Apple (AAPL 270.17 ↓1.42%) uses Li-ion batteries to power all of their products; including the new Ipad, and soon to be released Iphone 4.
The Auto Industry – Why Lithium?
Lithium is the most precious element in transportation. Up to 70% of the cost of a lithium-ion battery goes to the raw materials, such as lithium. And the batteries are expensive! Did you know the new lithium-ion battery in GM’s new 2010 Volt Hybrid costs $21,000? That’s a lot of $$$ for lithium investors!
The National Alliance for Advanced Transportation Battery Cell Manufacture reports that “Lithium-ion batteries are anticipated to replace gasoline as the primary source of energy in future cars and military vehicles.”
Because lithium is the lightest metal on earth, it enables batteries to get smaller and at the same time, more powerful. This is why even our own government is trying to push for the rapid advance of Lithium batteries for use in transportation.
In addition, clean energy, energy independence, our quest to break free from Middle East oil, high gas prices; all of these things are raising the demand for lithium.
President Obama has made a promise to have 1 million American-made hybrid vehicles on the road by 2015. Most importantly, he’s backing it with money. The Advanced Technology Vehicle Manufacturingprogram for battery development has been awarded $25 Billion, and this massive funding has ignited lithium projects left and right.
The industry currently can’t produce enough lithium to build the hundreds of millions of large-format batteries needed to power electric cars, and plug-in hybrids of the future. This is why the demand for lithium continually increases and why massive amounts of capital funding are starting to pour into lithium mineral companies.
President Obama even has a stake in lithium and it can be found in his desire to see General Motors reemerge as an American industrial powerhouse. The administration wants GM come back to prominence and the only way to do that is with new technology (hybrid and electric cars) powered by lithium batteries.
GM’s very existence will depend on massive amounts of lithium. Hitachi (HIT 39.6 ↑2.72%) is currently supplying lithium-ion batteries for GM’s hybrid vehicles, and is planning to sharply raise production to meet surging demand for an onslaught of new gas-electric cars. It’s been projected that lithium production will need to increase 5-fold to meet the production demand for hybrid and electric cars by 2012!
GM�s introduction of the Chevy Volt is just the start. General Motors, Ford (F 11.53 ↑0.61%), Toyota (TM 71.86 ↑0.57%), Dodge, Chrysler, Mitsubishi (MTU 4.69 ↑0.64%), Nissan (NSANY 14.93 ↑1.22%), Tesla, Saturn and Mercedes-Benz have all announced plans to build Li-ion battery-powered cars. Demand for lithium-powered vehicles is expected to increase 5-fold by 2012, and 20% year over year in the next decade!
Why Stock Onion prefers AMLM:
AMLM is currently sitting on the second largest lithium deposit in the entire world. They are the only company based in the U.S. that is also holding mineral deposits inside the U.S.
With an estimated 700 Million Kg worth of Lithium, AMLM is the onlyU.S. Company with the necessary lithium reserves large enough to meet the expected 5-fold increase in the demand of lithium that is expected by 2012.
Right now the world’s biggest lithium producer is in Chile, a government that has been critical of the United States, and an unstable place for investors to be. The other main source is Bolivia, which is even scarier for investors.
With AMLM we can invest in lithium right here in the United States!
The second largest lithium deposit in the world is on our soil. AMLM is the only U.S. Company with a major stake in the lithium-rich region, known as Nevada’s Montezuma Valley. The company currently owns 16,000 acres.
AMLM � Possible Acquisition:
All the major automakers are looking to acquire lithium companies to help ramp up production in order to get their hybrid and electric cars to the market as quickly as possible.
The U.S. government is even providing massive incentives to U.S. automakers (tied to the massive bailout of the auto industry) to start ramping up production of hybrid and electric cars.
Because of this U.S. automakers are looking heavily into acquiring lithium companies. What company would be a better target for acquisition than the only U.S. based Lithium Company, currently sitting on the second-largest lithium deposit in the world?
Consider GM, who President Obama is doing everything possible to help reemerge as an American industrial powerhouse, and leader in green energy transportation technology.
A major auto company like GM acquiring AMLM would give them access to all the lithium needed (demand increasing 20% every year) to mass-produce their new line of hybrid and electric cars, for the immediate future. GM�s future could literally depend entirely on how much lithium they can get their hands on.
In addition, acquiring a U.S. company rather than one overseas would provide endless public relations opportunities to announce investing in America’s future by combining two U.S. companies!
Now that would put a smile on President Obama’s face!
$4 Million Dollars Acquired for the Borat Hills Project:
AMLM recently received a $4 Million dollar investment in their Borat Hills project (another region expected to be rich in Lithium) by Japan Oil, Gas and Metals National Corporation.
The company will be a strategic partner in the Borat Hills Project; projected to yield a very large deposit of relatively high grades of lithium and boron. This region already contains the second largest boron deposit found in the United States.
Stock Onion loves the idea of investing in U.S. companies to be the leaders in this revolution, and AMLM is the ONLY lithium company inside the U.S. with massive lithium deposits of over 700 Million Kilograms!
We believe AMLM could be a major player in the near term, and is a perfect company to have in our portfolio. In the event of an acquisition, AMLM could be worth 4 or 5 times its current price!
AMLM has traded as high as $2.90 a share less than 1 year ago, and at its current price it looks extremely attractive to snatch it up while it’s cheap!
We look forward to seeing how AMLM performs over the next week! As always please do your own research.
Sincerely,
Lithium-Stocks.net
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