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Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Lithium Micro-Bull Market

The lithium story is paying off for the speculators who got in early. We documented a surge of speculative funds into a series of small Canadian juniors in a recent Big Picture Speculator Snapshot (subscribe here). Since then the companies have been doing extremely well. Keep in mind that none of these juniors currently produce any lithium. Demand for lithium is projected to increase, however I suspect that production could easily be increased at existing mines. There are 2 main deposit types and many of these juniors have chosen high cost North American "hard rock" projects. The fear of having America's green revolution derailed by dependence on South American lithium  is driving these juniors to exponential returns...for now.