The Fuel that Powers the EV Revolution

History clearly shows that the big money is not made by the manufacturers. The Fuel that Powers the EV Revolution [By Mike Burnick] By Mike Burnick Thursday, April 29, 2021 [Tesla experiencing MASSIVE metal shortage]( Tesla is struggling to increase production because the materials to make batteries are in a HUGE supply crunch! But what’s bad news for Tesla and other EV stocks is AMAZING news for [these 8 battery metal suppliers.]( [Get names and ticker symbols here.]( The profit potential in these critical [EV suppliers]( makes Tesla look like chump change in comparison. Let me give you the details, [go here now.]( Who do you think will dominate the Electic Vehicle (EV) market in twenty years? Will it be America’s Tesla, China’s BYD or Nio? Or will traditional automakers like General Motors and Volkswagen, who are making a major pivot toward EV production, ultimately come out on top? I say, who cares! History clearly shows that the big money is not made by the manufacturers. Automakers are stuck in a low-margin, highly competitive industry. The big money will be made as always by those that supply what is needed most to fuel the EV revolution. And it means a [super-cycle of profit potential for these key suppliers.]( [Go here to see how.]( In the early 20th Century at least 1900 different companies produced more than 3,000 makes of American automobiles. The vast majority of them went out of business in a few dozen years. That left just the big-three U.S. automakers, who built 75% of all cars in the world by 1950. But who really prospered the most as a result on the American automobile revolution? Hint, it wasn’t GM, Ford and Chrysler. The U.S. petroleum industry, that’s who. That’s because they produced the key ingredient that fueled the American automotive revolution. As a result, much more money was made betting on big-oil than investing in the big-three during the 20th century. And history is repeating itself in the 21st Century. This time around, the EV revolution will mint new millionaires and billionaires, but most of the riches will be earned by a few [key suppliers](. Only 1 out of every 250 cars on the road today is an EV. Just 2.2% of the global auto market. But by 2040, it’s estimated that nearly 60% of global vehicles sold will be EVs. And batteries make up 40% of the value of an EV. We’re talking huge profit potential. So, who will prosper the most in the 21st Century from the EV revolution? Not EV automakers, and not even the battery makers. That’s a brutally competitive business too. It will be the [companies that supply the vital materials]( for EV batteries. Those materials: lithium, cobalt, nickel, and other metals that go into state-of-the-art lithium-ion batteries. This is the [NEW fuel that will power the EV revolution.]( And the suppliers of these materials will make the most money, just like big-oil did last century. For instance, the world currently mines about 400,000 tons of lithium a year, this is enough to power around 2 million to 3 million EVs, though only a third of that goes to EVs batteries. That’s because consumer electronics including smartphones, tablets and laptops use the same batteries that compete for that lithium. The amount of lithium produced worldwide will have to increase substantially in the years ahead. Perhaps as much as ten- or even twenty-fold just to meet Tesla’s ambitions alone. And this doesn’t factor in all the other EV makers that will be competing for a share of that fast-growing market. The same goes for all the other raw materials that will fuel the EV revolution. As investors we have a [proven playbook to follow.]( It goes without saying that investors in oil & gas made fortunes in the early 20th Century. Much more recently, the gold bull market that began in 2000 earned fortunes for savvy folks who made the right investments. And while I missed out on the oil boom in the early 20th century, I was a much more active participant in the gold boom in the early 21st. Gold itself performed very well for investors, up 708.6% from 2000 – 2011, but it wasn’t the best investment. Far from it. Companies that produced the raw material did even better. Gold mining giant Goldcorp, for instance, surged 1,687% higher over the same period. Up-and-coming gold mining firms performed even better. That’s because they were small and fast-growing at a time when demand for gold was booming. The right size in the right place at the right time. Junior gold miner Kinross Gold for example soared 6,127% from 2000 – 2011! That’s nearly nine-times more money than an investor earned in gold during the gold bull market. And what I see today setting up in the EV bull market is history about to repeat. So, if you want to get rich from the EV revolution, forget Tesla, BYD or even GM. [Invest in the up-and-coming suppliers that will fuel the EV revolution.]( One easy way to do so in a single trade would be the VanEck Rare Earth Strategic Metals ETF (REMX), which holds a basket of stocks that produce the vital materials used to make EV batteries. REMX is up already up 483% since the beginning of 2021, compared to Tesla’s gain of about 60%! But admittedly, REMX is still taking a shotgun approach to buying the entire EV material industry, including some stocks that may not prosper all that much. For my money, the biggest gains are likely to come from the smallest and fastest growing companies that provide [the fuel that powers the EV revolution!]( [Go here to access my favorites.]( Good Investing, [Mike Burnick] Mike Burnick Research Analyst [Read more on DailyProfit.com]( [Take a 7 day break from these emails]( [Unsubscribe from these types of emails]( [Manage your email preferences]( [Wyatt Investment Research] Disclaimer & Important Information [Wyatt Investment Research (“WIR”)]( owns and publishes the website WyattResearch.com, other web sites, and, through its subscription services, various investment newsletters, trade alerts, and other investment-related educational materials. Those publications are informational in nature – WIR is not your financial adviser and does not provide any individualized investment advice to you. 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