The Where, When, and How for Lithium Profits in 2024

Ticktock, ticktock goes the lithium clock. 

A decade ago, things didn’t seem so pressing when it came to the transition away from fossil fuels. In many ways it was — pardon the pun — still just a pipe dream. 

Any time we talked about the upcoming lithium boom in those days, we were met with full-blown skepticism and derision. In fact, anyone who suggested the world’s largest automakers would accelerate that transition were probably laughed out of the room. 

Granted, we kept a more realistic approach to the EV transition, knowing that it would take time; however, there were still true believers who preached it would take overnight. 

The market took those disciples out back and shot them. 

Nobody is laughing today. 

The timeline to that full transition to all-electric fleets IS moving up. 

If you don’t believe me, just look at Chrysler, which plans to have a completely electric fleet as early as 2028. Aston Martin expects its core vehicles will be all-electric by 2030. 

Bentley, Buick, and Cadillac will each boast fully electric and hybrid lineups by 2030 as well; so will Lexus, Maserati, and Mazda. Rolls-Royce, Audi, and Volvo all plan on being EV-only by that time as well. 

Even giants like General Motors have said they will phase out their ICE vehicles by 2035 — and that includes Chevrolet. GMC has similar plans to shun ICE vehicles by the same year. 

I can keep going, dear reader — Acura, Honda, BMW, Dodge, Ford, Ferrari, Hyundai, Infiniti, Mitsubishi. 

Like it or not, the EV revolution is about to hit its stride.

And here’s the important part: We’re not the least bit prepared for it!

The EV Crisis Turns Pure Profit

Let me show you a tale of two charts. 

The first simply shows cumulative sales of electric vehicles over the past several years as well as projected market penetration:

This shouldn’t be surprising. The next time you’re driving today, you’ll see signs of this EV market penetration more and more — something that was absent 10 years ago. 

The second chart, however, is far more sobering:

Mind you, these projections aren’t from some radical green think tank but rather from one of the largest lithium producers on the planet. 

He Who Controls the Lithium Controls the Universe

As lithium demand continues to ramp up over the next decade, one clear-cut axiom will emerge in the market: The lithium must flow. 

Without major growth in global lithium production, every single one of those automakers will fail to meet its targets. 

Every. Single. One. 

At first glance, most people wouldn’t be too concerned. After all, at 20 milligrams of lithium per kilogram of Earth’s crust, lithium is the 25th-most-abundant element on the planet. 

Now, if you’re one of four producers — Albemarle, SQM, Gangfeng, or Tianqi Lithium — well, you’re about to become more powerful than the Seven Sisters of oil were during the late 18th and 19th centuries.

And they’ll welcome that power. 

But there’s a little more to this lithium oligarchy than most investors realize. 

Nothing is more frightening to Big Lithium than new technology. 

Right now, there are only two ways that we extract lithium: either through hard-rock mining or brine extraction. 

The problem is that each of these extraction methods has severe drawbacks. 

For brine extraction to happen, you need to be operating in just the right climate, and you need up to a year and a half for the water to slowly evaporate so you can get to the lithium. 

With hard-rock mining, we’re talking about massive surface mining operations that are both time- and money-intensive. 

But hey, that’s all we have, right?

Well, maybe not. 

Earlier this year, Chile — which happens to be the largest lithium-producing country in the world — announced it was partially nationalizing its lithium industry. One of the intriguing parts of the president’s speech was that he is aggressively pursuing something called direct lithium extraction. 

This has the potential to be an absolute game changer in lithium production. 

More importantly, it will break the monopoly that those four companies have on global lithium supply. 

I’ll confess that I didn’t buy it at first. I knew it was a proven technology but not on a commercial scale. 

Then my perspective changed, although it wasn’t the Chilean president’s passionate push for this technology that made me see this opportunity for what it truly was.

Rather, it was a colleague of mine who opened my eyes. 

You see, one of my cubicle cellmates, Alex Koyfman, has been digging around this unique lithium extraction technology for a while… 

And what he uncovered made me immediately call my broker. 

I strongly recommend you take just a few moments out of your day and check out Alex’s research for yourself in his latest investment report.

Until next time,

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.