Shares of UK-based CleanTech Lithium could rise 600%, according to investment bank Canaccord Genuity. Analysts at the bank said the London-listed shares had the potential to rise to £2.80 ($3.40) over the next 12 months as long-term demand for lithium continued to rise. Shares were trading around £0.40 on Friday at 2 pm London time. Founded in 2017 and based in Jersey, CleanTech Lithium is a lithium exploration and development company – which has yet to mine any metal. The company made its public market debut in March 2022 and its stock has risen 15% since then. It aims to supply the key battery material for the industry to make electric vehicles from the mine by 2026. Earlier this month, CleanTech Lithium released the first economic study of the Laguna Verde project in Chile, which Canaccord Genuity says will eventually become a reality. low-cost producer among global brine projects. “We believe that the stock has been ‘flying under the radar’ since the 2022 IPO. However, with the recent release of the first economic study, and some potential catalysts throughout 2023, we expect the stock to perform strongly in the coming year.” he said. Alexander Bedwany, equity analyst at Canaccord in a note to clients on January 6. CTL-GB 1Y line chart shows the shares of London-listed CleanTech Lithium ‘Speculative buy’ The investment bank has rated the stock “speculative buy,” which means it has a “higher risk high” than stocks with a typical buy rating and could result in material losses for investors. In addition, the investment bank said that the growth and development phase of CleanTech Lithium means that normal fundamental criteria cannot value the company. Lithium demand outstrips supply in 2022. Battery-grade lithium carbonate board prices in China surged nearly 700% last year, driven by rising sales of electric cars. To meet the growing demand for lithium, companies are investing in new mines and expanding existing mines, which, if successful, will increase lithium supply and help stabilize prices in the long term. ‘Direct lithium extraction’ CleanTech Lithium plans to extract the metal through “direct lithium extraction,” which it believes is more environmentally friendly and uses less water than other alternatives such as brine harvesting. In contrast, the brine evaporation technique, which is the current industry standard, has been criticized for using too much water in water-starved regions. CleanTech Lithium said it also plans to use renewable energy, making the lithium extraction process ultimately carbon-neutral. While the direct lithium extraction process is not new, it has not yet been deployed at scale to extract lithium and increases the execution risk for CleanTech Lithium, according to Canaccord.