Investing in Lithium Batteries: "Two of the three top holdings in the Global X Lithium (NYSE: LIT) ETF — FMC Corp. (NYSE: FMC) and Rockwood Holdings (NYSE: ROC) — are each up more than 20% on the year.
Currently only about 23% of produced lithium goes to making batteries. With the lithium battery market slated to grow at over 18% annually, it could put a strain on lithium supply and send prices higher.
In the last two years alone, lithium demand has grown 25%. It's expected to double by 2020.
And lithium prices are rising, too. Lithium carbonate hovered around $2,000 per tonne from 2000 to 2004, but then started rising with demand. By 2009 they were at $5,000 per tonne — and are expected to hit $6,000 per tonne this year.
These companies are increasingly signing lithium offtake agreements directly with major international conglomerates.
Canada Lithium (TSX: CLQ), for example, has signed a five-year lithium supply agreement with Tianjin Products and Energy Resources Development Co. for 12,000 tonnes per year."
'via Blog this'
No comments:
Post a Comment