Chris’ note: Our natural resource investing expert, Dave Forest, just came back from a fascinating field trip. He helicoptered into the wilds of Canada to hunt for “hard tech” – metals like lithium and nickel that are critical ingredients in some of the biggest tech trends on the planet.
Dave isn’t the only one searching for these metals. So is the world’s richest man, Elon Musk. He needs them for the batteries that power every Tesla on the road.
With many stocks down double digits this year, it can be hard to focus on opportunities like this. But as I showed you yesterday, times like these – when quality assets are selling at a discount – are when you can make a fortune. The key is to pick investments in powerful megatrends.
That’s why now is a great time to position yourself to profit from the boom in hard tech. Dave explains more below.
I’ve been on the road the last few weeks. Well, more like on the trail…
You see, as well as heading up three advisories here at Legacy Research, I’m a professional geologist.
I’ve made it my life’s work to hunt the globe for hidden natural resource treasures.
And it’s taken me to Colombia, Brazil, Zambia, Uzbekistan, Myanmar, Laos, Russia, Mongolia, and the Czech Republic.
My latest trip was to the wilds of Canada. I helicoptered in to check out potential new copper deposits.
Here’s a shot from the field…
The wilds of Canada where I searched for copper deposits
It was a great couple of days. My team and I found clues that copper is lurking below the surface.
Geology is a lot like detective work. You’re always looking for surface clues of what lies beneath.
In Canada, we found a “gossan.” That’s geology speak for a large patch of rusty rock.
You can see the orange color in the photo below…
The gossan my team and I found in Canada
Gossans pop up where acidic fluids flow through the ground. That often happens near ancient volcanoes – the kind that create big copper deposits.
Right now, geologists are scouring the Earth for features like this. That’s because of a market megatrend I call “hard tech.”
It’s at the intersection of mining and some of the most powerful profit trends in tech.
The search for hard tech is ramping up.
Companies are dispatching geologists to look for new deposits of copper, lithium, nickel, and a host of other hard tech metals all over the planet.
Copper goes in wiring. That makes it critical for electric vehicles (EVs) and EV charging stations.
Lithium and nickel are crucial for EVs too. They go into batteries.
We also need stationary batteries to store power from wind and solar plants before sending it onto the grid.
That’s why I’m so excited about this trend. It’s a picks-and-shovels way to play some of the world’s most exciting tech trends.
And not just mining companies are sending out geologists. Industry insiders I spoke with on my trip said EV makers are also hunting for these key resources.
After Canada, I flew to Nevada to check out an old uranium mine in the middle of the desert.
Uranium is another key hard tech resource… especially in America. The U.S. is the top uranium user for nuclear power in the world.
Americans rely on nuclear power for about 20% of their power needs. But we mine nearly no uranium domestically.
Until now, uranium imports filled the gap. But about a third of that uranium came from Russia.
And given Russia’s war on Ukraine, those imports may evaporate quickly. The Senate has advanced a bill to ban Russian uranium. In response, Russia threatened to preemptively cut off supply.
If Russian supply dries up, it’s unclear what will fill the gap. Without an answer, the lights go out.
That’s why I bought the old uranium mine I just visited. It was once Nevada’s largest supplier of the nuclear fuel.
At the site this week, I walked the grounds with a geologist I’d just hired. We discussed the rocks in the area.
Then she told me something intriguing…
Tesla (TSLA) recently went on a hiring spree for geologists.
My colleague said the company had hired several of her friends and colleagues. Elon Musk’s EV giant is trying to get its hands on as many mineral experts as it can.
This makes sense given Musk’s public comments.
At a conference earlier this month, he said he was open to buying a mining company…
If that’s the only way to accelerate the [sustainable energy] transition, then we will do that.
A few weeks later, Tesla snapped up a first-rate team of geologists. That’s a clear sign it’s getting involved in hard tech exploration and production.
What does this mean for hard tech investments?
Based on past Tesla deals… a lot.
Piedmont Lithium (PLL) is developing a world-class lithium mining operation in North Carolina. Last year, its shares spiked from $6 to $89 – 1,383% – after a deal with Tesla.
More recently, Lithium Corporation (LTUM), a Nevada-based lithium mining company, jumped more than 200% in one day on just a rumor of a deal.
So Tesla’s moves could make investors in the right lithium mining stocks a lot of money.
Tesla has published a list of all its hard tech suppliers globally. It’s a rare view inside the company’s supply chain.
It reveals a willingness to go almost anywhere in the world to secure supply of these key minerals. Canada, Argentina, China, Australia, and French territory New Caledonia made the list.
That gives us a long list of quality stocks to choose from for potential targets.
But as I’ve been showing my readers, I’m focused on hard tech mining companies based in the U.S.
With global supply chains frayed… Musk knows that the most secure supplies will come from within U.S. borders.
That’s why now is a great time to get into hard tech.
Not only would a Tesla deal be lucrative for the target company… it could also kick off another phase of gains across the industry.
The space has already done great for my subscribers.
At my International Speculator advisory, uranium miner Cameco (CCJ) is up 153% since I recommended it in September 2018.
And at my Strategic Investor advisory, I’ve given my subscribers the chance to close out gains of 193%… 283%… and 384% on lithium mining stocks.
With the world’s richest man now signaling a shift into hard tech, the next few months could be even more exciting.
I’ve gathered several of America’s top hard tech plays in the International Speculator model portfolio.
I’ve recommended America’s only primary nickel supplier. I’ve also taught my readers about the biggest potential supplier of rare earth metals – a key defense hard tech – based in Utah.
To find out how to join me as a subscriber and access these and other hard tech plays, read on here.
You can also get broad exposure to this trend through the Global X Lithium & Battery Tech ETF (LIT).
This exchange-traded fund (ETF) isn’t a pure play on the lithium mining sector. But it’s a good way to pick up some general exposure. It owns shares in companies involved in the entire lithium supply chain – from mining to battery production.
It’s up 113% since I first put it on your radar in these pages in October 2018.
The hard tech megatrend could be the biggest boom of the coming decade. As it plays out, there’s a lot more room for LIT to climb.
Keep walking the path,
David Forest
Editor, International Speculator