Rare earth metals shortage

Via Roubini.com:
William Tahil, research director at Meridian International Research, says that there is insufficient lithium available in the earth’s crust to sustain electric vehicle manufacture in the volumes required, based solely on Lithium ion batteries. To power a world automobile fleet in the size required to achieve needed cuts in oil consumption, would merely be switching dependency on one diminishing resource to another.
Although in my opinion the main driver of the commodity bull market is loose monetary policy (via low real rates and currency weakness), the supply situation is also a supportive factor for higher commodity prices in the long run.
Read the original story at Raphal Kahan
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Interesting that Lithium is being labeled in this story as a Rare Earth Metal, but leaving that aside it might pay those interested in Lithium to have a look at what Australia has to offer. In 2007 Australia produced around 20% of the world’s Lithium supply and it is estimated that Australia has around 23% of the world’s economic Lithium supply and a much larger percentage of Lithium bearing Spodumene Rock. http://australian-lithium.com/about-lithium.html.
Several companies have also recently discovered Lithium Brine Lakes with at least one having the right Mg:Lithium ratio to be commercially viable.
Investors should be alert to the fact that Australia has a very stable political system, advanced mining technology but most importantly all of Australia’s ASX listed Lithium companies have a market cap aggregate of less than AUD$600m. This very low capitalization means that > 20% of the world’s Lithium is vastly undervalued and consequently offers smart investors a very real “bargain”. A bargain price in a politically stable region of the world with China and most of SE Asia on its doorstep. http://australian-lithium.com/lithium-stocks.html