Demand Will Drive Your Lithium Profits in 2019
Right now, there are more than three-dozen battery mega factories that are being built or are currently in operation.
And the demand figures are nothing short of extraordinary.
According to Benchmark Mineral Intelligence, these massive battery factories — think Tesla’s Gigafactory-1 — will require more than 800,000 tonnes of lithium per year.
Moreover, the batteries coming out of those new factories will be both cheaper and more efficient as investment continues to pour into them.
Personally, I think the Ganfeng deals are just the beginning.
In fact, I think we’re going to see more and more companies strike deals directly with lithium producersgoing forward.
So, is the lithium hangover gone?
After one helluva year in 2017, the lithium boom was tamed as prices declined sharply this year. The price drop was certainly enough to deter investors.
The pain may be gone soon, and brighter skies are ahead.
Keep in mind that virtually all EVs over the next 10 years will be powered by lithium-ion batteries.
Yet the companies desperately needed to supply those battery manufacturers tumbled right alongside lithium’s price decline.
That’s not a crisis, dear reader; it’s an opportunity.