Interested in investing in lithium in Australia? Here’s a brief overview of the basic facts investors should know about the market.
After the country became the world’s largest lithium producer in 2018, many market participants are wondering if investing in lithium in Australia is a good option
Without a doubt, the energy revolution is here to stay, with forecasts for electric vehicle (EV) sales increasing every day. As a result, demand for lithium, a key element in the lithium-ion batteries used to power electric cars, is expected to triple by 2025 reaching about 1 million tonnes in size.
For investors interested in getting into the space, here’s a brief overview of the basic facts to know about investing in lithium in Australia, including what stocks to keep an eye on.
The US currently produces no graphite, and many are wondering if graphite mining in the US will happen. Here’s an overview of the situation.
The establishment of a US graphite-mining industry has enjoyed increased interest in recent years thanks to expected growth in demand for electric vehicles.
China is the top producer of graphite by far, but for various reasons it’s not particularly easy or desirable to invest in companies mining graphite there.
Many investors are instead looking to North America for graphite opportunities, especially since Tesla’s (NASDAQ:TSLA) announcement that it plans to source the lithium, graphite and cobalt it needs for its Nevada-based gigafactory from companies working on the continent. In 2015, Tesla backed up that statement by signing two lithium supply deals with companies whose projects are in North America.
Copper is the third most used metal in the world, and demand for this important commodity is rising amid tight supply.
For that reason, market watchers may be asking, “When will copper go up?” The general consensus is that higher copper prices are needed for mining companies to invest in copper production and exploration to match demand.
“We believe significant mine supply response will be required to meet this new area of demand growth and a higher copper price will be needed to incentivize the new production into the market,” said Daniel Greenspan, senior analyst and resource team director at CIBC Asset Management, in an early 2021 interview.
Chile is home to the world’s most established copper-mining industry and continues to be a hotbed of copper exploration activity.
With a natural landscape rich in mineral resources, it’s no surprise that copper mining in Chile is one of the country’s largest industries. As the top copper-producing country in the world, the South American nation’s name is synonymous with the red metal.
Chile’s copper production is mostly based in the northern region of the country, and comes primarily from iron-oxide-copper-gold (IOCG) deposits, porphyry copper deposits that are rich in molybdenum and gold and silver by-products.
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