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Lithium, the Gasoline of the Future: Barrel Energy (OTMKTS: BRLL) in Tesla’s Backyard

Lithium, the Gasoline of the Future: Barrel Energy (OTMKTS: BRLL) in Tesla’s Backyard
Written by
Michael Sheikh
Published on
February 16, 2021
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When President Biden signed orders to block the Keystone XL pipeline and re-enter the Paris Agreement, it was clear that the future of the U.S. was quickly headed in the green energy direction and fossil fuels like gasoline will one day be an energy source of the past. This was a huge boost for the overall electronic automotive industry, or (EV) as they call it, which has grown by leaps and bounds.Sector giant Tesla (NASDAQ: TSLA), run by billionaire Elon Musk, has been a fan favorite amongst the investment community who have prospered significantly from trading the company’s stock over the last few years. In June of 2019, Tesla (post-split-adjusted) was around $40/share, now 19 months later, the stock has recently touched $840/share -- a whopping 1200% return.The success of Tesla has opened the floodgates for entrepreneurs from Nikola Motors Corp (NASDAQ: NKLA), Fisker (NYSE: FSR) around the globe to dive into the electric vehicle space. As they say, a rising tide lifts all boats. The rise of Tesla has created opportunities sector-wide. It didn’t stop at cars, as next came trucks, then commercial trucks. These vehicles need to charge, so soon followed charging stations and battery makers. NIO Inc. (NYSE: NIO), Blink (NASDAQ: BLNK), and Workhorse (NASDAQ: WKHS).

Lithium Mining: Brine

Tesla has secured rights to 10,000 acres in Nevada where it aims to produce lithium from clay deposits. This move would make Tesla the first company in the world to commercially produce the white metal from clay. Lithium is produced either from brine, commonly found in South America, or spodumene hard rock, usually in Australia. In Nevada, Tesla and other companies plan to mix clay with table salt and then add water, which it says causes a reaction where the salt would leach out with lithium, which can then be extracted. The leftover clay would be put back into the earth to mitigate environmental damage. Lithium Americas, another company in the area, has said it is confident it can successfully extract lithium from clay through a process that involves acid leaching. Tesla said its process won’t involve any acid. How will BRLL/ATAO/ABML do it? How many acres do they have and tons? Unofficial numbers we saw on the message forums were ABML 35 mil BRLL 150 mil. If correct, BRLL may be sitting on billions of dollars worth of the gasoline of the future.

The Demand for Lithium

There’s only one thing standing between Tesla and world domination—the global supply of lithium. And that’s good news for lithium producers. When Tesla (ticker: TSLA) held its battery day on Sept. 22, CEO Elon Musk laid out plans to build massive amounts of Tesla-owned battery capacity—enough to make about 30 million electric vehicles by the end of the decade, up from roughly 500,000 in 2020.Right now, the world mines roughly 400,000 tons of lithium a year, enough to power 2 million to 3 million electric vehicles, though only a third of that goes to EVs right now. That number will have to increase perhaps as much as tenfold to meet Musk’s goal, and that doesn’t take into account other automakers.Mining lithium isn’t easy—or easy to grasp. The supply chain is complicated. Lithium producers, for the most part, don’t ship pure metal. Instead, they sell products such as lithium carbonate and lithium hydroxide to battery and battery-cathode makers like LG Chem (051910.Korea).With just Tesla alone, who are practically in BRLL’s backyard, moving their lithium should be easy and the real question will be how much and how fast can they produce? Remember, Mr. Musk has a plan to reach that 30 million car goal, but he is not alone, there are many other new car companies and two-thirds of the market is non-car related such as phones and other devices. Barrel Energy is well located and positioned to become a player in this sector which in our opinion is still in the 2nd inning of a 9 inning ball game.

Management - Tickers and their Relationship

Currently, Craig Alford is the CEO of Barrel Energy (BRLL) and is assisting Altair International Corp. (ATAO) to develop their prized lithium/rare earth and gold assets in Nevada. Mr. Alford was also the founder of American Battery Metals Corp. (ABML). Mr. Alford is also co-founder of Lithium Now along with BRLL Chairman Harp Sangha.Craig Alford has a top-notch resume. Mr. Alford holds both a Bachelor of Science (Hons) and a Master of Science in Geology. He is a registered Professional Geoscientist (P.Geo) in Ontario and is a Qualified Person, as defined in National Instrument 43-101. During his 35 years of experience worldwide, Mr. Alford has designed, managed, and provided technical direction for projects throughout North and South America, China, Central Asia, Russia, Australia, and Africa. Mr. Alford's experience has included senior positions for a number of large mining companies including, Zijin Mining Group, China Railway, and Teck Mining Ltd. During Mr. Alford's tenure with the Zijin Mining Group he was part of the team that was responsible for an approximate $80 million investment in Pretium Resources Inc. Pretium now has production targeted for its Northern BC, Canada site in 2017. The other major investments Mr. Alford was involved with at Zijin was the $298 million investment into Barrick Gold Porgera mine and the $412 million investment into Ivanhoe Mines Ltds' Kamoa Copper Project. The Kamoa project is expected to be one of the biggest copper mines in the world. Lastly, Mr. Alford has negotiated with several Heads of State, as well as assisting the World Bank and the China-Africa Development Fund in tax policy, planning and investment risk.Today, BRLL added Stuart Hensman to their Board of Directors. Mr. Hensman possesses both a Bachelor of Arts and Master of Science degree and has held a number of executive leadership roles setting investment strategy and corporate policies worldwide. He has occupied the position of Chairman & Chief Executive Officer for Scotia Capital Inc. (USA), as Managing Director (Equities) for Scotia Capital Inc (United Kingdom), Chairman of the Board of Governors at CI Funds, Chairman of Board of Creststreet Asset Management and Chairman of the Board of Creststreet Power and Income Fund. His impressive resume will surely open doors within the banking industry.

Share Structure

Comparing BRLL and AMBL share structure: First, ABML has rocketed from .20 to almost 5.00 in two months but has settled around the $3.80’s. Imagine where BRLL is going as it has climbed to a high of .85 and has consolidated and pulled back to .60’s -- Market Cap: ABML 2,014,335,176 to BRLL’s 169,145,391 Authorized shares: ABML 1,200,000,000 to BRLL’s 450,000,000 Outstanding Shares: ABML 524,566,452 to BRLL’s 291,629,984 Float: ABML 315,650,285 to BRLL’s 13,918,618The companies- ATAO, ABML, BRLL, and Lithium Now

Senator Nancy Pelosi’s Son, Paul Jr., on the Board of ATAO

House Speaker Nancy Pelosi, her husband, and her son are no strangers to the electronic vehicle movement and her son Paul Jr. just so happens to be affiliated with St Georges Eco Mng Corp (OTC: SXOOF). Nancy Pelosi's wealthy husband Paul bought up to $1 million in Tesla stock in December, disclosure forms show. Mr. Pelosi purchased 25 call options of the highly valued electric vehicle company Tesla weeks before President Joe Biden announced plans to replace the entire federal automobile fleet with electric vehicles, the document shows. Biden, who rolled out the plan last week, has not explicitly stated whether all the cars in the federal fleet would be Teslas.Mr. Pelosi does run a venture capital investment and consulting firm based in San Francisco and of course, there was no indication Pelosi or her husband had foreknowledge of the president's plan. Paul Pelosi is legally allowed to make such buys because spouses of lawmakers can own shares of companies in industries where their husbands or wives may help regulate, but there's a catch. Under the STOCK Act, neither lawmakers nor their significant others can act on nonpublic information. The STOCK Act was signed into law in 2012 and is designed to combat insider trading. Biden has made pursuing ambitious solutions to climate a major priority of his young administration. Part of his plan is to give American consumers incentives to buy electric vehicles, which use electricity instead of gas. Tesla depends on zero-emissions credits to other carmakers to make a profit.Now Paul Jr...more dot-connecting SXOOF, ATAO, Paul Pelosi, and Craig Alford CEO of BRLL....from a generous Reddit poster who wrote this post in his support for SXOOF.....but as we all have been learning, our own CEO Alford pops up in his DD, and it's extraordinary: Paul Pelosi didn’t just walk in and collect a fat director’s check. He immediately participated in a private placement with $200,000 of his own money. Trust me, this isn’t common practice.Pelosi Jr. also happens to be an advisor to the American Battery Metals Corporation (ABML in the U.S.). ABML is also working on its own battery recycling process. It has approximately a $1.35 billion market cap and has seen its stock run from 24 cents (USD) in December to over $4.00 in late January. It has been given a 4.5 million dollar grant from the US Department of Energy's Advanced Manufacturing Office. Now I wonder if any of their advisors may have been instrumental in getting them that much-needed exposure?

Strategic Location in Nevada

According to January 28th press release from Barrel Energy, the ---- is conveniently located just 18.5 miles away from the Tesla gigafactory. This weekend, Tesla is opening up shop in Southern India...coincidence? Maybe. Tesla also has a gigafactory in Texas, and we are trying to find an association or something connected to Barrel in the Lone Star state.

Significance of India Partnership

Barrel Energy announced it has signed a Memorandum of Understanding to enter a partnership with Roshan Energy Technologies Pvt. Ltd (“Roshan”), located in Hyderabad, India, for Lithium Battery development and production in India and North America. As part of the venture, Barrel will become a majority stakeholder in Roshan allowing Barrel Energy the platform for expansion into the massive India market and into international markets. Roshan and Barrel plan on establishing a U.S.-based manufacturing unit for key battery designs within Roshan’s line of Lithium products. Interestingly enough, Tesla announced over the weekend that it is opening a car manufacturing plant in southern India, about 200 miles away from Roshan Energy Tech. Is there a relationship we don’t know about yet? We may soon find out, but even if there isn’t one, BRLL is on the right track and thinking just like Elon Musk is --There is value in India!A joint R&D division will be developed in conjunction with Barrels’ Nevada Tech Center as part of the partnership. Roshan’s Ashok Shukla, a professor emeritus with 40 years' research experience of specialized batteries and over 350 published technical papers will lead the team with the aim of designing customized solutions for battery development, improvement, and recycling. As part of this transformative deal, Roshan and Barrel will first establish a Lithium Battery Manufacturing facility in India. Plans for the facility with a three-phase rollout of powerful products have been in development by Roshan’s CEO and engineering team leader, Mr. S.A. Gaffoor. Mr. Gaffoor, a veteran electrical engineer and entrepreneur, has over 25 years in designing and developing industrial battery products and holds 10 patents for advanced battery technologies.India is a nation at the forefront of innovation and technology and represents one of the largest markets for Electric Vehicles (EVs) worldwide with plans to become an all EV nation by 2030. Roshan has already developed strong partnerships in China with deals with Guangzhou Great Power Energy & Technology Co (http://www.greatpower.net) and Suzhou Chilwee New Energy Power Technology Co. (http://www.sz-cpet.com/en/) and has an impressive line of Lithium Battery products for EVs, Medical Equipment, Solar street lighting, the telecom industry as well as medium and large energy storage.India has been keen to reduce its oil dependence and cut down on pollution, but its efforts to promote electric vehicles have been stymied by a lack of investment in manufacturing and infrastructure such as charging stations. To boost investment, India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities, Reuters reported last year.

Possible Silver?

Well, Nevada is known as the Silver State, and being that Barrel Energy has many acres of mining real estate, the odds of silver being in the ground on their property are quite high. This is an added bonus that many may have overlooked. Recent awareness on Silver, due to WallstreetBets and Reddit Army’s short squeeze attempt on a precious metal brought emphasis to silver’s value and national if not global attention.Many think ABML’s run is a foreshadow of BRLL’s potential? The Share structure for BRLL is better as we stated earlier in our article, so it is a definite possibility. The mere skepticism that Tesla could potentially be a partner or client or the fact they are even in the same neighborhood is huge due to the fact that this once sub-penny stock is swimming in the same pond as a trillion-dollar company owned by the one and only Elon Musk.

Investment Summary

Lithium is the energy source of the future. We will need to recycle it, due to the lack of it. As we focus on greener energy options with less carbon emission, Lithium will be in demand for a very long time or until science has a disruptive technology that will replace our need for Lithium. Realistically, even if we find ways to have things run on “water”, water is too much of a commodity to waste as a fuel source, especially when so many parts of the world have a drought or suffer from polluted drinking water. Again, Lithium is the gasoline of the future.Many think Barrel can be valued as a billion-dollar company, as long as the share structure stays as it is now, that would put BRLL at $3.43 per share. The addition of Stuart Hensman to the Board of Directors just solidifies the ability to raise the proper capital for the company as his bio is quite impressive as he is CEO and Chairman of Scotia Capital, an arm of ScotiaBank, one of the largest international banks in Canada and all of North America.Some investors have hesitated from going all-in on the company as it bears a “stop sign” on otcmarkets.com, but the company has tweeted multiple times on social media that they are in the process of doing a full audit and financials will be done within 45 days or so. Being current and up to date will only add to investor confidence. For those that see a QB uplisting in the future, that is a possibility but at this point, why stop at QB, let’s go NASDAQ! Time will tell.Last, the relationship with India brings BRLL global and not just a US player. This could open other relationships around the world and further solidify why BRLL could or should be a billion-dollar-plus company. The future is bright and BRLL is in the right place. The electronic vehicle industry in the overall scope of things is still in its infancy and with Harp Sangha and Craig Alford behind the wheel, shareholders are hoping to drive into the sunset a little richer.


Disclosure: Insider Financial and its owners do not have a position in the stocks posted and have posted this article for free without editorial input. This article was written by a guest contributor and solely reflects his opinions.

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