Lithium Supply Crunch Leading to Monumental Opportunity

June 15, 2020, By smallcapfirm,

A massive lithium supply crunch could soon create one of the greatest investment opportunities of the year.

In fact, according to Reuters:

“A new demand surge is already looming in the form of the multiple ‘green stimulus’ packages as governments try and kick-start locked-down economies. You don’t have to be a market genius to see that another price boom is coming sooner or later as an under-powered supply chain has to catch up with the next demand surge.”

All thanks to increasing demand for electric vehicle demand, which is growing much faster than anyone expected.  According to a new study from the Boston Consulting Group, by 2025, EVs could account for a third of all auto sales.  By 2030, EVs could surpass internal combustion engine vehicles with a market share of 51%.

That could lead to a sizable spike in demand with lithium used in EV batteries.

But for that to happen, the world needs far more lithium.

To give you an idea of how much supply the world may need, consider this.

“The production of minerals such as graphite, lithium and cobalt could increase by nearly 500 percent by 2050” to meet demands for new technologies, including EVs, according to The World Bank, as noted by Forbes.

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