Forget Oil, Invest in Lithium !

Only a few years ago nobody believed that electric cars and lithium-ion batteries will conquer the world.
Today, however, lithium-ion batteries are cited as new super-material under the dominance of which will pass the next century.

Why invest in oil now?

Currently, the pioneer in electric vehicles in the face of the US company Tesla, is in an advanced stage of construction of the plant for batteries in Nevada during the past week.

Apparently, Tesla wants to close the production cycle and to dominate the sector for production and storage of clean energy.

The world also is ready to pay more attention to electric vehicles. This became clear after record orders of affordable electric Tesla - in the face of a Model 3.

Germany has already voted that all new cars in the country should be emissions free until 2030. To achieve this, the government together with the manufacturers reached an agreement to jointly invest in the electric car industry $ 1.4 billion. It is hoped in Germany to sell 500,000 electric cars by 2020.
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Norway follows the example of Germany with even more ambitious program.They set period of 2025 to get rid off petrol and diesel cars.
Analysts say the growth in sales of electric cars will bring to reduce oil consumption by between 5 and 20 percent over the next two decades if electric cars take up more than 35% of car sales worldwide by 2035.
Strong demand for lithium, lead to exceptional growth in the price of the metal, which is traded at levels of 15 000 dollars in spot market, compared to only 5000 dollars a few years ago.
In 2014 the price of lithium added 20%, and last year metal rose in China from 7000 dollars in mid-year to over 20,000 dollars per tonne earlier this year.

Consumption of lithium can be tripled from 160,000 metric tons to over 470,000 metric tons by 2025, according to forecasts of analysts. And even if the market share of electric cars will grow by only 1%, it will increase demand for lithium with 70,000 metric tons.