IONQ's most recent contract with Government's national defense and intelligence agencies, indicates a strong vote for Ion Trap Quantum Technology!

 

IONQ's New Contract with ARLIS

Date: August 6, 2024

Headline: IONQ to Design a First-of-its-Kind, Multi-Node, Blind Quantum Computing System for ARLIS

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Overview

IONQ, a leading quantum computing company, has announced a groundbreaking new contract with the Army Research Laboratory Intelligent Systems (ARLIS) to design and build a pioneering multi-node, blind quantum computing system. This collaboration marks a significant milestone in IONQ's ongoing work with the U.S. Federal Government and reinforces its position as a key player in advancing quantum computing technology for national defense and intelligence applications.

Key Details

1. Multi-Node System:

   • Innovation: IONQ's system will be the first of its kind to integrate multiple quantum nodes, allowing for enhanced scalability, robustness, and efficiency in quantum computations. This design aims to facilitate more complex problem-solving capabilities than existing single-node systems.
   • Scalability: By connecting multiple quantum processors, the system can handle larger datasets and more complex algorithms, making it ideal for solving sophisticated problems in fields such as cryptography, optimization, and machine learning.

2. Blind Quantum Computing:

   • Security: The concept of blind quantum computing ensures that data processed by the quantum computer remains hidden from the computer itself. This feature is particularly crucial for military and governmental applications where data privacy and security are paramount.
   • Privacy: With blind quantum computing, users can send encrypted data to the quantum computer, perform computations, and receive results without the system having access to the underlying information.

3. ARLIS Collaboration:

   • Objective: ARLIS focuses on developing intelligent systems for the U.S. Army, and this collaboration with IONQ aims to leverage quantum computing to enhance decision-making processes and operational capabilities.
   • Research and Development: The project will involve cutting-edge research and development to integrate quantum technologies with existing military systems, potentially leading to breakthroughs in autonomous systems, cybersecurity, and complex data analysis.

4. Extension of Federal Government Work:

   • Previous Collaborations: IONQ has an established history of working with the U.S. Federal Government, including collaborations with agencies like NASA and the Department of Energy. This new contract with ARLIS further solidifies its role as a trusted partner in quantum technology development.
   • Technical Advancements: The project aligns with national priorities to maintain technological superiority, focusing on developing quantum systems that can offer strategic advantages in defense and intelligence operations.

Implications and Future Prospects

• National Security: The successful implementation of this multi-node, blind quantum computing system could significantly enhance the U.S. military's capabilities, providing a secure and powerful tool for tackling complex problems in real-time.
• Technological Leadership: IONQ's work with ARLIS is poised to position the company at the forefront of quantum computing innovation, potentially leading to further contracts and collaborations with governmental and private sectors.
• Commercial Applications: While the immediate focus is on military applications, the advancements made through this project could eventually translate to commercial sectors, offering solutions in areas like finance, healthcare, and logistics.

This new contract indicates a strong vote of confidence by the U.S. Government in the "trapped ion" quantum computing technology used by IONQ. 

Here are several reasons why this partnership highlights the government's support for trapped ion technology:

1. Validation of Trapped Ion Technology

• Proven Reliability: 

• The decision to award IONQ this contract suggests that the U.S. Government views trapped ion technology as a reliable and effective approach to quantum computing. Trapped ion systems are known for their long coherence times and high-fidelity operations, which are crucial for complex quantum computations.

• Technical Superiority: 

• IONQ's technology is often praised for its accuracy and ability to execute quantum gates with low error rates. This contract indicates that these technical advantages align well with the government's requirements for secure and robust quantum systems.

2. Strategic Investment in Quantum Innovation

• Focus on Advanced Research: 

• By partnering with IONQ, the U.S. Government is investing in advanced quantum research that leverages trapped ion technology. This reflects a strategic decision to support cutting-edge innovations that have the potential to deliver superior performance and capabilities.

• Commitment to Technological Leadership: 

• The contract with IONQ signals the government's commitment to maintaining a leadership position in quantum computing technology. Supporting trapped ion systems is part of a broader strategy to explore various quantum computing paradigms and ensure the U.S. remains at the forefront of technological advancements.

3. Alignment with Government Goals

• National Security and Defense: 

• The government's collaboration with IONQ highlights the strategic importance of quantum computing for national security and defense. Trapped ion technology's potential to improve data security and processing power makes it a valuable asset for defense-related applications.

• Support for Quantum Ecosystem: 

• By choosing IONQ, the government is contributing to the growth of the quantum computing ecosystem. This support not only benefits IONQ but also encourages further development and innovation within the industry.

4. Implications for the Quantum Industry

• Increased Credibility: 

• IONQ's partnership with ARLIS enhances the credibility of trapped ion technology in the broader quantum computing landscape. This endorsement may attract additional interest and investment from other government agencies and private sector entities.

• Competitive Advantage: 

• The contract gives IONQ a competitive edge in the quantum market, potentially leading to more opportunities for collaboration and development of new applications across various sectors.

Conclusion

The contract between IONQ and the U.S. Government's ARLIS is a significant endorsement of trapped ion technology. It underscores the government's confidence in IONQ's approach and highlights the strategic importance of developing robust, secure, and advanced quantum computing systems for national defense and security. As a result, this partnership not only reinforces IONQ's position in the quantum industry but also signals the government's commitment to advancing quantum technology as a critical component of future technological infrastructure.

Related Articles:

What exactly is, "Blind" Quantum Computing, what are it's benefits, who will use the technology and who is leading the charge?

Reasons why IONQ is leading the quantum computing race, the burgeoning QCAAS market and the Quantum Ai race!

Comparing quantum computing leaders, IBM and IONQ

In Quantum Computing as in other new technologies, early partnerships usually benefit first movers, and Dwave Quantum just signed another partner!

 

While D-Wave Quantum recently expanded its partnership with Zapata AI to integrate quantum computing and generative AI solutions, aiming to accelerate the development of these technologies, additionally, D-Wave is deploying its second US-based Advantage™ quantum computer at Davidson Technologies' new global headquarters in Huntsville, Alabama. 

This system will support sensitive applications in national security and provide broader access to quantum computing for government agencies and other customers via the Leap™ quantum cloud service​ (D-Wave Systems)​.

1. Partnerships and Deployments: Recent partnerships and deployments, such as the Advantage quantum computer at Davidson Technologies, demonstrate growth and application in critical sectors like national security.
2. Market Position: D-Wave is a pioneer in quantum computing, offering both annealing and gate-model quantum computers.

Cons:

1. Financial Health: Quantum computing is a nascent industry, and companies often face significant R&D costs and operational challenges.
2. Market Volatility: Stocks in emerging tech sectors can be highly volatile.

How D-Wave Benefits:

1. Enhanced Market Presence: The deployment of a second U.S.-based Advantage system strengthens D-Wave's market presence in the United States, especially within the defense sector.

2. Revenue and Customer Base Growth: By offering quantum computing capabilities to Davidson Technologies' government and commercial customers, D-Wave can expand its customer base and revenue streams.

3. National Security Applications: The collaboration emphasizes D-Wave's commitment to national security, potentially opening doors for further governmental contracts and applications.

4. Technology Validation: Being chosen to provide technology for sensitive applications helps validate the robustness and reliability of D-Wave’s quantum systems, boosting its reputation.

5. Innovation and Development: The partnership promotes innovation and development in quantum computing applications, which can lead to new technological advancements and solutions.

The partnership between D-Wave and Davidson Technologies involves deploying a second U.S.-based Advantage™ quantum computer at Davidson's new headquarters in Huntsville, Alabama. This system will be accessible to D-Wave customers via the Leap™ quantum cloud service initially and later may be dedicated to sensitive applications. 

This collaboration aims to advance quantum computing adoption, particularly in national security, providing Davidson's government customers with direct access to quantum technology, enhancing their ability to address critical defense challenges​ (D-Wave Systems)​.

Summary

The partnership with Davidson Technologies enables D-Wave to expand its quantum computing applications in national security, grow its customer base, and strengthen its market presence in the U.S. This collaboration underscores the company's role in addressing critical defense challenges through advanced technology solutions.

In contrast, the partnership with Zapata AI centers around integrating D-Wave's quantum computing technology with Zapata's quantum software platform, Orquestra®, to enhance generative AI and quantum machine learning solutions. This collaboration is more about software and algorithm development, targeting broader commercial applications rather than specific government or defense uses.

Reasons why IONQ is leading the quantum computing race, the burgeoning QCAAS market and the Quantum Ai race!

Summary of Key Differences:

• Davidson Technologies Partnership:

  • Focus: Deployment of hardware (Advantage™ quantum computer)
  • Sector: National security and defense
  • Objective: Provide secure, sensitive computing capabilities

• Zapata AI Partnership:

  • Focus: Integration of quantum computing with AI software (Orquestra® platform)
  • Sector: Commercial applications
  • Objective: Enhance generative AI and quantum machine learning solutions

We asked noted Ai, ChatGPT, what the consequences of Trumps Project 2025, would have on America. This article is written by ChatGPT!

 

Project 2025, also known as the Presidential Transition Project, is an initiative led by the Heritage Foundation and supported by over 100 conservative organizations. Its primary goal is to prepare for a potential conservative administration starting in January 2025. The project focuses on developing a comprehensive policy agenda, training personnel, and creating a detailed 180-day playbook for implementing conservative policies across the federal government.

Key objectives of Project 2025 include:

1. Restructuring the Federal Government: This involves reclassifying many federal civil service positions to political appointees, thereby allowing a new administration to replace current employees with individuals aligned with conservative values. The project aims to reduce the size of the administrative state and increase executive power.

2. Policy Changes: Project 2025 proposes significant changes across various sectors. This includes cutting environmental and climate change regulations, dismantling the Department of Education, reducing funding for social programs, and eliminating certain civil rights protections. The project also seeks to implement tax cuts, enhance fossil fuel production, and reduce government intervention in the economy.

3. Social Policies: The initiative emphasizes restoring traditional family values, limiting reproductive rights, and promoting Christian principles in government. It aims to restrict access to abortion and emergency contraception, criminalize pornography, and reduce support for LGBTQ+ rights.

Critics argue that Project 2025 represents an authoritarian and Christian nationalist vision that could undermine democratic institutions, civil liberties, and the separation of powers. They express concerns that the project could lead to increased discrimination, reduced social safety nets, and environmental degradation.

 it could have significant effects on markets and investments across various sectors. Here are some key potential impacts:

1. Energy Sector

• Positive Impact on Fossil Fuels: The project's emphasis on reducing environmental regulations and promoting fossil fuel production could benefit oil, gas, and coal industries. This could lead to increased investment in these sectors due to expected higher profitability and fewer regulatory hurdles.
• Negative Impact on Renewables: Conversely, the reduction in climate change regulations and support for renewable energy sources could negatively impact investments in solar, wind, and other clean energy technologies.

2. Healthcare Sector

• Pharmaceuticals: By stopping efforts to lower prescription drug prices, pharmaceutical companies might see higher revenues, potentially attracting more investments.
• Reproductive Health: Restrictions on reproductive health services, including abortion and emergency contraception, could affect companies in these markets, potentially leading to reduced investment in women's health services.

3. Technology and Communications

• Deregulation: The plan to take partisan control of agencies like the Federal Communications Commission (FCC) might lead to deregulation efforts that could benefit large tech and telecom companies by reducing compliance costs and fostering a more business-friendly environment.

4. Financial Markets

• Tax Cuts: Proposed tax cuts could boost corporate profits, leading to increased stock prices and greater investment in the stock market. However, this could also increase the federal deficit, which might impact long-term economic stability.
• Regulatory Changes: Dismantling parts of the administrative state and reducing financial regulations could create a more favorable environment for businesses, potentially boosting market confidence and investments.

5. Education Sector

• Reduced Funding: The proposal to abolish the Department of Education and cut funding for programs like Head Start could negatively affect companies that rely on federal education funding, such as educational technology firms and service providers.
• Private Education: There could be an increased focus on private education and school choice, potentially benefiting companies and investors involved in private education and related services.

6. Social Safety Nets

• Cutting Social Programs: Reducing or eliminating social safety net programs could lead to decreased consumer spending power, especially among low-income populations. This might negatively impact sectors that rely heavily on consumer spending, such as retail and consumer goods.

7. Environmental and Social Governance (ESG) Investments

• ESG Challenges: The project’s stance on climate change and civil rights could deter ESG-focused investors, leading to potential divestments from companies that align closely with Project 2025's policies.

8. Overall Economic Impact

• Short-Term Gains vs. Long-Term Risks: While certain deregulation and tax cut measures could boost market performance and investments in the short term, long-term risks include increased federal deficits, potential social unrest due to reduced social services, and environmental degradation, which could affect long-term economic stability and investor confidence.

Sources

• Project 2025 Overview
• Democracy Docket Analysis
• Democracy Forward Guide
• 
  
• Here are five probable negative consequences of the initiative:

  1. Erosion of Democratic Norms: Project 2025 includes plans that could undermine democratic institutions and norms. This involves targeting political opponents, controlling the Justice Department, and potentially using the military against demonstrations. Such actions pose a serious threat to the independence of government institutions and the rule of law​ (Democracy Docket)​​ (NECC Observer)​.

  2. Reduction in Workers' Rights and Protections: The project aims to roll back various labor protections, including overtime pay and minimum wage standards. It seeks to allow more workers to be classified as independent contractors, which would reduce their benefits and protections. Additionally, young workers might be allowed to work in more dangerous jobs, increasing risks and potentially reducing safety standards​ (Truthout)​​ (Democracy Forward)​.

  3. Rollback of Civil Rights Protections: Project 2025 could lead to significant rollbacks in civil rights protections, particularly for LGBTQ+ individuals. This includes rescinding non-discrimination regulations based on sexual orientation and gender identity, which would negatively impact the rights and freedoms of these communities​ (NECC Observer)​.

  4. Cuts to Social Services and Education Programs: The plan includes efforts to cut or eliminate critical social programs such as the Head Start early education program and food assistance initiatives. These cuts would adversely affect millions of low-income families and children who rely on these services​ (Democracy Forward)​.

  5. Negative Impact on Climate Policy: Project 2025 advocates for dismantling climate initiatives and removing regulations that support clean energy transitions. This includes efforts to halt climate-related programs and funding, which would impede progress on addressing climate change and could lead to increased environmental degradation​ (Covering Climate Now)​.

  These potential impacts highlight the significant and far-reaching consequences of Project 2025, raising concerns about the future direction of U.S. policies and their effects on various communities and democratic principles.

Project 2025 could fundamentally alter the fabric of American society, potentially increasing inequality, reducing rights and protections for vulnerable populations, and destabilizing democratic governance.

Fluence Energy has established itself as a leader in energy storage through several strategic advantages and significant achievements in scale!

 

 Here are the key factors contributing to the leadership position of $FLNC:

1. Scale and Reach: Fluence has deployed and contracted over 20 GWh of battery-based energy storage systems globally, operating in 47 markets. This extensive presence and experience enable Fluence to leverage global best practices and economies of scale, making it a formidable player in the energy storage industry.

2. Technological Innovation: The company continuously develops advanced energy storage products, such as the Gridstack Pro and Ultrastack, tailored for utility-scale projects and grid applications. These innovations are designed to meet the increasing demands of modern power grids, particularly in managing renewable energy integration and grid stability.

3. Strategic Partnerships: Fluence has forged strong partnerships with key industry players. For instance, their collaboration with TransnetBW in Germany on the 250 MW Grid Booster project showcases their ability to deliver large-scale, innovative solutions that enhance grid efficiency and support renewable energy integration.

4. Comprehensive Service Offerings: Fluence provides an ecosystem of solutions, including modular and scalable energy storage products, comprehensive service offerings, and AI-enabled software for managing and optimizing renewable energy and storage. This holistic approach ensures customers can rely on Fluence for end-to-end energy storage solutions.

5. Safety and Reliability: Fluence emphasizes safety and reliability, which are critical for gaining and maintaining customer trust. Their systems have accumulated nearly 3 million operating hours, underscoring their durability and performance.

Looking forward, Fluence plans to maintain its leadership by continuing to innovate, expanding its market reach, and enhancing its technological capabilities. The company is also focused on addressing emerging challenges such as grid congestion and renewable energy integration by deploying sophisticated energy storage solutions that provide flexibility and resilience to power networks.

By leveraging these strengths and maintaining its commitment to innovation and customer satisfaction, Fluence is well-positioned to sustain its leadership in the rapidly evolving energy storage market.

Over the past three years, Fluence Energy has demonstrated substantial growth, solidifying its position as a leader in the energy storage sector. Here are some key highlights of their growth trajectory:

1. Revenue Growth: Fluence has experienced significant increases in revenue. For instance, in fiscal year 2023, the company reported record quarterly order intakes, which resulted in the highest-ever backlog and led to an increase in their revenue guidance for the year​ (Simply Wall St)​​ (Stock Analysis)​.

2. Global Expansion: Fluence has expanded its market presence to 47 countries, deploying and contracting over 20 GWh of battery-based energy storage systems globally. This expansion includes major projects in Germany, Finland, and Australia, showcasing their capability to handle large-scale and complex energy storage systems​ (Fluence)​​ (Stock Analysis)​.

3. Technological and Product Innovation: The company has continuously introduced advanced energy storage products, such as the Gridstack Pro and Ultrastack, which cater to utility-scale projects and address the growing needs for grid stability and renewable energy integration. These innovations help Fluence stay ahead in a competitive market by offering cutting-edge solutions​ (Fluence)​​ (Simply Wall St)​.

4. Strategic Partnerships and Projects: Fluence has partnered with leading energy companies worldwide to deliver significant projects. Notable examples include the 500 MW/1000 MWh energy storage system for AGL Energy in Australia and the Grid Booster project in Germany, which are among the largest and most complex energy storage systems globally​ (Fluence)​​ (Simply Wall St)​.

5. Industry Recognition: In 2024, Fluence was named one of Forbes' Most Successful Mid-Cap Companies, reflecting its robust performance and market leadership. This recognition is based on positive sales growth, financial health, and strategic market positioning​ (Fluence)​.

Overall, Fluence Energy's growth over the past three years has been marked by increased revenue, global market expansion, technological innovation, strategic partnerships, and industry recognition. These factors collectively contribute to its leading position in the energy storage market and set a strong foundation for continued growth in the future.

Discl: We own shares in $FLNC

Enovix ($ENVX on Nasdaq) has developed a unique new Li battery that will enhance safety, longevity and higher energy levels

Energy Storage and EV charging are burgeoning markets today, and this company is a first mover and market leader! Here's why/

 ChargePoint has established itself as a leader in the energy storage and EV charging markets for several reasons:

1. Network Size: 

   ChargePoint operates 114,000 charging points across the U.S. and Europe, making it the largest EV charging system provider globally.

2. Growing faster

   than any competitor!

3. Integrated Solutions:

   ChargePoint collaborates with Stem, an AI-driven clean energy solutions provider, to develop an integrated EV charging and battery storage solution. 

   This approach allows fast charging deployment even before utility upgrades are complete, avoiding demand charges. 
4. Battery storage also enhances grid resilience during outages.

5. Partnerships: ChargePoint has formed strategic partnerships with companies like Volvo, Starbucks, and Mercedes to expand fast charging infrastructure and support long-distance electric travel2.

6. European Market Leadership: In a report by Frost Sullivan, ChargePoint was recognized as the European electric vehicle charging market leader based on product quality, implementation excellence, and growth strategy3.

Overall, 

ChargePoint’s commitment to mass EV adoption, extensive network, and innovative solutions contribute to its leadership position in the industry

ASIA

ChargePoint, a leading provider of networked charging solutions for electric vehicles (EVs), has been expanding its presence in Asia. While the company has primarily focused on the Americas and Europe, it has also reported triple-digit growth in Asian markets. 

Additionally, ChargePoint’s software enables access to over 900,000 global charging locations, making it a significant player in the EV charging space worldwide

Growth

ChargePoint is currently in a growth phase. ChargePoint has been experiencing significant growth in its global footprint. While specific growth rates may vary, the company’s expansion efforts have been substantial.

Also, the pullback in the EV charging portion of Tesla's business, may have a significant positive impact on it's competitors and ChargePoint is the main competitor.

New Partnerships:

ChargePoint (NYSE: $CHPT), The leading provider of networked charging solutions for electric vehicles ( $EVs), and Airbnb Inc. (NASDAQ: $ABNB) have partnered to meet a growing demand in EV charging from Airbnb guests.

Stock Price

CHPT's stock price is at or near it's all time low and therefore positive news could send the price much much higher over the next 24 months!

IBC Advanced Alloy Moves to Broaden US Institutional Investor Outreach

IBC Advanced Alloys Corp.

TSX VENTURE : IB
OTCQX : IAALF

November 18, 2014 09:00 ET

IBC Advanced Alloys Engages Stonegate Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 18, 2014) - IBC Advanced Alloys Corp. (TSX VENTURE:IB)(OTCQX:IAALF) announces that it has retained the services of Stonegate Inc. to provide investor relations services to the Company with a specific focus on the US small-cap institutional investment community.
Stonegate Inc. is a 40-year-old investor relations, research and investment banking firm based in Dallas, Texas. Its research covers companies in a variety of industries and is distributed to its wide network of institutional investors. Stonegate's primary focus is assisting small cap companies to achieve their capital markets objectives and to both increase and strengthen their institutional shareholder base.
Anthony Dutton, President and CEO of IBC commented, "With increasing interest from the aerospace and precision manufacturing sectors, now is the ideal time to introduce IBC to targeted US institutional investors. We understand their investment criteria, are confident we are meeting those criteria, and we believe Stonegate is a great fit for us because of their expertise in this sector. We look forward to working with them and have targeted early December for our first investor presentations."
In connection with the engagement, Stonegate will receive US$5,000 per month commencing November 17, 2014. The term of the agreement is six months and may be cancelled subsequently, in writing, with standard notice provisions. The agreement is subject to the acceptance of the TSX Venture Exchange.
About IBC Advanced Alloys Corp.
IBC is an integrated manufacturer and distributor of rare metals (beryllium) based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 80 employees and is headquartered in Vancouver, Canada with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri. IBC is creating a dynamic global beryllium and advanced alloys company. IBC's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQX under the symbol "IAALF."
This news release was prepared by management of IBC, which takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with manufacturing activities therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

Contact Information

IBC Advanced Alloys Corp.
Ian Tootill
Director of Corporate Communications
(604) 685-6263 ext. 110
itootill@ibcadvancedalloys.com
www.ibcadvancedalloys.com

The Howard Group Inc.
Dave Burwell / Brad Dryer
Toll Free: 1-888-221-0915 or (403) 221-0915
info@howardgroupinc.com

IBC on You Tube

Western Lithium Arranges US$20 Million Royalty Financing for Oilfield Drilling Additives Facility and Lithium Demonstration Plant

2 hours ago by Marketwire

Western Lithium USA Corporation ("Western Lithium", the "Company") (TSX: WLC)(OTCQX: WLCDF) is pleased to announce that it has entered into a Royalty Purchase Agreement with RK Mine Finance (Master) Fund II L.P. ("Red Kite") pursuant to which Red Kite has agreed to pay to Western Lithium up to US$20 million in consideration for the sale of a royalty on its Kings Valley Project, located in Nevada, USA.

An initial tranche of US$11 million will be funded concurrently with the closing of the royalty arrangement. A second tranche of US$9 million will be funded upon completion of the engineering and design of the lithium demonstration plant and once certain regulatory assurances have been received from the Bureau of Land Management with respect to the sale of by-products associated with lithium production, provided it occurs within three years following the date of the agreement. Closing of the royalty arrangement is expected to occur on or about February 6, 2013.

Western Lithium plans to use the initial funding tranche to construct a 10,000 ton per year process facility to produce Hectorite-based organoclay used in the oil and gas drilling industry. To make organoclay, the Company's Hectorite clay must be processed using an extruder and combined with several additives. Organoclay typically sells in a range of US$2,000 to $4,500 per short ton FOB shipping point, depending on performance. Engineering designs for a plant and negotiations for potential production locations are underway. Permitting of the Hectorite mine has commenced in Nevada and the Company is targeting to commence production and positive cash flow in early 2014 from the clay operation.

The Company has been producing pilot-scale samples of its products, which demonstrate thermal stability for application in high pressure high temperature (HPHT) drilling exploration environments. With the success of new directional drilling technology in recent years applied to shale gas and deep oil and gas drilling targets, the Company anticipates that there is a strong growth market for its thermally stable Hectorite products. 

Western Lithium's Hectorite clay is of high purity, which enables it to use a dry process to manufacture its products, that is expected to give the Company a cost advantage in the industry. A portion of the proceeds from the initial tranche will also be used to complete the design and engineering for a lithium demonstration plant.

The second tranche of funding is principally allocated towards the construction of a demonstration plant to test the viability of its lithium extraction process at a large scale. The Company released a pre-feasibility study in January 2012 (see news release dated January 27, 2012) that demonstrated competitive economics and a pre-tax net present project value of US$551 million at an 8% discount rate. Western Lithium believes that the next natural step is to work with an engineering technology group or strategic partner to further de-risk the process technology, in order to attract construction capital for the project.

Jay Chmelauskas, President and CEO of Western Lithium, commented: "Over the next year, we will focus our efforts on our specialty Hectorite drilling additive business with the expectation of generating positive cash flow for the Company in early 2014. In the longer term, we will construct a lithium demonstration plant to gain investment confidence with our project, and to realize the full potential of its asset value. We are positioning Red Kite and our shareholders and stakeholders to expected near term strong growth in the drilling industry and longer term strong growth in the lithium sector."
The royalty will be a gross royalty on all production from the Kings Valley Project. It will consist of a gross revenue royalty of 8% until the first and second funding tranches have been repaid. The royalty will then be reduced to 3.5% for the life of the project. Western Lithium will have the option at any time to reduce the royalty to 1.75% upon payment to Red Kite of US$20 million.

Western Lithium has agreed to pay a finder's fee to Haywood Capital Markets in respect of the transaction equal to 6% of the proceeds raised in both tranches. For the first tranche, the finder's fees will, subject to approval of the TSX, be paid as to US$429,000 in cash and US$231,000 in common shares issuable at the five day volume weighted average trading price of the common shares on the TSX for the five trading days immediately preceding the closing.

About Red Kite
Red Kite provides mining companies with project financing and metal off-take agreements for initiation or expansion of mine production and is part of the Red Kite group. Red Kite operates across the global metals industry from offices in Bermuda, Denver, Hong Kong, London, New York, Shanghai and Sydney. Investors in Red Kite funds include college endowments, foundations, family offices, pensions and other institutional investors.
Western Lithium is developing the Kings Valley, Nevada lithium deposit into a strategic, scalable and reliable source of high quality lithium carbonate. The Company is positioning itself as a major U.S.-based supplier to support the rising global demand for lithium carbonate that is expected from the increased use of hybrid/electric vehicles. The Company is also pursuing the opportunity to be a supplier of specialty hectorite clay drilling additives to the oil and gas industry, and in particular, to support the growth of deep directional drilling applications in high temperature and high pressure environments.
\
Cautionary Note Regarding Forward Looking Statements and Information: Certain disclosure in this release constitutes forward-looking statements and information. When used in this release, the words "will", "once", "provided", "plans", "targeting", "expected", "expectation", "anticipates", "believe" or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this release include, among others the completion of the Royalty Purchase Agreement, including both the first tranche funding and the second tranche funding, the Company's plans for and anticipated benefit from the construction of facitlities and development of hectorite based organoclay operations as well as the timing of commercial operations and positive cash flow, the results of design and engineering of lithium demonstration plant and the eventual construction of that plant. Such statements and information involve the application of certain factors and assumptions by the Company that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements and information. Such risk factors include, among others, that actual results of the Company's development activities will be different than those expected by management, that the Company will be unable to obtain or will experience delays in obtaining any required government approvals, that the Company will be unable to meet all conditions required for funding under the Royalty Purchase Agreement, the ability to procure required infrastructure, equipment and supplies in sufficient quantities and on a timely basis and the conditions of the markets generally. Readers are cautioned not to place undue reliance on forward-looking statements and information. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise, except as required by law.
The TSX has neither approved nor disapproved of the contents of this press release. Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.

Contacts:
Western Lithium USA Corporation
Investor Relations
604-681-3071
604-681-3091 (FAX)
info@westernlithium.com
www.westernlithium.com

SOURCE: Western Lithium USA Corporation

mailto:info@westernlithium.com
http://www.westernlithium.com

Electric Vehicles to grow 23% through 2015 - Industry

From: MarketResearch.com 

A Global Market Overview by Industry Experts in Electric Vehicles, Manufacturing, Battery Technology

Countries covered: Global`The widespread acceptance of vehicles incorporating hybrid technology has been the result of growing awareness among consumers, governments and car producers that this technology is here to stay and has to be accepted with open arms. The last decade has witnessed rapid technological advancements in hybrid vehicles, thereby improving their efficiency, and the volatile oil prices have also contributed towards a change of mindset, with more and more motorists opting for the fuel efficient and eco-friendly hybrid car.

The market for hybrid technology types analyzed in this study include Series/Parallel, Parallel, Two-Mode and Others including Plug-In hybrid type. The report analyses the market in both in terms of unit sales and market value. Authentic sales analysis has been conducted for global auto giants such as Ford, General Motors, Honda, Lexus, Mercedes, Nissan and Toyota. The study also focuses on Key players such as Hyundai, KIA and BYD F3DM in their respective regions. Sales of Hybrid Electric cars are estimated at 940.3 thousand units in 2010 and are expected to cross the 1 million unit mark in 2011. The Market for Hybrid Electric cars is expected to register an impressive CAGR of 22.9% during 2006-2015 to reach 2.5 million units by 2015.