GM Buys 38% Of World's Richest Lithium Mine

Dear Reader,

Christmas came two days early for shareholders of a certain company operating on what could be the world’s single biggest concentration of lithium. 

General Motors, which had signed on as a partner in the project, officially closed the joint venture — further intertwining the fates of the two companies. 

The mine will produce enough lithium to supply 800,000 American-built electric vehicles per year, a crucial strategic investment which has already garnered a $2.6B loan from the federal government.

Now, however, GM will take control of 38% of the project for a total $625M investment in the site, which GM’s own battery supply will depend on. 

Mind you, GM isn’t investing in the company itself. Rather, just the project, which all but guarantees it reaches production.

How Can A Single Project Be Worth More Than The Company?

But here’s the kicker: The company’s entire market capitalization, as determined by share prices multiplied by shares outstanding, is just a hair over $625M as you read this. 

That’s only 38% of the project’s valuation, as determined by the conditions set in the joint venture. 

Are you seeing a pretty massive imbalance here?

GM itself set a valuation for the world’s biggest lithium deposit at $1.65B based on what it paid for its share. 

Once things get rolling, production there will reach 40,000 tons per year in its early phases — enough to supply roughly half of the current U.S. domestic EV market. 

This deposit is said to contain as much as 120 million tons of lithium. That's more than the rest of the world’s known lithium resources put together. 

That's a total value in the trillions even at today's depressed lithium prices.

The Best Long Term Lithium Play Out There?

It will take years to see the fruits of all these efforts, but the history of this mine’s development has already been millions of years in the making. 

The remnants of an ancient eruption of what is now known as the Yellowstone supervolcano, this caldera is a completely unique and fascinating geological anomaly. 

Its so rich in metals that it could, if properly developed, completely throw off today’s decidedly China-favoring energy and electronic metals markets. 

The ball to turn this into of the U.S.’s most important strategic resources got rolling in the last days of Trump’s first presidency, when he signed the order to begin work. 

It was overshadowed by the events of January 6th, but that ball continued rolling and gained speed until earlier this year, when the government made its own investment totalling more than $2.6B.

Now, with Trump back in office and hostile foreign governments already in his crosshairs, it’s a sure bet that this project will get all the attention it needs. 

Sooner Or Later, He'll Say It Himself: This Is Trump's Lithium Project

I’ve been following it for a while, and with share prices still scraping lows, even as GM itself is making investments at wildly enhanced valuations, I think this is probably the best time ever to be buying. 

Want to learn more about it?

I recently published this video presentation on the topic, where I go over all the details, starting from the geology all the way to the future of energy storage. 

And of course I talk about the lithium market itself, and how right now with the post bubble woes finally fading and demand soaring, lithium itself might be the most undervalued commodity trading today. 

Get all the info right here, and see why the stock’s rise has just begun.