximately eight wells have been drilled on the Paradox Property with additional historic wells in the immediate area. Historic exploration, as reported by Southern Natural Gas and documented by the Utah Geological and Mineralogical Survey, reported 500 ppm lithium from well No. 1 Long Canyon ("Concentrated Subsurface Brines in the Moab Region, Utah", Utah Geological and Mineralogical Survey, June 1965).
Lithium occurs in the basin in oversaturated mineral brine (40 per cent minerals, 60 per cent water) and was discovered during oil exploration when drill wells intercepted the main brine zone (clastic break 31) of the Paradox formation. ("Concentrated Subsurface Brines in the Moab Region, Utah", Utah Geological and Mineralogical Survey, June 1965).
The Company has not undertaken any independent investigation of the drill results, fluid analysis or other information contained in this press release nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information or whether the information was prepared in accordance with the requirements of National Instrument 43-101. The Company believes that the historical drill results, fluid analysis and other information contained in this press release are relevant to continuing exploration on the Paradox Property. MGX and STM intend to conduct a review of recent and historic well logs, along with chemical analysis in the area and reprocessing of seismic data focusing on mineral brine. Mr. Garry Clark, P. Geo., of Clark Exploration Consulting, is the "qualified person" as defined in NI 43-101, who has reviewed and approved the technical content in this press release.
American automaker, energy storage company, and solar panel manufacturer, Tesla Inc. (NASDAQ: TSLA) has a planned production rate of half a million cars per year in the latter half of this decade, and alone will require the entire worldwide production of lithium ion batteries. The Tesla Gigafactory was created of necessity and will supply enough batteries to support its projected vehicle demand. As stated by Tesla, "In cooperation with Panasonic and other strategic partners, the Gigafactory will produce batteries for significantly less cost using economies of scale, innovative manufacturing, reduction of waste, and the simple optimization of locating most manufacturing process under one roof. We expect to drive down the per kilowatt hour (kWh) cost of our battery pack by more than 30 percent. The Gigafactory will also be powered by renewable energy sources, with the goal of achieving net zero energy."
Honda Motor Co Ltd (NYSE: HMC) and General Motors Company (NYSE: GM) joined in a mutual agreement in order to build brand new affordable fuel cell cars for the upcoming years. In the agreement, both companies will split equally the $85 million investment to grow their fuel-cell partnership, thus creating a manufacturing venture in the state of Michigan. Ever since 2013, both automakers have been working on technology of hydrogen-related automobile. "Over the past three years, engineers from Honda and GM have been working as one team, with each company providing know-how from its unique expertise to create a compact and low-cost next-generation fuel cell system," said in a press release by President and Chief Executive Officer of Honda North America, Toshiaki Mikoshiba. He later added that this joint venture will generate new value for existing customers in fuel-cell vehicles in the future. They will start producing hydrogen fuel cells by 2020 at a battery manufacturing factory by General Motors that will create about 100 new jobs.
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