Lithium miner betting on smart phones
Lithium, a key component in any portable electronic, has a bright future according to MarketResearch which "forecasts the Lithium battery market to quadruple to $43 billion."
Nova Mining's main commodity is lithium and therefor it is keeping a close eye on the battle between Samsung Galaxy III, out this week, and the iPhone 5 which is expected to arrive this fall.
The lithium market, which has been moving in leaps and bounds, is conditionally correlated to the tech market. And, with the recent boom in iPad sales, the necessity of cell phones and the expansion of electric cars, lithium seems unable to fail.
“Given what we have seen the iPad sales boom do to the Lithium market, we believe that further releases of revolutionary products from Apple will exponentially escalate lithium prices and place even more critical demand on the valuable mineral that is the main ingredient for long-life batteries,” said James Dilger, Nova Mining President, in an interview with Business Wire. “I feel we are positioning Nova Mining to reap great rewards from these influences on the lithium market.”
Talk is currently revolving around how Apple will crush the competition, namely Samsung's Galaxy III and Google's new tablet, with the iPhone 5 and the poorly understood plan for Apple TV.
In a press release last week Nova Mining outlined its intention to purchase exclusive rights to the lithium produced from three different projects currently owned by Mongolian National Mining Consultants.
However recent litigation, as Bloomberg reported, has had Mongolian lawmakers approve a law "requiring parliament to approve deals in which overseas investors hold more than 49 percent of the equity and for transactions exceeding $75 million in strategic sectors, including mining."
With the litigation halting Mongolian coal mining it is likely that Nova might have to fight tooth and nail for those lithium rights.