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Lithium Stocks 2016

The Price of Lithium Starts the Year Up 130%

Written by Keith Kohl
Posted February 22, 2016

Every day is the greatest day on Earth...

...when you're making money.

And my Energy Investor portfolio is killing it right now with our lithium plays.

That's because the price of lithium has surged over 130% just in the past few weeks!

lithium prices 2016

But this is just the beginning of it...

And that's because the lithium industry is about to face a crisis.

Supply

Here's where we stand right now...

There is enough lithium production capacity around the world right now to meet current demand. But the demand for the energy metal is about to explode.

Citigroup estimates worldwide lithium demand will increase 64% in the next five years alone.

Longer-term lithium demand forecasts are even stronger. Multinational advisory firm Global Lithium LLC estimates that lithium demand will nearly quadruple in the next 10 years.

world global lithium demand 2016

That means production capacity will also have to quadruple to meet demand. But that's unlikely, and it means lithium prices are only going higher from here.

Global lithium production capacity can be increased. And it actually can be increased relatively quickly compared to world production capacities of other natural resources. But it's extremely expensive.

Estimates show that over those next 10 years, $2 billion will have to be spent just to keep lithium supply at a marginal balance with demand growth.

And yes, it “will have” to be spent. That's simply because the demand for lithium for technology (specifically batteries) is not going away.

I'm sure I don't have to go into much depth on this with you...

I'm sure you know that 95% of all batteries used in electronic devices are lithium-based and that mobility is the new major force that just simply won't be stopped.

It's happening.

And part of that $2 billion investment that'll be spent to increase production capacity and supply is going in my pocket because I already have lithium stocks in my portfolio. Part of that money going into my subscribers' pockets for the same reason. And part of it could (and should) be going into your pocket as well.

The 21st century is paved in lithium. And there will be even bigger profits going forward from here.

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.

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