Before reading this, please do yourself a favor and look at the 1 year investment charts of Mountain Pass (NYSE: MP), Albemarle (NYSE: ALB), Lithium Americas (NYSE: LAC), Piedmont Lithium (NYSE: PLL), and Livent (NYSE: LTHM). These are ones of many rare earth mining and lithium companies that have had impressive climbs during the last year. EV-News.com is proud to bring you this article about why minerals makes up 50% of my investment portfolio and why minerals, such as Lithium, is the best place to put money.
Supply Chain
During the three decades, it is no secret that China has dominated the mining, processing, refining and assembling of most earth minerals. However, due to supply chain issues, the United States is looking to bring the supply chain back home for essential minerals such as rare earths and lithium and for good reason. China has been passing laws that bans export of strategic metals. The Unites States has been a bystander in the global race for energy, yet that is quickly changing and there are plenty of companies that are leading the way into energy independence. Making an Investment in the mineral companies within the United States or even Canada, Germany, Argentina, and/or Australia are financial opportunities.
*Nevada, Arkansas and the Carolinas have lithium reserves
*China dominates every aspect of Production
Video: Rare Earth
Rare Earth -
MP Materials (NYSE: MP)
Mountain Pass, California is home to the largest US based Rare Earth mine and has been in production for over 70 years (Formerly known as MolyCorp). Mountain Pass is one of the richest deposits of rare earth in the Western Hemisphere. It contains 15% of the rare earth content consumed annually. On December 9th, 2021, General Motors has secured rare earth minerals, specifically Neodymium, in order to make magnets for GM's Ultium EV Platform. The minerals will be mined and proceed at Mountain Pass and then assembled into the magnets in a 200,000 square foot facility in Fort Worth, Texas.
The Department of Defense has contributed $9.6M to MP Materials in 11/18/2020.
Mountain Pass' stock price is up 90% in the last year.
Why Rare Earths?
What do the Rare Earth Minerals have to do with EVs?
The answer is simple: Magnets
Lithium
In 2020, I wrote two articles titled "What is in a Lithium Ion Battery" and "Time to Invest in Lithium?". During the time those articles were written, leading Lithium companies such as Piedmont Lithium (NYSE: PLL), Lithium Americas (NYSE: LAC), and Livent (NYSE: LTHM) were all under $10 per share. Today all of the aforementioned companies are over $27. I predict that by the end of 2022, the aforementioned Lithium Companies, they will be over $50.
Piedmont Lithium
NYSE: PLL ($59)
On September 28th, 2020 Piedmont Lithium and Tesla signed an agreement to supply Lithium for 5 years. The stock immediately moved from single digits to $50 (I bought at $7 and sold at $35). It has reached an all time high of $88.
Lithium Americas
NYSE: LAC ($33)
Lithium America recently has announced the purchase of Millennial Lithium (OTC: MLNLF) for $400M. With production of the Caucari-Olaroz project almost in production and permits soon to be issued for Thacker Pass, Lithium Americas has the potential to become one of the largest Lithium company in the world. Thacker Pass is the largest known lithium reserve in the United States and the second largest in the world.
Thacker Pass' close proximity to TESLA's Nevada Gigafactory, presents quite the unique opportunity. If a contact were to be reached between the two, expect Lithium Americas' shares to surpass Piedmont Lithium's current price.
Livent
NYSE: LTHM ($27)
A global, sustainable, and environmental lithium technology company, Livent's global network spreads to the United States, England, China, India and Argentina. Having an international spread means diversifying into multiple companies a suggestion I highly encourage.
Video is a month old:
Honorable Mentions:
Standard Lithium
NYSE: SLI ($9)
Located in Eldorado, Arkansas. US Based Company.
Snow Lake Resources
NYSE: LITM ($6)
Canada based Lithium company.
American Lithium Corp
OTC: LIACF ($3)
Filed to be up-listed into the New York Stock Exchange.
Last company to do that was Standard Lithium.
OTC Stocks:
NTTHF, CYDVF, MLNLF, AMRZF, LTMCF, LLKKF, AMLM,
Editor-in-Chief Statement,
An opportunity to own part of the largest lithium reserve in the United States, is a unique opportunity. Having the ability to diversify our investments across boarders into Argentina, Australia, Canada and into Europe is as unique as it gets. The EV future is already here, and in return, minerals' financial value are viewed as much higher than ever before.
My EV portfolio is comprised of 50% minerals. Lithium Americas is my largest mineral position. It has been the greenest stock in my portfolio. None of this is financial advice, however, I know an investment in minerals is a fantastic place to put money.
Best,
Alan Dowden