Lithos reports deal is in works

Quebec-based lithium producer Lithos (LTS-M) reports it is close to striking a deal with several large chemical and electronics firms.

The company has produced lithium metal in experimental quantities and is now attempting to raise $10 million to build a pilot plant.

Lithos holds a patent on an electrolytic process that transforms lithium carbonate into pure lithium, a light, reactive metallic element. (Pure lithium reacts violently with air, and, consequently, is mined as lithium oxide or carbonate.)

Lithium is used in batteries that are lighter and longer-lasting than common lead-acid batteries. The company hopes its lithium batteries will grab at least 20% of the market share.

Although it owns lithium mines in Quebec, Lithos plans to import lithium carbonate from Chile, where mining costs are lower.