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Are You Cashing in on the Lithium Boom?

October 4, 2017
112 Shares 2,605 Views

It’s no secret at this point that the future of the automotive industry is in the electric car. GM, Mazda, Ford, and of course, Tesla, are just a few of the big names to announce their intention to go almost fully electric in the next five to ten years. Investors are looking at ways to cash in on this trend, but many are overlooking a huge potential money maker; lithium.

More electric cars means more batteries, and more batteries means more lithium demand. As one of the most essential elements for creating a long distance battery, lithium supply will be in high demand going forward.

CNBC reports that while there may be no futures contracts or exchange for lithium at the moment, that all may change:

“As lithium becomes an increasingly important metal to the tech and transportation industries, we anticipate there will be efforts to create futures contracts for the metal,” Jay Jacobs, director of research at Global X, told CNBC via email last week.

They also point to an ETF that trades on peripheries of the lithium industry for interested investors to cash in on if they are interested, known as “The Global X Lithium & Battery Tech ETF (LIT).”

Another way to get in on the lithium boom more directly is to invest in publicly traded mining companies. The Motley Fool recently compiled a list of companies such as Albermarle and SQM that are on their way up thanks in large part to their lithium mining operations. These stocks may see massive growth over the next few years as many companies make the switch to full electric.

Investors should be sure to keep up to date with the growing demand for lithium as well as  changes in the automotive industry going forward.

To read CNBC’s article on the emerging lithium trade, click here.

To read The Motley Fool’s list of lithium mining stocks, click here.

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