Last summer, news broke about the biggest lithium discovery in the history of the world — right under our noses on the Nevada/Oregon border.
A remnant of an ancient eruption of the Yellowstone supervolcano, the caldera is said to contain between 20 and 40 million tons of Lithium, with some estimates going as high as 120 million tons.
This single geological formation could very easily shift the entire balance of the rechargeable battery market away from the East — China in particular — for the first time ever.
Just to put things into perspective, 2024 will be the first year ever that global lithium demand breaks 1 million tons.
Within a decade, however, that figure will more than triple to over 3.5 million tons.
At the moment, total global lithium reserves stand at around 26 million tons, so it seems like things are stable on that front. But lithium production as of last year (the most productive year to date) was a relatively measly 170,000 tons.
So you see the problem? Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
With lithium demand soaring, our current production levels are woefully insufficient for our needs even in the midterm, to say nothing of the long term.
Now, let’s get real. This isn’t news to anybody. Every major power and energy company out there is scrambling to figure out how to modernize, adapt, and use this problem to its advantage.
The Chinese have ruled the lithium market, and have made substantial investments to make sure that they continue to rule, so any major discoveries outside of their sphere of influence carry double the significance.
It’s The One Crisis Nobody Is Talking About
Which is why the discovery at the Mcdermitt Caldera could not have come at a more opportune time.
Once its developed, the company that owns the resource will stand to rake in billions as lithium prices recover to pre-collapse levels and begin to grow steadily again in the post bubble phase.
Eventually, this company, currently trading lethargically at just north of $700M, could become one of the world’s giants.
That, however, can take years as the average traditional lithium mining operation can take upwards of a decade to ramp up to full scale production.
For those looking for a more aggressive way to exploit the lithium revolution, which is being compared to the gold rush by some in the mining circles, there is a way which takes the concept of lithium production to a completely different level.
But you might need to be a bit steel-nerved for this one.
A company based in Calgary has figured out a way to sidestep all of the pitfalls of traditional lithium mining by inventing a process which extracts lithium directly from oilfield brines.
I know it may sound counter-intuitive, but this just may be our best and perhaps only solution to mid term supply deficits, as this new method can be plugged into virtually any fracking operation and initiate a lithium revenue stream within just weeks.
Will This Help Exxon, BP and Shell Survive The Century?
There is no exploration. No drilling. No testing. Just install the facility, switch it on, and load the lithium for delivery.
While the Mcdermitt caldera may help us supply the lithium revolution through to the middle of the century or more, it’s this extraction method which has the potential to completely redefine the industry as energy companies start to diversify their interests for a post-carbon future.
The company that’s working on commercializing this unique process is barely out of the startup stage of its development cycle. Its market capitalization is less than $20M, and yet it sits on a technology that could rake in billions through royalty and licensing agreements. Not to mention that the company already has an agreement in place to develop an existing oil resource containing an estimated 4.3 million tons of the metal.
All told, we’re easily looking at a billion dollar potential from a company worth maybe 1% of that today.
Right now, these two companies, for me, cover the spectrum of pure-play lithium investing. One covers the longer-term, and brings the stability of size and establishment, while the other has the potential to disrupt the industry completely — in exchange for some risk.
My media team has produced in depth research reports for both companies.
Get up to date on the Mcdermitt Caldera’s mega discovery here, and get educated on the promise of next-generation lithium extraction, right here. Fortune favors the bold, Alex Koyfman 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.
Fortune favors the bold,
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.