Tesla (NASDAQ: TSLA): Making Nevada a Giant in Lithium
Time to shake up the market
Is Nevada the most important state for US lithium development? Ask a Magic 8-Ball and all of the signs point to yes!
Eventually, investors are going to have to accept that Elon Musk's gigafactories are going to be a reality for for us, and companies are scrambling to be among the first investors and developers for Tesla.
Keep in mind, however, that this is only the beginning...
Lithium batteries make things practical, from the small (phones, tablets, laptops) to the large (electric cars, solar energy), which is making shares of Tesla quite the valuable commodity itself.
Naturally, Tesla is concerned about securing its future lithium supply, which is why it has already signed agreements to purchase lithium from Bacanora Minerals Ltd in Canada and British Rare Earth Minerals Plc in Mexico.
The real question, however, is when Musk would turn his gaze towards Nevada.
Fortunately, that wait is now over. Some of you might remember a few weeks ago when Tesla announced its supply agreement with a tiny Nevada lithium player: Pure Energy Minerals.
It makes sense for Elon to ink that contract, considering that one potential lithium location is in Alkali Lake, which lies adjacent to the only producing lithium mine in the U.S. — the Rockwood Lithium Mine.
And considering the pace at which Nevada companies are developing their projects currently, the area is even now considered a “key global venue” for lithium.
Still, don't forget that future gigafactories will require a huge amount of supply — with just one factory needs about 15,000 tons of lithium carbonate just to get going.
According to some reports, more than one million electric vehicles will be on the road by the end of the year.
General Electric even reported recently that the sector to quadruple to six billion dollars by 2020.
In other words, the lithium revolution is real, and we're going to see serious growth in demand in the foreseeable future.
To continue reading...
Until next time,
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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