Leading Edge Materials





A piece of outside news added considerable intrigue to the Leading Edge Materials story earlier this month.

The news came courtesy of Peter Carlsson, Tesla’s former VP of Supply Chain. Mr. Carlsson intends to build his own lithium battery “gigafactory” in Sweden.

As a reminder, lithium batteries are the central component of all electric vehicles and a key demand driver for lithium going forward.

That Carlsson intends to build his factory in Sweden and to make a show of sustainable production methods make this move extremely important to investors in Leading Edge Materials.

Formed by last year’s amalgamation of sister companies Tasman Metals and Flinders Resources, Leading Edge Materials has proceeded to bulk out its graphite and rare earth element holdings in Scandinavia with lithium and cobalt projects.

Obviously, in terms of this story, it is the company’s Bergby lithium project in Sweden that is of the most direct relevance.

With Carlsson intent on keeping his gigafactory’s supply chain tight, having a potential source of lithium in close proximity should put Leading Edge near the head of the negotiating table when Carlsson’s company seeks out lithium suppliers.

The establishment of a Eurocentric approach to specialty metals production was a defining strategic theme for both Tasman and Flinders, and it continues to be a key theme under the Leading Edge Materials moniker.

The 1,903-hectare Bergby project lies 25 kilometers north of the Swedish town of Gavle and is close to all needed infrastructure, including a deep-water port. Earlier this month, the company kicked off a maiden drilling program on the project consisting of 25 diamond drill holes.

Surface exploration at Bergby has yielded 15 samples from three outcrop areas grading between 0.01% and 4.65% lithium oxide (Li2O) and averaging 1.71% Li2O. The combined area of the three site samples covers 350 meters by 750 meters.

Management is hopeful that drilling will uncover significant quantities of mineable grade lithium. Time will tell, but based on the Carlsson news, it’s clear that the company will have an interested buyer if this program leads to the discovery of a new lithium deposit.

With Europe a key market for electric vehicles, any whiff of success from this program could light a fire under Leading Edge’s share price. Add in the additional investor interest in Scandinavian lithium sources that the gigafactory story provides, and you have the makings of a smart play on the next wave in clean energy.

Leading Edge Materials remains a buy at current levels.


Leading Edge Materials Corp.

Recent Share Price: .................C$0.72

Shares Outstanding: ........84.2 million

Market Cap:................C$60.6 million

Shares Outstanding Fully Diluted:...................96.5 million

Market Cap Fully Diluted:..............C$69.5 million


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