Oroplata Resources Inc (OTCBB:ORRP) has hit the OTC with a bang. The company was long dormant until it announced early this month that it was acquiring a Lithium property and Craig Alford was joining the company as CEO. Penny stock investors know that lithium remains one of the hottest sectors on the OTC Markets and explains the strong interest in shares of ORRP. Investors are now asking how much higher can shares of ORRP run?
ORRP Just Made a Strong 52-wk High
Prices for Lithium carbonate are up 47% from the average price in 2015 in the first quarter of this year and numerous sources have reported the potential growth in demand for Lithium to be very robust. The Nevada-based Tesla Motors Inc (NASDAQ:TSLA) Gigafactory, expected to open on July 29th 2016, will produce advanced lithium batteries for Tesla.
Elon Musk has stated that Tesla will need to consume the entire lithium market to meet its demands of 500,000 Model 3’s by 2018.
Chinese demand of lithium has been another factor behind the surge of the lithium market which is driven by the country’s desire for electric cars and buses.
In a report from Goldman Sachs called “What if I told you” Goldman refers to lithium as the “new gasoline”. This is due to increasing demand for electric vehicles. The cause is that the lithium market could triple from the current demand of 160,000mt to 470,000mt by 2025. Just 1% EV penetration into the market increases demand by 70,000mt a year
Check the most recent research report on ORRP HERE
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