Lithium Stocks: Never More Vital, Never More Oversold

The most important technology metal of the 21st century — lithium — is dirt-cheap, and so are lithium stocks. 

Unfortunately for the retail investors whose panic made both lithium and the companies that produce it collapse in value, this is going to go down as the worst mistake they ever made. Let me back up a bit. 

Lithium, if you haven’t been watching, has had a roller coaster of a ride over the last three years. 

Trading at less than $15,000 per ton in mid-2021, prices skyrocketed to over $80,000 per ton in early 2023, only to collapse again and end up right back where everything started. 

What drove this bubble-magnitude buying spree? Mostly the usual. Lithium was everywhere, powering everything from cellphones to cars to trains to energy storage for renewable power generation. 

Lithium was replacing oil. It was the shining light of hope of a cleaner, carbon-neutral future. 

Elon Musk was touting it as a “sure thing.”

That was the narrative, and investors bought in across the board, from the institutions to the retail traders and everything in between. 

Nothing Has Changed for Lithium Stocks… Except for This

So, naturally, the bubble inflated, and naturally, lithium was overproduced, and naturally, the bubble popped. 

But here’s the thing… Lithium is still everywhere. It’s still powering everything from cellphones to cars to renewable power generation. 

It’s still replacing oil. There are still mandates in place across Europe and Asia to phase out internal combustion car production by the middle of the next decade, with lithium playing a critical role in what comes next. 

Lithium is still the primary power source for the world’s growing mountain of wireless devices and is still the primary source of distributed power storage for homes, businesses, and industry. 

And Elon Musk is still touting it. And with good reason.

Despite market turmoil and short-term overproduction, projected demand will outstrip supply at some point this year, and from then onward, the gap will only widen.

So the market hasn’t changed at all… Just the mood of investors, who are now shell-shocked. 

Therein lies the opportunity.

Just remember the famous line by legendary financier Nathan Rothschild when it came to timing:

“The time to buy is when there’s blood in the streets.”

It’s as simple as it gets and as true as ever. 

Lithium has never been more important and yet has never been more oversold. 

Based on those two factors alone, any sane, reasonably risk-tolerant investor should be looking for ways to leverage this glacier-sized market inefficiency. 

I’ve been studying the lithium market for years now, and from all the options and background noise, I’ve isolated two lithium stocks that make the most use of one of the most predictable bull markets to come around in modern history. 

The first is a small-cap lithium play operating a very unique property in the western U.S. 

This property is home to an ancient caldera left over from an eruption at of the Yellowstone supervolcano. 

Within this long-extinct caldera lies anywhere between 40 million and 120 million tons of lithium, making it by far the biggest lithium resource known to man. 

The First $1 Trillion Lithium Stock?

It’s enough to completely throw the global lithium market out of balance and tear control of the market out of the hands of the Chinese, who have been hoarding lithium production and refinement for decades. 

This company is still flying under the radar, but not for long, as a recent loan from the federal government totaling more than $2 billion is set to fast-track development of the biggest lithium resource ever. 

Shares are up more than 25% over the last two trading sessions alone, so anybody looking to exchange mild risk for major upside potential needs to do it now.

Want to learn more? Check out my presentation, no registration required, right here.

The second company takes lithium production to a completely different level. 

Instead of mining the metal, which takes years of exploration and no small amount of luck, this company has perfected a method for producing it from common oil field brine.

Turning Oil Companies Into Lithium Producers Overnight

It’s clean, it’s quick, it’s scalable, and best of all, at less than $3,000 per ton, it’s on par with the lowest lithium production costs anywhere — making it a profit machine no matter what happens to lithium prices.

But there’s another advantage that makes this a true game-changer…

This technology opens the door for major oil and gas producers to diversify into lithium production in mere weeks without interrupting their existing operations in the process. 

Just plug it in, turn it on, and sell what comes out. It’s as simple as that, and there are already collaborative agreements in place to put this technology into large-scale implementation.

At a time in history when fossil fuels are on the way out and lithium is on the way in, this offers the world’s most powerful energy companies a way to thrive in the transition. 

It’s a tiny tech company founded by petrochemical industry experts, and that makes this perhaps the most prospective opportunity in the entire sector. 

Get all the information on that company right here.