I bumped into a co-worker today who seemed a little too excited.
He had made a pretty penny on Tesla’s meteoric rise this year. The moment I saw him, the first thing he said was, “How much better can a car company do?”
“So you think Tesla is just a car company?” I asked.
I could see him blinking in confusion.
It turns out that Elon Musk may be even smarter than most people believe (if that’s possible).
You see, there’s one serious obstacle keeping Tesla from conquering the known world.
We’ve talked before about Musk’s Blood Metal Curse over the world’s tainted supply of cobalt. While the issue has forced major tech and auto companies to find an ethical source of this battery metal, Musk simply announced that his batteries wouldn’t use it.
Well, his current batteries will use it, but the company will just cut it out in future battery technology.
I remain skeptical, and so should you.
Regardless, both of us know that there’s an even greater looming crisis hanging over Tesla’s future.
And it revolves around lithium.
It’s Lithium, Dummy!
Look, it’s not hard to see this crisis forming.
The rapid growth and adoption of electric vehicles have driven global lithium demand higher over the last decade.
Yet it’s not the past I’m concerned about.
Between now and 2025, lithium demand is projected to more than triple as more EV makers push their lines out on the road.
It jumps with every new generation of phone that comes out.
Lithium is arguably the single most important commodity in today’s technology.
I know it, you know it… and now Elon Musk knows it.
During Tesla’s Battery Day, Musk told the world about his plans to build his fifth Gigafactory in Austin, Texas.
What most investors ignored was that he also announced that Tesla was becoming much more than a simple car company.
The company intends to build its own lithium-hydroxide chemical plant, conveniently located in Texas, too.
Tesla even inked a five-year deal with Piedmont Lithium for one-third of its spodumene production each year, with the first deliveries being shipped in 2022.
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Does Elon Musk finally get it?
If there was any doubt before, there certainly isn’t any now, given his plans to have Tesla build its very own lithium-hydroxide refinery in Texas.
The United States is starting to develop its wealth of critical elements, and President Trump has already invoked a 69-year-old law to kick-start production.
You know the kind of valuable resources I’m referring to: lithium, cobalt, nickel, and rare earth elements — all critical components to today’s battery technology!
Now that Elon Musk has caught on to the importance of securing your own supply of these strategic resources, the market has become red hot.
My readers and I have enjoyed watching one domestic lithium player soar 134% in less than two weeks!
And this is just the beginning.
That was only one of several trades that went gangbusters lately.
The best part is that this spans across both aisles in Washington, D.C., and whoever is in the White House come January will immediately recognize how incredibly dependent we are on foreign sources for those strategic resources.
That’s going to change.
Now, I know it’s easy to feel like you’ve been left out with the herd on this one.
However, that simply isn’t true.
You’re going to have to check out this one for yourself here.
Until next time,
Keith Kohl
Check us out on YouTube!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.
