Description: E3 Metals Corp. from Calgary is exploring a technique to remove lithium from Alberta’s old oil wells. E3 is testing methods to extract this valuable mineral, a key component in batteries for electric cars. Lithium prices are somewhat volatile, with price gains of 40% in January. With the electric vehicle market experiencing growth, E3’s timing could be right.

Date:  February 5, 2021

Source:  financialpost.com

 Link: https://financialpost.com/commodities/mining/meet-the-company-thats-looking-to-mine-lithium-from-albertas-old-oil-and-gas-wells

Discussion points:

1) Do you know anyone with an electric vehicle? Would you consider buying one yourself after graduation?

2) Would you be willing to invest in E3 or a similar company in the lithium extraction business?

3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, we learn about the differences between research expenses and development costs. (See page 9-26.) How should E3 be accounting for its current spending on the lithium extraction – i.e. research expenses or development costs?