Ah, the 1990s: grunge music, NBA basketball golden days, “Hammer-pants”, the rise of the Spice Girls and, of course, General Motors’ futuristic, all-electric EV1.
Actually, in the 1990s the abundance of electric-powered devices, transportation… anything was limited to the stuff you’d plug into the wall. Kettles, toasters and microwaves in and near the kitchen, hairdryers near the bathroom…
The idea of long-range, high-capacity lithium-ion battery tech was pretty cutting edge, and expensive. Granted our Sharp MD-MS722 MiniDisc player had a rechargeable lithium-ion battery in it, but that was the latest thing fresh out of Japan.
However, battery tech back then was still a long way from where we are today.
For example, if you wanted to power a house for a day in the 1990s using lithium-ion battery tech, you’d have needed to be filthy rich.
It would have cost around $75,000 for a battery that would weigh about 113kg and be about the size of a beer keg.
Today, it would cost about $2,000 and weigh just 40kg.
So in 30 years the cost of lithium-ion tech has cratered (in a good way) and the actual cost of lithium has also radically fallen.
However, while 30 years is a relatively short period of time to see such progression, what investors want to know today is this: why on earth has the price of lithium increased over five-fold in the last year?
Does this mean that we’ll be heading back to cost per kilowatt-hour of the 1990s? Is the 1990s revival extending past fashion and into the resources sector?
Or does the availability of better and more efficient tech help keep those costs down?
Furthermore, as an investor, when you see the price of lithium skyrocket like this, how do you play it?
Do you look to the domination and control of the market by the big miners and producers? Or do you work your way down the size scale (and up the risk scale) to the junior lithium miners?
When the survival of a penny-stock lithium miner rests on a successful set of assay results or feasibility study, you can be assured of a roller-coaster ride…
So do you onboard risk for potential riches, or play the “safer” game by sticking with the big boys?
We dive into why lithium is skyrocketing, what it means and how to play it as an investor in today’s Exponential Investor Podcast.
And we find out what are three key things Kit Winder looks for when picking out the good from the bad in the junior lithium mining sector… a must watch for any prospective lithium investor!
Find out in this episode of the Exponential Investor Podcast.
For more expert financial analysis from the Exponential Investor team, go to: https://www.exponentialinvestor.com/
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