China’s Woes and Lithium Breakthroughs

Since last week: 

The newest CPI numbers came up and showed inflation rose for the first time in six months. It’s too early to say if this is the start of a trend. 

China’s Woes and Lithium Breakthroughs

1. China’s Contagian

China’s economy is facing a growing number of obstacles that point to a growing financial crisis if the country continues on its current path. Much of this comes from the property market, which makes up about a third of its GDP. If a full-on crisis manifests, much of the rest of the world will feel the pain. Especially the commodity markets. It’s an ongoing development every investor should be watching. 

2. A Lithium Volcano

A massive lithium deposit, recently discovered in an extinct volcano on the Nevada/Oregon border, could contain up to 120 million tonnes of lithium. If true, this may be the largest deposit on the planet. Though this is potentially good news for lithium demand, there are still a lot of things that need to happen to bring this supply online. So it could be years before the market sees any of it. Instead, investors should focus on near-term lithium plays much more likely to profit from the demand now.

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3. Rwanda’s Nuclear Plans

Rwanda has recently inked a deal to build a test nuclear reactor. The agreement is between the country’s government and a Canadian-German company called Dual Fluid Energy Inc. At present, Rwanda gets its energy from hydropower, gas, and solar. If this test succeeds, it could put the country on the path to using nuclear power, which would increase uranium demand and be another win for uranium investors.

4. Stellantis Drops Weight

Carmaker Stellantis recently invested in a company that is working to develop lighter EV batteries that will both reduce the weight of the cars they go in and use fewer materials. Battery innovations like this will continue to drive the EV revolution and keep the providers of the raw materials busy, especially those providing the all-important copper. Here’s how you can get in on those profits.  

What to Look For:

The Fed meets next week. Though they aren’t expected to raise rates, we’ll likely get a sense of whether or not there will be more rate hikes to come in the near future.

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Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle