You can see here it’s starting to get a bit priced in…. But also if you saw the supply amount on this chart you’d see it spiked as the lithium price dropped
I want to invest in lithium batteries
Many countries are subsidizing electronic vehicles which use hilariously huge batteries compared to everything else. Right now I think around 30% of new cars are electronic, and this number keeps rising. Most of car purchases are in developed countries that can afford it. Lithium is non renewable and supply might not keep up with the demand, making the price increase.
Now, it’s not exactly anything new. There actually was a spike in lithium prices exactly because of this reasoning and a crash because 1) people started searching for more lithium sources 2) China stopped subsidizing EV or something.
I still think those reasons are valid long term, though. I want to invest in lithium.
Let’s see what chatgpt says about our little idea.
>You're investing in one (or more) of these:
>Lithium commodity prices
>Lithium miners
>Battery manufacturers
>The EV ecosystem
>These can behave very differently.
Understandable. I was actually thinking about investing into those companies that try to recycle materials like lithium (I believe they may become more relevant in the future) but honestly I do not have a specific plan for what that means exactly. Does that mean I’d have to invest into a company and if so which one. That’s the question.
> A useful analogy is oil. Global oil consumption increased massively for decades, but that didn't automatically make oil producers fantastic long-term investments.
It’s trying to say that just because we will need more lithium doesn’t mean it’s inherently a good investment. Well, you can see why in the 21-22 boom - the shortage got solved.
>Many commodity booms create wealth for the lowest-cost producers rather than for the commodity itself.
>Suppose lithium prices double:
>High-cost mines become profitable.
>Low-cost mines become extremely profitable.
>Battery manufacturers may actually suffer because input costs rise.
>In that scenario, miners outperform battery companies
Good point I think
>Investors often identify the correct trend but the wrong asset.
>Examples:
>The internet won, but many internet companies failed.
>Airlines transformed travel, but airline stocks were often terrible investments.
>Solar power won, but many solar manufacturers went bankrupt.
Good things to keep in mind.
I actually know so little about investing I didn’t really think of those points.
It is a timeless warning. From the fatal over-extraction of finite resources to the endless pursuit of short-term profits at the cost of long-term survival, the warning echoes Mahatma Gandhi's timeless words: "Earth provides enough to satisfy every man's needs, but not every man's greed."Whether greed acts as a slow rot eroding empathy or a catalyst for environmental collapse, it frequently blinds us to the damage we cause in the process. It may very well lead to your downfall.
