LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) Remains A Top Lithium Play

When considering investing in the lithium industry, a “big picture” outlook of the industry must be taken into account. Demand for lithium for the purpose of manufacturing batteries is expected to significantly grow in the next few years. Case in point, this past January of 2017, Tesla Inc (NASDAQ:TSLA) began mass producing lithium-ion battery cells at its 1.9-million-square-foot Gigafactory in Reno, Nevada.With the cooperation of Panasonic Corporation (ADR)(OTCMKTS:PCRFY) Tesla expects to produce an astonishing 35 gigawatts of battery power a year by 2018. To put this in a global perspective, nearly 40 percent of all lithium supply is used in the production of batteries, including those that power battery electric vehicles. It should come as no surprise that lithium demand is being driven by sales of electric vehicles which, according to Morningstar, are expected to rise from 0.3 million in 2015 to 11 million by 2025.It doesn’t end there. Contemporary Amperex Technology Ltd. (CATL), a Chinese lithium battery manufacturer, is quickly gaining ground and plans to surpass Tesla in terms of battery production by 2020. According to Goldman Sachs, the battery market will climb to $40 billion by 2025. LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) is taking steps to implement a long-term strategy on this expected growth in demand for lithium.For those that have not yet been introduced to the Company, Lithium Americas, together with its joint venture partner Sociedad Quimica y Minera de Chile S.A. (SQM), is developing the Cauchari-Olaroz lithium project, located in Jujuy, Argentina, through its 50% interest in Minera Exar S.A. In addition, Lithium Americas owns 100% of the Lithium Nevada project (formerly Kings Valley project), and RheoMinerals Inc., a supplier of rheology modifiers for oil-based drilling fluids, coatings, and specialty chemicals.The Cauchari-Olaroz lithium project capital cost estimate for the construction of Stage 1 is expected to be US$420 - US$430 million before value-added and other applicable taxes and working capital. Lithium Americas will be responsible for contributing 50% of capital expenditures for the construction of Stage 1 (expected to commence in mid-2017), amounting to approximately US$210 - US$215 million before taxes and working capital.In an effort to secure financing for the project, on Jun 7, 2017 Lithium Americas Corp announced it completed the closing of the investment agreement with GFL International Co., Ltd., a wholly-owned subsidiary of Jiangxi Ganfeng Lithium Co., Ltd. Ganfeng Lithium agreed to provide Lithium Americas with an aggregate of approximately US$172 million in financing. The Investment Agreement is comprised of three components, Private Placement equity financing, a debt facility, and an off-take agreement for the purchase and sale of lithium products. Ganfeng Lithium has agreed to provide Lithium Americas an aggregate of approximately US$171 million in financing, primarily to fund the Company's share of construction costs for the Cauchari-Olaroz lithium project ("Cauchari-Olaroz") in Jujuy province, Argentina. Tom Hodgson, Lithium Americas' CEO, commented:

"We welcome Ganfeng Lithium as our largest shareholder. The closing of the Investment Agreement places Lithium Americas in a strong financial position and will allow the Company to now commence construction of the Cauchari-Olaroz lithium project with our joint venture partner SQM, with the objective of becoming the next low cost brine producer of lithium by 2019."

In conjunction with the Cauchari-Olaroz lithium project and its financing, Lithium Americas Corp has made some appointments to the company management team. Gabriel Rubacha has been appointed as the Company's President of South American Operations. For the past year, he has been a director of Lithium Americas and a director of the Cauchari-Olaroz lithium project joint venture company, Minera Exar S.A. ("Minera Exar"). Mr. Rubacha was previously the Commercial Director of Techint Engineering and Construction S.A.On June 8, 2017, Lithium Americas Corp announced the appointment of Wang Xiaoshen and Jonathan Evans as independent directors. Mr. Wang is currently Vice Chairman and Executive Vice President of Ganfeng Lithium, and was appointed to the Board of Lithium Americas as the nominee of Jiangxi Ganfeng Lithium Co. Ltd.. The appointment was a result of a board nomination right of Ganfeng Lithium pursuant the strategic financing with the Company.Mr. Jonathan Evans previously served as Vice President and GM for the Lithium Division at FMC Corporation, and is currently the Chief Operating Officer of DiversiTech Corporation, a US$350 million revenue portfolio company of the private equity group, Permira. He has more than 20 years of operations and general management experience across businesses of various sizes and industry applications.

LACDF stock has not have much movement since our last review. The stock is currently trading at $.7100. The latest quarterly financial reports for the period ending September 2016 are starting to show revenue, and indicate a strong balance sheet. Current market capitalization stands at $217.04 million, on 301.45 million shares outstanding as of June 12, 2017Lithium batteries are currently at the “cutting-edge” of battery technology, and will be so for the foreseeable future. They’re used in everything from electric cars to cell phones, neither of which the demand for will be diminishing anytime soon. Lithium Americas Corp has an “inevitable” demand for its product, and now has secured financing to commence construction on a facility to produce the product, and fulfill said demand. At the current stock price, it’s difficult to make a case for not buying LACDF stock. Be sure to check out our coverage on LACDF. We will be updating our subscribers as soon as we know more. For the latest updates on LACDF, sign up below!Disclosure: We have no position in any of the securities mentioned and have not been compensated for this article.