Electric car maker’s 500,000-vehicle ambition sparks spike in lithium demand.
If you owned shares in Lithium X Energy Corp. (TSX-V:LIX) on February 17, you were probably pretty happy on February 18 – and doubly happy now, as long as you didn’t sell.
Lithium X shares spiked more than 1,200%, from $0.07 to $0.95 per share on February 18, following the news that it had acquired a lithium property in the Clayton Valley in Nevada – one of the world’s lithium hot spots.
Shares continued to move up when the company announced March 3 that it had entered an agreement to acquire 50% of a lithium property in Argentina and were trending in the $1.20 per share range last week. They closed at $1.61 per share on April 5.
But if you want to make sure your shares continue to increase in value, you should buy a Tesla. And if you’re not ready to buy an electric car just yet, you might want to factor that into your investment strategy when it comes to lithium, according to Mercenary Geologist’s Mickey Fulp.
After all, it’s Tesla Motors CEO Elon Musk’s stated ambition to produce 500,000 electric cars by the end of this decade that appears to be churning the lithium space into such a frothy state – that and a growing demand in China.
Lithium carbonate prices rose 15% in 2015 to US$7,500 per tonne, according to Scotiabank’s December commodity index. Predictions are that prices will continue to rise as demand for lithium-ion batteries increases in the coming years.
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