Lithium is poised to become a red-hot commodity in the basic materials sector, driven by a couple of key macro tailwinds. First and foremost, the new data center buildout across the United States will require a decent amount of lithium to be used in the supercomputers that will train tomorrow’s leading artificial intelligence models.
Secondly, more than three-quarters of the global lithium production and supply chain originates from China. One of the leading Chinese lithium companies has just announced its plan to lower production volumes until it receives further government approval to resume previous production levels.
