SAN FRANCISCO, CA--(Marketwired - November 11, 2015) - Demand for commodities is in the doldrums, but the fundamentals of uranium and lithium are favorable when compared with other materials, says Paul Renken, mining analyst for VSA Capital Ltd. In this interview with Streetwise's The Energy Report, Renken notes that rising demand for batteries will soon exert pressure on lithium production capacity and that well-placed uranium juniors are in position to meet demand from nuclear power plants now in development. Investors must be patient, but diligent selection will be rewarded.
The Energy Report: Do domestic juniors have an advantage over imported materials based on their logistics and regulations?
Paul Renken: It comes down to who can deliver into the supply chains. From mine production, to battery fabrication, to the end manufacturer and distributor of the power cells, the closer you can be to the various components of the overall storable power module in lithium batteries, the greater your advantage.
There are going to be some regulatory hurdles to overcome where countries will be protecting their resources. We already see that in places like Argentina and Bolivia on brine-based lithium projects. So those will always be a concern, but as a general matter, the closer the mine is to the battery fabricator, the better.
TER: Should investors be concerned about the difference between lithium carbonate and lithium hydroxide or brine and hard rock?
PR: In those two compounds, the chemical plant will ultimately be configured according to the end need from the actual battery utilizer. The producer will supply…
Continue reading this interview: Is There a Bright Spot in Commodities? Ask Paul Renken
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Investors rely on The Energy Report to share investment ideas for the oil & gas, renewable and alternative energy industries. This valuable insight is integrated with in-depth company information, summaries from the latest research and news that will help you make smart investment decisions.
Nemaska Lithium Inc. is a sponsor of The Energy Report. Paul Renken had final approval of the content of the interview and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Mr. Renken and not of The Energy Report or its officers. The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.