We’re nearing another lithium boom – and fast.
All on forecasts demand could outweigh supply on the heels of the electric vehicle boom.
In fact, EVs could dominate demand for lithium over the next 10 years, reports Reuters, accounting for more than 75% of the lithium’s consumption.
But there’s a problem.
There may not be enough supply to meet all of the demand. According to Reuters, “the electric vehicle industry must pay more for lithium in order to spur investment and prevent future supply crunches of the battery metal, the chief executive of lithium producer Livent Corp said.” He added, “If every EV company took their 2023 plans and went to the lithium market today, they’d probably only get about 15% of their needed supply of lithium.”
That’s part of the reason Tesla just said it wants to be a lithium miner.
The only problem for Tesla is that it could be several years before Tesla can gets its extraction technology to work to drill for lithium. In the meantime, Tesla will still need a very dependable supply of lithium for its batteries, which it could get plenty of help from with Piedmont Lithium.
According to Piedmont’s latest press release:
“The Agreement is for an initial five-year term on a fixed-price binding purchase commitment from the delivery of the first product, and may be extended by mutual agreement for a second five-year term. The Agreement covers a fixed commitment representing approximately one-third of Piedmont’s planned SC6 production of 160,000 tonnes per annum for the initial five-year term as well as an additional quantity to be delivered at Tesla’s option. The SC6 sales are expected to generate between 10-20% of Piedmont’s total revenues from its proposed integrated mine-to-hydroxide project for the initial five-year term. The Agreement is conditional upon Tesla and Piedmont agreeing to a start date for spodumene concentrate deliveries between July 2022 and July 2023 based on the development schedules of both parties.”
With the lithium boom getting under way, other top stocks to keep on radar include:
· Lithium Americas (LAC)
· American Lithium Corp. (LIACF)
· Albemarle Corp. (ALB)
· Sociedad Quimica y Minera (SQM)
Even Piedmont Lithium (PLL) could see even more upside.
The post Top 5 Ways to Trade the Lithium Boom with Tesla Announcement appeared first on Morningology.
