The lithium market will suffer major changes - how to take advantage of this

With the increasing demand for electric cars and buses for public transport, lithium ion battery manufacturers will face increasing problems with lithium. The forecasts of most Wall Street market participants have fallen to a serious deficit as early as 2021. In order to be covered, Australia, will have to increase its production more than three times by 2027. At the same time, Argentina and Chile are expected to outperform Australia, while the US is yet to increase its yield and to appear on the world market as the fourth largest exporter. In view of these irreversible trends, it is advisable to target the companies operating on these markets. The two largest Chilean lithium companies are SQM and Albemarle, together accounting for 21% of the world market. FMC is the largest Argentine operator of lithium mines and accounts for nearly 10% of Lithium supplies globally.

Our expectations are that the upward trend in companies will be maintained by using any entry adjustment with long positions on the trend.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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