How to invest in the resource boom that Tesla Gigafactory and electric vehicles are creating

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This is an good, albeit brief, article investors may find useful.

Excerpt:

"For those of us who believe that the entire automotive industry is rapidly transitioning from being powered by fossil fuels to electricity, it becomes important to transfer any asset from one to the other not only from an environmental standpoint, but also from a financial standpoint.

We have reported before on a growing movement to divest from fossil fuels – now reaching over $5.2 trillion – but the question is where do you reinvest that money? What is the new petrol?

The minerals used to make batteries are obvious contenders, but there are a lot of different kinds of batteries using all different minerals. Tesla’s Gigafactory 1 in Nevada is alone expected to double the global battery production over the next year and therefore, it could create a resource boom.

The truth is that not one single kind of battery chemistry is likely to rise above all. While the overall production will increase as electric vehicles gain market share, manufacturers will use different battery chemistries with different kind of minerals, but there are some usual suspects that are more popular than others: lithium, cobalt, nickel, graphite, and manganese come to mind.

In this article, we list and briefly look into a few companies working on developing new mining projects for those minerals and who could benefit from the rising demand due to the electric vehicle revolution.

Full disclosure: some of those companies are junior mining companies and therefore, most of them are considered small cap – meaning they trade at low volume and prices, which can offer exceptional returns but can also be extremely volatile. You should always do your own due diligence and invest at your own risk. Also, most junior mining companies are trading in Canadian dollars on the TSX (Toronto Exchange), but they also have tickers on the OTC to be traded in USD. Liquidity is generally better for those companies on the TSX.

Additional disclosure: I’ve invested in most of those companies over the past few years myself since I do believe in the investment opportunity in minerals used in batteries and especially the demand that the Gigafactory is creating in North America."

The brief article still covers a lot here:

https://electrek.co/2017/02/21/how-to-invest-resource-tesla-gigafactory-battery-electric-vehicles/