The world could face a shortage of lithium as demand for the metal ramps up, with some analysts forecasting that it could come as soon as 2025. Others, however, see a longer time frame before that shortfall hits.

BMI, a Fitch Solutions research unit, was among those that predict a lithium supply deficit by 2025. In a recently published report, BMI largely attributed the deficit to China’s lithium demand exceeding that of its supply.

To avoid the impending crisis from the lithium shortage, EV manufacturers are taking matters into their hands. In a rare move, they’re getting involved in lithium mining itself. Volvo is talking with the biggest mining companies in the world about buying a stake in their operations. Not for a profit, but just to have access to lithium.

• Thus, German Volkswagen CEO Scott Keogh says, “We’re not going to become a [lithium] mining company. But certainly, we will get significantly closer.
• Ford pre-purchased 33% of the lithium output of a new Nevada mine last year. General Motors invested $650 million in a lithium mine in Nevada. And even the electric vehicle industry leader Tesla is reportedly in talks to buy Sigma Lithium — the massive lithium project in South America — for around $3 billion.
• Sigma's Grota do Cirilo holds 85 to 100 million metric tonnes of lithium in their mine. The company produces up to $450 million in free cash flow, and the stock has gained over 1,350% as lithium prices increased over the last three years.

Companies with minerals for “electrified dreams” could be one of the biggest winners, and this could be an excellent window to build long-term positions.