September 23, 2017 02:06 pm CDT
Crude Oil 2.0... Hint: It's a Metal
By Alex Koyfman, Wealth Daily


Image you owned a piece of Spindletop Hill on January 10th, 1901.

It was the first oil gusher of the Texas oil boom (pictured to the right at the very moment it changed history), and it set off an industry that would end up making trillions off the explosive demand for gasoline in the early 20th century.

spindletopgush

Early investors became the new ruling class, with family dynasties continuing on through today.

But that was then... Today, there's a new energy revolution about to start. In fact, this industry's first gusher has already blown.

However, this time around, the energy source won't just power cars. It will power just about every portable device that uses electricity or stores power from energy sources like solar panels or wind turbines.

That includes everything from your cell phone all the way up to the biggest ocean-going vessels in existence.

It's the universal fuel of the 21st century, and the U.S. government has already deemed it so important that it's been categorized as a "strategic metal" by the Pentagon and the output figures of the only major producer in the U.S. today have been classified as a "state secret."

Demand for this amazing metal has been surging in recent years right along with demand for wireless devices. Every single rechargeable battery out there absolutely needs this element, the same way gasoline needs crude oil.

lithium demand

These figures provide the average requirement for specific device:

  • Cell Phone: 1.7 grams
  • Smartphone: 2.1 grams
  • Tablet: 19 grams
  • Laptop: 37 grams
  • Power Tool: 40 grams
  • E-Bike: 75 grams
  • Gas-Electric Hybrid: 2,500 grams (2.5 kg/5.5 lb)
  • Plug-In Hybrid: 8,000 grams (8 kg/17.6 lb)
  • Electric Vehicle: 28,000 grams (28 kg/61.7 lb)
  • 1-Megawatt Storage Battery: 600,000 - 800,000 grams (600 - 800 kg/1322.7/1763.7 lb)

This one single element is absolutely crucial for the smallest rechargeables in the world, like the kind in an obsolete flip phone, all the way up to the biggest battery ever made - the 40-megawatt Sendai Substation, which provides power to 800 households.

substationsendai

Only One Number Matters

But all those numbers are hard to digest, so just think about this one single figure:

85 gigawatts.

That is today's estimated world total for rechargeable battery storage capacity.

Elon Musk's new "Gigafactory," which is scheduled to go online by 2017, is projected to double this figure single-handedly by the year 2020.

gigafactoryconstruction

All in all, that's 68,000 tons of demand for this element — coming from a single $5 billion facility that's now under construction in Nevada.

So what is this metal?

As you may have already guessed, it's lithium... And it is easily the most important strategic metal in existence today.

lithiummetal

But its applications go beyond just batteries. It's also an essential component to a whole new class of aluminum alloys now being employed in aerospace manufacturing.

Aluminum/lithium alloys have proven to be both stronger and lighter than standard aircraft-grade aluminum.

To Boeing — which has just produced the world's most fuel-efficient airliner, the 777 "Dreamliner" — this means it can get even more range from an even lighter, more cost-effective airframe.

With hundreds of thousands of tons of aluminum required every year to sustain the global aircraft industry and lithium now becoming an essential component moving forward, the demand for this metal is predicted to shoot up for at least the next two decades.

History Repeats Itself 12 Decades Later

But what does all this have to do with Spindletop?

Well, you see, despite this exploding demand, the suppliers are still very, very scarce. In fact, there's only one large-scale lithium producer operating in North America today.

Just like oil was in the first days of the 20th century, lithium is currently in its last pre-boom stages.

However, that's all about to change, as the rush to get more and more of this strategic metal is on.

As I mentioned before, national governments are taking serious steps to locate and control whatever deposits there are.

And just like oil before it, there are already cartels springing up to seize as much of the material as they can.

Right now, Bolivia, Chile, and Argentina control what's known as the "lithium triangle" — which contains as much as 70% of the world's known lithium deposits.

lithiumtriangle

Argentina's government has already attempted to form a cartel to control prices.

Sound familiar?

It's the modern equivalent of OPEC, and it already has our own government worried.

These Guys Saw It Coming...

However, there's an answer to this, and it will do for the U.S. lithium industry what Spindletop did for oil more than a century ago.

A single, tiny mining exploration company has come to control what is very likely the richest lithium reserve in North America.

Thanks to some forward-thinking investors and officers, the company secured 100% property rights and is already well into the exploration phase.

And the numbers it's generating are already off the charts.

Early test results indicate the lithium concentrations on its Nevada property — located just down the street from the site of Tesla's Gigafactory — are more than six times greater than that of the only competing lithium operation in the country.

And if that weren't enough, the company has recently acquired 100% property rights to a property nestled in the heart of South America's lithium triangle.

For a company that's barely $6 million market cap, that poses a rare opportunity that hasn't been seen in the energy industry in maybe a century.

Which is why I made the comparison to Spindletop, America's first major oil-producing site.

I recently completed my own in-depth study of this company. I've met with management, I've talked with the experts, and I'm convinced that we could be looking at a game-changer for the global energy industry.

However, time is of the essence because lithium demand has been driving up prices.

Increased prices make this company that much more valuable — and its stock that much harder to buy.

To get access to my report, "Venture Play 1: 2015's Breakout Miner," click here.

The last opportunity of this magnitude came and went long before you were born.

Don't miss this one.

Fortune favors the bold,

alex koyfman Signature

Alex Koyfman

Coming to us from an already impressive career as an independent trader and private investor, Alex's specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.

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