Today’s investing world has never seen anything like this. Lithium is in the early stages of ascendency to become the most important energy commodity in the world.
Electric vehicles and renewables will drive radical shifts in global energy, pushing billions of dollars into a commodity that was largely ignored a few decades ago.
These changes will drive enormous demand for new lithium supplies as lithium is an essential element in current battery and energy storage technology.
The Tesla Model X stands in a long list of battery-powered vehicles that are offered (or soon will be) from every major auto manufacturer worldwide. Every one of these vehicles will depend on lithium as a key element in it battery design and performance.
Were it not for the unique chemical properties of lithium, battery technology, as we now know it, simply would not exist.
The enormity of this can hardly be overstated.
Current lithium production is unlikely to meet the soaring demand anticipated for the near future of electrically-powered vehicles and utility-scale energy storage compounds.
Today’s lithium production “will have to be strongly upscaled (possibly more than ten times, depending on the scenario) to match the future demand.” -Engineering & Technology, March 14, 2018
Do not ignore this. Lithium may be the most profitable investing opportunity of your lifetime, and this statement is not made lightly.
New sources of lithium must be found to supply the world’s new, emerging energy technologies. Any company holding lithium resources today, whether in production or not, is staged to pay enormous returns to shareholders.
Current large-cap lithium producers are meeting the bulk of demand. Their share prices could double or triple into the next decade, making them an easy play for the growth-minded investor. (A list of worlds top three lithium producers can be found below.)
But gains from these large-cap companies could be fractions of the gains that may come from a promising junior lithium company. Lithium supplies from the major producers alone are unlikely to scale to the supplies needed for the future.
That’s where juniors play an essential role for scaling to global demands. Unlike large caps constrained by their limitations on current resource capacity…juniors open the door to new discoveries and incremental supplies.
That’s why junior resource companies hold potential to pay five to ten times the returns of large caps. When they hit the numbers, their share prices can skyrocket in a matter of days! It can pay handsomely to get at least one junior on a lithium investing portfolio…and below you will find one uniquely positioned to knock it out of the park!
Lithium: An ACT NOW opportunity!
When you dig into the details, for the world’s evolving energy technology lithium is much like oil was to the industrial revolution; it would not happen without it.
Topping the list for drivers of exploding demand for lithium resources are electric vehicles and utility-scale power storage, the latter of which is just now gaining traction…and posing huge unmet challenges for lithium supplies.
However, the elephant in the room is the rapid pace of change to electrically-powered vehicles (EVs). Soaring consumer demand for new EV coupled with government actions to move consumer fleets to non-polluting EVs is placing demands on lithium supplies never considered just a few years in the past.
In June of 2016, Fortune Magazine called it: “[Lithium] prices are going stratospheric.” This is a magazine not known for hyperbole…and it proved correct.
During that time period share prices in the top three global lithium producers soared roughly 300% to 400%!
And right now, the demand for lithium is but a fraction of what it must be to meet the future needs consumers and what governments will require of new vehicles.
Elon Musk of Tesla states it plainly. Fortune reports Musk as saying that to meet its target of 500,000 cars a year, “[Tesla] would basically need to absorb the entire world’s lithium ion production.”
Lithium world production has absolutely skyrocketed over the last two decades, yet this may be just a drop in the bucket. Elan Musk report that it would take an entire year of global lithium production today to produce 500,000 Tesla vehicles. This chart doesn’t come close to what production must look like in the coming years!
And Tesla is not the only one vying for lithium inventory.
Every major car manufacturer on the planet today is aggressively moving to electric vehicles. Some are abandoning gasoline/diesel power altogether! Volvo leads the change:
“Volvo Cars on Wednesday became the first mainstream automaker to sound the death knell of the internal combustion engine, saying that all the models it introduces starting in 2019 will be either hybrids or powered solely by batteries.” -NYTimes, 7/5/17
Volkswagen. Toyota. GM , Ford…virtually all are expanding to battery-powered cars.
Automakers are scrambling to get in front of this. Leading the pack now is not Tesla, but Volkswagen! Bloomberg reported on March 13.
“Volkswagen AG secured 20 billion euros ($25 billion) in battery supplies to underpin an aggressive push into electric cars in the coming years, ramping up pressure on Tesla Inc. as [Tesla] struggles with production issues for the mainstream Model 3.”
“The world’s largest carmaker [VW] will equip 16 factories to produce electric vehicles by the end of 2022, compared with three currently, Volkswagen said Tuesday in Berlin. The German manufacturer’s plans to build as many as 3million of the cars a year by 2025 is backstopped by deals with suppliers including Samsung SDI Co., LG Chem Ltd. and Contemporary Amperex Technology Ltd. for batteries in Europe and China.”
Wow! And this is not just automakers responding to anticipated consumer demand. Governments are demanding change as well!
Within about twenty years, roughly two-thirds of the world’s population will no longer be able to buy a gasoline/diesel-powered car.
Think about that.
India, the second most populous nation in the world with over 1.3 billion people (and growing) has mandated that by 2030, the country will only allow automakers to offer and sell electric vehicles. New gasoline-powered vehicles will no longer be legal in India. The country has already banned diesel car sales.
Projections are that with growing prosperity, Indian consumers will buy 6.5 million vehicles in 2025…and even if just half those vehicles were to be electric the impact on lithium supplies would be staggering. The Indian market alone would consume a full year’s worth of lithium production in just eight weeks!
And India is not alone in creating a breathtaking new market for the lithium necessary for EV batteries.
England has already banned future sales of new gasoline and diesel cars. Starting in 2040, no petrol-powered vehicles can be sold. And by 2050, all cars on England roads must be zero-emission. In other words, petrol-powered vehicles will be obsolete!
The world has never seen anything like this!
France, Norway, Austria, Denmark, Germany, Ireland, Japan, The Netherlands, Portugal, Korea, Spain and the biggest of them all, China, have mandated that between 2030 and 2040…all new vehicle sales will be zero-emission vehicles.
To put the scale of this market into perspective, fewer than 1% of all vehicles on the road today are electric. Yet within a dozen years, Bloomberg reports that 35% of global new vehicle sales will be electric.
That’s roughly a 300% annual growth rate in electric vehicles and at present, every one of those vehicles will be solely dependent on the available supply of lithium for the batteries to power them!
The market forces here are staggering to contemplate. And while it’s nigh on impossible to accurately predict if and how high prices will soar for lithium in the near-term, one thing seems certain…there’s virtually zero evidence that suggests any near-term downside in demand for lithium.
To harness the investing potential, you should act soon, perhaps immediately. The coming market changes seem inevitable and the pace is simply unprecedented.
At current rates of global production, demand for lithium will soon far outstrip all supplies. Expect to see a massive shortfall in lithium stockpiles as vehicle and battery companies fight for every ounce of lithium they can get their hands on.
For the world’s automakers, lithium is a matter of survival. No other element on earth can do what lithium does in current, state-of-the-art battery technology. It is truly indispensible.
And while research may one day lead to a newer, better battery concept…there is nothing on the horizon that promises to supersede the performance and cost benefits of lithium battery technology.
The case for investing now in lithium seems obvious.
The coming demand is likely to create the most lucrative investment opportunity you may see in a lifetime. You can expect trading lithium producers to reward shareholders well, perhaps doubling and tripling in just a few short years.
But those gains may be crumbs compared to what could be made from emerging companies that successfully feed new lithium supplies to a starving market.
As promised above, one such company will be presented. First, take a look at a few large caps already producing lithium. These are companies worthy of serious consideration for lithium investing.
