The metal on everyone’s lips

28 October, 2022

In today’s Exponential Investor:

  • Lithium – just say no?
  • Boom or bust?
  • The last mile of company funding – the ultimate contrarian indicator

“The global scramble for lithium means that even high-profile buyers such as Tesla aren’t guaranteed Australian deals,” wrote The Australian just yesterday.

At the start of the week, the Financial Times told us “A lithium mining start-up is to create a US-listed company in a blank-cheque merger as a severe shortage of the metal has become the most serious supply chain bottleneck in the rollout of electric vehicles.”

The global hunt for lithium is on. Markets expect that lithium-ion batteries are set to dominate in the second half of this decade. Automakers are now in a mad scramble to secure a supply of lithium today to ensure they can make cars for tomorrow.

“Surely that means investors should pile into lithium stocks?” Sam Volkering asks me in this week’s Exponential Investor podcast.

“Not so,” I say. In fact, I think there’s a good chance that we are nearing a peak price for lithium… and that there’s one unloved metal investors should be looking at right now.

Click below to watch.

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Until next time,

Shae Russell
Co-editor, Exponential Investor