“Investors from JPMorgan Chase & Co. to BlackRock Inc. are trying to make money from the exploding popularity of iPads and increasing sales of hybrid cars by investing in producers of lithium for batteries,” Jesse Riseborough reports for Bloomberg.
“Prices for the conductive metal, the lightest in the periodic table, have tripled since 2000 in a market now worth $1 billion a year as uses expand in vehicles, ceramics, electronics and lubricants,” Riseborough reports. “Apple Inc. and Toyota Motor Corp., maker of the Prius electric-gasoline car, have few alternatives as they pursue higher performance and mobility, leading Dahlman Rose & Co. analysts to forecast lithium demand will double by 2020.”
Riseborough reports, “Talison Lithium Ltd., whose shares have gained 22 percent in the last month, together with Soc. Quimica & Minera de Chile SA, Rockwood Holdings Inc. and FMC Corp., account for almost 95 percent of world supply. Rio Tinto Group, the third-biggest mining company, may join the largest suppliers if it goes ahead with a mine in Serbia it says is capable of producing 20 percent of global output of the metal… The advantage of lithium-ion over other battery types is that a typical cell can generate more electricity than competing cells like such as lead-acid. There is about 1.7 grams (0.6 ounces) of lithium carbonate equivalent in a mobile phone, 2.1 grams in a smart phone and 20 grams in a tablet, according to Dahlman Rose.”
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