Thank you everyone for this valuable information. I read a very interesting article about this issue overnight. It reinforces the fact that this company is a long term value stock that is not suitable for traders. There are some huge supply challenges for LIthium with many countries building or planning to built battery manufacturing plants. Telsa is already experiencing supply issues, requiring production to be slowed.
The Supply / Demand actual and forecasted demand shortfall will make this Lithium asset much more valuable in the market. Be patient and do not waiver from your convictions.
The key points from the article are:“All the supply from the globe’s major lithiumminers…probably won’t be enough to meet demand.” – Bloomberg,Oct. 1, 2019
“We’ve gone electric, and there’s no going back at thispoint. Lithium is our new fuel, but like fossil fuels, the reserves we’recurrently tapping into are finite — and that’s what investors can take to thebank.”
“As electric vehicle production ramps up worldwide, a supply crunch forbattery materials is looming”
Once the coronavirus crisis is over,EVs are forecast to reach parity with internal combustion vehicles – in bothprice and performance – within three years.
Shortly after that happens, at leasthalf the vehicle sales worldwide will be made up of electric vehicles poweredby lithium batteries, according to DNV GL, an energy consultancy.[35]
And that’s why I want you to stayahead of this megatrend… but to also understand the biggest and best trend islikely to be lithium… because the whole darn markets fail without it.
125 Million EVs Will Need Billions of Tons of Lithium
It’s an age-old, proven moment too.Simply put: prices fly when demand outstrips supply.
In all, the number of electricvehicles on the road around the world should hit 125 million in the next 9years, according to International Energy Agency forecasts.[37]
And this is the big factor that’sdriving supply anxiety.
In fact, one of the most exciting trends driving lithiumdemand – one that many investors aren’t aware of – is residential energystorage. These are compact units that store solar (rooftop) generated energy.They can power a home for three to four days if need be.
125 million EVs in the Next Decade – Volkswagen will leadthis drive with a goal of building 15 million EVs in the next five years. GMwants to build 1 million EVs a year
High-Performance Trend – After holding theirnoses at under-powered lithium batteries, Porsche, Audi, Jaguar, and Land Roverdeveloped cutting edge motors that turn their EVs into high-performancerockets. These new motors need big batteries that use hundreds of pounds oflithium.
Demand Will Likely Outstrip Supply – If theaverage EV battery size holds, the world is going to need at least 20.8 billionpounds, or 10.4 million tons, of lithium over the next decade.
Quadrupling of Supply Just to Stay Even – Analystsbelieve the world’s annual lithium output needs to be about 1.1 million tons ayear. That is a four and half times jump from 2018’s global demand ofapproximately 270,000 metric tons
Residential Energy Storage – The forecastis for this market to grow as much as 700% in the next five years. The industryis already experiencing tight lithium supply against high demand.
Amazon.com Is Leading The Way – In a move that coulddefine the lithium era, Amazon.com just ordered 100,000 electric powered trucksfor its delivery fleet.
Biggest Wild Card of All – Tesla (TSLA) hasregained investors’ faith. It’s CEO, Elon Musk, believes battery metals are socritical to sustain growth that he’s looking to buy a lithium mine. In theU.S., there are tons of regulatory hurdles. Alpha’s vast property, in the heartof the Lithium Triangle, is shovel ready.
