Elon Musk's Lust for Metal Oil

Keith Kohl

Written By Keith Kohl

Posted October 20, 2015

After years of leading the pack, Tesla is finally starting to get a little bad news.

Don’t worry too much, because this time around, the bad news is turning out to be good news for you. Granted, we all know that Elon Musk is still at the top of the food chain, and he’s been driving the lithium revolution almost single-handedly for the last few years.

Now, the bad news is that Musk is finally encountering something he’s not used to: competition.

We’ve come across numerous car companies building their own electric vehicles (EVs) recently, even though they can’t yet hold a candle to Tesla’s ludicrous designs.

But that’s not the competition I’m talking about today. You see, there’s a different market where the competition is nipping at Tesla’s heels.

I’m referring to lithium batteries, and there’s a good reason why Musk is casting nervous glances behind him every once in a while.

Of course, there’s really only one winner guaranteed to emerge from the lithium revolution: individual investors like us.

Fighting for Control

What’s great about the EV market is that Tesla is the biggest name. The competition may be slowly building, but most of those companies have shifted their focus to hybrids rather than 100% electric vehicles.

So while Tesla’s competition may be gaining on this front, those companies are still far, far behind.

Tesla’s problem is that the EV market isn’t the only thing driving lithium demand; we can’t ignore the boom taking place in energy storage. Remember, Tesla’s Powerwall and Powerpack systems sold out in pre-orders almost immediately, but they may not be able to hold market share nearly as well.

Unfortunately for Musk, there are already some major players in this market.

You see, one of the U.S.’s biggest energy companies, General Electric (NYSE: GE), has been growing its energy storage segment for years.

GE also announced its biggest energy storage project ever in August this year: It will be supplying California’s Coachella Energy Storage Partners with a 30-megawatt system, which includes the company’s own inverters, transformers, and advanced lithium batteries.

Of course, the company’s first step into the lithium-ion battery market came in April this year, when the company revealed another storage system supply deal with Con Edison Development in California.

This system has an 8-MWh capacity — hardly worth comparison to Tesla’s home and business batteries, which supply between 7 and 10 MWh of capacity each.

But only months later, GE secured the 30-MW deal, creating one of the largest energy storage projects in the Western U.S.

Understand, Tesla was never the biggest name in energy storage. It is simply the most popular, and certainly the fastest growing.

However, in the utility-scale lithium battery market, this may not always be the case.

Heating Up the Competition

GE’s 30-MWh project is surpassed by the Tehachapi Energy Storage Project located in — no surprise here — California. The system has a capacity of 32 MWh and is supplied by Korean LG Chem.

Now, both of these dwarf Europe’s largest lithium battery storage system: the 10-MWh Feldheim Regional Regulating Power Station in Germany. Though smaller by far than its American counterpart, this system too is supplied by LG Chem.

The utility-scale battery market is growing, and the competition is getting fierce. Tesla, innovative as it is, isn’t the only big name anymore.

These projects by GE and LG Chem are expected to be online and in production by the end of 2016 — just in time to compete directly with the batteries coming out of the much-anticipated Gigafactory.

All of these huge projects are coming to a head very soon. Tesla still has a chance to come out on top with its Powerwall and Powerpack systems, both of which can be used in large-scale business applications.

This kind of competition will only ramp-up the lithium market. Monopolies do not make for very lucrative investments — it’s innovation and growth we need to cash in on.

But whose side do you choose in the battle for lithium battery supremacy?

Tesla’s Lust for Metal Oil

I’ve been told to always pick my battles wisely.

In this case, it’s almost too easy to choose. You see, there’s one piece of the puzzle that everybody needs to secure…

There’s a good chance you’ve never heard of “Metal Oil” before today.

That’s okay.

It’s the one thing that the energy storage market — even the future of electric vehicles — can’t do without…

Navigant Research, a market research and consulting firm focused on clean energy markets, estimates that grid and ancillary energy storage capacity will grow from 2014’s 538 megawatts to 21 gigawatts by 2024.

That alone could boost energy storage revenues by as much as $15.6 billion over the next decade.

What this means is that the players controlling this supply will be in an incredibly powerful position.

Let’s be clear, however…

You can’t blindly throw a dart and strike a ten-bagger. That’s why I’ve been logging more time in the Midwest than home over the last few months. You’d do the same after realizing the kind of ground-floor opportunity before us.

And by the time the investment herd recognizes what’s going on, it will be too late.

That’s why I want the Energy and Capital investment community to get the first crack at three investment gems that have positioned themselves to take advantage of Elon Musk’s lust for lithium.

In fact, I just convinced my publisher to let me give you early access to my latest investment report before it goes public. I’ll be sending it to you directly on Thursday morning at 8 a.m.

Taking the next step, however, will be up to you.

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

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