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Lithium’s 10X Demand Surge Is a Massive Opportunity

Lithium’s 10X Demand Surge Is a Massive Opportunity

Two weeks ago, Ford unveiled “the truck of the future”: its electric F-150 Lightning.

Ford claims its high-tech electric vehicle (EV) will have more horsepower than a standard F-150 and a range of up to 300 miles on a single charge.

In addition, the F-150 Lightning can be used like a backup generator for your home. Ford says the truck’s battery can fully power a house for up to three days if there’s an outage.

And Ford is just one example. It seems like every car company has a flashy new EV these days.

Jaguar, Mercedes-Benz and Porsche all have new EVs, and Volkswagen’s electric SUV recently arrived in the U.S.

There’s also the booming EV scene in China, where 437,000 EVs were sold just in the first quarter of 2021.

As you can see, there’s a lot for tech investors to keep track of, and it’s tough to place your bets on any one automaker in particular.

But smart investors know that every single EV maker needs lithium for its batteries — and lots of it.

That’s why lithium miners could be among the stock market’s biggest winners this decade…

The Metal Powering the EV Revolution

The COVID-19 pandemic was a disaster for the auto industry last year. The International Energy Agency estimates that global car sales plunged 14% in 2020.

EVs, on the other hand, surged to over 3 million sales worldwide — a 40% jump from 2019. They were a record-high 4.4% of all car sales.

global electric car sales 2010-2020

(Source: The International Energy Agency.)

The EV market is showing no signs of slowing down in 2021. And as the demand for EVs soars, so does the demand for lithium.

According to Barron’s, a typical EV battery has about 22 pounds of lithium. That means it takes an entire ton of lithium metal just to build 90 EVs.

Lithium miners produced 82,000 tons in 2020, according to Statista. But analysts expect demand for lithium to skyrocket over the next 10 years.

By 2030, miners will need to produce over 1 million tons of lithium annually to keep up with the pace of EV production.

global lithium hydroxide demand chart

(Source: BloombergNEF.)

That’s 10X growth in demand facing the lithium mining industry. And as demand surges, revenue and earnings should as well.

What’s Next for the Lithium Industry

Right now, lithium miners are scrambling to expand into lithium-rich areas in China, Argentina, the U.S. and elsewhere.

It’s a trend that Ian King is watching closely in his New Era Fortunes service.

He recently recommended a lithium stock to his subscribers. It’s a miner with long-term plans to more than double its lithium production capacity.

Ian believes this stock has 120% upside from its current level as EVs continue to grow their market share in the auto industry.

Regards,

Jay Goldberg

Assistant Managing Editor, Banyan Hill Publishing

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