It’s time to jump back into lithium.
All as demand begins to show signs of outweighing supply.
You see, lithium could easily run into a massive supply crunch.
All thanks to electric vehicle (EV) sales that are growing much faster than anyone expected.
For one, “Benchmark Minerals forecasts lithium demand to reach 2.2m tonnes by 2030 but as things stand lithium supply (LCE) is only set to reach 1.67m leaving a huge structural deficit. This demand will be driven by growing EV adoption through the 2020s, with Benchmark Minerals forecasting an EV penetration rate of 4.3% in 2020 rising to 30.7% in 2030.”
Two, according to a new study from the Boston Consulting Group, by 2025, EVs could account for a third of all auto sales. By 2030, EVs could surpass internal combustion engine vehicles with a market share of 51%.
Experts also predict that by 2040, EVs will make up 58% of the light vehicle market.
And three, ”All the supply from the globe’s major lithium miners Albemarle Corp., Soc. Quimica y Minera de Chile SA, Tianqi Lithium Corp. and Ganfeng Lithium Co. -- companies that mine mainly in Australia, Chile and China -- probably won’t be enough to meet demand,” reports The Washington Post.
The last time we ran into a similar problem, lithium stocks like Albemarle Corp., Lithium Americas Corp., and Galaxy Resources exploded.
Now, it could happen all over again, handing us a solid opportunity to make money.
In The Cheap Investor 2.0, our Lithium Americas (LAC) trade has now run from an entry price of $4.38 to a recent high of $7.84. In our most recent Hot List, just sent to readers, we feature two others, including one trading at just $1.