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The Lithium Supply That Will Change the Game in 2024

Keith Kohl

Written By Keith Kohl

Posted January 4, 2024

If I were to ask you where the world’s largest lithium deposits were located, I’d probably get a few different answers from our investment community. 

Some would immediately think of the Lithium Triangle down in South America, where nearly two-thirds of the world’s known lithium reserves are found in Argentina, Bolivia and Chile. 

One would conjure images of vast evaporation ponds on the salt flats down there, where the world’s best and largest lithium companies wait for a year and a half to extract the resource, which is then refined into the commercial-grade lithium that is used to power much of our devices and technology today. 

Others might stop and consider Australia, the world’s largest lithium producer, thanks to their massive hard-rock mining operations. 

Of course, I wouldn’t blame you if you had China in mind either. 

After all, China holds all the cards when it comes to lithium refining — roughly 80% of it. 

However, I’ll bet a few of you would point me toward the United States.

And you know what… you’d be right on point. 

If you don’t believe me, just ask the Freemans. 

Lithium, Lithium Everywhere, But Hardly a Ton to Buy 

One of the most interesting lithium stories you’ll ever hear started with a small hunt for tourmaline. 

Never heard of it?

That’s ok, most people outside of the geology world probably have never heard of it before, but most of us have seen it. 

To put it simply, tourmaline is a gemstone. If you have any friends that are amateur rock collectors, you may have seen something like this sitting on a shelf in their home:

tourmaline

And it just so happens that one of the most famous deposits is located in the western mountains of Maine. 

So what does this have to do with lithium?

Well, I’m glad you asked. 

A few years ago, one couple came across a fascinating discovery on one of their tourmaline hunts. However, Mary and Gary Freeman didn’t just come across a little lithium deposit on their gem-hunting adventure — they found an estimated $1.5 billion worth of this critical metal! 

Unfortunately, all that lithium seems destined to stay underground.

At least, it will until the state approves the necessary permits to mine the spodumene deposit that the Freeman’s had uncovered. Maine’s Department of Environmental Protection classifies the spodumene as a metallic mineral, which means the couple is prohibited from open-pit mining. 

And if it hasn’t become crystal clear by now, the world is going to need A LOT of lithium over the next decade. 

Desperate Times Call for Desperate Measures

Have we hit the point of desperation when it comes to our lithium supply?

Well, that depends. 

If you’ve been paying attention to lithium prices last year, then you know how painful it was to watch prices collapse more than 80%, slumping below $18,750 per tonne by the end of 2023. 

But as you know, crisis breeds opportunity.

It’s no secret that the world — especially the United States, which relies heavily on foreign sources for its lithium supply — will be scrambling for more lithium to keep up with EV demand forecasts. 

In fact, the situation is going to intensify over the next decade as the world’s largest automakers aggressively transition their fleets to electric. 

You see, the catch here is that supply projections are a little too optimistic. 

Remember, current lithium extraction methods come with some serious issues. 

Brine extraction in South America, for example, becomes very inefficient without the right climate. And it still takes up to a year and a half before the lithium can be removed. On the other hand, hardrock mining operations come with a huge amount of opposition — as the Freemans do know all too well. 

In order to meet global demand needs, it may all come down to new technology. 

But the future for lithium isn’t all doom and gloom. 

My colleague, Alex Koyfman, has uncovered what is turning out to be the biggest game-changer in lithium extraction in almost 60 years. 

And it’s happening right in the unlikeliest of places.

I strongly recommend you take just a few minutes out of your day and let Alex give you all the details himself right here

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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