Lithium Battery Market to Hit $15 Billion in 2010


"we believe the lithium bull market (one that could mirror the uranium-style bull market), is just getting started"

The lithium buying mania has only just begun, as investors and governments scramble for a way to cash in. . .because even they know that lithium could soon replace 148 billion barrels of oil—or trillions of dollars in black gold revenue.

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.
As with oil, there's not enough lithium to go around.

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.
But here's what should really tick off OPEC producers: The Volt is expected to run 40 miles at a time before touching any oil.

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.

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