Lithium: Manna or mania?
Current and future battery technologies
and the attendant commodity play
Society is demanding energy transportation and storage solutions
While alternative energy sources will gain increasing market share, energy storage
solutions will be needed to smooth their intermittent production. Major automobile
manufacturers are tooling up for dramatic plug-in hybrid electric vehicles and pure
electric vehicles growth. Consultants are looking for the total hybrid and pure electric
vehicle market to grow to a staggering 11 million unit level by 2015.
Lithium-ion battery technologies are at the forefront
One of the superior technologies for stationary and portable power storage on the basis of
power quality is the lithium-ion battery. Lithium-ion batteries lead the way on lifetime
and efficiency measures and are expected to become more cost-effective.
Increased lithium demand… but expect the big-boys to protect turf
With forecast 10% to 20% penetration rates by 2020 for pure and hybrid electric
vehicles, we expect an incremental increase in demand of 286,000 tonnes of lithium
carbonate equivalent, significantly outstripping current supply. Dominant producers,
however, have already given notice that they will ramp up production to match supply.
Initiating representative coverage
We recommend exposure to lithium should electric and hybrid vehicles gain greater
penetration and/or dominant producers deliver a lesser ramp up. We recommend a
basket of quality explorers and developers and initiate coverage on: Canada Lithium
Corp. (CLQ : TSX-V : C$0.43 | SPECULATIVE BUY, C$0.50 target), Lithium One Inc. (LI :
TSX-V : C$0.96 | SPECULATIVE BUY, C$1.20 target), and Western Lithium Corp. (WLC :
TSX-V: C$1.22 | SPECULATIVE BUY, C$1.90 target).

Inside
Executive Summary 2
Energy In Storage and
Transportation 3
Lithium and its Applications 4
Lithium – A Rare Commercial
Commodity 9
Our Investment Thesis 14
Canadian Lithium 20
Lithium One Inc. 26
Western Lithium Corp. 31
Appendix A -- Alternative energy
storage technologies 36
Appendix B -- A battery primer 44
Appendix C -- Industry catalysts
driving demand 53