Electric vehicles are a hot topic and you’ve surely seen the headlines about the Tesla Model 3, the Chevrolet Volt (and more recently the Bolt), and other attention-grabbing automobiles in this niche. It’s fine to invest in one electric vehicle manufacturer or another, but what if I told you that there’s one thing that all of these vehicles must have? And, what if I also told you it’s a rare element that’s in short supply and huge demand? Wouldn’t you want a piece of that action?
There’s a massive paradigm shift happening now in the global automotive market, and this shift requires one thing in order to function: lithium. Lithium-ion battery technology is an indispensable part of the electric vehicle revolution, and this revolution is happening right now. Consider Volvo’s announcement that it will launch electric and hybrid vehicles in 2019; Volkswagen’s commitment to launch more than 30 electric cars by the year 2025; France’s statement that it will ban diesel and petrol cars by 2040; and Germany’s announcement that it will impose a mandate for all new cars registered in the country to be emissions-free by the year 2030. It all adds up to a global movement towards electric vehicles which will all require the power of lithium.
Due to the surge in demand for electric vehicles, the global demand for lithium is taking off like a plane going down the runway:
Courtesy of Industry Reports, BMO Capital Markets
This should be no surprise when we consider how powerful lithium is. Lithium-ion batteries have a tremendous energy storage capacity relative to their size and weight, and these batteries are extremely efficient and generate less pollution compared to traditional batteries. And as we can see in the next chart, lithium isn’t only for making batteries:
Courtesy of Angel Publishing
However, this element is in short supply, and to make matters more challenging, very few nations are both lithium-rich and mining-friendly. Because it meets these criteria, and because it is the world’s lowest-cost region for lithium production, Chile is considered the gold standard of lithium-rich nations. But not just any mining company has permission to mine lithium in Chile, and special type of partnership with the Chilean government is required to do this.
There is a company that meets this requirement perfectly: Wealth Minerals Corp. (TSXV:WML & US:WMLLF). With the Chilean government having a 10% stake in Wealth Minerals Corp. and the state-run National Mining Company of Chile partnering with this company, we’re talking about privileged access to a super-rich source of lithium. Founder and CEO Henk Van Alphen has an impressive track record with Corriente Resources, International Tower Hill, Cardero Resources, Trevali Mining, and Balmoral Resources, and without a doubt, his next big winner is Wealth Minerals Corp.
If one-third of global lithium production comes from Chile, and Wealth Minerals Corp. has privileged, government-backed access to premium Chilean lithium mines… it all adds up to huge growth potential for investors. I strongly suggest considering a position in this company while it’s near its 52-week low and a turnaround is imminent. Mark my words: Lithium will continue to be supremely important – and so will Wealth Minerals Corp.
Future Money Trends
*Financial Times (https://www.ft.com/content/cde8f984-43c7-11e6-b22f-79eb4891c97d)
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