September 11th, 2008 at 2:18pm
Listen to this story:
The global demand for lithium is about to go up dramatically because car companies need it to make advanced batteries. China is buying up all the lithium it can, and it’s developing its own sources, which are mainly located in Tibet. Hey, maybe that’s another reason why China is so keen on keeping Tibet.
Anyway, lithium is kind of like oil shale. There’s a lot of it out there, but it’s not easy or cheap to get at. As a result, global supplies are tight and prices could be ready to start climbing a lot.
So far, lithium is not traded on any commodity exchange, but plans are in place to do just that. And you watch, once lithium starts to get traded like any other commodity, and once investors realize how much the auto industry is going to need it, prices have no where to go but up.