By Rob McCammon
Follow me on Twitter @RobMcCammon1
Were you ever into a band and thinking that it was odd no one else had ever heard of them. Then one day the popular kids are all talking about them. They start telling you about this awesome band and 'you probably won't get it'.
Welcome to Lithium in late August 2021. Seeking Alpha, Bloomberg and even the Motley Fool are all reporting the need for Lithium is outstripping supply. If you have been with us since the beginning (okay, three weeks) you know we were the cool kids all along.
What is happening though? Honestly it has been quiet in the industry itself, but look at the end product. That Mustang Mach E? They had to expand production. (Pre ChargeTalk, but I was screaming that this was going to happen). The drum beat of the Japanese in the Lithium market still seems to be building.
Standard Lithium filed for a shelf prospectus. This is interesting, but I view this as a way to quickly get into a deal that needs capital fast. A shelf prospectus does this, allowing the company to bypass numerous hurdles to issue stock. Consider this with other news we have about Ford. The F-150 Lightning is going to sell very, very well. Ford is already doubling production numbers as they were amazed at the demand. This means lithium demands will go up quickly on a market that is already supply starved. SLI produces Lithium Carbonate and there are those that frown upon that but, we took a look at the differences here.
Where is that Lithium coming from? Maybe South Arkansas and Northern Louisiana. Standard Lithium rumors in the neighboring county with Tetra Technologies (TTI) is tantalizing. How about a quick friendship with Albemarle too? There is a sea of brine available. The Smackover field is very large. We talked about this in that (long) episode one. Meanwhile, SLI is quiet, not moving much. It seems it sits around 6.22-6.55 area. Not a pure TA guy but it looks like it has a lot of sideways action.
Piedmont (PLL) is still in that county imposed 'mining moratorium' for a few more weeks. Most stories coming out on them is from legal teams, so we are waiting for any real news. These doldrums are displayed in their price action.
Lithium Americas (LAC) is quiet too. The stock is different here though. Bulls are loving the idea of getting into a new major operation. Our Lithium index shows that this stock has been up 17.3% since August 9. That's impressive.
Albemarle got hit after ending the week of 8/16 at $235.22, but it seems to be recovering.
Finally, the new big member of the Lithium mining crowd is the upcoming goliath of Orocobre/Galaxy starts trading on 8/25. So the conversion of you (GALXF) become (OROCF). Orocobre already figures big in the Toyota equation for batteries.
Here's a great article on the details of that Orocobre Galaxy Resources Merger. https://www.miningweekly.com/article/galaxys-merger-with-orocobre-becomes-effective-2021-08-16
As always, thanks for reading. I hope this helps. Our goal at Charge Talk is to build understanding so you can understand what you are investing in. Any comments? Hit us up.
Checkout the Charge Talk Podcast!
Watch our videos on YouTube! Like & Subscribe to our channel.
Life is busy! Listen to the Charge Talk podcast on the go, for free!
Let's connect! Follow us on Twitter!
Tweet us your questions and comments. We want to hear from you.