Invest in Lithium

Lithium, this alkali metal is probably best-known for its wide use in lithium batteries common in all sorts of electronics devices. Other industrial applications include manufacturing heat-resistant glass and ceramics, high-performance alloys used in aircraft, and lubricating greases. The breakdown of the global end-use lithium markets is estimated as follows: ceramics and glass, 31%; batteries, 23%; lubricating greases, 9%; air treatment, 6%; primary aluminum production, 6%; continuous casting, 4%; rubber and thermoplastics, 4%; pharmaceuticals, 2%; and other uses, 15%.



As all the auto companies are racing for electric cars, lithium usage in batteries is expected to shoot up. Check out the lastest news of GM, VW, F, Tesla, also Dyson ($2.7b investment to build its first car by 2020)!

That's why Goldman Sachs calls lithium the “new gasoline.” The Economist calls it “the world’s hottest commodity.”

Where is Lithium Mined?

Top 3 lithium-producing countries: Australia, Chile, and China. Overall, Chile possesses the largest confirmed lithium reserves in the world, over 7.5M tons. Currently, the majority of Chinese lithium output comes from the Chang Tang plain in Western Tibet. The US Geological Survey indicates that the country’s reserves is 3.5M tons.

How can We Invest in Lithium?

Global X Lithium ETF (LIT): an ETF trading since 2010 and holding the above listed lithium producers as its top holdings.
YTD: 60.5%

Stocks

Listed on NYSE

 Albemarle Corporation (ALB):  industrical company producing lithium chemicals. YTD: 60.6%

FMC Corporation (FMC): a Philadelphia-based diversified chemical company focusing on this commodity. YTD: 60.8%

Sociedad Quimica y Minera (SQM): Chilean producer of specialty plant nutrients and chemicals that runs large-scale lithium production operations. YTD: 107.5%

Others

 Advantage Lithium (TSX: AAL), a Canadian based lithium explorer with a large-scale development asset located in the Cauchari basin in Argentina.

Bacanora Minerals (TSX: BCN), a Canadian miner developing a lithium mine in Mexico, Sonora, first to enter in a conditional supply agreement with Tesla.

Bearing Resources (TSX:BRZ), a Canadian miner developing a lithium brine project in Chile and the highest-grade undeveloped project.

Lithium Americas Corp (OTCQB: LACDF), a Canadian/Argentinian miner, producer and supplier of lithium, with large-scale assets located Argentina and Nevada, USA.

MGX Minerals (OTC: MGXMF), a diversified Canadian mining company engaged in petrolithium projects in western Canada and the United States.

Comments

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