By David Forest, editor, Strategic Investor
It’s a scandal. And they should have seen it coming.
The Wall Street Journal went public with a shocking story this week.
The coming green energy inflation.
Here’s what WSJ wrote:
If you think inflation is bad, wait until the rest of the commodity markets really heat up. Although prices for basic materials like copper, aluminum, nickel and steel – used to build everything – have already inflated, they haven’t yet escalated as much as fuels and energy-driven commodities like food. But they will if European and U.S. policy makers have their way.
This all comes back to hard tech. The thrust of WSJ’s investigation is simple: Green energy needs metals.
Without nickel, copper, rare earths, vanadium (and a host of others), the electricity revolution explodes on the launch pad.
But the truth is, there isn’t enough to go around.
Every Single Automaker Wants Nickel
Take a hard tech like nickel. It’s crucial to the buildout of electric vehicles (EVs) around the planet.
Without nickel, there are no EV batteries. Without batteries, no vehicles.
But we’re badly short when it comes to nickel. America boasts only one single mine for primary nickel.
This analysis from the U.S. Geological Survey tells the story. American nickel production is a tragic joke compared to the rest of the world.
There are a few other disturbing things about these numbers. For example, Russia is the world’s third-largest supplier of nickel.
The top two nickel nations aren’t much better. Indonesia moved several times to ban nickel exports. The Philippines tried to ban open-pit mining altogether.
The supply picture is bleak for this hard tech. At the same time, everyone on Earth wants it. Tesla, Volkswagen, GM, BMW, Ford, Samsung, LG… the list of massive conglomerates looking for nickel goes on and on.
There simply isn’t enough for all these huge players.
They know this. And they’re pretending it’s not a major catastrophe in the making.
I recently sat down with an inside whistleblower. This PhD holder worked for one of the world’s largest EV makers. It’s on the list I mentioned above, and you’d recognize the name immediately.
He told me something shocking. Years ago, he predicted the hard tech crisis breaking over the world today.
It wasn’t much of a stretch, even back then. You just needed to really dig into the numbers.
We know how much nickel goes into an EV battery. We also know how many EVs are projected to hit the streets in the coming years.
Add that up against supplies of hard tech like nickel, lithium, and cobalt. It becomes clear – fast – that we’re going to be badly short.
My EV insider warned his employer. Back then, the giant carmaker could have taken action.
No one was thinking about nickel at the time… or any other metals. This conglomerate could have struck deals all around the world, pulling the carpet from under their competitors.
Instead, they did something unbelievably stupid.
They fired the PhD holder who warned them of the coming crisis.
As he reported to me, the world’s biggest automakers simply didn’t want to hear the truth. They were sure technology would fix things. Somehow, someway, the world would find all the missing hard tech needed for the electricity revolution.
Wrong. Dead wrong.
This Crisis Is Only Beginning… Here’s What to Do
Today, we’re facing the effects of this short-sightedness. Nickel prices spiked 200% in a day. Lithium prices quadrupled over the past year.
The WSJ article comes much too late. But they’re right about one thing.
This is just getting started.
That’s why Tesla’s reportedly striking “secret deals” for nickel in recent weeks. It’s also why they went as far as a tiny island in the South Pacific to secure this hard tech.
It’s why Ford just bought into lithium mining in the far-off deserts of Argentina. And GM went all the way to Australia to cut a deal for cobalt.
None of them were ready. They didn’t want to hear it.
Now, they’re all scrambling for their lives.
This awful planning is bad for consumers. Metals inflation means batteries get more expensive. That means vehicle prices go up.
It’s inflation at the most basic level. That’s scary because it affects almost everything. Not just tech, either – nickel is a key component in steel. That goes into nearly every facet of daily life.
You might think someone will fix this. That’s what the companies thought.
Now, it might be too late.
Fortunately, there’s a way to protect – and profit – here. Investors in hard tech made a killing in the past year. A basket of lithium stocks gave readers of my Strategic Investor advisory gains of 283%, 193%, and 385%.
That’s just the beginning. Investing in hard tech might be the most profitable play for the coming inflationary boom. It might be the only play.
Oh, and that insider I mentioned? I hired him, on the spot. He’s now part of the top hard tech investment team on the planet – working for you.
Keep walking the path,
Editor, Strategic Investor
P.S. Right now, America’s facing two threats: steep inflation and the everything shortage.
Because in a matter of months, the Federal Reserve created 4 out of every 5 dollars that have ever existed. This led to a predictable outcome: Americans went into a speculative frenzy. Trillions of new dollars flooded into stocks.
And now, we have too much new money chasing far too few real goods. Which is why hard tech is doing so well. It’s real. Tangible. And why high-flying tech stocks are failing.
If you see the scope of this coming problem… I urge you to check out my 3-step plan for you to protect yourself and profit in the months and years ahead.