Opportunities – Undisputed growth market with huge demand and potential due to the beginning, large-scale electrification of the automobile. Furthermore, there is no substitution for lithium at the same power density in batteries. Only lithium provides high power densities in a very small space. For the next decades, there are no alternative technologies for energy storage to replace lithium batteries that can be used on a large industrial scale in sight. Therefore, if the spread of the electric car grows exponentially as expected, the demand for lithium will also explode.
Risks – Lithium investment is so far only possible via shares in established groups (including SQM, FCM, Albemarle and Junior Miners). There is no “pure” lithium share, SQM, FMC and Albemarle always buy other business areas as well. Junior Miners with lithium projects are highly speculative, most of them fail, this means a total loss of the invested capital. Furthermore there is no possibility to invest in Chinese miners, which represent 50% of the world market. Further hurdles are the high political risks in the most important producing countries Argentina, Chile, Bolivia and China.