Why Investors Love Lithium
Lithium powers the world – literally. You’re probably reading this article on an electronic device powered by lithium-ion batteries, unless you’re old school (just saying).
If lithium were a person, he would sit confidently at a posh café, smoking a cigar with his legs up on the coffee table, casually ignoring the no-smoking sign on the corner.
Lithium is a powerful element. It may go unrecognized by the majority, but investors know the value of the metal. It’s used not only in portable electronic devices like laptops, smartphones, and tablets, but also in electric cars, which are bound to gain popularity over the next few years.
Bloomberg New Energy Finance predicts that lithium demand will increase more than 30-fold by 2030. As more people buy electric vehicles, automakers will try to get their hands on lithium as fast as they can.
Fear of a lithium shortage has already tripled prices for the metal. However, miners are trying to increase lithium production in the United States (US). According to Reuters, miners in North Carolina, Nevada, and at least six other states are trying to revive the US lithium industry.
The miners are confident that they will get orders from battery and vehicle manufacturers in the US, who would prefer locally sourced lithium over lithium from China.
Bloomberg calls lithium “the new gasoline.” It’s basically an eco-friendly version of oil. Electric cars powered by lithium don’t emit harmful fumes that harm the environment.
And that’s not it. Lithium medication and medical devices are saving lives. Lithium is used to treat the symptoms of bipolar disorder. Users of lithium medication say it reduces mood swings and depressive thoughts.
Tiny lithium batteries power medical devices called implantable cardioverter defibrillators (ICDs). These are surgically placed under an individual’s collarbone. Doctors use it to regulate irregular heartbeats in a condition called arrhythmias.