Where Should Investors Be Looking As Lithium Continues Its Bull Run

While prices for a range of global commodities remain the gutter, lithium is one commodity that is in the early stages of a long-term bull run

LONDON--()--Consumer electronics established the market for lithium, but the advent of the electric car industry is creating a rush for lithium and driving up prices as producers scramble to keep up with demand. Tesla is set to bring its massive Gigafactory online next year, a factory that is set to consume over 20,000 tons of lithium at full tilt, and major automakers are rolling out EV models to keep up with Elon Musk. The appetite for Lithium is exploding.

Goldman Sachs described lithium as the “new gasoline,” a market that could triple in size over the next decade. On May 12, Reuters described Lithium as the hottest commodity in the world, but also noted that there are few pure play lithium producers.

But Lithium X is one company that offers a chance for investors to profit. The Canadian startup company has assets in Argentina and Nevada, two areas where much of the world’s lithium supply comes from. It is a new player and so has a small valuation relative to its potential, but the upside is clear. Lithium X has stitched together the largest land holdings in Nevada’s Clayton Valley, the only region in the U.S. that is producing lithium.

Lithium X is also progressing on its assets in Argentina, where several catalyst opportunities exist for investors – the company will release an updated resource estimate at its Sal de los Angeles deposit in Argentina in August.

Lithium X went public last year and has a tight share structure. The company’s top executives also have successful track records, and even has some legendary veterans from the mining sector, including Frank Giustra. Their Executive Chairman, just last week, sold his 4th resource development company for $129 million, adding to his stellar track record of shareholder value creation that consist of other tombstones including Energy Metals ($1.8 billion), Potash One ($434 million), and Lithium One ($112 million).

We are on the verge of spectacular growth in the lithium market, and Lithium X is one of the few companies in which investors can get behind top management early in the companies life.

By. James Burgess of Oilprice.com

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