facebookDo you foresee more electric cars on the road in future? If yes, would you consider pumping your funds into these Lithium mining companies? Why? - Seedly

Kiwi Lim

26 Sep 2023

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General Investing

Do you foresee more electric cars on the road in future? If yes, would you consider pumping your funds into these Lithium mining companies? Why?

Do you foresee more electric cars on the road in future? If yes, would you consider pumping your funds into these Lithium mining companies? Why?

Discussion (10)

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As the demand for EVs rises, a robust charging infrastructure becomes imperative. Professional installations ensure safety, efficiency, and convenient access https://mcnallyev.uk/electric-vehicle-charger-i... Electric Vehicle Charger Installation encouraging widespread adoption. Let's invest in this transformative technology, promoting cleaner transportation and reducing our carbon footprint.

I think if your thesis is "more EVs on the road", then shouldnt we find the company that would profit most from it? Tesla is one such example.

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My point is that, profit margins tend to be higher once commodities are value-added through processing, into discretionary goods.

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I'm not sure if lithium companies are a good way to get exposure to the EV trend, since the pure-play move is just to own more EV companies that will take the bulk of profits (i.e. customers buying EVs). Commodities is quite cyclical as well, and there are currently endevours that are attempting to reduce the usage of lithium in batteries (given its harm to the environment).

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The main point is that, EVs will still be made, but whoever mines the lithium is fair game. Who knows, Tesla might jump into the lithium mining scene and source for its own lithium. What then?

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My 2 cents.

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Joey

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Ngooi Zhi Cheng

05 Oct 2023

Student Ambassador 2020/21 at Seedly

The rise of electric cars presents an intriguing opportunity, and it's natural to wonder about investing in Lithium mining companies. Let's delve into this topic, weighing the pros and cons, and ensuring your investment decisions align with your financial goals.

Recently, I advised a client, who shared a similar curiosity. He was intrigued by the electric vehicle boom and considering investments in Lithium mining. Together, we analyzed the market trends, the sustainability of this growth, and the potential risks involved. Crafting a strategy tailored to his risk tolerance, he made informed investment choices that complemented his overall portfolio.

A common myth is that the electric vehicle market is a surefire investment, but it's crucial to recognize the associated risks. While the industry is booming, factors like technological advancements, political regulations, and market competition can influence stock prices. It's vital to understand the market holistically.

For those intrigued by Lithium mining investments, meticulous research is key. Diversification within the sector, staying updated on technological advancements, and understanding the geopolitical landscape are vital. I can guide you through this process, ensuring your investments align with your financial goals. Feel free to reach out on Instagram (@ngooooied) for personalized advice tailored to your unique situation.

Remember, investments should align with your risk tolerance and long-term goals. It's not just about following trends but making strategic decisions that secure your financial future. Let's navigate these opportunities together, ensuring your investments are as solid as your aspirations.

I personally had this thought a while back

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Lithium mining is very dangerous and not sustainable, and to Wei Chuan's point, as the fight towards climate change strengthens, you want to focus on sustainable solutions

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i personally foresee EVs in the next 10-20yrs. We're in the very early stages of ev adoption but I think there is potential. With that increase, I also foresee and extensive wastage of batteries unless it can be recycled

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That led to me to find 2 companies that actually recycle materials such as batteries to produce outputs such as lithium. while this is capital intensive, this is more sustainable . additionally they can receive significant funding and R&D development through government sponsorships and commercial partnerships

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companies: Li-Cycle (LICY) and Redwood Materials (private)

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ive personally invested in LICY since they IPO'd through a SPAC in 2021. DCA'ed a lot over the last 24 months but I believe in their mission and long-term potential

I'm not a financial adviser nor a market expert in this field, but being a crane operator and someon...

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