This resource company mines a key ingredient for electric vehicles—a booming market.
Lithium Americas Corp. (LAC)
From Energy Investor
Lithium Americas Corp. (LAC) probably needs no introduction. This company explores for lithium deposits and holds interests in the Caucharí-Olaroz Project in the Jujuy province of Argentina. The company’s Lithium Nevada Project covers approximately 15,233 hectares in northwestern Nevada.
Our lithium players were hit hard last year. However, the last thing we want to do is panic and head for the exit. I think most investors are grossly underestimating the sheer amount of demand growth the world will have for energy metals over the next few years. Lithium is no exception.
Of course, right now, roughly 90% of global lithium supply comes from brines. I’ve ranted before on the lithium triangle located in Chile, Bolivia, and Argentina, where huge brine-filled lakes produce a large portion of the world’s lithium. I also want you to keep in mind that this process is far from perfect. There are some serious drawbacks to brine-based lithium, from weather-related issues to the fact that it can take upwards of 18 months for these salars to produce lithium.
Yet without this key lithium source, we can all but cancel the world’s transition to electric vehicles. You and I both know that won’t happen, which is why we remain wildly bullish on lithium demand growth. Lithium Americas Corp. is now rated a buy under $5.
Keith Kohl, Energy Investor, www.angelpub.com, 877-303-4529, February 2019