My hunch is that there’s really only one major long-term transformation which matters in the global economy right now and that’s the decarbonisation agenda and the consequent shift to a new kind of electric grid. Many carbonistas reckon that the oil and gas majors will be holed by their huge stranded assets as the global economy makes its shift. I think they are probably right over the long term (over 20 to 40 years) but I’m not quite so certain over the next two decades. Unfortunately for the planet, my guess is that demand for oil and certainly gas will remain resilient for some time yet. But the structural outlines of the transformation are clear: increased demand for electricity; a move towards renewables; more dependence on batteries; and a need to completely re-engineer the grid.
In this shifting new energy economy, batteries play a crucial role, not least in even-ing out peaks and troughs in demand and supply. We’re already seeing the first investment themes emerging in this space not least in demand for stock in the lithium mining sector. Gore Street has also just got away a small fund that’s focusing on providing the grid with battery power and there’s the great debate over Tesla – p[onzi or the next great disruptor. Whatever view it seems that batteries and Lithium are about to play a crucial role. The only problem is to make sense of this from an investment perspective.
My own small contribution to this huge debate is that I’ve just been asked to moderate an event designed to answer some of these questions.
It’s on Wednesday 20th June at lunchtime (12.30 kick off). It’s at The Hospital Club and the event is free for investment professionals and experienced private investors but you have to register. Details and blurb about the event are below! Do come along for what I think will be one of the most interesting events I’ve moderated at!
” Lithium is a hot commodity, with automotive companies viewing lithium batteries as a critical component in their ability to ramp-up battery production and the stationary energy storage market also adding increased pressure on the lithium supply chain. With this background, everyone is trying to jump on the technology metal stock bandwagon. But where is it found? What makes a good deposit? How is it extracted? And how is it priced?
Lithium Explained is focused on providing the audience with an insight into how an investor gains exposure in the sector throughout the value chain. Hosted by leading financial journalist David Stevenson of the FT Adventurous Investor and Moneyweek, the panel includes representatives from LGIM, which runs the largest fund that invests in battery metals and new electric grid technology and is one of the fastest growing funds in Europe; Savanah Resources, which has its sights on becoming the first European producer of battery grade lithium; and Bacanora Minerals, which is on course to build the next world-class lithium mine at its Sonora project in Mexico.
We listened to feedback from the last event and chose a lunchtime slot with sandwiches provided: 12:30pm – 2pm on Wednesday 20 June 2018 at The Hospital Club in Covent Garden. You will get the opportunity to ask questions but if you’d like something specific covered, do let us know.
Date: Wednesday 20 June 2018
Venue: The Hospital Club, 24 Endell Street, London WC2H 9HQ
Lithium Explained is the second in a series of CPD certified events focussed on providing a clear and balanced understanding of contemporary issues affecting investors to increase their knowledge and confidence in making informed investment decisions.