SOURCE: Mammoth Energy Group, Inc.

Mammoth Energy Group, Inc.

December 09, 2010 09:30 ET

Mammoth Energy Group Announces Estimates for Lithium Ion Batteries Will Triple to $60 Billion in the Next 10 Years

Electric Cars Flooding the Market in 2012, Lithium Ion Batteries May Drop Electric Car Prices

NEW YORK, NY--(Marketwire - December 9, 2010) -  Mammoth Energy Group Inc. (PINKSHEETS: MMTE), a lithium and alternative energy mining company, announced today that expected demand and sales growth for lithium ion batteries is expected to triple to $60 Billion in the next ten years.

Automakers, including Toyota, Daimler, and Bayerische Motoren Werke, are testing lithium ion batteries assembled by Silicon Valley startup Tesla Motors to power electric cars. 

The lithium ion batteries cost less than larger batteries developed exclusively for cars and used by automakers like General Motors, Nissan, and Mitsubishi. Tesla's roadster sports car, which sells for $109,000, is powered by a pack of 6,831 Panasonic cylinder-shaped cells that provides up to 245 miles per charge, Bloomberg reported.

"The main question investors need to be asking is what will be the source for the development electric and battery demand," said William Lieberman, President of Mammoth Energy Group. "Currently lithium the main energy source for battery technology is produced by a few concentrated sources. The market will continue to open and be ripe for companies like Mammoth Energy Group to provide the 'fuel' for the twenty-first century," he added. 

Sales of lithium ion batteries will more than triple to $60 billion in the next 10 years, according to the world's largest maker of the batteries, Sanyo Electric, Bloomberg said. Economies of scale may help cut manufacturing costs and sticker prices of rechargeable consumer electronic batteries for the burgeoning electric car industry, an analyst at Tokyo-based Advanced Research Japan told Bloomberg.

"It may lead to the total component cost of an electric car getting lower than that of a gasoline car," Koji Endo said. "As the cost lowers, there'll be more likelihood that retail prices of electric cars will drop."

Presently, consumers pay higher prices for electric volt-powered vehicles, which are more expensive than three-quarters of the cars sold, Bloomberg said, due to the high cost of batteries. The Chevrolet Volt sells for $41,000 and the Nissan Leaf is $32,780.

About 954,000 electric volt cars and hybrids, including plug-in models, will sell this year worldwide, comprising 2.2% of all car sales, industry forecaster J.D. Power and Associates estimated in October, Bloomberg reported. By 2020, just 5.2 million, or less than 10% of the estimated 71 million cars to be sold, are expected to be electric. And according to a Kelly Blue Book survey, only 7% of car shoppers will even consider buying or leasing a new electric car because of the reduced travel range and availability of charging stations.

Tesla is working with Toyota, the world's largest automaker, on an electric RAV4, while Toyota's small, electric car planned for 2012 and the Prius hybrid use larger batteries.

Mammoth Energy Group has signed a Letter of Intent with Salt Gold Inter Chile Limitada whose concessions are located in the Salar de Maricunga. The company is currently speaking with five other local Chilean and Canadian companies to acquire mining rights and concessions. The company expects its entire lithium package once complete will total acreage of approximately 12,500 hectares or close to 31,000 acres. The value of acres in Chile has been estimated to be $10,000 to $30,000 depending on lithium concentration levels.

About Mammoth Energy Group Inc. (PINKSHEETS: MMTE) www.mammothenergygroup.com

Mammoth Energy Group Inc is focused on acquiring, developing and operating strategic mining energy reserves in locations throughout the world. With an ever changing shift to alternative energy and fuels Mammoth Energy Group will be prepared to be a leading energy supplier and operator. Mammoth Energy's goal is to become an important partner as the world's energy paradigm begins to change throughout the next decade and beyond.

Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and such Forward Looking Statements are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to the viability of the company's business plans, the effect of acquisitions on our profitability, the effectiveness, profitability, and the marketability of the Company's products; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; and other risks detailed in the Company's filings with the Securities and Exchange Commission.

These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, management cannot assure the public that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Contact Information