Skip to Content

3 Reasons NOT to Invest in Lithium Stocks

By Matt McCallJan 28, 2019


Lithium stocks were a hot investment for years. Large amounts of the mineral were needed to fuel the expansion of lithium-ion batteries – the very batteries used in smartphones, laptops, and most electric vehicles (EVs).

The lithium-ion battery remains the best technology currently available to the masses, but that may not be the case in the very near future.

I’m not saying related stocks are going to tank, but as we look to the future, lithium-ion batteries are on the way out as new battery breakthroughs start to hit the market. I would like to tell you a little bit about that today…

Reason #1: Battery Life

It’s safe to bet that you – and every other person reading this article – have had your smartphone die at a not-so-opportune moment. Maybe in the middle of a phone call? Or possibly when you had only a few miles left to your destination.

Battery life on our smartphones and other electronics has certainly improved over the last decade, but it’s still not where we want it to be. And the future of technology will require even longer battery life as well as higher density. Advancements like having the ability to stream video anywhere eat up a lot of battery life, so the current lithium-ion technology will not be sufficient.

Even more important will be battery density and life for EVs as they begin being mass produced. As you would guess, they require a ton of power. The range on today’s EVs is not good enough for the masses, so the search for a new and better battery technology is in full swing.

Reason #2: Cobalt

Cobalt is one of the required minerals in the production of a lithium-ion battery. But there’s a big problem with that.

About two-thirds of cobalt is located in the Democratic Republic of Congo (DRC). The DRC is one of the most unstable countries on the planet, which makes the supply of the highly sought after mineral a major concern. In fact, cobalt is often referred to as the “blood diamond” of the battery industry. The human toll of mining cobalt is terrible. Conditions at mines are unacceptable and child labor is running rampant.

Simply put, in a few years there will no longer be enough cobalt to keep up with the demand for lithium-ion batteries in EVs.

Reason #3: New Technologies

The biggest threat to lithium-ion batteries is new and improved technology. The race is on to meet the needs of the near future, and there are a number of technologies out there that could unseat the current battery leader. After a lot of research, it is clear to me that one technology in particular is well ahead of the pack.

It’s an innovation that will have multi-trillion dollar economic implications. Think of a world with electric cars that have massive ranges. Think of an iPhone that needs charging just once per month. Think of airplanes that run on batteries. Think of the eventual demise of the oil and gas industry.

Over the past year, I’ve spent an enormous amount of time studying the battery industry. I can tell you this mega innovation isn’t a matter of “if,” it’s a matter of “when.” I believe the next big battery breakthrough will go down as one of the greatest inventions of the 21st century.

Of course, there are huge investment implications here. Those on the right side of this innovation stand to build incredible wealth… just like people did from the creation of the internet and the smartphone.

I am so excited about this new technology and the future of batteries that I put together an entire research report on this topic. Click here to find out more.

Don't miss out on the incredible megatrends that are shaping today's market. Gain access to the most powerful market insights and stock advice from Matt McCall absolutely FREE. Join Today!