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Lithium: The OPEC Killer

OPEC's Casket Will Be Lined with Lithium

Written by Keith Kohl
Posted February 29, 2016

There's a catastrophe on the horizon for OPEC.

Goldman Sachs is calling it “the new gasoline.”

The Economist called it “the world's hottest commodity” with a “global scramble to secure supplies.”

It's a commodity that has just rewarded subscribers of my Energy Investor newsletter with gains of 30% to 40% in the past few weeks alone.

But bigger and more important than all of that...

It's a commodity that's on the verge of creating a paradigm shift in the global energy market.

I'm talking about lithium.

The price of lithium has just started to take off. In the past seven weeks alone, lithium prices have spiked nearly 130%. Take a look...

lithium prices 2016

Meanwhile, lithium-producing stocks — like those in my Energy Investor portfolio — have only begun to see gains.

There's simply no denying it...

Continued growth in the demand for lithium-ion batteries — specifically for uses ranging from electric cars to Gigafactories — has become almost universally accepted.

And right now, as we speak, millions of dollars are quietly being invested into lithium. Large investment groups like Vanguard, Fidelity, and Janus Capital have already put up over $500 million in capital combined.

These massive investment groups — which normally stay away from a lot of risk — are willing to put up so much money because they know this...

In the next five years, the world is going to have to increase annual lithium output from about 32,500 metric tonnes today to 100,000 in just five years.

And as a result, companies like my favorite lithium mining play are going to soar, in part because they're already several steps ahead of everyone else.

The smart money is so confident about the future of lithium that even massive tech firms that seemingly have nothing to do with the energy or automotive industries are scrambling to enter the lithium arena.

Google (NASDAQ: GOOG) is quickly advancing into the lithium battery space with its self-driving car project.

The Guardian reports that documents filed with the National Highway Traffic Safety Administration and California's emissions testing show that the cars are powered by a 20–30kW electric motor from a lithium-ion battery.

More recently, Apple (NASDAQ: AAPL) announced its own plans for an electric car. Code-named “Titan,” Apple's electric car project even has a target ship date for 2019.

And don't think that can't or won't happen. Just 10 years ago, no one was sure if Apple could make a cell phone. Today, about 50% of smartphone users have an iPhone.

There's little doubt that the price of lithium is going to continue rising. I recently produced a report you should check out that goes into much more detail about exactly how quickly and quietly the lithium market is growing.

While the masses are paying attention to the media circus that has become American politics, billions of dollars are being poured into the lithium market.

Pay attention to the smoke and mirrors if you want. But know that when it clears, the investors who are entering the lithium market right now will be the most successful. And you can be one of them.

It's almost redundant to say that there's a massive opportunity in the lithium market unfolding as we speak. I'm already personally invested in lithium. I'm good. But if you don't have at least a tiny bit of exposure to lithium, I urge you to learn more about it right now!

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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