China’s lithium obsession

Dear Reader,

Something strange happened in China last month.

Nearly a million people logged on to an auction website to watch a bidding war for a bankrupt company.

It was called Yajiang Snowway Mining Development.

Yet, despite its bankrupt status, nearly three and a half THOUSAND bids came in.

The winning bid (to a mystery buyer) was 600 times the list price.

Why?

One word: lithium.

Yajiang Snowway has the rights to lithium deposits.

As weird as it sounds, I doubt this will be the last time we see a scramble for lithium like this.

With EV sales exploding, lithium demand is going through the roof.

As is demand for other critical minerals like cobalt, manganese, nickel, and rare earths.

And there’s a handful of tiny ASX-listed stocks that could be perfectly placed to cash in as demand ramps up.

I doubt you’ve heard of any of them before.

Many of them trade for less than a dollar. They’re small, risky stocks.

But I think they could be the best buys of 2022 for small-cap investors.

Here’s the full story.

Best,

Callum Newman,
Editor, Australian Small-Cap Investigator