$MEGA - EV Demand Set to Spike Over the Next Few Decades As the climate change movement continues to push forward and more countries begin to subsidize and promote EVs, the demand for lithium is set to grow exponentially. Lithium is an integral piece in every mobile electronic today due to its use in batteries, and demand looks like it won’t be decreasing anytime soon for many reasons.
- Citi predicts that nearly 75% of lithium will go to the rapidly growing EV sector by 2025
- UK and Germany trying to reach net-zero carbon by 2045/2050 and have already banned the sale of new petrol and diesel cars from 2030
- Over the past decade, miners have ramped up production, which caused the price of lithium to fall 87% from 2010-2019, only now lithium is beginning its rise due to the increase in EV demand
- The IEA also estimates that EV demand will increase 40x by 2040, meaning that we’re going to need a lot of lithium
Check out the article for yourselves: https://www.institutionalinvestor.com/article/b1sdwwdh7zqkxl/can-lithium-supply-keep-up-with-strong-ev-demand
With demand set to grow exponentially over the next few decades, I’ve been looking into a few lithium companies to invest in. One of my favourites is MegaWatt Lithium ($MEGA). They have a few key things that set them apart from other junior mining companies.
- Not just mining/exploring for lithium but also has cobalt, copper, gold, zinc, lead, rare earth elements, nickel, and scandium within their 8 mines (Canada and Australia)
- Recently completed an IP Survey for their Cobalt Hill project, confirming 3 primary drill targets
- Extremely low market cap, lots of upside with minimal downside risk
Overall, with the rise of EVs and rapidly increasing consumer demand for batteries, I expect MegaWatt Lithium to be one of my top performers over the next few years. The current share price is $0.295, with a market cap of $19M.