Lithium Corporation (OTCMKTS:LTUM) On A Bull Run

Lithium Corporation (OTCMKTS:LTUM) has been on quite a bull run over the past month as shares have quadrupled off their $.03 base. Lithium is right now the one commodity everyone can agree upon that will continue rising in price. This comes as the lithium-ion battery is is the battery of choice for cell phones, laptops, tablets, cameras, and power tools. Consumer electronics will need 4 to 5% more lithium each year for the rest of the decade.Further driving the demand for lithium is the electric car market. Goldman Sachs expects electric vehicles will make up 22% of the auto market by 2025, up from just 3% now. For every 1% increase in electric vehicle market share, Goldman Sachs expects lithium demand to rise by 70,000 tonnes per year. With the current lithium market at just 160,000 tonnes, demand from electric vehicles alone could triple the size of the entire lithium market by 2025, taking it from 160,000 tonnes today to 470,000 tonnes.With investors thinking where they are going to get all of this lithium from, the attention now turns to companies that are on the verge of bringing on new mines to meet this demand. This is where Lithium Corporation comes into play and why the interest in shares of LTUM and its Fish Lake Valley lithium brine property in Esmeralda County, Nevada.Lithium Corporation is an exploration company based in Nevada devoted to the exploration for energy storage related resources throughout North America, looking to capitalize on opportunities within the ever expanding next generation battery markets. The company maintains a strategic alliance with Altura Mining, an ASX listed natural resource development company that is currently developing its 100% owned world-class Pilgangoora lithium pegmatite property in Western Australia.Last month, LTUM completed a definitive agreement with 1032701 B.C. LTD., a private British Columbia company with respect to the Fish Lake Valley property. The deal calls for payment of $300,000, issuance of 400,000 common shares of the publicly traded company anticipated to result from a Going Public Transaction, and work performed on the property by the Optionee in the amount of $1,100,000 over the next three years to earn an 80% interest in the property. 1032701 then has a subsequent Earn-In option to purchase Lithium Corporation's remaining 20% working interest within one year of earning the 80% by paying the Company a further $1,000,000, at that point the Company would retain a 2.5% Net Smelter Royalty, half of which may be purchased by 1032701 for an additional $1,000,000. Should the Purchaser elect not to exercise the Subsequent Earn-In, a joint venture will be established. During the Joint Venture, should either party be diluted below a 10% working interest - their interest in the property will revert to a 7.5% Net Smelter Royalty. The first tranche of cash and shares are to be issued within 60 days of the signing of the formal agreement. LTUM President Brian Gross said:

"We are pleased to have executed the final agreement, and have been informed that Menika Mining Limited (TSX-V:MML) released a press release on March 8, 2016 stating that they have signed an agreement to acquire 1032701, and their interest in the Fish Lake Valley agreement. As per the stipulations in the Lithium Corporation/1032701 LOI and the resulting formal agreement, Menika Mining meets all criteria, and Lithium Corporation looks forward to working with Menika to develop the Fish Lake Valley lithium in brine prospect."

Currently trading with a market cap of just under $10 million, LTUM is an exciting story on the OTC markets. Lithium has big potential and the story of Elon Musk and Tesla is only going to get bigger. Tesla is preparing to open its giant Gigafactory battery plant in Nevada. It will probably require 25,000 tons of lithium hydroxide a year when it reaches capacity. With the demand for lithium destined to increase, owning shares of LTUM looks to be a winner. We will be updating Insider Financial as soon as we know more. For continuing coverage on LTUM, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in LTUM and have not been compensated for this article.