Friday, January 15, 2016
Lithium the clean energy metal
It is not a big business: lithium accounts for only about 5% of the materials in some car batteries, and for less than 10% of their cost. Worldwide sales of lithium salts are only about $1 billion a year. But the element is a vital component of batteries that power everything from cars to smartphones, laptops and power tools. With demand for such high-density energy storage set to surge as vehicles become greener and electricity becomes cleaner, Goldman Sachs, an investment bank, calls lithium “the new gasoline”.
The chart of the lithium price that accompanies the linked to article shows that the lithium price has spiked to $12,000 per ton. This is because of inclement weather in northern China that is affecting lithium production there. Nevertheless this is still a great mid to long term speculation and I do expect a bubble to form in lithium stocks.