“Lithium the Fuel of the 21st Century”

Lithium is used in a wide range of products, including glass, chemicals, medicine, and other. The new focus of Lithium is however the battery market, due to its chemical capacity to storage more at less space and weight. Therefore the Lithium-Ion battery is mainly featured in mobile phones, laptops and other small applications, however it is set to be used in electric vehicles and other large scale applications in the future.

Lithium is predominantly found in North & South America, Australia and China. The mining and exploitation of Lithium is increasing, and its market demand is predicted to grow by at least 7%-10% annually for the next decade. While in 2008 the production was about 120,000 tons and the world market for Lithium and Lithium based products was almost $ 10 Billion, the numbers are expected to grow exponentially over the next decade. Accordingly new production sites will need to be found, developed and ultimately exploited. Major new projects are already under way in various regions including China, Argentina, Chile and North America.

However, due to the financial and economic crisis, even the Lithium industry is undergoing significant restructuring. Many of the industry´s companies face serious problems as private equity, mezzanine and debt capital becomes increasingly scarce. Consequently many companies and projects have become very attractive from an investor´s point of view. Nevertheless scientific progress ensures the long term upwards trend for Lithium.

Governments become increasingly aware of Lithium´s properties and promote initiatives such as large Lithium-Ion battery storage solutions, not only for cars but also for trucks, boats and yachts, as well as for planes and infrastructure.

Microfinance Investment AG considers Lithium as a focal point in its portfolio, and is looking to invest a major amount of its available capital within this field. Considerable investments are needed into the mining, shipping, processing of Lithium and products from it to balance long-term supply and demand patterns.