Over the past 30 years, lithium has become a prized resource.
It’s a vital component of batteries that power you phone, laptop and Electric Vehicles (EVs).
So, it’s no wonder why China is trying to corner the entire lithium market!
10 of the last 20 major lithium mines put up for sale were bought by China.
Committing $12.3 billion to secure these prized assets in North America, South America, Africa, and even Australia.
Why?
Well, there are a few reasons…
China currently dominates all things lithium
The race is on between the West and China to secure vital technologies like semiconductors, green energy etc…
And of course, secure the minerals and metals needed for all these technologies.
That’s where lithium comes in.
Countries who don’t secure the necessary supply of lithium could potentially be boxed out of the market. And ultimately fall behind in EV and lithium-ion battery production.
So, perhaps China is simply trying to get ahead before this could occur.
It’s also in China’s interest to secure as much lithium as possible.
After all, China leads the world in terms of Electric Vehicle (EV) production and demand.
What’s more, when it comes to processing lithium, China is in a league of its own.
In 2021, China gobbled up about 40% of the 93,000 metric tons of raw lithium mined globally.
Hundreds of so-called gigafactories across the country are churning out millions of EV batteries for both the domestic market and foreign carmakers like BMW, Volkswagen, and Tesla.
According to estimates by Bloomberg, China’s share of the market for lithium-ion batteries could be as high as 80%.
Six of the 10 biggest EV battery producers are based in China—one of them, CATL, makes three out of every ten EV batteries globally.
And that dominance extends through the supply chain.
In short, China knows that lithium is going to be vital for decades to come.
By dominating not only the mining of this commodity, but also the downstream processing and production, they could corner the market for themselves.
So, for investors like yourself, it may be time to consider lithium once again.
That is, if you haven’t already.
***
But, there’s another battery metal set to boom…
And it’s not lithium, Copper or Nickel. You can find out what it is in the latest issue of South African Investor. Free copy here.
It’s not just lithium that’s in huge demand…
While lithium is a key material that helps power lithium-ion batteries…
It’s not the most important!
In fact, there’s an unsung mineral that helps power lithium-ion batteries in Electric Vehicles (EVs)…
In fact, a lithium-ion battery contains 15X more of this mineral than lithium…
Because of this, demand is expected to soar as much as 5x over the next few years.
And that’s going to cause a supply crunch.
In our recent issue of the South African Investor, we discussed this crucial mineral no one seems to be talking about…
And more importantly, revealed how you could profit.
If you’re interested, you can find out how to claim a free copy here.
PS. There are five big megatrends we are watching unfold – one of which is the Electric Vehicle revolution. Here’s how to profit.
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