The summit between Presidents Lee Myung-bak and Evo Morales on Thursday paved the way for Korea’s participation in development of Bolivia’s vast lithium deposits from as early as April next year.

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By Dave Brown – Exclusive to Lithium Investing News

Sociedad Quimica y Minera de Chile S.A., or SQM (NYSE: SQM), released strong first half earnings, reporting an annual net income increase for 2010 of over 4.2 percent to $181.5 million.  Revenues represented a 29.5 percent increase over the comparable period last year.  Segmented revenues for lithium showed a considerable relative improvement recording an increase of 47.6 percent compared with last year.

Investors will take confidence as this demonstrates that the lithium market has improved considerably compared to the market conditions observed during 2009.  The report discloses that industrial applications for lithium in both construction and lubricants, which were once expected to recover over the span of a few years, have reached levels close to those observed pre-crisis. The traditional driver of the lithium market has been rechargeable batteries for portable devices, and it also improved beyond demand highs observed in 2008. The news that consumers throughout the lithium chain have also restored their operational inventories, boosting demand for lithium and improving sales volume is a welcome sign for lithium investors.

Patricio Contesse, SQM’s Chief Executive Officer, was pleased with the overall results, “We have observed a positive shift in demand across all of our business segments during the first six months of 2010. The momentum observed during the first quarter has continued through the second quarter, as improved economic conditions have helped sustain demand. Additionally, inventory levels throughout the supply chain, in all of our business lines, have begun to return to normal levels, which had both a positive impact on our sales volumes and also reflects a clear signal of consumer and distributor confidence in long-term demand.”

The capital market has also demonstrated optimism on the positive earnings report with the stock trading at $43.69 range, which represents an increase of 2.5 percent over the previous close and just over 15 percent appreciation for the month of August.

Lithium Explorer in Argentina Increases Claim

TNR Gold Corp. (CVE:TNR) and its wholly owned subsidiary International Lithium Corp. announced the grant of an additional 4,000 hectare claim at the Mariana lithium brine project in Salta province, northwestern Argentina.  The 40 km square claim granted is adjacent to the east and south of its Mariana claim group and is a 33 percent increase in the scale of the project area.

The company is planning a drilling program to begin in the fourth quarter of this year and is optimistic that the “new claim secures prospective land area for a potential future processing plant facility.”  The intent is to utilize this drill program as a first step towards a resource classification of the brine. Objectives for this program include:  geochemical characterization of the subsurface brine across different zones within the basin;  identification of the stratigraphy for a geological model of the salar; analysis of the aquifer potential of the basement of the salar; and establishment of a weather station to collect data on evaporation characteristics.

Lithium Operations Expanding in the United States

The Chemetall Foote subsidiary of Rockwood Holdings (NYSE: ROC) has announced the contract for engineering and procurement services in order to expand its production of lithium materials for advanced transportation batteries will be provided by the Downstream business unit of KBR (NYSE: KBR).  The project is expected to be completed by the end of 2011 with an objective to support Chemetall Foote in meeting its goal of increasing lithium hydroxide production in response to an increase in demand and forecasted growth of electric vehicles.

The announcement serves as part of a follow up from the July press release detailing that the US Department of Energy (DOE) has provided a $28.4 million grant to expand the Silver Peak lithium production facility.  The DOE grant funding is provided under the Electric Drive Vehicle (EDV) Battery and Component Manufacturing Initiative of the American Recovery and Reinvestment Act of 2009 (ARRA), which has been made available to provide approximately $2 billion in federal stimulus funding to support the creation of American jobs while promoting the development of US based advanced battery production for the EDV market.

Lithium Energy Japan, a Mitsubishi (MMTOF.PK) joint venture, decided in April to build a new lithium-ion battery factory in Japan. The plant is to supply 50,000 cars.

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The press release is quoted as saying:

Canasia has a well diversified portfolio of prospects. Canasia’s current prospects include the following: (a) The Clone Gold prospect in Stewart, BC, that has returned grades as high as 44.75 g/t Au over 12.80 metres (announced October 22, 2009); (b) The Debut Gold prospect in NE Nevada; (c) 55,300 contiguous acres at Reed Lake, Manitoba; (d) 450,000 contiguous acres of Potash claims, bordering Alberta and Saskatchewan; (e) 130,500 acres prospective for Coal in SE Saskatchewan; (f) 180,000 acres prospective for Lithium in Alberta; (g) and mineral claims covering an area of approximately 9,200 hectares, located north and northwest of the El Oro — Tlalpujahua Gold/Silver belt in the states of Guanajuato and Michoacan, Mexico.

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Click here to access Canasia Industries Corporate Site

By Dave Brown – Exclusive to Lithium Investing News

Ford Motor Company (NYSE:F) and Portland General Electric (NYSE:POR) announced a collaboration to prepare the city of Portland by sharing information on charging  requirements.  The aim is to ensure the electrical grid can support the necessary demand for electric vehicles, in addition to consulting on consumer education advocacy around electric vehicles.   The allegiance between Ford and PGE also includes working with state and local governments to support electric vehicle tax credits, charging station permitting and future legislation.

Over the next two years, Ford expects to launch a Transit Connect Electric small commercial van, the Ford Focus Electric passenger car, two next generation lithium-ion battery hybrids (2012) and a plug-in hybrid (2012).

Portland General Electric Company is an integrated electric utility involved with the generation, distribution and retail sale of electricity in the state of Oregon, and is also participating in the wholesale market by purchasing and selling electricity and natural gas in order to manage its net variable power costs (NVPC).

The recent collaborative announcement follows a press release earlier this month from the US Department of Energy (DOE) detailing a $2.4 billion investment to further accelerate the manufacturing and deployment of electric vehicles, batteries, and components in the US via grants to 48 new advanced battery and electric drive projects under the American Recovery and Reinvestment Act.  The administration has demonstrated a strong ongoing commitment to developing this sector, with President Obama’s goal of reducing US dependence on oil.

Energy Secretary Steven Chu exhibited optimism in the press release for the grants saying, “They will help achieve the president’s goal of putting one million plug-in hybrid vehicles on the road by 2015. And, most importantly, they will launch an advanced battery industry in America and make our auto industry cleaner and more competitive.”  China has also confirmed policy objectives to support electric vehicle adoption by announcing its own investment of more than $15 billion in electric vehicles during the next 10 years.

Mining News

Last week, a subsidiary of Nordic Mining (OSL:NOM) announced positive results from a lithium exploration program during the June-August field season that  included both inspecting boulders and other spodumene pegmatite indications, and tracking new ones in areas where the company has claim reservations.  The Nordic Mining exploration program is in the province of Western Finland north east of the Seinäjoki area, which is known to host lithium mineralization as well as tin, tantalum, beryllium, niobium, tungsten and cesium. The objective of the detailed mapping is to improve the geological and structural interpretation of drilling data.

Last October, Nortec Minerals Corp. (CVE:NOM) acquired an option for a claim reservation on a 900 hectare area 35km east of Seinäjoki, with historical production of 18 tonnes of beryl (source for beryllium), 5 tonnes of columbite (source for both tantalum and niobium); and 190,000 tonnes of feldspar (containing rare earth oxide).

Future Developments

August 27 promises to be an interesting date for lithium investors as the Chief Executive Officer of Rockwood Holdings Inc. (NYSE: ROC), Seifi Ghasemi will be the keynote speaker at the pre-Opening Bell institutional reception for the New York Stock Exchange, hosted by Global X Funds. He is expected to address the “future of lithium” and the electrification within the transportation industry.  He will share the podium with Bruno del Ama, the Chief Executive Officer of Global X Funds, issuer of the recent Lithium exchange-traded fund (NYSE:LIT). Global X Chief Executive Officer, Bruno del Ama said, “We are honored to have Seifi with us to address what the energy and commodity worlds are talking about – lithium, and how to invest in it.”

Next Tuesday, Sociedad Quimica y Minera de Chile S.A., or SQM (NYSE: SQM) is anticipated to release its second quarter earnings, which will also be worthy of attention for lithium investors.

The press release is quoted as saying:

Chisen Electric Corporation, incorporated in Nevada, USA, and headquartered in Zhejiang Province, the People’s Republic of China, is a leading lead-acid motive battery producer for China’s personal transportation device market. The Company’s battery products are sold under its own brand names and are predominantly used in electric bicycles.

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Click here to access Chisen Electric Corporate Site

The state-run Korea Resources Corp. in August last year signed an agreement with Bolivia’s state mineral development agency to develop technologies for producing lithium carbonate from the salty water of the Uyuni.

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The press release is quoted as saying:

The principal of Equapolar, Gary Pearse, is an engineer, economic geologist and mineral economist with more than 40 years experience, largely as a rare metals and industrial minerals consultant. During his career he managed scoping studies, pre-feasibility studies and feasibility studies, authored numerous technical papers and managed or consulted on significant pegmatite projects. Mr. Pearse will be charged with producing a Preliminary Economic Assessment (scoping study) on the Whabouchi project.

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The press release is quoted as saying:

An initial drilling campaign is planned at the La Ventana target, while detailed mapping and systematic sampling followed by a target prioritization is planned for the El Sauz, Buenavista and San Gabriel targets, as well as the pending claim (El Penasco). At La Ventana, previous results returned values ranging between 1,700 to 5,500 ppm of Li, yielding between 0.3 to 2.5% Li2CO3 (lithium carbonate). The lithium bearing clays are contained in beds in excess of 20 metres thick and have been traced for over 3,000 metres. The clay Hectorite has been identified by X-ray diffraction analyses.

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The Private Placement of subscription receipts of Salares (“Subscription Receipts”) consists of a total of 32,128,515 Subscription Receipts being issued at CAD$1.245 per Subscription Receipt for total gross proceeds of $40,000,001.18.

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