I am not saying this has anything to do with Tesla, but this small mining company is building a lithium mining project in northwest Nevada, near the border with northern California. The stock was up 30% today.
Now this is the most interesting post of the week. Love the 2nd derivative play!
It is amazing what speculation from these forums can do.
Oops - did we do that?!
This company is Chile might be a safer investment for lithium mining.
Chemical & Mining Co. of Chile Inc. (SQM)
SQM is a Chilean company, which engages in the production and distribution of Fertilizers and Specialty Chemicals, including Lithium and its derivatives. It currently has a 27% share globally in the lithium market. Lithium accounts for 9% of their Total Revenue and 11% of the Total Gross Profit. The reason why they are leaders in this market segment is their lowest production cost globally. Having this competitive advantage over everyone else globally and the great exposure to the lithium's growing demand, SQM is seen as a no-brainer.
Anything new on development of this?
All the major players in state gov't making this decision are friends or acquaintances. I haven't talked specifically about the lithium situation with them. One of them saw me as a patient recently and actually mentioned being interested in buying a Model S when I told him mine was parked out back. What I've gleaned is that the reserves are valued at nearly $500B and they don't want to give it away. There are several claimants, the first of whom is a state legislator who has a geology background. Sounds like they're going to take it slowly as WY depends tremendously on mineral royalties to fund the state without a state income tax. It may make sense that the local trona miners extract, but I'm not sure about the logistics.
Wyoming is really well managed in terms of the minerals. They have it setup as sovereign wealth fund, similar to Norway. Something like 2% of the royalties go into the equivalent of a sovereign wealth fund.
The Wyoming mineral trust fund has over $5.6 billion in it currently. The income can be used to fund state government. With less than 600,000 people in the state, that is huge. The income from the mineral trust fund for the state was $130 million last year.
With the largest lithium reserves in the USA and the best wind energy potential, I suspect Wyoming will be critical to our future as a country.
@Bighorn - NO state income tax??? That's awesome. I'll bet that every time someone moves to Wyoming, a tax accountant gets his wings.
Less than $10K each? Check out the per capita in Norway.
Oh yeah, Norway has a ton more per capita. But I think Wyoming certainly has a good thing going also.
Is lithium one of the rare earth's as mined by Molycorp in Mountain Pass, CA (top of Baker Grade)? Just wondering...
Lots of ways to invest based on this news...
I like The Global X Lithium ETF (LIT) to play the whole sector, love their approach:http://finance.yahoo.com/news/tesla-gigafactory-plan-powers-lithium-1800...
Another great play is Panasonic (PCRFY):http://gigaom.com/2014/02/25/report-teslas-gigafactory-could-get-1b-from...
And, of course, there's the obvious one - Solar City (SCTY):http://www.thestreet.com/story/12461674/1/solarcity-gets-charge-from-tes...
And another bit:
I originally thought about a Lithium play - at this point, I'd probably only go with Panasonic, but my mind is still not made up.
BTW, the link comes from my wife, so she gets the kudos!...or the blame. ;-)
Down 11% today.
Another bunch of articles on the Lithium (LIT) sector play:
I'm in :)
Since there is so little lithium used in an LiIon battery, perhaps we should be going for the ethylene glycol play, no? ;-)
Wish we knew what Tesla secret solution is, we could make tons in commodities.
First part of this Bloomberg video is worth a watch too:http://www.bloomberg.com/video/three-etfs-elon-musk-may-be-driving-highe...
Burt: Lithium is not a rare earth metal.
That's Great that the stock of your company has been increased.
Can you please tell me it's current price.
Lithium is the most abundant metal in the Universe having been made in the first 3 minutes after the Big Bang, The issue is Lithium is very well dispersed on the Earths surface. Mining needs some form of natural concentration and dried up lake beds salt flats etc are good places to find concentrations.Rare earths are also well distributed and often the elements are a result of radioactive decay. This lingering radioactivity and the extraction process make things messy. The USA has a clean ( little radioactivity ) supply but no active refining anymore. China dumped cheap rare earth products into the USA and put clean refining out of business. I hear we will be back in the refining process this year; even sooner maybe if China stops exporting.