The introduction of the Chevy Volt this week has investors searching for a way to profit from the move into electric cars. Buying the automakers is not the best play - the one thing all automakers have in common is they will need the lithium-ion batteries to power the vehicle.
The lithium that will provide the power to the batteries will be a constant in electric cars and the clear cut winner in the shift to electric vehicles. I believe in this so much that I dedicated a section to lithium in my new book coming out in October, “The Next Great Bull Market”.
Highlights
- Nearly 50% of the world’s lithium supply comes from Bolivia
- The country is not the most stable and have been known to nationalize industries and could dramatically hurt supply as demand increases
- Three lithium plays
- Chemical & Mining Company of Chile (SQM) - largest lithium producer in the world; Chile is the 2nd largest source of lithium.
- Rockwood Holdings (ROC) - accounts for about 30% of the lithium in the world, making it the #2 supplier
- FMC Corp (FMC) - the number three play making up about 5-10% of the lithium production and recently added to the S&P 500
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