Lithium Mining Companies

Lithium Stocks

There is little doubt that lithium could be the “mineral of the future.”  The demand for lithium is already high because of its use in cell phone batteries, laptops and most importantly car batteries for hybrids.

So how will this effect lithium penny stocks?

It is projected by the National Highway Traffic Safety Administration that hybrid cars will be 20% of the U.S. auto market by 2015 (keep in mind this is just the U.S.).

Deutsche Bank estimates that the lithium-ion battery market will hit $15 billion this year and $40 billion in the upcoming years.  This is all due to a surge in electric cars.

A123 Systems plans to spend $2.4 billion to build factories to make enough lithium-ion batteries for approximately five million hybrid vehicles by 2013.

LG Chemical will build 10,000 400 pound lithium-ion battery packs for the Chevy Volt in the first 12 months of production. The plant will eventually bang out 60,000 annually.

These are just a few car stories.  Mercedes, Nissan, Chrysler, BMW, Ford, Jeep and Chinese auto giant Hafei are all pumping out hybrids.  In total over 75 new hybrid makes will be available in the next year.

The demand for lithium is surging!!

“Going Green” seems to be trendy now.  Not only that, but people are getting turned off by high oil prices… especially in the summer driving season.  Economically hybrid cars are a no brainer.

Lithium made the news in a big way last month when there was a huge discovery by U.S. geologists in Afghanistan that could equal about $3 Trillion worth of what is being called the “new oil.”

The gas engine made petroleum the most in-demand commodity in the world.  Although it is going to be tough, the electric car definitely has the potential to do the same for Lithium.

Demand for Lithium is expected to grow 16 times with this surge in electric cars.  World Governments are investing billions into lithium production.

There are a few companies that are going to benefit from this boom.  We have profiled a few lithium penny stocks before and have seen decent gains.  Penny stocks are predominantly news driven.  Any one of these small cap companies has the potential to sign a huge contract that could potentially increase revenues by millions.  That could turn any junior miner into a force over night.

We are definitely going to see some speculative money going into small cap lithium companies.  We have seen penny stocks surge on huge contract signings.

Definitely keep lithium on your radar and watch for small cap companies that could benefit.