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What if I told you that companies in this industry are seeing double and even triple digit percent increases in price since the beginning of the year? What if I were to also tell you that one of the leading firms on the street is increasingly bullish on this space so much so that they've called it "The Next Gasoline"! Goldman Sachs released a report highlighting this industry in full detail and the projections for growth could be some of the biggest of ANY COMMODITY.
What are we talking about? LITHIUM .Unlike gold or silver, lithium is not a publicly traded commodity. That said, almost all analysts and market watchers are in agreement that lithium demand is growing faster than lithium supply, and that this trend could start pushing prices upward.
“Lithium consumption for batteries has increased significantly in recent years because rechargeable lithium batteries are used extensively in the growing market for portable electronic devices and increasingly are used in electric tools, electric vehicles, and grid storage applications,” states the United States Geological Survey (USGS) in its 2016 report on lithium.
So what does (ORRP) have to do with all of this? Oroplata Resources is an exploration stage company with diverse interests in mineral development and on June 1st, the company announced that it acquired a 100% interest in the mineral rights to the Western Nevada Basin Project. What's the significance of a company this size making an acquisition like this? The project includes 500 mining claims covering approximately 10,000 acres and on top of this the company has an option to acquire another 600 mining claims, approximately 12,000 acres!
Companies like Tesla and Faraday (coined as Tesla's future competition) have put a HUGE focus on the industry! Renewable power devices and batteries rely heavily on the lithium production industry and the supply/demand ration seen for the near future could pose a monstrous opportunity for the lithium industry.
In fact Joe Lowry of Global Lithium stated in a lithium market update published on March 13, “I am not ready to say a $20/kg price is going to be the long term global “new normal” but I am willing to say the average global price in 2020 will NOT be in single digits in any scenario absent a complete collapse of lithium demand which seems highly unlikely.”
And get this! Right now the only place in the US that is producing lithium IS NEVADA! Electronic vehicle maker, Tesla, wants mining companies that have never produced highly combustible lithium to provide the electric vehicle maker the material necessary to make its lithium ion battery.
Lithium is so undermined in the US right now that even the big boys are turning to the little guys for sourced materials and ORRP is smack in the midst of what could be a U.S. Boom for lithium production!
The Western Nevada Basin Project is a major development project sitting within Clayton Valley, North America's only lithium-producing area...not to mention an area right in Tesla's backyard! And with the new Gigafactory set to open in TEN DAYS, this could be optimal timing for a company like ORRP because according to reports, Tesla alone is planning to produce in excess of 500,000 batteries PER YEAR! This isn't just for car batteries but also for Tesla's home version called "the Power Wall".
High demand...low supply...are you starting to see the picture of what could be set to hit the lithium production industry?
In March of this year, Elon Musk (Tesla's CEO) himself stated, "In order to produce half a million cars a year... we would basically need to absorb the entire world's lithium-ion production." The Wall Street Journal backed this up as well stating, "Tesla and other electric-vehicle makers are swallowing up lithium for its use in lithium-ion batteries that power electric cars."
But even beyond Tesla, the demand for lithium could be a global phenomenon as well! According to reports, demand is coming from China. This is where the government is turning to lithium batteries for use in electric buses and other vehicles. NextEV, a Chinese company that has said it plans to unveil its first electric car next year, could further stoke lithium consumption!
Consider This
ORRP has just entered a space where demand is HIGH, supply is low and analysts are projecting growth to be at high levels through the next decade! Put in the fact the Nevada is the epicenter of US lithium production and that ORRP is playing in the backyard of what could be one of the largest consumers of lithium, timing could be incredibly important right now!
ORRP has been gaining a ton of attention in the market recently with the price and volume trends indicating such momentum! Since making the initial announcement of entry into the market earlier this year, ORRP has been red hot. And with the trend in lithium production paired with the obvious demand, NOW could be THE TIME to pay close attention to junior miners.
The recent rally in lithium is not speculative, but a result of increased demand from electrical energy projects. Tesla, the explosive growth of electric public transportation in Europe and Asia, and many more continue to push the limits of this industry and ORRP is what we've got it pulled up for Wednesday (7/20)
Start Getting Ready TONIGHT!
P.S. Looking for more? Special Report:
"Why Lithium Will See Another Price Spike This Fall"
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