We’ve been warning you for a long time that this was going to happen.
Brought on by the sudden interest in energy storage and electric vehicles, lithium prices are already taking off.
It’s been deemed the “new gasoline,” by Goldman Sachs and others, and named “the world’s hottest commodity,” by The Economist.
That last one is especially potent now as most other commodities worldwide are in a nosedive. But lithium is prevailing because it is actually benefiting from the plummeting energy (read: oil) markets.
You see, where oil is dragging down many other forms of energy production and the commodities associated with it, energy storage is only becoming more important.
Demand for lithium batteries is increasing so quickly that it’s likely today’s balance between supply and demand will turn quickly into a shortage. By 2021, global demand could be as much as 100,000 tons higher.
This is jointly good and bad news for lithium producers.
Old producers who make up the Big Three oligopoly on the lithium market are of course getting new customers—but will also be losing market share.
Understand, it’s becoming more and more worth investing in lithium extraction technologies, which means more mining companies are preparing to enter the fray.
Already, Pure Energy Minerals has moved into the only available lithium brine in the U.S. with more companies looking to move into Nevada.
According to the U.S.G.S., the state’s lithium production doubled in 2013. And it won’t stop there.
It can’t, actually. Lithium battery capacity is expected to rise 150% by 2020—and that’s one of the more conservative estimates going around.
In just the last two months of 2015, the price of battery-grade lithium rose to $13,000 per ton.
This is still the beginning of the boom. Lithium has a lot more growing to do.
To continue reading about the lithium boom, simply click here to read the OilPrice article.
Until next time,
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.
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