Although investors will find other reasons to like Canada Lithium Corp. (TSX: CLQ; U.S. OTCQX: CLQMD), the burgeoning electric vehicle market is probably going to be the biggest deciding factor for most investors.

We spoke to Canada Lithium Corporation's CEO and President, Peter Secker about Canada Lithium Corp and how he was preparing the company for growth into this market.

Mr. Secker's experience is global, and he has successfully brought mines to production around the world. "I'm an Australian mining engineer. I spent 30 years building mines all over the world; initially in Australia, in titanium, then in gold. I moved to China and spent 15 years building gold mines there. Then 18 months ago my wife and I moved to Canada and I became involved in Canada Lithium."

Canada Lithium was an exploration company with a focus on gold, but three years ago it decided to transition into an area of opportunity it saw as having significant potential for the future, specifically in the clean energy field. "We looked around North America for a commodity that would contribute to the clean energy trend and also focus on the Asian commodity market. We picked up the Quebec Lithium projects."

Quebec Lithium Inc. was a company that produced lithium as far back as the 1950's and 1960's. It had been closed down for 30 years and Canada Lithium picked up the project three years ago to begin the process of bringing it back into production. Mr. Secker said: "We've spent the last three years going through the database of historic resources. We've modeled the find [based on previous drill holes] to build a 3-dimensional model. We've gone back and drilled about 15,000 meters of additional holes and what we've found is that this is one of the largest lithium resources in the world. In our 43-101, there is 30 million measured and indicated, and 40 million tons in the inferred category. We're doing some more drilling and believe those numbers will increase."

We continued talking about how Canada Lithium was developing the resource and what we could expect to see from the company in the future. Mr. Secker laid out their clear and detailed timeline: " After the resource modeling we started some vertical test work. With lithium batteries today, you need 99.5% purity so we spent a large amount of money and time [to achieve a purer grade product]."

From resource modeling they moved into the next stage of their work: "We went into a pre-feasibility study stage and it shows that from an open pit mine and with traditional technology we can produce about 19,000 tons of lithium carbonate per year by mining a million tons of ore, which would make us the third or fourth largest lithium carbonate producer in the world. We can do that at a cost of about $1.27 a pound, which is about $2,800 a tonne."

After finishing the pre-feasibility stage, they moved into the stage they are currently in now. Mr. Secker said: "After we finished the pre-feasibility, we went into a feasibility study and we're about a third of the way through that. By the end of 2010, we'll have completed the feasibility study. We want to start construction in May 2011, which would have us into operation by fourth quarter of 2012."

The project is in good shape, thanks to the historical production and the mining-friendly area of Quebec where the project is located. "The infrastructure is good," said Mr. Secker, "there are paved roads, a high voltage power line, and power in Quebec is some of the cheapest power in the world. We're only 60 kilometers north of Val d'Or, which has an airport and about 35,000 people, so it's a great place to have a mining operation."

As they build the mine and bring it into production, getting the product to the market is the next challenge. "Our biggest challenge is gaining market acceptance. That is our major hurdle." Fortunately, this hurdle is being addressed with samples being currently shipped and with a key marketing agreement in place with an organization that will market the product throughout the Asian region.

Ultimately, this leads us to the big question. Why lithium? And it's here that the most exciting and compelling aspect of the Canada Lithium story comes out. "We're very much focused on the electric vehicle market, especially in Asia," said Mr. Secker. "At the moment, you have most lithium carbonate going into a cell phone battery, which takes about 4-5 grams of lithium carbonate and a laptop battery, which takes about 10 grams of lithium carbonate." That doesn't seem like much and the global consumption of lithium is between 100,000 and 120,000 tons of lithium carbonate per year.

But Mr. Secker points to the future of lithium: "Once you start talking about electric vehicle applications, the amounts get bigger. A hybrid battery would take 8,000 grams of lithium carbonate, and a full electric vehicle would need 15 to 25 kilograms of lithium carbonate. So there is going to be a constant increase in the need for lithium." Since car companies say that there are going to be 10 million electric vehicles manufactured annually by 2016, that's potentially an additional 200,000 tons of lithium carbonate that needs to be produced each year. “The rate of change of electric vehicles is exciting, added Mr. Secker, "but currently, there is not enough planned expansion [among lithium producers] to meet that demand."

So, with a production timeline within the next couple of years, which is designed to match the growing need for lithium, Canada Lithium is a 2-5 year play on economic, political, and social trends in the electric vehicle market.

Mr. Secker concluded with a summary of the reasons to think about Canada Lithium: "We are a pure-focused North American lithium stock. There are a lot of stocks that produce several commodities but if you want a pure North American lithium company with a time table to development, we're the only one. We have a high quality product in development. We have a time table to sell the product by 2013, which is when we believe the lithium market is going to go up."

Reference

http://www.canadalithium.com

Canada Lithium Corp.

401 Bay Street, Suite 2010

P.O. Box 118

Toronto, ON

Canada M5H 2Y4

Olav Svela, Director, Investor Relations

Phone: 416-361-2821