The Motley Fool

Is it time to invest in the lithium miners?

Australia’s lithium miners received a boost this weekend after Bloomberg reported that the Chinese government is working with regulators on a timetable to end the production and sale of fossil-fuel-powered vehicles.

China becomes the third nation this year to announce such plans, following in the footsteps of the British and French governments.

Whilst the Chinese government has not given a date as yet, the UK and France plan to ban the sale of internal combustion engine vehicles by 2030. I suspect China won’t be too far behind the UK and France, with a ban likely to fall somewhere between 2030 and 2040.

When the date is confirmed I believe it will accelerate the adoption of electric vehicles globally, which I expect will lead to demand for lithium carbonate rising strongly.

This is great news for the likes of Galaxy Resources Limited (ASX: GXY), Orocobre Limited (ASX: ORE), Kidman Resources Ltd (ASX: KDR), and Avz Minerals Ltd (ASX: AVZ).

All four of these lithium miners have high-quality assets with a significant resource underground.

Should lithium prices remain high, or even go higher, then I believe all these miners are in a great position to generate high levels of free cash flow in the future.

My pick of the group remains Galaxy. I have been very impressed with the progress it is making at its Mt Cattlin site and believe its other assets are equally as promising.

Despite its strong gain in the last month, I still feel the Galaxy Resources share price has significant upside in the long-term thanks to the rise of electric vehicles and renewable energy.

This could make it a great buy and hold investment option for investors with a high tolerance for risk.

Finally, another big winner from the rise of electric vehicles and renewable energy could be this Australian tech share. Do you own it?

Why Elon Musk’s “secret weapon” was the most shorted share in Australia...

On 9 March, the visionary Tesla co-founder and CEO made a bold $63,000,000 to save a large swath of Australia. But in the process, he accidentally revealed the small Melbourne-based company that allows him to consistently make the impossible possible. At one point, this little understood company was actually the single most heavily shorted share in all of the ASX. Yet oddly enough, nine out of 10 analysts call it a screaming BUY! And that includes Motley Fool Australia.

We just isolated this company as Elon Musk’s “secret weapon”, and think it’s dynamic run (up more than double after initially floating shares just two and a half years ago!) is only getting started. For the full story on this company, as well as how to get invested alongside us today, simply click here!

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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