A dusty stretch of the American West could hold billions of dollars worth of the world’s most high-demand metal – lithium.
The man who owns the vast slice of Nevada is Michael Kobler.
He’s a legendary natural resource explorer who founded Osum Oil Sands Corp. in 2004. That company now sports a net worth beyond $2 billion.[1]
What’s important for investors today, however, is that the foresight that allowed Kobler to see the fortune-building future of the famous Canadian oil sands, is the same foresight that leads him to clearly see the energy sector’s future.
He is among the handful of visionaries who understand lithium is the miracle metal on which much of human advancement hinges.
That’s because, as you’ll see, lithium is now at the heart of vital industries such as lubricants, communications, transportation, and energy storage.
And, of course, lithium’s most critical use is powering the U.S. military’s equipment and breakthrough weapons systems.
In fact, just about every piece of man-portable electronic equipment crucial to the success of U.S. warfighters on the battlefield is powered by some form of lithium battery. The reliance on them is expected to grow exponentially as the next generation of weapons come online.[2]
Yet, as National Defense Magazine reported, the military’s lithium battery supply chain, especially rechargeable lithium batteries, “is virtually entirely from offshore suppliers.”[3]
By LEE BELLINGER
If you’re reading this advertisement you might be wondering how I came to be an investing expert.
The answer is, I’m not, per se. I’m not a certified financial analyst. But, I learned lot about the energy business during the time I spent as a legislative assistant to two members of Congress. And, I have been a dogged financial publishing researcher for 32 years, since 1988. So, I have more time in investing research than most people spend in a single job during their careers.
And, to be frank, as in this I sometimes do paid endorsements, but only if I really, really like the company.
I stated my deep dive into lithium supply and demand issues after I sold nearly 4000 solar generators.
I believe American Lithium is a unique opportunity, but it is a mining venture, and every mining venture – every darned one – is a speculation.
This is why, when it comes to mining I urge you to never invest more than you can safely afford to lose.
It is this reality – lithium is the metal that everyday life now revolves around – that led Kobler to walk away from his booming oil company in order to focus his energies on an arid, six-square miles of desert near Tonopah, NV.
Kobler believes his property could soon yield a super mine.
It’s one that could hold America’s largest lithium deposit… a historic find.
Kobler’s new mining venture is American Lithium Corp. (LIACF). His geologists are now on their second set of bore-hole testing.
So far, all indications point to a fortune buried beneath their feet.
“We’ve gone electric, and there’s no going back at this point. Lithium is our new fuel, but like fossil fuels, the reserves we’re currently tapping into are finite — and that’s what investors can take to the bank.”[4]–USA Today, Aug, 26, 2016
The timing could not be better for American Lithium (LIACF).
That’s because lithium’s price per ton is on the move again, at $8,000. It’s a sign that demand is picking again, up after a major swoon that saw lithium’s price shaved 70% from a high of $24,000 a ton in late 2018 to a low of $7,100 a ton in January 2020.[5]
One reason for the precipitous drop is that, right now, there’s no supply/demand pressure. Industry estimates indicate that there’s enough lithium production capacity around the world right now to meet current demand.
But, that’s just for today.
Tomorrow, and its runaway lithium-ion trends, is why investors should keenly focus on three well-run lithium companies – Albemarle Corp. (NYSE:ALB), Livent Corp. (NASDAQ:LTHM), and Michael Kobler’s American Lithium Corp. (LIACF).
That’s because demand for lithium – the energy metal – is forecast to explode.
Citigroup estimates worldwide lithium demand will increase 64% in the coming five years, alone.[6]
Longer-term lithium demand forecasts are even stronger. Multinational advisory firm Global Lithium LLC estimates that lithium demand will nearly quadruple in the next 10 years.[7]
As most people now know, that spike in demand will be due to the lithium used in the batteries that will fuel electric vehicles. It’s a mega trend that, as FORBES reported, could find as many 125 million EVs on the road during the next decade.[8]
But, that’s just a portion of why lithium could soon be one of the 21st century’s most coveted minerals.
Lesser known are lithium-based batteries’ awesome potential for storing generated electricity, whether made by solar or natural-gas fired power plants. Those will be huge batteries that span acres of land.
Moreover, smaller versions of those massive batteries, such as Tesla’s Powerwall, are already being sold to homeowners who’ll store their rooftop solar power, or even use the batteries to store grid generated power.
These batteries could soon become a vital part of life on the East Coast that now gets battered by increasingly powerful hurricanes…
The same goes for the West Coast, where power companies now turn off power to homes and businesses in order to avoid sparks from transmission lines that start wildfires
By the way, my name is Lee Bellinger. I am the publisher of Off-Grid Alert, which is a newsletter focused on privacy, asset protection, self-reliance, and global threat assessment.
I was one of the few analysts who foresaw, and accurately predicted, Osama bin Laden’s murderous attacks on the World Trade Center towers.
I was one of the very first analysts to warn that the “miracle” of credit default swaps would destroy the U.S. economy.
For the past decade one of my main focuses has been the threat to America’s power grid and to its military might. That’s how I became an expert on lithium-ion energy storage.
And, that’s how I gained an understanding of the lithium supply chain and the mining sector at the heart of it.
Now, if you’re like me, you’ve probably heard, or read, about lithium’s many private sector uses… especially for electric vehicles.
But, the number one issue in America today is homeland security.
Yet, there hasn’t been much mention that America’s military, like every other aspect of modern life, is now dominated by high-tech tools and gadgets that are fueled by lithium-ion batteries.
For the military, that includes big-ticket items such as tanks, jets, rockets, naval ships, satellites, and laser weapons systems.
Lithium-ion batteries also fuel esoteric weapons like drones, special operation communications devices, mobile air defense systems, night-vison goggles, powered rifle scopes, flashlights, and watches.
And, the U.S. Defense Department is spending hundreds of millions of dollars on a new battery technology.
That research includes the $81 million the Navy invested in lithium batteries that will power its awesome next-gen electromagnetic railgun.[9]
The navy is in a race against Russia and China to bring the lithium-driven, hypersonic, weapon online.
“We need to find ways to more efficiently develop our nation’s domestic critical mineral supply because these resources are vital to both our national security and our economy.”
Sen. John Hoeven (R-North Dakota), and a member of the Senate’s Energy and Natural Resources Committee
That’s how the electromagnetic railgun became one of the Navy’s largest science and technology projects.
The railgun uses electricity rather than gunpowder or rocket motors to hurl hypersonic projectiles over extremely long distances.
The extreme high-tech weapon can deliver a projectile at speeds greater than Mach 7, or seven times the speed of sound. In other words, a railgun could fire a projectile from New York City that would hit Washington, DC in about six minutes.
Because of lithium, the railgun is a crown jewel in the Navy’s directed energy program, which also includes several high-risk, high-payoff lithium powered laser technologies.[10]
Yet, for all America’s advanced technologies, its one great modern-day weakness is it only mines about 1.2% of the world’s lithium, it must import the rest of this critically vital metal.
Hence the sudden interest in domestic companies such as American Lithium (LIACF), which have the potential to mine untold amounts of lithium.
America’s minerals crisis cannot be understated or ignored.
The U.S. Geological Survey tracks supply of 90 minerals. Of those, 20 minerals are 100-percent imported, and 51 are at least 50 percent import reliant.[11]
That means with just one domestic working lithium mine, America’s safety, and its very way of life, is fully dependent on foreign lithium sources.
The bulk of the imported lithium comes South America and China.
China also controls most of the world’s lithium processing facilities, according to data from Benchmark Minerals Intelligence, which tracks prices for lithium and other commodities.[12]
One saving grace for the U.S. is that Albemarle Corp. (NYSE:ALB) and Livent Corp. (NASDAQ:LTHM) are two U.S.-based companies that mine lithium in South America for the U.S. market.[13]
Still, the imbalance in imported lithium versus domestic is fast becoming the U.S.’s Achilles heel.
So, it’s clear to see why there could be so much excitement about what’s going on in Tonopah, NV thanks to American Lithium (LIACF).
But, the enthusiasm for American Lithium’s property goes well beyond its historic potential.
How the lithium could be mined on American Lithium’s Tonopah property is a reason for investors to celebrate as well.
That’s because LIACF’s lithium is found primarily in claystone.
The advantage of that cannot be overstated – it’s massive.
You see most lithium is found underground. Its flooded with water forcing a briny mixture to the surface where it bakes in the sun for years, until the water evaporates, and the lithium is exposed.
Another way of mining lithium is as ancient as mining itself.
It’s hard rock mining… extracting lithium from rocks… in the same manner as gold and copper are mined… inefficient but effective.
Claystone mining is comparatively easy.
That’s because claystones are very fine grained sedimentary rocks that were deposited directly in to the salty, shallow lake which occupied the Tonopah region before drying up following the last ice age.
Lithium from claystone is recovered in days, not years.
On American Lithium’s property that lithium would be leached out of the claystone by a diluted acid bath.
It’s a method Kobler has pioneered. While it recovers as much as 95% for the lithium trapped in the claystone, Kobler’s method, using a diluted acid, is far less aggressive than the industry standard.
Kobler also says his method could be the big breakthrough lithium mining has been dreaming of.
It’s just another example of how a visionary energy explorer, such as Kobler, can transform a new company, such as American Lithium (LIACF) into a major operation.
It’s one that could reward its earliest investors for years, perhaps decades, to come.
Kobler put it this way, “We believe we have the technology to transform this entire industry worldwide… we’re racing to be more ready than any competitor in North America.”
And he better be, because all hell could be about to break loose in the lithium sector.
In fact, American Lithium’s project could be predestined for success because key lithium market-driving factors have gone absolutely crazy.
Among them are these:
Unrelenting demand is why Tesla, and the world, could quickly turn its focus toward American Lithium (LIACF).
LIACF’s vast Nevada holdings has the company poised to make history with its control of what could be North America’s largest lithium mine.
Proximity to such a mine looks to be vital to Tesla long-term success.
Because, in a secret that few in the automotive industry will admit, Tesla just about ran out of lithium in 2018.[14]
The supply shortage caused it to nearly halt battery production.
Despite the supply crunch, in 2019, Tesla made and deployed 22% of the world lithium battery power.[15]
Its 5-million-square-foot Gigafactory, in Sparks, Nevada, has been making about 20 gigawatts of battery power a year. Tesla also makes batteries in a Buffalo, NY, 1.9-million-square-foot factory.
But now, to meet demand, the Gigafactory’s goal was raised to 35gWh a year.
This is making the Gigafactory’s appetite for lithium world renowned.
That’s because it will take between 60,000 and 85,000 tons of lithium annually to keep the Gigafactory running smoothly, according to industry watchers who follow Tesla.[16]
To put that into context, the entire global supply of lithium peaked at about 270,000 tons in 2018.[17]
Tesla alone is why investors should keep their eyes on a well-run lithium exploration company such as American Lithium (LIACF).
Its lithium-rich property is but 188 miles from the Gigafactory.
But, don’t lose site of the fact that lithium is at the heart of the huge global economy.
It’s why American lithium’s proximity to Tesla’s Gigafactory is so key, because worldwide demand for lithium could exceed 390 metric tons this year.
And, there’s no guarantee that the demand will be met.
This is why EV makers will likely be forced to secure long-term supply contracts with mining companies. That’s a formula that could put a company such as American Lithium, in the driver’s seat when it comes to setting price per ton.
Because, in all, given rising demand for EVs, there’s a big reason for battery makers to secure long-term lithium supply contracts.
For, as a Global X ETF analyst reports, lithium miners are planning for scenarios where annual demand exceeds 1.1 million tons of lithium by 2025.[18]
Global X also reports that some blue-sky scenarios are estimating annual demand at 1.32 million tons of lithium.[19]
To put this all in perspective, the estimates represent a 50% revision upwards from 2019’s demand, and almost a four and a half times jump from 2018’s global demand of approximately 270,000 metric tons.
Of course, when it comes to EV’s, it’s not breaking news that electric vehicles are the headline makers that are driving the unrelenting demand for lithium.
But, we often lose sight of just how big the trend is now and how massive it is poised to become.
Their acceptance across the globe now is nothing compared to the future explosion.
Over the next three years, EVs are forecast to reach parity with internal combustion vehicles – in both price and performance.
Shortly after that happens, at least half the vehicle sales worldwide will be made up of electric vehicles powered by lithium batteries, according DNV GL, an energy consultancy.[20]
There’s no stopping the EV megatrend juggernaut now.
Even Amazon.com is on board.
That’s a big deal because Amazon delivers 10 billion packages a year. In mid-September 2019, its CEO, Jeff Bezos, pledged to make the company carbon neutral.
As the first step, the world’s largest e-commence company ordered 100,000 electric delivery vehicles from U.S. vehicle design and manufacturing startup Rivian Automotive LLC.
Amazon (NASDAQ:AMZN) and Ford Motor Co. (NYSE:F) are among the investors in Rivian. Bezos said the first electric delivery vans will be on the road by 2021, and all 100,000 will be deployed by 2024.
Amazon currently has 30,000 vehicles delivering customer orders in the United States.
The trend toward EV trucking fleets is just emerging. Anheuser-Busch has rolled out 21 EV trucks in California.
Volvo Trucks is working on building 23 heavy-duty electric trucks using a $44.8 million grant from the California Air Resources Board.
The trucks, Volvo’s first in North America, will be used to move goods at ports and distribution centers in southern California.
But, some surprise twists have made the megatrend even bigger. And, in turn added extra stress to the lithium supply chain.
Because, now, suddenly, you can stir serious luxury and high performance cars into the EV mix. That’s something lithium suppliers hadn’t really counted on.
The luxe brands, such as Porsche, have learned how to make technically advanced lithium ion batteries that can drive their EVs to speeds that will top 150 MPH.
But, the high performance batteries need to be huge – 95kWh and larger. Because it takes a lot of lithium to power a car from zero to 60 mph in three seconds or less.
By comparison, the average “underpowered” EV uses between a 10 kWh and 30 kWh Li-ion battery setup, depending on its range. Generally, 10 kWh translates to 100 miles.
And this is what is driving today’s sudden supply anxiety.
Because the smallest EV, the Nissan Leaf, uses 60 pounds of lithium in its battery, while a big EV, such as a Tesla uses more than 300 pounds of lithium… high performance cars even more.
Few analysts saw the luxury market explosion coming.
Here’s’ why.
It wasn’t long ago that Porsche claimed all-electric powertrains didn’t offer enough performance to reach the level that their customers expect from the premium German brand.
Now, Porsche is rushing into the EV game as part of a major change of strategy. Its car is called the Taycan.
Its CEO, Oliver Blume, now says that he expects half of Porsche’s production to be electric by 2023 – just three years from now that the company’s Mission E pure EV is about to enter production.
Blume said the company has plans to make 20,00 Mission EVs this year, but since it’s received 30,000 pre-orders Porsche has doubled production to 40,000 units.
Porsche’s sister brand, Audi is now starting to deliver its outrageous high-performance EV called the E-Tron SUV.
Next up for Audi is the E-Tron GT, a sporty four-door car version that’s set to go on sale in 2020. Audi’s electric lineup will also include the E-Tron Sportback, a sportier electric SUV.
Each of the Audis will be powered by a 95 kWh Li-ion battery pack. That’s about 300 pounds of lithium per E-Tron.
In all, the forecast is for 125 million EVs to hit the roads in the next 9 years, according to International Energy Agency forecasts.
And this the big factor that’s driving supply anxiety.
This is why American Lithium (LIACF) – and its potential for a historically huge mine – could ultimately become a vital cog in the lithium supply chain .
Remember, the Nissan Leaf, uses 60 pounds of lithium in its battery, while a big EV, such as a Tesla uses more than 300 pounds of lithium.
On the low end, demand for lithium for EVs alone could be 5 billion tons.
Tesla, though a big name in EV’s, will be a small player compared to General Motors, Volkswagen, Mercedes, and Ford—all of which see China and India as massive market opportunities.
GM needs to be the one of the most aggressive because it currently only has one EV, the Bolt. The company recently restructured its management in order to play catch up.
GM plans to introduce 20 EV models in China during the next 14 years. Estimates are that it will be making one million EVs a year by 2020 or 2021.
Ford plans to invest $11 billion over the next three years with a goal of making 16 fully electric vehicles by 2023.
Of course, Ford’s investment pales when compared to Volkswagen, which is dedicating $50 billion over the next five years to its EV line of vehicles.
VW’s massive investment should yield 50 all-battery EV models, which it will crank out at a rate of 2 million to 3 million vehicles a year, by 2025.
The rollout across its stable of 12 automotive brands is forecast to comprise about 15 million vehicles over the next five years as VW transforms into a maker of self-driving, electric cars.
EV’s make splashy headlines, but… one of the most exciting trends driving lithium demand is residential energy storage. These are compact units that store solar (rooftop) generated energy. They can power a home for three to four days if need be.
This market is exploding at a record-setting pace growing 9 fold between 2017 to 2018, according to Wood Mackenzie Power & Renewables, an energy consultancy.[21]
So far, since 2018, 24 states and the District of Columbia have passed –or started action – laws to make it easier for homeowners to install storage units.
The two prominent lithium-ion based units on the market today are Tesla’s 13.5-kilowatt-hour (kWh) Powerwall 2.0, and LG’s 9.3 kWh Chem RESU battery.
They won’t have an exclusive market for long, because GE and Lockheed Martin are investing hundreds of millions of dollars in research, development, and commercialization of lithium-based energy storage.[22]
This is why lithium could be one to the top investments for the foreseeable future.
In fact, Bloomberg New Energy Finance predicts that in the next 12 years, energy storage will mirror solar’s growth between 2010 and 2015, which was 700%.[23]
Moreover, demand for lithium storage batteries is growing so quickly that supply cannot keep up.
Wood Mackenzie reported that “Over the last few months, we’ve heard consistently from residential installers and distributors that they’re unable to receive residential storage systems in the quantities ordered. This outcome is heavily influenced by lithium-ion battery supply constraints.”[24]
Energy supply looks destined to be a mega trend driven by how much supply lithium miners such a can deliver to the market.
So, along with homeowners, the biggest winners will be the domestic, U.S.-based lithium miners who are ready to immediately meet demand.
American Lithium (LIACF) looks to be among the best young companies that could take advantage of the sharply rising demand.
It’s why investors need to look closely, then make their moves into LIACF while its share price still represents such an early-stage opportunity.
You’ve seen the powerful case for investing in lithium.
It’s why a legendary energy explorer’s vision led him to Tonopah, NV, where he formed American Lithium (LIACF).
Michael Kobler saw the future and was compelled to meet its demand.
And, that demand ‘switch’ has just clicked on, as Nevada is experiencing, for there’s now a mad dash to claim lithium-rich properties.
But, American Lithium is a mere 3.5 hours in a straight line from Tesla’s Gigafactory. It’s also only a half day trip to the port of San Francisco.
EVs are the future, one that’s rushing at us at breakneck speed.
EVs almost make smartphones look like a forgotten technology.…
Yet, while Pew Research reported that, “Smartphone ownership is growing rapidly around the world.”
The real story is total mobile phones worldwide.
That number is 5 billion… 5 BILLION… each powered by a lithium ion battery.
On top of that, as emerging economies grow, so do their appetites for tablets and laptops.
The world also still needs massive amounts of lithium for last-century legacy industries, such as lubricants, ceramics, glass, and pharmaceuticals.
Investing in lithium gets your foot into each of these industries. It gets your foot into smartphones, tablets, computers, electric cars, energy storage and many other areas.
All of these industries will demand more and more lithium.
That is why I see…
This is a moment in time aggressive investors do not want to miss.
Building a healthy lithium supply chain is one of the U.S.’s top priorities. Establishing an impenetrable domestic supply chain is of even greater importance.
And that will mean American companies and those that mine lithium in America.
That’s why, along with Albemarle (NYSE:ALB) and Livent (NASDAQ:LTHM)… American Lithium (LIACF) could be a strong candidate to be a vital supply-chain cog.
I know that seems like waving the flag, but it is not.
I love the Stars and Stripes, but, as I think you have seen here, investing in American Lithium (LIACF) is just simple logic.
So, I urge you to take your position now in American Lithium (LIACF) for a chance to put yourself among the earliest and biggest winners. But before you do, make sure to show your investment advisor or broker a copy of my brand new lithium sector report.
Lee Bellinger / EdgeOnTheStreet.com
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[1] https://www.linkedin.com/in/michael-h-kobler-28719548/
[2] https://www.nationaldefensemagazine.org/articles/2018/11/8/offshore-battery-production-poses-problems-for-military
[3] https://www.nationaldefensemagazine.org/articles/2018/11/8/offshore-battery-production-poses-problems-for-military
[4] https://www.usatoday.com/story/money/markets/2016/08/26/could-lithium-shortage-derail-electric-car-boom/87684224/
[5] https://www.lme.com/Metals/Minor-metals/Lithium-prices#tabIndex=0
[6] https://www.energyandcapital.com/articles/lithium-stocks-2016/76468
[7] https://www.energyandcapital.com/articles/lithium-stocks-2016/76468
[8] https://www.forbes.com/sites/oliverwyman/2019/05/15/as-more-evs-hit-the-road-blackouts-become-likely/#9cac43fdc309
[9] https://www.forbes.com/sites/williampentland/2015/01/05/u-s-navy-buys-81-million-lithium-iron-battery/#4703c7d2317f
[10] https://www.forbes.com/sites/williampentland/2015/01/05/u-s-navy-buys-81-million-lithium-iron-battery/#4703c7d2317f
[11] https://www.usgs.gov/news/risk-and-reliance-us-economy-and-mineral-resources
[12] https://www.reuters.com/article/us-usa-lithium-exclusive/exclusive-united-states-sets-sights-on-china-in-new-electric-vehicle-push-idUSKCN1RH1TU
[13] https://www.reuters.com/article/us-usa-lithium-exclusive/exclusive-united-states-sets-sights-on-china-in-new-electric-vehicle-push-idUSKCN1RH1TU
[14] https://www.autonews.com/article/20180212/OEM01/180219948/tesla-s-scramble-for-lithium
[15] https://www.mining.com/lithium-price-tesla-now-sells-22-of-worlds-battery-power/
[16] https://www.teslarati.com/tesla-gigafactory-lithium-mine-break-ground-global-shortage/
[17] https://www.statista.com/statistics/452026/projected-total-supply-for-lithium-globally/
[18] https://www.globalxetfs.com/content/files/LIT-IC.pdf
[19] https://www.globalxetfs.com/content/files/LIT-IC.pdf
[20] https://blogs.dnvgl.com/energy/ev-uptake-will-be-fast-and-vast
[21] https://www.greentechmedia.com/articles/read/led-by-surging-residential-sector-q2-us-energy-storage-deployments-grow-200
[22] https://www.edf.org/energy/energy-storage
[23] https://www.edf.org/energy/energy-storage
[24] https://www.greentechmedia.com/articles/read/led-by-surging-residential-sector-q2-us-energy-storage-deployments-grow-200