Saw post regarding what's undervalued and could 5-10x in coming years.
Lithium demand will grow from 1.3m tonnes to 3m tonnes by 2030. Prices have reached high of $85k per tonne back in 2022, dropped to $9k in 2024, and now running back up to $24k in 2026.
LAC is the largest lithium deposit in North America, the Department of Energy has backed the mine with 2.6b loan and owns a stake, GM has also backed the mine owning a stake.
This is a mine of national security, Lithium batteries are needed for robotics, data centers, EV's, and will enter a growing deficit beginning this year. It takes years to establish new mines, we're too far behind to catch up and it's predicted deficit will continue growing for the next decade.
LAC will have 1800 employees on site by end of 2026, engineering is 93% complete. Opening will be end of 2027. Production will go from 40,000 tonnes in 2028 to 160,000 tonnes by 2040.
You're basically buying in while it's a hole in the ground, betting on a sector which is erupting with demand dealing with deficit and prices are surging again.
This stock can actually 5x-10x and then will most likely pay a nice dividend. It's a long term hold for the next decade. There's mandates to source minerals nationally and stop reliance on CN which this is a part of as well.