Lithium Battery Stocks

Nick Hodge

Posted September 1, 2009

 

UPDATED: Visit our http://www.wealthdaily.com/resources/lithium-mining-companies resource page for updated information on investing in the lithium sector.”

 


 

 

The cars of tomorrow will be drastically different than the cars of today.

You can see it happening all around you. . .

From the biggest automakers to the tiniest of start-ups, the focus of the industry is changing. Once obsessed with horsepower and headroom, the focus has now shifted toward efficiency.

And the evidence is everywhere.

Cash for clunkers depleted $1 billion in less than one week. The following $2 billion went almost as quickly.

And when’s the last time you saw a car commercial that didn’t tout how many miles per gallon the car got — whether for an SUV, pick-up, or sedan.

The demand is obvious. . . and manufacturers can’t increase efficiency fast enough with the traditional internal combustion engine (ice).

In order to satiate a seemingly exponential appetite for more efficient cars, the industry is undergoing rapid transition.

Lithium’s Nirvana

The appetite has grown so fast that in order to maximize efficiency, automakers are increasingly turning to alternative fuel sources.

And as you probably know, the automobile fuel of the future is electricity. It’ll be a multi-billion dollar transition that will spur legendary profits.

Some of them are already being made.

Warren Buffet recently posted a $1 billion return on a $250 million investment in a Chinese electric vehicle manufacturer. (Green Chip International members earned 300% on the same play.)

But it wasn’t the cars that attracted him to this play. . . it was the battery. He knows they’ll be as crucial to the car industry of tomorrow as oil is today.

And here’s where it gets good: the batteries that company produces aren’t even the best available technology — they use iron phosphate.

The big money will be made from lithium batteries. . . the same ones powering your high-end cordless drill and laptop.

From the Chevy Volt to the Tesla Roadster, lithium is the battery of choice. And lithium’s market share will only grow.

For savvy investors, this is creating a monumental profit-taking opportunity.

Investing in Lithium

You have to act quickly if you want to get ahead of this profit curve, as the trend is already starting to garner mainstream attention.

According to MoneyWeek:

This soft, silver-white metal is used in the manufacture of pharmaceuticals, lightweight alloys for aircraft, glass, heat-resistant cookware, high-spec lubricants, air conditioners, synthetic rubber and aluminium.

But its most exciting use is in rechargeable batteries. Lithium products already power some 90 per cent of laptop computers and more than 60 per cent of mobile phones, with big future potential in battery-powered vehicles and power tools.

And news outlets were quick to report this month when:

  • Dow Chemical (NYSE: DOW) received a $161 million federal grant this month to develop a new generation of high-power lithium batteries

  • GM, Chrysler, and Ford received $400 million to make advanced hybrid, electric vehicles, and batteries

  • Johnson Controls (NYSE: JCI) and A123 Systems got $550 million to establish a manufacturing base for advanced auto batteries

  • Compact Power received $151.4 million to make lithium batteries for the Chevy Volt

  • Saft America was awarded $95.5 million to produce lithium-ion cells and battery packs for industrial and agricultural vehicles

I could go on. . . but you should see the trend here.

Thing is, investing in any of the companies above won’t give you direct access to future lithium profits. The businesses of Dow Chemical, Johnson Controls, and the other companies listed above are too diverse to be considered pure plays on lithium.

In fact, the author of the aforementioned MoneyWeek piece goes as far as saying, “It’s very difficult to invest in lithium. I have not been able to find any pure plays.”

Luckily for you. . . he’s wrong.

Three Lithium Plays for You

Listen, the time to invest in lithium is now. This is your shot at the Ford of the early-20th century.

The Minerals Yearbook released by the U.S. government calls it, “the most attractive battery material.”

And I’ve found three pure plays that will allow you to harness its growth by going directly to the source: the miners and producers of the increasingly valuable raw material.

All three are available in a report I just released to the Alternative Energy Speculator community of investors. In it, I detail the ins and outs of the lithium market, where and how it’s produced, and the companies that will offer the highest gains from its increased use.

The report, called “The Lithium Low-Down,” is currently only available to members. But the potential here is so lucrative that I want everyone to have risk-free access to it.

Simply sign-up for the Alternative Energy Speculator to receive instant access to the report. When you do, you’ll also have access to everything else the service has to offer, from our in-depth company profiles to our industry-leading portfolio.

And I’ll even take on all the risk. If you don’t like the report, the stocks in the portfolio, or anything else, for that matter. . . you pay nothing. Just let me know in the first 30 days if you’re not satisfied. . . although I’m sure you will be.

Click here to get access to the report today.

Call it like you see it,

Nick Hodge

Nick

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