Lithium Rising as Electric Vehicles Take Hold

Published at Feb 9, 2017, in Features

The New Year has started with an abundance of news from the Lithium industry, as a tangible shift in the mobile energy mix appears to be taking place writes Sam Green.

Increasingly, stakeholders are expressing a view that electric motor vehicles will replace their internally combusting counterparts, with this trend likely to have major implications for the global economy over the next few decades.

In January, petroleum industry website, Gasbuddy, asked the provocative question, “Has US gasoline demand peaked?” which generated heated discussion across several economic news websites. The company estimated that US gasoline demand has topped out, and that ongoing demand for gasoline is in permanent decline. They blamed increasing oil prices, as well as the increasing prevalence (and declining cost) of electric vehicles as leading to the change.

This sentiment was echoed by the Imperial College London, in collaboration with the Carbon Tracker Initiative think tank, who estimated that 2 million barrels a day of oil demand could be replaced by electric vehicles by 2025. They furthered that such an outcome would be similar to the 10 percent loss of market share that caused the collapse of the U.S. coal mining industry. Indeed, even oil giant BP has also quietly admitted that electric vehicles could displace as much as 5 million barrels of oil demand over the next 20 years.

One of the big drivers of the uptake of electric vehicles has been the rapidly declining cost, with prices falling faster than the most optimistic of forecasts. If this trend continues, the price of electric vehicles will reach parity with internal combustion vehicles by 2020.

Leaders of the automakers Ford and Audi have also come out recently to express their view of the coming dominance of electrified vehicles, with the Ford CEO stating that “15 years from now, is that there are going to be more electrified offerings than there are internal combustion engines,”

Because of the growing prevalence of electric vehicles, consumers will increasingly be able to charge their batteries at retail gasoline outlets. Indeed, Shell, long known as a market leader in greener gasoline technologies, plans to leverage their existing service station infrastructure in the UK and the Netherlands to offer charging points for electric vehicles; with the first to be installed by the end of the year.

The revolution is not just happening in the private vehicle sector either. Tesla Motors has recently announced development of an electric truck called the Tesla-semi, which Tesla CEO Elon Musk states “will deliver a substantial reduction in the cost of cargo transport”. Commercial vehicle fleets have traditionally shied away from electric vehicles, due to concerns over range and cost; but this latest announcement from Tesla would indicate that these shortcomings are rapidly being overcome through advances in technology.

With all the ground being made by electric vehicles, manufacturers are increasingly struggling to source electric vehicle batteries, and the lithium which they contain. According to Thomas Sedran, VW’s head of group strategy, “The capacity is not there,” “Nobody has the capacity.”

Rich rewards already exist for those producing the lithium required for electric vehicle batteries, and this is only going to increase with the anticipated increase in demand for electric vehicles. In fact, Australian company Galaxy Resources recently started lithium production from their Mt Caitlin facility, which sent shockwaves through their share price. Their stock rose from mid-30 cents per share, up to just below 70 cents per share, all within the space of a few weeks. This would be incredible performance for a microcap stock, but Galaxy is a billion dollar entity.

We have also seen some exiting new lithium explorers hitting capital markets over the recent period. Not least of which a company called Lithium Consolidated Minerals Exploration (LCME), which plans to explore an allotment of land next to the leading lithium production site in North America.

The wealth of the 20th Century was largely built on the back of the oil boom, which powered our means of transportation. In the 21st century, the means of transportation are becoming electrified, and the spoils are once again likely to go to those who power our technology.

Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!