Investors Who Hesitate on Lithium Will Regret It

Today’s lithium market is beginning to resemble the oil market of decades past… signaling a timely buying opportunity for foresighted investors.

Investors Who Hesitate on Lithium Will Regret It

Scores of large corporations are starting to get in on the lithium game with global EV sales now tracking to set all-time highs in 2022.

Unlike the downtrodden tech sector, which is currently beset with massive layoffs, lithium producers are actually enjoying a robust earnings season.

Major lithium producer Albemarle (NYSE: ALB) posted Q3 net sales of $2.1 billion — an impressive jump of 152%.

SQM (NYSE: SQM) posted Q3 revenue of $2.96 billion… beating Wall Street consensus estimates by $180 million.

FMC Corp. (NYSE: FMC) reported revenue of $1.38 billion, surpassing estimates by some $50 million.

With lithium — aka, the white petroleum — dominating the global clean-energy headlines, and with oil starting to pull back, major petroleum and commodity traders are starting to pile into the lithium market.

Global metals and minerals trader Traxys Europe SA recently signed an offtake agreement with Austrian lithium producer European Lithium Limited

Global metals and minerals trader Traxys Europe SA recently signed an offtake agreement with Austrian lithium producer European Lithium Limited to support the development and commercialization of the world-class Wolfsberg Lithium Project in Austria. 

Similarly, Swiss trading firm Trafigura has purchased a stake in lithium processing company Green Lithium.

And the list goes on and on… 

Industry analysts see these latest developments as an unmistakable tailwind for the global lithium industry. 

Surging demand is also quickly changing the way lithium is bought and sold with exchanges from Chicago to Singapore experimenting with new futures contracts. 

Martim Facada, a lithium trader at Traxys, recently told Bloomberg: 

“The activity of traders in the lithium market should make this a more transparent and efficient market over time. It's like oil in the 70s when governments would sell to consumers but then traders started providing services and that helped growing and developing the market faster. Lithium's starting to go through that process.”

Even conglomerate Koch Industries, which deals in everything from oil refining and chemicals to lumber and glass, is investing hundreds of millions of dollars in battery companies. 

Tesla (NASDAQ: TSLA) has reportedly signed two substantial contracts with Australian lithium miners as it seeks to secure its own supply of the high-demand metal to fill its battery requirements. 

Similarly, Ford (NYSE: F), GM (NYSE: GM), Mercedes (OTC: MBGAF) and a slew of other automakers are making direct investments in battery metals companies. 

The bottom line is that millions of investors are going to wonder why they didn’t jump on this global megatrend early on when they had the chance. 

We certainly won’t be among those slow to act. Because we’re following the trend, we’re listening intently, and we’re positioning accordingly!

According to Benchmark Mineral Intelligence, the world will need to mine 25X more lithium by 2050 in order to keep up with escalating demand. 

To make that happen, more than 200 new lithium mines will need to come online in the coming years, which means tons and tons of boots-on-the-ground lithium exploration across the globe. 

That’s a key reason why our primary focus is on the small-cap lithium explorers/drillers. 

These are the companies that can skyrocket in value — by 20X or more — on news of a significant lithium discovery.

Naturally, there are risks involved as Mother Nature rarely gives up her gifts easily.

Yet, some of that risk factor can be mitigated by investing in lithium explorers/developers with high-potential assets in safe, mining-friendly jurisdictions. 

We’ve discovered a little-known small-cap lithium firm that fits that bill to a “T.”

Its lithium operations are located in mining-friendly Quebec, Canada — which consistently ranks as one of the best places in the world for mining by the Fraser Institute.

Already, metallurgical testing at the company’s flagship points to it being one of only a handful of lithium projects, globally, with the potential to produce highly pure, technical-grade lithium concentrates.

The kind that can be sold to potential offtake partners — including some of the giant automakers and mining powerhouses we talked about earlier — at a significant premium. 

The way this industry is going, there certainly won’t be any lack of buyers or suitors for the lithium being unearthed by the best-positioned miners.  
In life and in investing… timing is everything. 

Don’t be in that group who wishes they would have jumped on the lithium bandwagon early on when it was right in front of them.

Your opportunity to learn about this rare and incredible lithium miner is here… now. 

Mike Fagan

Mike Fagan
Editor, Daily Profit Cycle