We’ve gotten a lot of questions about the latest spiel from Marin Katusa, so I’m going to take a few minutes to dig into that today. I’ll warn you up front that I probably can’t be definitive about answers, because it looks like the ad doesn’t go into much detail on this “best lithium stock in the market” … but I can at least provide some educated guesses this time around, and get you started on your research.
The ad itself is mostly about the big picture demand for lithium, which relies heavily on increasing demand for electric cars. The logic of the argument is very compelling, as it has been for the past five years or so — projections for electric car demand rising, and the assumption that lithium will continue to be a major component of the most popular batteries for electric cars (graphite is the other, but graphite is cheaper and more plentiful), provide us with a pretty clear ramp-up in expected demand. That’s mostly because this shakes up the market pretty dramatically — a Tesla essentially uses 7,000 laptop batteries, so if they sell 100,000 cars a year (which is the pace they’re working toward right now, though they hope that number balloons when the lower-cost Model 3 is released) that’s the equivalent of about 700 million “laptop” batteries.