Lithium: What's all the fuss about?
Technological advances in batteries that allow them to store more energy, in a smaller physical size, are pushing us towards greener alternatives to burning fossil fuels. Batteries are making a comeback and are set to become a more important part of the energy landscape. Tesla is making affordable battery powered cars and other manufactures have already signaled their intent to do the same, while home battery storage is supporting the spread of renewable energy.
The key material allowing batteries to become smaller and more efficient is lithium. Historically the problem with batteries was size and weight; this made them impractical for many uses. Lithium has allowed batteries to become smaller, lighter and more efficient. Additionally, the use of lithium in batteries allows them to be recharged more efficiently, further increasing their range of applications.
Glennon Capital
ASX:GC1, ASX:CMI
The increased demand for lithium has meant that the price of lithium carbonate has increased by a huge 96.2% over the past year. Consumption is forecast to grow at 11% per annum for the next few years with the main driver of growth being rechargeable batteries; of that batteries for cars are expected to grow at 27% per annum until 2025
Australia is currently the largest producer of lithium. This has meant that there has been a rush towards investment in the few listed companies that are current or prospective lithium producers. Of note is Pilbara Minerals (ASX:PLS), which has increased from 4.5 cents just 18 months ago to 63 cents this week. The business has yet to produce any lithium.
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Glennon Capital was founded in 2008 by Michael Glennon. Previously, Michael worked with some of the best institutional small company fund managers in Australia. In 2007, he received the IMCA Money Management Fund Manager of the Year (Small Cap) Award. Michael founded Glennon Capital to offer specialist small company investment management to high net worth individuals and family offices, as well as through selective platforms for clients with less than $1 million to invest in our portfolios.
Today, our flagship fund Glennon Small Companies Limited (GC1) opens up the investment opportunity for all. GC1’s Initial Public Offering was completed in August 2015 and is now a listed investment company that is traded on the Australian Stock Exchange (ASX).
We are proud to be recognised for co-investing with clients in all portfolios – an important feature which ensures that our values and principles are aligned with those of our clients.
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Glennon Capital
Fund Manager
ASX:GC1, ASX:CMI
Glennon Capital was founded in 2008 by Michael Glennon. Previously, Michael worked with some of the best institutional small company fund managers in Australia. In 2007, he received the IMCA Money Management Fund Manager of the Year (Small Cap)...
Expertise
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Glennon Capital
Fund Manager
ASX:GC1, ASX:CMI
Glennon Capital was founded in 2008 by Michael Glennon. Previously, Michael worked with some of the best institutional small company fund managers in Australia. In 2007, he received the IMCA Money Management Fund Manager of the Year (Small Cap)...
Expertise
No areas of expertise
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