Battery Metals Bubble: Does it Exist or Do Current Supply and Demand Fundamentals Justify the Prices?

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We’ve taken a closer look at the Price/Net Asset Values of battery metals stocks in our index

SmallCapPower | December 7, 2016: With the evolution of the lithium-ion battery and pending availability of an affordable electric vehicle, we decided it was a good time to produce a Ubika Battery Metals Index, comprised of 10 lithium and 10 cobalt companies.  These metals have been on a strong run over the past year, enriching a lot of capital market activity, and investor interest towards these sectors. In an effort to produce an unbiased piece of research, we attempt to answer the question of whether a lithium/cobalt bubble has formed in the public equity asset class. With recent valuations surging over 100%, on average, we’ve taken a closer look at the supply/demand fundamentals for the metals, in order to help us answer the controversial question.