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April 23, 2019 | It’s Full Speed Ahead for Lithium

Sean Brodrick

Sean is the natural resource analyst for Weiss Group. You can read his thoughts on gold, oil, cannabis, uranium and other natural resources at EdelsonInstitute.com

Brown UPS trucks are ubiquitous in my neighborhood. And probably yours, too. Well, hold on to your next-day delivery packages. That’s because UPS is rolling out sleek new electric trucks that look like they’re making a delivery from the future.

UPS says the trucks have a longer range than other delivery vehicles. In fact, they can travel about 150 miles on a single charge. As with all electric vehicles, they have zero emissions. And they show that the EV world is shifting into higher gear. This, in turn, will open up the throttle on global demand for lithium.

Image credit: Engadget

 

UPS already has more than 300 electric vehicles and 700 hybrids in the U.S. and Europe. It’s also ordered 125 of Tesla’s new semi-trailer trucks.

And it’s not alone. Lithium’s megatrend is booming, fueled by both demand in energy storage and in batteries for electric vehicles (EVs).



 

Bloomberg New Energy Finance reports that global energy storage should “double six times” from 2017 to 2030 …

… and by 2025, EVs will be 11% of all car sales. 28% by 2030!

And all those EVs need lithium in their batteries.

In fact, the advanced, high-density lithium-ion batteries that will dominate the market by 2022 will require several times more lithium than today’s batteries.

Plus, “next-gen” lithium-sulfur batteries, which debut in 2023, will need even more!

In spite of all this, lithium was one of the big disappointments last year. It peaked early and tumbled downhill, pushed by fears that production would exceed demand.

Those fears turned out to be baseless.

Prices for high-grade lithium are now firming up, and that means lithium miners are at bargain-basement levels.

The Global X Lithium and Battery ETF (LIT) is the easiest way to stake a position in this tsunami.

It’s coiling up now after bottoming in December. And the sky’s the limit!

One miner I just recommended to my Wealth Supercycle readers is exquisitely poised to ride this wave.

It’s trading way off its 2017 highs, despite the fact it has more buyers than it has lithium to sell … and its earnings rose 23% last year.

In fact, when the company reported earnings in February, it knocked the cover off the ball, posting a profit of $129.6 million, compared with a loss of $218.4 million a year ago.

Not only that …

It owns a slew of patents to protect its inventions for those next-gen batteries.

With a strong market for its product … and the fact that this company is a dividend-payer and -grower …

… It’s Full Speed Ahead!

The EV megatrend is real. The lithium supercycle is real.

Lithium demand IS going to crank into overdrive.

To find out more about the company at the vanguard of the lithium wave, grab a trial membership in Wealth Supercycle here.

All the best,
Sean

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April 23rd, 2019

Posted In: The Edelson Institute

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