“It just looks like we’re on the precipice of this wave,” Chris Berry, founder of House Mountain Partners LLC, told WSJ. “You’re going to need a lot of investment in a hurry to meet demand.”

Big Lithium Deals

Among the latest round of big investors in the lithium space, Japan’s SoftBank Group, Chinese firm Tianqi Lithium and the trading arm of Toyota Group have already locked in deals with lithium producers.

“It’s certainly an indication the metals are becoming more mainstream,” Jon Hykawy, president of Stormcrow Capital Ltd., told the WSJ.

Looking ahead, analysts anticipate demand for materials used to power electric vehicles and smartphones to more than double by 2025, which may further support demand for more exotic metals like lithium. Additionally, on the supply side, lithium mines are located in regions that have historically been unstable, such as South Americas for lithium, which have further added to concerns over supply shortages.

For more information on the materials space, visit our basic materials category.

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