Electric Vehicles are the future, and every year we are seeing new EV companies debuting on Wall Street. In fact, EV stocks are some of the hottest stocks and biggest movers this year. Companies like NIO, and Fisker (SPAQ), Lordstown Motors (WKHS) and Hyliion (HYLN) have rivaled, or even surpassed, TSLA’s meteoric rise. These stocks have made millionaires out of average investors, strictly because they bought at the right time. Timing is everything. It’s too late to chase these stocks. They’ve already skyrocketed higher.
However….there is still a chance to profit mightily off this craze.
What’s the best way to capitalize on the Electric Vehicle (EV) frenzy which is taking Wall Street by a storm? The answer is simple- Invest in their most precious commodity: Lithium.
Lithium is a silvery-white metal used to make the lithium-ion batteries that power EVs and everyday products, including the energy-storage products that Tesla and others produce.
Lithium prices are rising to historic levels due to unprecedented demand and that need is growing quickly.
At Tesla’s 2020 shareholder’s meeting in September, Elon Musk said he expects 30% to 40% annual growth in vehicle deliveries, with an eventual goal of producing 20 million cars a year. He also shared his vision of innovative and, proprietary, Lithium-fueled Tesla battery cells which could lead to more affordable and efficient vehicles. See, the batteries of a Tesla — which contain thousands of cells — are the most expensive part of the car.
Musk tweeted that Tesla will need to start producing its own battery cells to support its various products, even as it ramps up purchases from outside suppliers. He wrote that the company expects “significant shortages” of cells in 2022 and beyond unless it ramps up output of its own.
The electric car maker has vowed to slash battery costs by 50%, and is now following through on Elon Musk’s plan to dig for lithium on its own in the state. In fact, Musk told investors recently that Tesla has secured access to 10,000 acres of lithium-rich clay deposits and planned to use a new, “very sustainable way” of extracting the metal.`
According to Tesla’s estimates, using its new extraction and processing technology, lithium in Nevada would be enough to support the electrification of the entire US vehicle fleet.
Tesla recently signed a deal with an Australian Lithium miner based in North Carolina which sent the stock soaring nearly 400%.
Elon Musk can stop panning the globe, and just look right in the world-famous Lithium Triangle for the answer to their problems.
Tesla’s Voracious Hunger for Lithium is Another Sign that Investors Need to Quickly Jump Back Into Lithium
That means now is the time for investors to get up to speed on the new lithium boom, so they can make informed judgments about how much more to expand their lithium positions.
There’s more driving a supply crunch in lithium than Tesla electric vehicles… in fact, that is the smallest part of its story.
You see, Tesla’s dominance is due in no small part to its battery Gigafactory in Sparks, Nevada. The Gigafactory makes about 20 gigawatts of battery power a year. Its goal has been raised to 35kWh for 2020 and beyond.
This has made the Gigafactory’s appetite for lithium legendary.
That’s because it will take between 60,000 and 85,000 tons of lithium annually to keep the Gigafactory running smoothly, according to industry watchers who follow Tesla.[14]
To put that into context, the entire global supply of lithium peaked at about 270,000 tons in 2018.[15]
In fact, as USA Today reported, “We’ve gone electric, and there’s no going back at this point. Lithium is our new fuel, but like fossil fuels, the reserves we’re currently tapping into are finite — and that’s what investors can take to the bank.”[16]