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The following content is sponsored by EnergyX

4 Reasons Why You Should Invest in Lithium

Lithium’s importance in powering EVs makes it a linchpin of the clean energy transition and one of the world’s most precious minerals.

In this graphic, Visual Capitalist partnered with EnergyX to explore why now may be the time to invest in lithium.

1. Lithium Prices Have Dropped

One of the most critical aspects of evaluating an investment is ensuring that the asset’s value is higher than its price would indicate. Lithium is integral to powering EVs, and, prices have fallen fast over the last year:

DateLiOH·H₂O*Li₂CO₃**

Feb 2023$76$71

March 2023$71$61

Apr 2023$43$33

May 2023$43$33

June 2023$47$45

July 2023$44$40

Aug 2023$35$35

Sept 2023$28$27

Oct 2023$24$23

Nov 2023$21$21

Dec 2023$17$16

Jan 2024$14$15

Feb 2024$13$14

Note: Monthly spot prices were taken as close to the 14th of each month as possible.
*Lithium hydroxide monohydrate MB-LI-0033
**Lithium carbonate MB-LI-0029

2. Lithium-Ion Battery Prices Are Also Falling

The drop in lithium prices is just one reason to invest in the metal. Increasing economies of scale, coupled with low commodity prices, have caused the cost of lithium-ion batteries to drop significantly as well.

In fact, BNEF reports that between 2013 and 2023, the price of a Li-ion battery dropped by 82%.

YearPrice per KWh

2023$139

2022$161

2021$150

2020$160

2019$183

2018$211

2017$258

2016$345

2015$448

2014$692

2013$780

3. EV Adoption is Sustainable

One of the best reasons to invest in lithium is that EVs, one of the main drivers behind the demand for lithium, have reached a price point similar to that of traditional vehicle.

According to the Kelly Blue Book, Tesla’s average transaction price dropped by 25% between 2022 and 2023, bringing it in line with many other major manufacturers and showing that EVs are a realistic transport option from a consumer price perspective. 

ManufacturerSeptember 2022September 2023

BMW$69,000$72,000

Ford$54,000$56,000

Volkswagon$54,000$56,000

General Motors$52,000$53,000

Tesla$68,000$51,000

4. Electricity Demand in Transport is Growing

As EVs become an accessible transport option, there’s an investment opportunity in lithium. But possibly the best reason to invest in lithium is that the IEA reports global demand for the electricity in transport could grow dramatically by 2030:

Transport Type202220252030

Buses 23,000 GWh50,000 GWh130,000 GWh

Cars 65,000 GWh200,000 GWh570,000 GWh

Trucks 4,000 GWh15,000 GWh94,000 GWh

Vans 6,000 GWh16,000 GWh72,000 GWh

The Lithium Investment Opportunity

Lithium presents a potentially classic investment opportunity. Lithium and battery prices have dropped significantly, and recently, EVs have reached a price point similar to other vehicles. By 2030, the demand for clean energy, especially in transport, will grow dramatically. 

With prices dropping and demand skyrocketing, now is the time to invest in lithium.

EnergyX is poised to exploit lithium demand with cutting-edge lithium extraction technology capable of extracting 300% more lithium than current processes.

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The post Charted: 4 Reasons Why Lithium Could Be the Next Gold Rush appeared first on Visual Capitalist.

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