While investors and markets haven’t forgotten about gold, silver, and platinum, it seems that lithium is now the commodity energising global markets and firing up investor interest.
Much of this interest in lithium is a result of recent reports of the imminent demise of fossil fuel-powered vehicles. A string of government and private industry announcements around the globe lately indicate that fossil fuel-propelled vehicles as we know them will be phased out, possibly within the next 20 years. France and Britain have already stated that they want no more combustion engines produced by 2040 and China – the world’s biggest vehicle market – recently announced that it is considering a ban on gas and diesel cars that could go into effect “in the near future”.
Volvo will introduce the first 100% electric car in China in 2019, and Ford expects that 75% of its vehicles sold in the country will have electric options by 2025.
Perhaps the biggest champion of electric cars is Elon Musk, whose company Tesla has emerged as the leader in the electric car market. The company’s stock has surged by around 66% so far this year, hitting an all-time high of US$383 per share.
All of this is good news for lithium miners, end-users of the mineral, as well as investors in lithium-related stocks.