A Once-in-a-lifetime Shift is Aboutto Hit the Energy MarketHere's How you Can Make aFortune From It
Nine miles east of Reno, Nevada, just off Interstate 80, sits a top-secret building site.It is home to “Project Tiger.”When it’s finished, Project Tiger will leave behind one of the largest, most technologically advanced buildings in the world.Some say Project Tiger will help usher in a revolution in the way we work and live. This massive “shift” will be one of the pivotal events in human history.Creating this shift will not be cheap. Project Tiger’s price tag is an estimated $5 billion, which makes it one of the most expensive building projects in history.You might know Project Tiger by its other name...It’s the massively hyped “Gigafactory” that is set to play a key role in the future of Tesla Motors and its genius founder, Elon Musk.The purpose of the Gigafactory is to produce batteries.That’s because the electric cars made by Tesla and other manufacturers need advanced lithium-ion batteries in order to operate.Musk says the Gigafactory will be able to produce more of these batteries in one year than were produced worldwide in 2013.If clean, zero-emission electric vehicles are the future, then the future will come straight from the Gigafactory’s production lines.Technological revolutions like the airplane, the internet, and the electric car always present incredible opportunity...and incredible hype.When it comes to electric cars, investors have plenty of both in front of them.The electric car revolution is real. Over the past 10 years, we’ve seen radical advances in electric vehicle technology.In 2013, Tesla’s Model S won Motor Trend’s prestigious “Car of The Year” award, beating out BMW and Mercedes products.It was the first time a car without an internal combustion engine won the coveted award.Motor Trend said the Model S was a “truly remarkable automobile.”Because of favorable press and climate change concerns, sales of electric cars are booming...and they’ll continue to boom in the future.The chart below shows electric car sales since 2010 and their projected future sales growth. As you can see, we’re in the early stages of a huge boom. Electric cars sales are set to explode more than 500% from their current levels.
With growth like this, it’s no wonder a recent Bloomberg story said it looks like the 2020s will be “the decade of the electric car.”The International Energy Agency’s 20 by 20 initiative states a goal of 20 million EVs on the road by 2020. This is an increase of over 1,500% from the current number of electric vehicles.With massive growth in electric car sales just ahead, there’s a lot of money to be made here.One of the biggest investment opportunities in this trend is lithium, a metal that is the key component of electric car batteries.Just like conventional cars can’t function without gasoline, today’s electric cars can’t function without lithium.This is why many people are saying lithium is the “New Oil.” It’s the key natural resource that will power the electric car revolution.As electric car sales boom, lithium demand booms along with it. Below is a chart that shows the incredible projected demand electric cars will have for lithium. We expect demand to increase 700% over the next 10 years.
The boom in lithium demand has created a boom in the price of lithium itself. Lithium prices have more than doubled since early 2015, which makes it the top performing natural resource during that time period.As you can imagine, the bull market in lithium has produced some amazing gains in lithium stocks. For example, Nemaska Lithium has gained 800% since the start of 2015. Galaxy Resources gained 700% during the same time. Albemarle, the ExxonMobil of lithium, gained 57% during the same time.As you can see, investments in the “New Oil” can generate huge profits.However, any time there is a catchy line like the “New Oil” associated with an investment trend, there is sure to be danger as well as opportunities.Despite the huge opportunities in electric cars, batteries, and lithium, I expect that 99% of the people who invest in lithium will actually lose money over the next three years.In the pages that follow, I’ll strip away the hype surrounding lithium...and I’ll separate fact from fiction. By spending just five minutes reading this commentary, you’ll be ahead of nearly everyone else who invests in this sector.Most importantly, I’ll show you how to be in the tiny group of people that makes huge returns from this massive trend.
Lithium 101
Lithium is a chemical element with the symbol Li. A soft, metallic element, it is the lightest of all solid elements. It floats on water.Lithium’s chief uses are in the ceramic, lubricant, and battery industries.Right now, investors are focused on lithium’s use in batteries...for good reason.Lithium’s properties allow it to store a lot of energy in its atomic bonds. A little bit of lithium can store a lot of energy.
Because of those properties, lithium is the preferred ingredient for batteries that need to be as light and as powerful as possible...the kind we need to power electric cars.As I just mentioned, lithium demand from electric cars is set to soar 700% in the next 10 years.People who promote lithium companies can cite all kinds of amazing demand statistics. There is a genuine demand surge just ahead. However, these promoters are not telling you the whole story. That’s why you read Katusa Research.The part of the lithium story promoters aren’t telling you is that the Earth is loaded with lithium.There is so much lithium on the planet that it dwarfs supplies of copper and gold.Currently, there is more than 500 years of known lithium supply on the planet.The chart below shows various resources and the years of known supply we have of them. Lithium has the highest amount of reserve life of any metal on the planet in the ground (not above-ground stockpiles).
Because we have an abundance of supply, I do not believe lithium prices will continue to soar.However, I do believe the price will remain relatively strong. We have a lot of supply in the ground, but it will take years to build mines and put them into production.We still have time to make great money in lithium. But don’t let anyone tell you we’re facing a long-term supply crunch.
What Lithium Promoters Won’t Tell You
What lithium promoters won’t tell you is that most lithium stocks are terrible investments.Most lithium companies do not have lithium deposits that will make it into production–ever. Thus, they are essentially worthless.However, you probably know that worthless assets have never stopped mining promoters from creating companies and selling their stock to the unsuspecting public.Over the past five years, literally hundreds of lithium companies have been created. Some are public, some are private.I urge you to avoid at least 99% of these companies.Taking a lithium deposit from discovery to production requires extraordinary expertise.High-quality lithium deposits are essentially chemistry projects.These deposits–called “salars”–are basically very salty lakes. There is no rock to blast, move, or crush to extract the lithium.Every salar has a unique chemistry. You can think of it like DNA.This means every salar requires its own unique extraction process.This is where the people running the company become so critical...There are less than a dozen teams in the world who have actually built and operated a lithium salar to produce a lithium concentrate that a battery manufacturer can turn into a Tesla battery.Let that sink in.Again, hundreds of lithium companies have been created in the last five years. Less than a dozen of them have teams with the unique expertise required to make a lithium project a success.If you want to make tremendous gains in lithium, you MUST stick with these knowledgeable, experienced teams.If you’ve read my work for some time, you know that the people involved in a business is the single most important factor in my security analysis process.In the resource business, many people think that if you just find a good deposit in the right country, you’ll make money.But an incompetent or unscrupulous management team will make your investment a loser, despite the quality of the deposit. They’ll find a way to screw it up.They’ll dilute your stake by issuing too many new shares. They’ll take on foolish levels of debt. They will panic at bottoms and sell assets for much less than they are worth. They will lose their heads at tops and buy assets for much more than they are worth.High-quality owner/operators will do the opposite of all of that. They will find a way to win.Everything depends on the quality of the people.I’m a big believer in the Pareto Principle. It states that 80% of your results come from 20% of your efforts.For that reason, it’s also called the “80/20” rule. For example, your business may generate 80% of its sales from 20% of your clients.The Pareto Principle is alive and well in the resource sector.About 20% of resource operators create 80% of the value in the sector.I’ve even taken Pareto’s principle a step further.Years ago, I coined the 64/4 Rule—I took the 80/20 Rule and subjected it to Pareto’s principle again.The result states that 4% of entrepreneurs create 64% of the wealth (80% of 80% is 64%...and 20% of 20% is 4%...hence the 64/4 Rule).If making a lot of money is your goal in the resource sector, I encourage you to do what I do: focus on the 4% of superstar entrepreneurs who own large stakes in their own companies.Invest with the best. Ignore the rest.
We Just Placed a Buy Rating on the Best Lithium Stock in the Market
Investing with proven winners is such an important idea right now because just recently, one of the world’s best lithium teams just “went public” with their company. And I’ve named this stock a strong buy.The team behind this company is absolutely world-class.I don’t think there is another person in the world who knows the lithium market as well as the CEO of this company knows it.And one of the biggest financial backers of this company is one of the smartest resource financiers in the world.Just as importantly, he has experience in taking a lithium company into production. He is the polar opposite of the many “posers” out there touting lithium stocks. I expect this company will be his next big win.This company owns what I believe is the best undeveloped lithium project in the world owned by a public company. I have a database of all known lithium salars in the world, and I can tell you that this one is extraordinary.That’s why I’m urging resource investors to take a stake in this company right now.I wouldn’t be surprised to see this stock move at least 200% in the next 12 months. And I wouldn’t be surprised to see this company taken over by a large producer in the next 24 months. I believe this asset will be the talk of the industry very soon.Over my 15-year career, I’ve invested in just three lithium stocks. The first two were both huge wins, returning over 1,000% each.The lithium company I just told you about is the one I’m buying now, at the right price.There’s a huge shift underway in the energy market. And while there is huge opportunity in this historic shift, there is also huge risk.You can learn how to avoid the risks and take full advantage of the opportunities in the just-published October issue of Katusa’s Resource Opportunities.One full year of Katusa’s Resource Opportunities costs $3,500.It’s not cheap, and there are two good reasons for this price:One, this research is extremely expensive to produce. This is far beyond what you see from other research firms. I spend over $100,000 per year on data services alone. I travel constantly. I have a staff of people. When I need specialized insight on projects, I pay expensive experts.All of this produces a much, much higher quality research product than what you’ll find elsewhere.Two, because I focus on very small, often thinly-traded companies with the potential for massive gains, the high price tag ensures tons of people aren’t competing for shares. This allows me to provide tremendous value to serious investors.Keeping the price high is the only way I know of to ensure the information stays valuable for serious investors.My goal is to share this kind of investing with anyone interested in changing their lives for the better.However, I don’t want to attract people with zero investment experience or skill. This simply isn’t for them.Katusa’s Resource Opportunities is for investors with some level of experience in the market…for people who know the value of a great idea.After all, in the hands of the right investor, this kind of information could be worth millions of dollars.Because this is the first time I’m making this report available to the public, I’m willing to give you a one-time special discount offer. But you must sign up before Midnight Pacific Time on October 7th.It’s an incredible offer, really, and I think it’s a great way to sell my research.In short: Investors who get in today can receive a one-year subscription to Katusa’s Resource Opportunities for $1,000 off.Let me repeat that…You’ll pay just $2,500.I think this is an incredible bargain…considering that my next winning recommendation could pay for the subscription fee many times over. Regards,
