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The Lithium War Erupts

Written by Keith Kohl
Posted September 1, 2017

Things are going to get ugly.

Last year, Elon Musk told us that lithium was just like the “salt on the salad.”

At the time, he insisted that his metaphor was due to the fact that lithium only accounted for 2% of the total volume of his lithium-ion batteries.

He even chuckled a little after quipping, “Our cells should be called nickel-graphite...”

As usual, the media ate it up... hook, line, and sinker.

Look, Musk isn’t stupid. Not only did he know exactly what he was saying at the time, but his metaphor was carefully crafted.

Why on Earth would a man as powerful as Elon Musk need to be cautious?

Simple.

He’s protecting himself.

Dig a little deeper, dear reader, and you’ll see that Musk was trying to divert attention away from lithium so that the sharks didn’t smell blood in Tesla’s water.

Too late for that, because the real lithium war is about to erupt...

The Lithium Profiteer

Look, it should be clear today that Musk was trying to downplay the importance of lithium.

That’s understandable, isn’t it?

After all, lithium isn’t traded like your typical commodity. You can’t buy contracts for lithium delivery like you can crude oil.

Instead, a small group of three elite lithium producers (who control 85% of global supply!) set their own price.

You read that right.

These “Big Three” lithium companies get together and decide what they’re going to charge Musk (and everyone else, for that matter) for his lithium supply.

And as if Tesla shareholders didn’t have enough concerns to deal with, the lithium war is threatening to dry up future supply.

Remember, last year Musk told us flat out that his company would need to absorb the world’s current lithium-ion production in order to produce half a million cars every year.

The problem is that he’s got quite a bit of competition to deal with…

In 2018, for example, China will require that electric vehicles and hybrids account for 8% of total car sales.

India has even more aggressive goals in mind...

By 2030, India hopes to have an all-electric fleet of cars.

I’ve told my readers time and again that lithium prices have nowhere to go but higher.

And yet, Musk’s battle isn’t necessarily against China or India.

It’s against his own kind... other billionaires.

ei-lithium-textad-dec-2015-elonmuskTesla's CEO Accidentally Reveals a Big Secret

Wall Street has been desperate to learn where Elon Musk plans to get his future lithium supply. The thing is, he just accidentally let the answer slip!

You won't believe the incredible video footage that captured it all...

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Lithium Showdown: Billionaire vs. Billionaire

It turns out Elon Musk isn’t the only one with a mind to the future.

Back in 2008, another billionaire investor made a quiet move that turned out to be a profit windfall for him.

At the time, Warren Buffett’s Berkshire Hathaway snagged a 10% stake in BYD.

Shares surged at the time, but I don’t believe the market truly understood Buffett’s end game.

They do now.

But the dirty little secret to this lithium war is that there’s really only one winner.

And it’s not Elon Musk.

It won’t even be Warren Buffett, nor will the other billionaires (including Virgin’s own Richard Branson) come out on top when all is said and done.

It will be investors like you.

You see, these industry and investing magnates are actually playing this game handcuffed by the investments they can make in the sector.

And every new Gigafactory grand opening we see from here on out means things will get that much tighter for lithium supply.

Tesla, after all, is just one name on a very long list of companies desperately scrambling to secure the lithium they require.

In the next few weeks, we’re going to travel the world over and see where these billionaires will turn for help.

More importantly, I’m going to show you the lithium stocks that will take full advantage of this billionaire showdown.

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing's Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

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