Lithium is one of the main ingredients of the lithium-ion battery used for electric vehicles and has been on a bull run since 2015. Production increased substantially in 2017 with a flurry of new investors bringing capacity on stream, so there's no sign of deficit, but lithium prices doubled in 2016 and remain lofty.
[MGX] has acquired more than 2 million acres of brine-bearing formations in North America and just recently ventured into Chile. "The real prize is in South America," Lazerson said.The Paradox Basin is linked at the sidebar at the right.
This is where there is higher value -- up to 1,000 ppm of lithium compared to other brine formations in North America where, typically, 300 ppm is present. Its North American lithium holdings are in Alberta, Canada and Utah in the US.
Earlier this week, MGX said that its operating partner received approval from the State of Utah Division of Oil, Gas & Mining to conduct a 3D geophysical survey on the Blueberry Unit at its Paradox Basin Petrolithium Project.
"The project represents the first large scale integrated petroleum and lithium exploration project in the United States and is located proximate to the Lisbon Valley oilfield within the Paradox Basin, which has shown historical brine content as high as 730 ppm lithium," MGX said.