GLOBAL LITHIUM-ION BATTERY MARKET PROJECTED COMPOUND ANNUAL...

GLOBAL LITHIUM-ION BATTERY MARKET PROJECTED COMPOUND ANNUAL GROWTH RATE OF 18% AND WILL REACH A MARKET VALUE OF 129.3 BILLION DOLLARS BY 2027.

There's an extraordinary opportunity unfolding for energy investors today... Goldman Sachs is calling it “the new gasoline. ”The Economist has called it “the world's hottest commodity. ”Energy experts have dubbed it the "oil" of the future. They're talking about lithium: a one-of-a-kind element used in consumer electronics, computers, and communication — think everything from cell phones all the way up to electric vehicles... basically anything necessitating a compact, rechargeable power source. Right now, lithium prices are heading back up after a pullback from an extremely aggressive increase in price. Demand is going to soar in the coming years. The main driver for this explosive lithium growth is the rechargeable battery sector. Rising prices of lithium, cobalt, and carbon are not a bubble. They are underpinned both by rapid growth in electric vehicle sales and tight supplies. Electric vehicles (EVs) are expected to make up 35% of the automotive market by 2040. Just as importantly, long-range electric cars will cost less than $30,000 by 2023, as promised by Elon Musk. Again, this all goes back to batteries, which have seen a huge reduction in cost that will continue. Estimates seem to cut fuelling electric vehicles in half compared with conventional gasoline vehicles. The cost to fuel an EV is around $1.25 per kilowatt-hour, while a gallon of gas is averaged at $2.64.The average cost of EV maintenance is roughly $460 annually, whereas gasoline-powered vehicles cost over $1,100. In addition to being cheaper, these batteries are also more efficient. New and second-generation plug-in models can go farther on a single charge than their predecessors and this is key. The Tesla Model S has a 400-mile range. Audi's Q4 e-tron is up near 300 miles of range and is already considered the cheapest electric Audi, starting at around $45,000.These technological advancements have accelerated sales. Furthermore, they’ve demonstrated a significant competitive advantage for car companies. It’s a race to build the best battery. The manufacturer with the most efficient — the most cost-effective and potent — battery wins. Furthermore, such batteries are essential for renewable energy sources, specifically wind and solar. The need to store power for prolonged periods requires the kind of industrial-grade capacity that only advanced lithium batteries can deliver. That's added another nice tailwind to lithium demand. Data compiled by Allied Market Research suggests that the global lithium-ion battery market is expected to grow at a compound annual growth rate of 18% to reach $129.3 billion by 2027.