We're talking about exposure to a lithium battery market that's expected to hit $15 billion by 2010. . .and quite possibly $30 billion within a few short years.
Already, some of the world's biggest players are wasting no time claiming their stake:
- Korea and Japan are busy collecting hundreds of tons of potential reserves in Australia.
- The U.S. government is providing up to $25 billion to start-up production.
- China just invested close to $430 million to build a refinery on the Yangtze River.
- Warren Buffett recently announced he would invest $250 million in a Chinese electric car company—even though he knows nothing about electric cars.
Starting in 2010, automakers around the globe will start flooding the market with electric power cars:
- Mercedes will launch its hybrid sedan in early 2010.
- Tesla Motors already delivered its Roadster, an all-electric two-seater car.
- Nissan will produce 150,000 electric cars.
- Ford is bringing to market a commercial fleet van in 2010, with plans to manufacture an electric Focus by 2011.
- GM is betting on the success of its new electric hybrid car, the Chevy Volt, in 2010.
Lithium production could now reach 176,000 tons by 2018. And only 10% of that will go into cars.
But that's only enough for about 280,000 cars.
The companies that should benefit. . .There's always , which our own Brian Hicks recommends. It's well-funded and debt-free, with $7.3 million cash on the books. They recently completed a $5.5 million private placement in May of this year and have a market cap of 70 million.
Sure, the stock is up a lot this past year. . .but we believe the lithium bull market (one that could mirror the uranium-style bull market), is just getting started.