A new lithium war is about to begin

Lithium prices have risen stupendously in the last three years—from $6,500 per ton in 2015 to more than $20,000 in 2018.

China, which produces most of the world's lithium batteries, has moved aggressively to secure steady supply. Chinese companies now own major shares in many South American lithium mines, where the bulk of the world's lithium is produced, in order to feed Chinese battery factories.

China anticipates demand for lithium batteries to soar in coming years—mostly because they believe demand for electric vehicles (EVs) will exceed demand for gas-powered cars by 2030.

But the Chinese may be in for a surprise, as new mining companies secure deposits of lithium outside of South America.

Going Around the Chinese Wall

The Chinese may be investing heavily in South American lithium production in order to corner the market, but European and North American firms are side-stepping the Chinese autarchy to secure supplies of their own.

Europe uses 25 percent of the world's lithium, while European auto-makers are anticipating a surge in EV production as the continent shifts away from gasoline-powered cars.

European investors are searching out lithium deposits in Germany and the Czech Republic. Meanwhile, drillers are mapping out underground lithium deposits in the UK, Portugal and Sweden.

In North America, miners are exploring for untapped lithium deposits that could rival the big finds in South America. Canadian miner Quantum Minerals Corp. (TSX-V: QMC) has expanded its Lithium Mine Project in Manitoba by 100 percent.

Another Canadian outfit, Nemaska Lithium Inc. (TSX: NMX) is hoping to exceed its current rate of production (16,000 tons) by 20 percent this year. The probable reserve of its property in Quebec is estimated at 24 million tons, which means it should have no problem reaching its production goals.

Nemaska has been a big winner on the lithium market: it rode its discoveries at their Whabouchi property in Canada to a $1.9 billion valuation.

Power Metals Corp, a hard-rock lithium driller is sitting on a deposit that could be worth billions. Rather than mine lithium through evaporation, which is very time-consuming, Power Metals uses drilling to tap into deposits of lithium spodumene trapped within the rock.