Investment funds are attracted by lithium

Published: 10.12.2019 Related countries:  Czech Republic Czech Republic

Lithium starts to be interested commodity since its prices drop.

Lithium prices fell down by more than 50 % since 2018 which attracted private investment funds and another investors. They consider investing billions of dollars in mining projects. The metal is used for electric vehicle batteries. Minors stopped expanding and decreased capital expenses. As a result shares in major lithium producers dropped which raises concerns of minor investors. Investors, private equity groups and credit providers on the other side feel the opportunity. Popularity of electric vehicles and decrease of fossil fuel consumption among more and more countries speaks for itself. There are approximately 3 % of global lithium stock in the Czech Republic – the vast majority is located in Cínovec and small amount in Slavskovský forest. Lithium deposit close to Cínovec is the largest lithium resource in Europe.

Source: Hospodářské noviny

CzechTrade Team Calgary