Potential backing of a $4.5 billion Chinese Goliath?, page-2

Nobody knows just how big the lithium market could be.

The market’s demand for longer lasting batteries in consumer electronics is insatiable, and increasing the use of lithium steadily.Add to that an entirely new global industry—electric cars, which use many times more lithium per vehicle than electronics—and the scale has been tipped.There is now a race by lithium battery producers (especially in China) and end-users like Tesla to secure a stable, long term supply of this essential metal. Metal hoarding and demand is driving up prices to $15,000 per tonne or higher on the spot market, vs. only $5,000 a couple years ago.

This surge in price and demand will deliver big profits for the companies who can get properly positioned.

“It’s an energy revolution, the Market is much more bullish to lithium investments now.

“The use of batteries, the proliferation of cellphones and all manner of electrified gadgets just was not reflected in the lithium market then,”  “There wasn’t such a demand in 2012 but there surely and clearly is today.”

Goldman Sachs has described lithium as the “new gasoline” and it’s arguably the hottest commodity in the world right now.For lithium miners, this is shaping up as the beginning of a spectacular payday. And those with exciting potential such as PIO has are the new entrants working to disrupt the handful of giants that have traditionally controlled the lithium space.

The lithium sector is undergoing fundamental changes, and investors who can track the shifts in real time are poised to capitalize. Smart money and institutional investors have begun to take notice, so affordable options for the retail investor may not be around for much longer especially at low entry points..

Scarce opportunities for investors. If lithium is the new gasoline, there are few lithium investing vehicles for investors to hitch a ride on with solid backers.. The three largest lithium producers – Albemarle (NYSE: ALB), SQM and FMC (NYSE:FMC)-- are diversified chemicals businesses. Lithium accounts for 15% or less of their annual revenues. So there’s a race to get new supply. Enjoy the PIO journey.