Keep an eye on lithium stocks.
Over the last few days, General Motors announced its investing in a U.S. lithium project that could become one of the largest, reports Reuters.
They added, “The deal, announced on Friday, comes as automakers around the world scramble for access to lithium and other electric vehicle (EV) metals as internal combustion engines are phased out. GM said it will make a multimillion-dollar investment in and help develop Controlled Thermal Resources (CTR) Ltd’s Hell’s Kitchen geothermal brine project near California’s Salton Sea, roughly 160 miles (258 km) southeast of Los Angeles.”
Such a deal could force other major automakers to do lithium deals of their own, with companies like Albemarle (ALB), Lithium Americas (LAC), and American Lithium (LIACF) to name a few. All with demand expected to outstrip supply by 20% over the next four years, reports Benchmark Mineral Intelligence, as also noted by Reuters.
Even the International Energy Agency just warned that, “At least 30 times as much lithium, nickel and other key minerals may be required by the electric car industry by 2040 to meet global climate targets.”
Considering governments all over the world want millions of EVs on the roads, automakers will need a great deal of lithium supply.
The post This Could Be a Massive Catalyst for the Lithium Market appeared first on Morningology.
