MILLENNIAL LITHIUM COM NPV (OTCMKTS:MLNLF) Is Today's Lithium Focus

Future demand for lithium is directly tied to the future of electric cars, and battery powered devices such as cell phones and computer tablets. This past January, Tesla (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 (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.For further evidence we can look to Contemporary Amperex Technology Ltd. (CATL), a Chinese lithium battery manufacturer, which 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. Seems as though MILLENNIAL LITHIUM COM NPV (OTCMKTS:MLNLF) is in a perfect position to capitalize on the opportunity. Millennial Lithium Corp is an emerging exploration and development company with a focus on quality lithium assets located in Argentina. Millennial controls over 25,000 hectares of prime land in the heart of the famed “Lithium triangle” – home to the world’s most prolific lithium riches. In Argentina, the Company is advancing on two prospectively low-cost, high-grade lithium projects. Both are located within an emerging mining district that is home several world-class lithium mines and in development deposits.On Jul 10, 2017, Millennial Lithium Corp reported encouraging results from an extended pumping test of the first production scale well at its Pastos Grandes Project in Salta, Argentina. Pumping well PGPW16-01 was installed in late 2016 to complete extended pumping of the lithium brine to determine the robustness and chemical variation of the aquifer over an extended period. At a pumping rate of 27.7 litres/second (l/s), the lithium content remained very consistent over the 60 hour period. The drawdown over 24 hours was approximately 9 metres (m) with very rapid recovery. Millennial CEO, Farhad Abasov, commented:

"Millennial is very pleased with the results of this first pumping test. The test indicates strong brine flow rates of 27.7 l/s at the maximum capacity of the pumping equipment with only minor draw-down, and consistent lithium concentrations suggest a robust aquifer. Strong lithium values remained relatively consistent throughout the duration of the pumping test suggesting lithium distribution is widespread. Brine from well PGPW16-01 is now being used to feed a series of trial evaporation ponds as part of Millennial's ongoing development of the Pastos Grandes project."

On Jun 29, 2017, Millennial Lithium Corp announced it entered into an option agreement to acquire 100% of the Cauchari East Expansion Project in Jujuy Province, Argentina. The Cauchari East Expansion Project covers an area of 8,742 hectares and is contiguous to and consolidates Millennial's wholly owned Cauchari East Project. Cauchari East is adjacent to Orocobre and Advantage Lithium's Cauchari Project and the Lithium Americas/SQM advanced-stage Cauchari-Olaroz Project. With the addition of this project, Millennial's land holdings at Cauchari East now total 11,742 hectares. Farhad Abasov, Millennial's CEO stated:

"The addition of the Cauchari East Expansion Project further expands Millennial's land position on the eastern side of the Cauchari basin. With over 11,000 hectares, Cauchari East now covers enough ground to be considered a world class, stand-alone lithium exploration project."

In a separate press release Millennial Lithium Corp announced that it entered into a Mineral Property Option Agreement dated May 19, 2017, with Liberty One Lithium Corp (TSX VENTURE:LBY ) to joint venture up to an 80% interest in the Pocitos West Project consisting of 15,857 hectares (39,183 acres) of prospective lithium brine exploitation concessions on the Pocitos Salar in Salta Province, Argentina. The Pocitos West Project is located 160km from Salta, and approximately 40 km due west of Millennial's flagship aforementioned Pastos Grandes Project.

MLNLF stock has been trading in a range since November of 2016 with a support level of about $.95, and a resistance level of where it is trading now at about $1.20. Current market capitalization comes in at $51.17 million, on 42.4 million shares outstanding as of July 10, 2017.The growing demand of lithium for the manufacturing of batteries puts Millennial Lithium Corp in an industry in which growth is expected over the next few years. The Company seems to have a sound strategy moving forward, however, its financial reports are not very conducive to aggressive expansion. The Company is yet to report its first dollar of revenue, has a weak balance sheet, and does not have the cash needed to fully capitalize on its expansion plans. Seems like the Company will need to raise capital. The Company will need to shore up its financials, and start generating revenues in order to keep the momentum going. We’ll put MLNLF on the radar and monitor it closely.We will be updating our subscribers as soon as we know more. For the latest updates on MLNLF, sign up below!Image courtesy of herbyo401 via FlickrDisclosure: We have no position in MLNLF and have not been compensated for this article.