1. Lithium = Energy and Money
Energy can neither be created nor destroyed, but can be STORED, kudos to
lithium. Lithium is the third element in the chemistry periodic table but it
certainly holds the first position in energy storage industry.
Used in medical industry as a mood stabilizing drug, the revelations of
lithium in this article will definitely lift your mood. This article talks about
certain aspects of lithium such as chemistry, production, uses, stock returns
and its future.
Lithium, a soft silver white alkali metal, is by far the lightest metal found on
earth. It is highly reactive and flammable. This rare earth element is found
in majorly in countries such as Chile, Argentina, China, Australia, Brazil,
Canada, Portugal and so on. Its overall production in 2014 stood at 40,900
tons in 2014(Source:-www.investingnews.com) accounting for around 13%
of total rare earth by value.
Lithium is extensively used in the manufacturing of energy storage and
supply devices, commonly known as battery. Almost all battery now a days
starting from watches to power grid, use lithium ion battery. The major
reason for growth of this market is its excellent energy storage to mass
ration.
The lithium ion battery market is more than 22 billion in 2015. Some
market research firms estimate that due to fast growing application
markets such as consumer electronics(cell phone, smart watch, laptop, and
portable electronic gadgets), automobiles (hybrid and electric), and
commercial power storage (renewable energy, real estate & power backup),
2. this market is slated to grow at a CAGR of around 15-18%. This figure
suggests that stocks related to lithium metal value chain are going to
transcend into excellent returns. Over the last ten years stock of mining
companies, battery manufacturers, and allied industries have soared great
profit margins, often reaching upto a figure of 17-35% RoI.
Folks, however, taking into the consideration of declining stocks of oil and
gas industry, the bears & bulls of stock market have carved a niche for
themselves in the lithium and other rare earth metals.
The future of lithium ion industry looks promising based on the future
prospects of exponential growth in electric vehicle and energy storage. Start
investing in atomic number 3 and become energetic and rich.
Author:- Saswat Sourav Panda
Research Analyst, Energy & Power
TechSci Research.
