Saudis To Pull Lithium From Salt Water

Alex Koyfman

Written By Alex Koyfman

Updated May 15, 2024

You know the times are changing when the Saudis start unloading pallets of cash into lithium production. 

And that’s exactly what’s happening right now, as the very nucleus of the global oil industry, Saudi Arabia itself, is making multi-billion dollar capital investments into the future of battery-power. 

In an interview with Reuters on April 28th, Minister of Industry and Mineral Resources Bandar Alkhorayef, commented:

“Lithium is a very important mineral that happens to be part of a very important part of the supply chain, especially for batteries. I wouldn’t imagine that we would live without it.”

The latest trick that the House of Saud is trying out is lithium extraction from sea-water.

It’s a compelling technique, which may have a future, but it also underscores a tough fact of life for the OPEC heavyweight: conventional lithium deposits aren’t as plentiful as the oil fields which turned clans of desert-dwelling wanderers into the wealthiest family dynasties of all time.

So for the Saudis, the transition isn’t so much a matter of choice.

gas ban map

With decarbonization mandates coming into effect in Europe starting next year and continuing across much of the rest of the world for the next decade, the writing is on the wall for economies living off fossil fuel production.

Lithium Production Takes A Wild Turn Just North Of The Nevada Border

It’s a different story in the United States. 

Last summer, a geological evaluation out in the windswept-mesas along the Oregon-Nevada border led to an historic discovery. 

They had located the remains of an ancient volcanic caldera, one which had last erupted more than 16 million years ago. 

It was no ordinary caldera, either. This caldera once belonged to the Yellowstone Supervolcano — still active hundreds of miles away in west-central Wyoming

Gradual shifting in the tectonic plates had brought this artifact to its present location, and along with it, the single biggest lithium deposit ever found. 

Somewhere in the neighborhood of 40 megatons of lithium — or about half of today’s known reserves. 

It’s obviously not going to sit there for long.

The Biden Administration Has Already Earmarked $2B for This Lithium Project

Because even at today’s post-bubble depressed prices, that’s nearly a trillion dollars worth of lithium, easily enough to completely throw the entire global power structure off balance. 

A few weeks ago, the company which owns a major portion of this geological formation received a loan commitment from the US Federal Government, totalling more than $2B to get operations up and running at this record-setting resource. 

It’s a huge loan, at more than 2x the company’s current total market capitalization. 

Being a lithium investor myself, I know full well how skittish some are when it comes to the world’s leading energy metal. 

It recently endured an 80% collapse, falling from more than $80,000 per ton towards the end of 2022 to less than $15,000 per ton at the start of 2024. 

Just remember what they say about investing when there’s blood in the streets. 

We’ve already seen the mania come and go. 

The Lithium Industry Is Just Getting Started

We’re now in the post-lithium bubble era. 

It’s a time when growth will be organic, sustainable, and ongoing — making it attractive to people interested in leaving legacies.

And this, as trends go, is one of the more visible ones. Want proof? What’s your phone running on? 

As lithium-ion batteries are gradually superceded by lithium solid state and other next-generation designs, demand for the core element will only grow.

FG Lithium Chart

Add to that the expected growth in AI and Crypto, two of the most power-hungry sectors out there, and the results is runaway demand.

Supply, however, is not running away by any stretch of the imagination… Which makes right now a crucial moment in the lithium timeline.

The company currently getting ready to work on the world’s biggest lithium project is going to do just that — leave a legacy as it helps to cement the U.S. as a world leader in lithium production. 

Want to ready more about it before the retail investors catch wind of the story?

Check out this video presentation I recently released to my premium subscribers. 

It’ll give you the full rundown on the market, the metal, and most importantly, the resource which could disrupt the entire global lithium food chain. 

It’s quick, access is instant, and no registration required.

Fortune favors the bold,

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Alex Koyfman

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His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.

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