I am a big supporter of lithium. There are many reasons. I’d say it starts with the fact that there is such a huge potential for demand growth, as our requirements for batteries are expanding and we are most likely years away from a technology that can replace it (such as graphene supercapacitors). When you are building a new resource company -and many of the lithium explorers/ prospective producers around are doing just that-, working with this marvelous metal is frankly as close as it can get to finding a rockstar consumer product that most people can sympathize with and support.
The second reason is because I think its capabilities (and particularly from lithium brine deposits) are true enablers for the future, and I believe in a fantastic future. I have been reading a lot about Musk, I know. You may want to check out my current reading list.
Investing in lithium companies is quite exciting at the moment, as well. Accessing capital has become much easier and we are seeing retail and institutional investors deploying funds all across the board. It is true that some of the companies -especially small caps-, don’t seem stable yet and their valuations are a bit surprising. But hey, exploration is a risky business and we need investment, if we are to find new deposits. And there are truly some gems out there.
I foresee great times ahead. I am working on a more technical/commercial piece for a magazine, so just getting some ideas flowing here to get me inspired. Feel free to send or tweet any comments about this topic.
There’s another commodity that I’m quite excited about, but we’ll leave that for next time. Creating anticipation is a good thing!
Disclaimer: I/we do own shares in some lithium companies, such as Millennial Lithium, Sayona Mining and Lithium Power International.
*I love to cheekily play with the US motto “In God, we trust”. After all, Tesla is American!
I would be interested in your thoughts on lithium brines versus lithium in rocks for example Nemaska. Also your thoughts on Cobalt would be nice as well. Thanks.
James
Hi James, basically and oversimplifying a bit, brine deposits are easier to find and cheaper to put in production, although the actual plants may be more expensive than hard rock. Both can be successfully mined/produced, it’s just the way they are available in different regions of the planet. Cobalt has a bright future ahead, due to its use in batteries and current constraints of supply coming from the DRC mean other sources would be excellent. I suggest you follow me on twitter to hear about future posts. Cheers!