British billionaire adamant lithium ship will sail againBy Steve...

British billionaire adamant lithium ship will sail again

By Steve Butler

February 20, 2024 — 4.43pm

International stock-trading entrepreneur Jim Mellon has predicted a vibrant third lithium wave for global markets, claiming a recent price breather for the silvery-white metal would ultimately prove to be just a temporary hibernation.

Having amassed a fortune with a range of bold ventures headlined at one point by buying up oil and gas stocks via coupons on the streets of post-Soviet Russia, Mellon is adamant that despite the current pause on the global lithium craze, it is not just a fad … and he is keeping his money where his mouth is.

British stock-trading entrepreneur Jim Mellon. SUPPLIED

The Isle of Man-based English businessman believes global demand for lithium metal will continue to skyrocket for at least the next decade and in an exclusive interview with Bulls N’ Bears, he outlined his belief that the global surge behind lithium is still only in its infancy as the world tools up for production.

‘My general view is that now is a great time to be loading up on lithium.’

Mellon believed alternative types of “dry” batteries that will generally require lithium were still a long way from being injected into the mass market and predicted the lithium market will ultimately show to have grown by seven times for the period between 2021 and 2030.

He believed lithium demand against how much of it was available globally would soon trigger another price jump.

“My general view is that now is a great time to be loading up on lithium, especially in areas regarded as secure such as Australia and the United States,” Mellon told Bulls N’ Bears.

“Despite the well-known headwinds, including lower than expected uptake of EVs (electric vehicles) in parts of the world and very weak lithium prices – largely due to China – we will enter a lithium deficit position globally by 2025.

“Lithium remains a key strategic metal and the proliferation of Chinese EVs will soon become obvious to us in Australia and the West. They are cheap, stylish and offer extended ranges in some cases.

“Tesla will have difficulties competing and the German and legacy OEMs (original equipment manufacturers) will find it difficult, also. The Koreans and Japanese are offering effective competition.

“The lithium boom is only just beginning and the lower prices for lithium shares in the stock market, in many cases, offer attractive entry points.”

Mellon’s musings on lithium should not be taken lightly. Back in 2018, he commissioned a study on lithium and forecast prices would rally by at least 10 times more than what other professional forecasters were pinning it at. His vision, based on the needs and demand for battery storage and grid management, proved to be spot on the money and underpinned his global plunge into lithium stocks.