New Energy Weekly – Lithium looks broken

Lithium looks broken

As I wrote in the Grove essay this week, oil giant ExxonMobil is about to go into the lithium production business. They plan to use a technique called “Direct Lithium Extraction” (DLE). 

Engineers worked on that process for years. It sounds like Exxon’s team figured out how to do it. It’s a faster, more efficient, and much greener way to produce lithium than evaporation ponds or hard rock mining. 

Exxon claims that it will be able to produce the equivalent of 1 million electric vehicles’ (EV) worth of lithium per year by 2030. That’s a whole lot of lithium. And if Exxon is doing it, you know the other major oil companies will be right on their tails. 

The lithium price is already falling, as I showed in the essay.

According to Trading Economics, the lithium carbonate price fell below $14,000 per metric ton for the first time since 2021. That’s an 81% decline this year alone.

For you traders out there, this could be an ideal time to short some of the high-flying lithium companies that don’t have production. Because when ExxonMobil comes into the market, they are going to put a lot of them out of business.

If this is something you would like to hear about, please email us at wecare@mangroveinvestor.com. If we get a positive response, we’ll put together a special opportunity report for you. It will be our holiday gift to you!

The benefit is that falling lithium prices will make batteries less expensive. That will spur more demand for everything from cars to bikes to boats etc. And it will have a positive effect on the entire electrification movement. 

For the Good,

Matt Badiali