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Global X Funds co-founder Bruno del Ama on how investors can boost their portfolio with lithium.
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We talk a lot about investing in gold and silver but now we've got to wait for you to invest in a lightweight metal.
That is capitalizing on the growth of things like ipads and Smartphones and electric cars.
I'm talking about lithium the conduct of -- -- joining me now the co-founder and CEO of global -- funds which runs the global ex.
-- CM ET make -- TF out of anything while they got -- Well lifting -- -- -- very exciting markets though you know pretty excited so many TF for that metal and the potential returns that that he had solid actually makes perfect sense because usage of lithium is jumping exponentially because of course with the embassy used in.
The batteries that would go in electric vehicles but it's also in all of the tablets of the iPad of course is such a huge seller.
Is that what is truly driving the growth of this -- usage.
Absolutely yes if you look at lithium about a decade ago it was a pretty boring Natalie was growing like most of national medals of about about 3% a year.
All of a -- you -- lithium ion batteries it's is the most advanced battery technology.
And with all the growth in cell phones laptops now we have ipads and generally electronic devices.
-- to growth and its image really exploding -- the actual price of lithium has tripled my guess what over the past since 2000 price so.
The demand has increased as have the prices so here on your screen is how much lithium is used look twenty grams.
In a single tablet so obviously that but what about say for example in a shabby Coulter has -- battery.
Well.
Obviously a much more heavy use of lithium the first Tesla battery five was hundred lots -- batteries put together so we know you're looking that.
About a hundred ties -- be -- say it's.
-- -- obviously what's happening always growth he doesn't even incorporating any of the growth that's happening.
And electric -- so very early on -- stages and to the extent that there's any significant penetration of electric vehicles hybrid vehicles.
I you're gonna see a much more rapid increase in the use of -- so let's talk about what's in the ETF the top holdings and why you picked these particular names.
How will lead -- -- the full life cycle of Bob both with numerous laws remain deployed in the plea deal which is -- -- -- -- battery producers.
Not the largest holdings are on the largest company with regards to keep production up with him so -- -- Hi FMC Rockwood Holdings between those three firms thought they control about 85% of the global leasing production.
Pocono Rockwood Holdings is something that's backed by Henry Kravis is KKR and then -- -- visit to lay and company correct correct so these are worldwide opportunities there's also that company out of Canada tell -- -- -- -- Now their CEO Peter all -- -- on interest in quote from him where he was saying that he fully expects.
That demand will double or triple in the next ten years this is making a pretty significant assumption and that is.
The people will adopt battery powered card usage.
I think that's right I think over the next decade if you look at current growth rates and extrapolate contact supported by the current use of electronic devices -- IDI -- the -- -- cellphones laptops.
Other home uses sensors robotics.
Time now to grow by possibly tripling you do need to see some impact we've stopped from electric vehicles to fund is down 20%.
-- -- for here yet it's up about 3% year to date what's going on here in the psychology -- it is it just need attention what kind of momentum and where will that come from does it need.
Well a lot of the focus right now on the global commodity markets -- what's happening on in China and the news coming out of China office what you slowdown -- time.
Also the news coming out of Europe and that's putting a lot of pressure from you -- on really across the boarding on all industrial metals.
But if you look at -- you production companies themselves are actually one of the best performing within that segment -- that is what's happening in the markets.
Hi and certainly we view these -- a good entry opportunity look at they're really takes off could there be shortage.
Oh Derek should be assorted -- there's a lot of lithium generally in the world but it's pretty expensive to mine outside of this of the salt.
-- type of mining that happens in Argentina and Chile.
Not so yes certainly interest of getting the minus online and and mining to -- -- the cost of the lithium.
I could go up pretty dramatically -- around the world -- is back gonna be reflecting -- price and there you see Australia Argentina to land in Brazil.
The Bob -- as well.
-- -- thank you very much filled with PM ETF will be watching it closely thanks -- -- -- -- are.
