Lithium X Energy Corp (CVE:LIX)(OTCMKTS:LIXXF) Remains A Top Lithium Play

Lithium X Energy Corp (OTCQB: LIXXF) could not be in a more envious position. In our last review on April 10, 2017, we learned that the company already has, or is in the process of, acquiring some the world’s largest salars with the highest concentrations of lithium. The company will soon be a premier supplier of lithium.On the other side of the supply/demand equation, this past January, Tesla (NASDAQ: TSLA) began mass producing lithium-ion battery cells at its 1.9-million-square-foot Gigafactory in Reno, Nevada. With the cooperation of Panasonic (OTCMKTS: PCRFY) Tesla expects to produce an astonishing 35 gigawatts of battery power a year by 2018. To put this in a global perspective, nearly 40 percent of all lithium supply is used in the production of batteries, including those that power battery electric vehicles. It should come as no surprise that lithium demand is being driven by sales of electric vehicles which, according to Morningstar, are expected to rise from 0.3 million in 2015 to 11 million by 2025.It doesn’t end there. Contemporary Amperex Technology Ltd. (CATL), a Chinese lithium battery manufacturer, is quickly gaining ground and plans to surpass Tesla in terms of battery production by 2020. According to Goldman Sachs, the battery market will climb to $40 billion by 2025. Seems as though Lithium X Energy Corp has both supply and demand covered for the foreseeable future.Before we go any further, a little background for anyone that is not familiar with the company. Lithium X Energy Corp. is a lithium exploration and development company with a goal of becoming a low-cost supplier for the lithium battery industry. Lithium X owns 50%, and has the option to acquire up to 80%, of the Sal de los Angeles lithium brine project in the prolific “Lithium Triangle” in mining friendly Salta province, Argentina, a well-known salar with a large resource and high concentrations of lithium. Lithium X’s Arizaro project consists of 33,846 hectares located in one of the world’s largest salars thought to contain elevated lithium brine values. Lithium X is also exploring a large land package in Nevada’s Clayton Valley , contiguous to the only producing lithium operation in North America – Silver Peak, owned and operated by Albemarle, the world’s largest lithium producer.On April 18, 2017 Lithium X Energy Corp appointed Bassam Moubarak, CPA, CA as Chief Financial Officer. In this role, he will help spearhead the Company's financial reporting and regulatory compliance, as well as corporate development activities. Mr. Moubarak brings extensive operational experience in the mining industry, both domestically and internationally with a focus on South America and particularly Argentina. Commenting on the appointment, Mr. Matysek, a member of the board said:

"Bassam Moubarak brings important strategic, financial and organizational experience at a critical time for Lithium X. Over the next year our operating team is focusing its efforts on de-risking our flagship Sal de Los Angeles project located in, Salta, Argentina. We are all looking forward to working with Bassam and reproducing the shareholder value appreciation obtained with his tenure at Goldrock Mines."

LIXXF stock continues to trade in the range that it has been in since April of 2016 with support at about US$1.08, and resistance at about US$1.80. the stock is currently holding steady at US$1.3740. Fourth quarter financials for 2016 have been reported, but the company’s first dollar of revenue is yet to be reflected in the financials. Current market capitalization stands at US$97.77 million, on 71.16 million shares outstanding as of March 8, 2017.Lithium X Energy Corp finds itself in the business “sweet spot” where there suddenly exists an abundant demand for the product that it will soon supply. Much like rubber and pavement companies found themselves in sudden high demand back when Henry Ford developed the assembly line and began producing cars in mass quantities, there was suddenly a high demand for tires and paved roads. We will be updating our subscribers as soon as we know more. For the latest updates on LIX/LIXXF, sign up below!Disclosure: We have no position in LIX/LIXXF and have not been compensated for this article.