Lithium, the lightest metal on earth, has become such a heavyweight in commodities markets that it is increasingly being mentioned in the same sentence as rare earths or vanadium. It’s not a compliment.
Once red hot, those commodities are just the most recent metals to experience a boom/bust cycle of quickly rising prices and a subsequent rush by miners into the space, only to end in burst bubbles.
Demand for lithium, a silvery-white metal called “the new gasoline” by Goldman Sachs, rose 26 per cent in 2016 and is predicted to climb another 39 per cent in 2018. By 2025, demand is projected to increase by 73 per cent as electric vehicles become more viable and an increasing number of countries, including China, tighten restrictions on gas- and diesel-powered cars. Continue Reading →