"Lithium's future set to burn brighter" - Barron's
Barron's said lithium, a lightweight metal used for high powered batteries used in electric cars, as well as in cellphones or laptops, is expected to see prices rise higher. Lithium is sold in a salt form such as lithium carbonate and lithium hydroxide or as a metal. Barron's said "The metal isn't traded on an exchange, so investors should look to buy shares in the four companies that control about 95% of global lithium production: Talison Lithium (ticker TLH, Canada) - price up 11.2% this year to $C3.78, Rockwood Holdings (ROC) in the US is up 14.5% to 439.37 - both vie for the top spot - joined by NYSE listed Sociedad Quimica y Minera de Chile is down 0.7% to $53.47 and FMC is up 17.1% to $50.38. This year Rockwood raised its lithium prices by $1,000 or 20% to about $5,000 per metric ton in May. Talison Lithium has raised its prices by 15% on contracts concluded in early 2012. There is an exchange traded fund, Global X Lithium ETF (LIT) which also includes rare earth metals companies and battery makers as well as the Big Four lithium producers. The ETF is up 3.2% this year, closing at $14.79 on Friday.
AJM Price at posting:
18.5¢ Sentiment: LT Buy Disclosure: Held
