5 reasons to invest in lithium stocks for mining investors (Twitter thread unrolled)

The energy transition is upon us, whether you like it or not.

So… here are 5 reasons you SHOULD consider investing in lithium, today and for the long term:

1) To start, rising quantities of batteries are desperately needed to push electrification forward.

Electric vehicles require efficient and lightweight power storage (aka batteries) that can solve range anxiety.

Hence, more -and better- batteries are needed.

2) The rising demand for EVs fuels the need for metals used in batteries, including:

• lithium
• copper
• cobalt
• nickel

I expect significant shortfalls overall, plus @benchmarkmin forecasted a deficit of 300,000 tons of LCE (lithium carbonate equivalent) by 2030.

3) Lithium is a core component of most modern batteries.

Why?

Because it is the lightest metal in the periodic table, and it is programmed to give its charge away.

Here’s a closer look at an NCA, a type of li-ion battery by @cenmag

4) While lithium is widely available in the earth’s crust, producing from it a chemical that meets specifications to go into batteries is more complex.

Some key challenges are covered in this thread:

5) When you look at the whole metals market globally, lithium is still a small portion.

Tiny really.

While iron, copper & aluminium dominate (and in turn are dwarfed in comparison to oil), lithium is still just emerging with plenty of upside for investors.

📊 @SPGMarketIntel

And that’s it.

Imagine if it becomes the new oil, as @elonmusk expects.

TL;DR

1) EVs are in
2) EVs need batteries
3) Batteries need lithium
4) Producing lithium is not easy
5) Lithium as a market still in its infancy

Made you think? Like this tweet!

If this was interesting or useful to you, please retweet the start of the thread.

Follow me @paola_rojas for more commentary on metals, markets and tech and regular discussions on Twitter Spaces 🎙

Originally tweeted by Paola Rojas 🐝 (@paola_rojas) on August 16, 2022.


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