An invisible chain shackles America.It’s an obstruction that leaves it vulnerable and dependent on foreign powers. Contrary to what you might think, no, it’s not copper, oil, or natural gas. It’s the lifeblood of our clean energy and electric vehicle future. But fear not, for America is poised to break free from these bonds and seize control of its mineral destiny.
Mother Nature’s Metal – Lithium
In this age of uncertainty, lithium is poised to become one of the most valuable and sought-after resources on the planet, driving a revolution that could redefine the way we live, work, and interact with the world around us.This isn’t some wild speculation or far-off fantasy – it’s a reality that’s unfolding as we speak. In fact, the lithium revolution has already begun, and those who recognize its potential now stand to reap the rewards in the years to come. Lithium’s versatility is unparalleled, and its uses are ever-expanding, but one area it has a stranglehold on is the battery industry. You can find it in the batteries that power our smartphones, laptops, and other portable electronics.
- 60% of all lithium mined today is used for batteries.
But beyond the familiar, lithium is playing a more significant role than ever in the automotive industry.About 10% of every EV battery is made of lithium, with the remainder made of more common metals like nickel and cobalt. With electric vehicles (EVs) poised to displace the traditional internal combustion engine, the demand for lithium has skyrocketed. As you read this, EVs are gaining traction around the world, and they’re on track to become the dominant form of transportation within the next two decades. My own EV adoption projections from 5 years ago were incredibly wrong. Even my most optimistic demand forecasts were shattered. And that’s GREAT news. As countries around the world adopt aggressive policies to go net zero and reduce emissions, lithium sits at the heart of this revolution. Governments and automakers alike are investing billions of dollars to make EVs more affordable, more efficient, and more accessible to the average consumer. Lithium is the heartbeat – the lifeblood of the batteries that make it all possible.
Battling for Batteries: The Lithium Triangle
The so-called “Lithium Triangle” in South America – a region that’s home to more than half of the world’s lithium reserves – is already a hotbed of geopolitical intrigue, as countries jockey for position in this high-stakes race.Currently, over 80% of America’s lithium supply is imported, with the top producers being Australia, Chile and China. The United States, alarmingly, is home to only 1% of global lithium production. With such a staggering reliance on foreign lithium, America finds itself at the mercy of other nations, risking its energy security and economic stability. But a bold plan is taking shape, one that will reduce dependency and strengthen America’s self-sufficiency in lithium production. The American lithium revolution is characterized by federal support for domestic lithium mining and production, investment in cutting-edge lithium extraction technologies, and the development of a robust lithium recycling industry. With an ambitious vision and unwavering determination, America is ready to take the lithium world by storm, securing its place as a global leader in lithium production and reducing its reliance on foreign suppliers.
To provide a supportive environment for domestic lithium production, the U.S. government is streamlining permitting processes for lithium projects, encouraging public-private partnerships in lithium exploration and mining.In fact, the U.S. government deemed lithium a critical mineral as early as 2018. And it’s offering financial incentives for lithium production within the United States. By doing so, the government is laying the groundwork for a thriving lithium industry that will fuel America’s clean energy future. The country is supporting research and development of new lithium extraction methods, which aim to reduce environmental impacts of lithium mining and decrease production costs to compete with global producers. In its quest for lithium independence, America is also embracing the wise adage, “waste not, want not,” by developing a robust lithium recycling industry. The United States is promoting lithium-ion battery recycling programs, encouraging battery manufacturers to design products for easy recycling, and investing in advanced recycling facilities and technologies. By doing so, the country will ensure that valuable lithium resources are reclaimed and reused, reducing the need for foreign imports. The stakes are high, but the potential rewards are even greater. By breaking free from its dependence on foreign lithium, America will secure its clean energy future and take control of its own destiny. The time for action is now, and the United States is rising to the challenge. And it’s not just governments that are getting in on the action… Corporate giants like Tesla, General Motors, and Apple are all vying for a piece of the lithium pie, as they seek to capitalize on the surging demand for EVs and portable electronics. At the recent BMO Metals conference, where major institutions, high net worth investors and power players meet every year – there was significant automotive representation for the first time. Think to yourself, why. For investors, the stakes have never been higher. With the global lithium market projected to grow exponentially, the rewards of early and strategic investment are immense. However, as with any nascent industry, there are risks and uncertainties that must be carefully weighed. As lithium’s importance grows, so too does the responsibility of investors to educate themselves on the intricacies of this vital sector. Moving ahead into this radicle new world through the 2020’s, it is essential to remember that the future is not yet written. Lithium may hold the key to unlocking a cleaner, more prosperous, and more stable world, but it is up to us to harness its potential responsibly. The Lithium Revolution has only just begun, and it is our collective responsibility to shape it into the force for good that it can be. As we navigate the lithium revolution, it is crucial to remain informed and engaged, understanding the complexities of this emerging market. We invite you to join us, in exploring the impact of lithium on our global economy, environment, society, and investments. That’s why, over the coming months in a special series, we’ll delve deeper into the lithium market. Get ready to embrace the Imminent Lithium Revolution and unlock the vast potential of this hidden element. Your portfolio will thank you. Regards, Marin Katusa
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