The Lithium Reality: 31% CAGR Through 2032

Alex Koyfman

Written By Alex Koyfman

Posted July 3, 2024

They say investing is difficult, that the future is impossible to predict, and that picking stocks is like playing the lottery. 

Well, ‘they’ must not be very well acquainted with the lithium battery market, which is handing investors the most easily foreseeable bull market since the emergence of the oil economy.

lithium chart

Lithium stocks, today, are among the surest bets you can find in any sector, and it all goes back to the rechargeable battery market

You see, the lithium-based battery sector is already one of the steadiest growing out there. 

But earlier this week, Polaris Market Research published a report claiming that the lithium-anode battery market will be averaging a near 31% CAGR between now and 2032. 

Between now and 2032, that amounts to compounded gains of over 850% — and I have to say that this is one of the most conservative estimates I’ve seen. 

Are Lithium Stocks The Most Oversold Of Any Market Segment?

By some projections, the lithium battery will cross the quarter trillion dollar/year mark by the end of the decade. 

What nobody is predicting is a drop in demand, and that’s despite a great volume of talk about the things like sodium batteries and solid state batteries and any other sort of purported ‘lithium killer’. 

The reason behind this domination, and the certainty exhibited by market analysts, is almost insultingy simple: Lithium possesses a superior energy density. 

Higher energy densities means longer driving electric vehicles and longer working wireless devices, and it’s this factor, above all others, that has proven to carry the day in the minds of consumers. 

Bottom line: lithium batteries, whether in their current Li-Ion format, or in solid state, or in whatever other form they may take, will remain the mainstay of our portable energy storage needs for at least another ten years. 

That’s what I mean when I say ‘easily foreseeable’. 

But it goes beyond market trends and where the global consumer tech industries are headed.

The Lithium Stock Bubble Has Burst… But What Comes Next?

Lithium, as a commodity, was the 21st century’s equivalent of the 17th century Dutch Tulip. 

It reached an absolute peak market price in late 2022 before collapsing by over 75% after overproduction and overspeculation turned on the panic sirens for retail investor. 

Lithium stocks were trounced as a result, but lithium demand, which should be the main driver in determining market value, never waned. 

MI Black Lithium Image 13

In fact, between wireless devices, electric vehicles and utility-scale power storage, demand for battery grade lithium is set to start outstripping supply starting this year. 

And yet, market prices and lithium stocks remain depressed. 

If that doesn’t all add up to an ‘easily foreseeable’ bull market, I don’t know what does. 

The only question that should be left in the minds of investors is: How do I take what I know, and leverage it into maximum gains?

Well, if I were looking for those results, I would take the most undervalued lithium stock I could find, especially at a time when lithium itself was irrationally depressed, I’d buy it and sit on it until the other shoe drops. 

11 Million Years Ago, A Supervolcano’s Fury Left Us This Lithium Treasure

Right now, the most undervalued lithium stock in the world belongs to a company sitting on the largest lithium deposit ever discovered. 

Located in an ancient remnant of the Yellowstone Supervolcano, this crater of natural resources contains up to 120 million tons of lithium — enough to more than double known global reserves. 

This resource is so important that the company recently received a $2.6B loan from the federal government to develop this project. 

Despite all this, it continues to fly under the radar, with today’s market capitalization at less than 1/1000 the potential resource value.

If you’re a student of history like I am, you’ll know who said ‘buy when there’s blood in the streets’, but the fundamental wisdom behind that quote should appeal to anybody. 

Right now, there’s blood in the street for the lithium market, but demand isn’t going anywhere but up. 

Want to get all the relevant information on this future powerhouse of North American lithium production?

Get instant access to my report, right here.

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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