Little Lithium Big Potential

Kar Yong
3 min readNov 9, 2022
Photo by Mika Baumeister on Unsplash

In the previous post, we explored the conversation on EVs where we discussed on how there might be a tipping point for the EV space, and a growing demand for it.

In today’s post, we’ll further the conversation on one of the raw materials needed to mass produce EVs — and that’s gonna be battery-grade lithium.

Quoting BCG, “By 2030, a shortage of lithium is forecast to be hitting in full force.”

From the World Economic Forum, “The world could face lithium shortages by 2025, the International Energy Agency (IEA) says, while Credit Suisse thinks demand could treble between 2020 and 2025, meaning “supply would be stretched”.

The race to secure lithium supplies is on.

From the two diagrams above, demand for lithium is expected to keep growing, and with a limiting supply, it’s no doubt that lithium prices has doubled in this year alone.

The question is how can we position ourselves to take advantage of the anticipation of this secular trend?

As covered in the previous post too, one way is to look into lithium mining companies. And one of the top companies to pay attention to is Albemarle Corporation (ALB).

Currently, Albemarle Corporation is the world’s largest lithium producer. It operates at the Chilean resource of Salar de Atacama in partnership with the second biggest producer, Sociedad Química y Minera de Chile (SQM). Salar de Atacama is home to almost a quarter of the world’s current supply of lithium and has been in operation since the 1980s.

Albemarle also has assets in Nevada, U.S., and Australia. Its Clayton Valley operation is the only source of lithium production in the United States.

As of this writing, ALB is trading at a all time high, while the overall equities market have been in a bear market.