lithium demand growing , page-71

Juk,

are you just saying that lithium won't replace NiMh in automobiles within the next years? Then I would agree.

But the demand for lithium will soar for other purposes (cell phones, working tools, laptops etc.) and the market for hybrid cars will become big enough for both: NiMh for cheap medium sized cars, lithium batteries for small two-seat cars and for luxury cars.

You know that ARU is my greatest position, but rather than drive a Tesla car I have bought a million ADY shares too. Opes Prime has made ADY a bargain.

The Australian Small Cap Investigator, 16 June 2008:

The Prius Effect

Dear Reader,

When Toyota announced last week that it plans to build plug-in-hybrid Camrys at its plant in Altona, it gave Victoria's car industry a big boost. But did you know that every single Toyota Prius has at least 9 kilos of rare earth elements in it? And did you know that Australia is on the verge of becoming the next big global power in the rare earths industry?

Unless you are already familiar with this month's two share tips, you probably did not know that. But you'll soon know why rare earth elements are indispensable to the modern technological world as we know it. You find rare earths in cars, oil refineries, and nearly every single mobile communications device made on the planet.

Here's the thing though. China has a virtual monopoly on rare earths production. Right now, China supplies 95% of world demand. The trouble is, Chinese demand is growing too. Within two years, Chinese demand will exceed Chinese supply. Do you realise what that means?

Unless new sources of supply come into production soon, key technology and automotive industries could go without the supply of raw materials that are indispensable to their products. This creates a great opportunity for any company that can fill the coming supply gap.

You'll read about two Aussie outfits vying for the spot of the world's next great producer of rare earth elements. You'll see why their world class deposits at Mt. Weld and Nolan's Bore are due for a huge upgrade in market value. And you'll see exactly why I think this industry could be a big winner for small cap investors in 2008 and 2009.

And by the way, while we're on the subject of the Prius, let's talk Lithium. Toyota announced last week that it would like to begin full- scale production of Lithium-Ion batteries for the Prius by 2009. Current hybrid cars-cars that use both electricity and gasoline for power-use what are called Nickel Metal Hydride batteries. This is, incidentally, another drive of the rare earths market.

Lithium Ion batteries offer longer-lasting battery power for future hybrids. That's why Toyota, Matsushita, the U.S. Department of Energy, and the government of South Korea are all investing heavily in new Lithium Ion technology?

With oil prices at record highs, the race for more fuel efficient cars that use better batteries is well and truly on. Australian companies will benefit. First, with rare earths. But also, quite possibly with Lithium. You'll get the full story-including the most intriguing Aussie lithium stocks-in your double issue.