US Oil Catastrophe Accentuates Immediate Need for Lithium as an Alternative Fuel

On April 20, 2010, an explosion started a fire aboard the Transocean Deep Water Horizon Drilling Rig approximately 41 miles offshore Louisiana. 6 weeks later BP’s Mississippi Canyon 252 Well is estimated to have pumped out at least 20 million gallons of crude oil into the Gulf of Mexico.

At an estimated 526,000 – 836,000 Barrels (April 20 – June 2, 2010), the current oil spill is well over twice that of the Exxon Valdez Alaska, USA, 1989 (260,000 Barrels)(3) – the largest previous US oil spill, potentially having significant impact on the states of Louisiana, Mississippi, Alabama and Florida.

Matthew Worrall, Chief Executive Officer of AmeriLithium commented, "Due to the recent disaster it is highly possible that the future of oil production in the Gulf of Mexico will be threatened. Our planet and economy can longer stand our dependence on oil and its associated risks. It is more prevalent than ever that we look to sources such as Lithium technology to remove our dependence on fossil fuels. I am certain that at some point, lost production from the Gulf of Mexico will push oil prices higher, leading people to further look at alternatives."

Over the past month President Barack Obama has made several addresses with regards the need to reduce Americas dependence on fossil fuels.

In recent remarks made at Carnegie Mellon University, Pittsburgh, President Barack Obama pressed congress to scrap billions in oil company tax breaks and pass legislation to help the nation kick a dangerous "fossil fuel addiction".

The President also stated "The time has come, once and for all, for this nation to fully embrace a clean energy future. Now, that means continuing our unprecedented effort to make everything from our homes and businesses to our cars and trucks more energy-efficient", and pointed towards the use of cleaner energy being the future of the United States.

He further added, "the only way the transition to clean energy will ultimately succeed is if the private sector is fully invested in this future – if capital comes off the sidelines and the ingenuity of our entrepreneurs is unleashed."

President Obama’s speech also made note of The US’s investment in cleaner technology. "The United States used to make less than 2 percent of the world’s advanced batteries for hybrid cars. By 2015, because of the investments that we made, we’ll have enough capacity to make up to 40 percent of these batteries."

Lithium Technology is current used in a wide range of technological applications, and is favored heavily by the electronics industry and the motor industry. According to a May 23, 2010 Bloomberg Business week article, "Lithium based battery chemistry is an industry adopted standard now in EV (Electric Vehicles)."

Lithium is a lightweight metal used in a wide range of consumer products the world over: the medical industry uses Lithium as an anti-depressant; industrial uses include glass, ceramic and porcelain enamel manufacture; the aviation industry uses Lithium in alloys. Of particular interest is the use of Lithium for battery production, which has expanded significantly in recent years due to rechargeable Lithium batteries being used increasingly in electrical tools and in the rapidly expanding portable electronics market. Furthermore, the next generation of hybrid and electric vehicles are being designed to use high-capacity Lithium-ion batteries as environmentally-friendly fuel alternatives while the Obama administration has introduced $5 billion in funding and incentives for the development of a secure, domestic battery industry with special focus on Lithium-ion batteries.

AmeriLithium is a publicly traded (NASD OTC BB: AMEL), mining company committed to progressively developing into one of the leading American players in the global Lithium industry. The Company is headquartered in Lake Tahoe, NV. AmeriLithium has amassed a Lithium portfolio consisting of ~724,000 acres, including three Nevada-based projects nearby the only Lithium producing plant in the US, a large project in Alberta, Canada, and a project in Western Australia.