There's a new "gold rush" in town for this small Arkansas city… Know more about that here! [Wednesday: The Independent Investor]

From the desk of Miles Everson: Hello! Welcome to “The Independent Investor!” I’m excited to talk to you about today’s investment insight. In these articles, I share all-things finance and investment to help you experience financial freedom and achieve financial stability in the long run. Are you ready for today’s topic? If you are, then let’s keep reading below!

There's a new "gold rush" in town for this small Arkansas city… Know more about that here! Magnolia is the county seat of Columbia County, Arkansas, United States. The city is home to the World’s Largest Charcoal Grill and the World Championship Steak Cook off, which is part of the Magnolia Blossom Festival. Education-wise, Magnolia is home to Southern Arkansas University, a public university known for offering a good Business Administration or Accounting degree. BUT! Did you know that despite all these things, Magnolia houses a small population compared to other cities in the U.S.? In fact, its population has been less than 12,000 in the past few years. Why do you think this is so? Allow us to give you a bit of a context… In the 1980s, the oil industry gave up on Magnolia. That’s because any time the wells in the small Arkansas town ran, they just pumped up gushes of saltwater. … and that’s NOT a liquid any oil company wants to deal with. When the oil companies left, so did pretty much all of Magnolia’s economy. After all, there’s not a lot else to do in southwestern Arkansas. For most of the past 40 years, the town has remained pretty sleepy… but that is about to change in today’s time. According to Professor Joel Litman, Chairman and CEO of Valens Research and Chief Investment Officer of Altimetry Financial Research, oil isn’t the only treasure hidden beneath Magnolia’s soil. The city is located right in the center of a HUGE reserve—one that will help power the next few generations of cars, just like how oil has powered the past few. Any ideas on what this reserve is? The Smackover formation. This lithium reserve stretches from northeast Texas all the way to the Florida panhandle… and it’s filled with metallic brine! Professor Litman says this is the same brine that got in the way of all those oil companies in the 1980s and scared the energy industry out of Magnolia four decades ago. ... but as he’ll explain in this article, the industry is about to come roaring back in the small Arkansas city. The Critical Commodity Behind the Next U.S. Industrial Boom Professor Litman says even though the U.S. only produces 1% of the world’s lithium, the country is already the fifth-biggest lithium importer in the world. What’s more? The U.S. also has MASSIVE lithium reserves! Here’s the thing: For many years now, the global superpower has let countries like Australia, Chile, and China completely overtake it in terms of this industry. According to Professor Litman, if America wants to maintain energy independence as it embraces electric vehicles (EVs), it’ll need a way to balance the deficit between production and consumption. Small towns like Magnolia are the key to ending reliance on other countries for the lithium that goes into U.S.-produced batteries. … and to give credit where it is due, the U.S. is already halfway there as the country has more lithium reserves than China or Australia. It just needs to build mining infrastructure… Thankfully, BIG companies are starting to answer that call. Many, like Standard Lithium (SLI), are setting up shop in and around Magnolia. The commercial lithium developer is looking to break ground on a Magnolia-based facility that would produce up to 6,000 metric tons per year, instantly making the U.S. the fourth-largest lithium producer on Earth. Meanwhile, energy major ExxonMobil (XOM) plans to build one of the world’s largest lithium facilities right outside Magnolia. The facility is expected to have a capacity of up to 110,000 metric tons of lithium per year. Professor Litman states if the factory turned on tomorrow, the U.S. would be the biggest lithium producer in the world, making about 43% of the world’s supply. Take note: SLI and XOM are only the start. According to a new International Energy Agency (IEA) report, demand for the metal has tripled over the past five years. By 2040, the IEA projects of the world will need 1.1 million tons of lithium per year. Because of that, Professor Litman believes the U.S. is about to enter a veritable lithium “gold rush.” As the country keeps pumping out more battery-powered goods—and as the world embraces EVs in particular—lithium demand is expected to outstrip supply by 2025. This will transform the U.S. economy and create HUGE winners as it buoys other industries. In fact, experts are calling this new industrial age the “Great American Rebirth.” Demand is already sending lithium prices through the roof. The commodity is up nearly 200% over the past three years even after falling more than 80% from an all-time high in November 2022. … and for a commodity with a clear long-term path higher, Professor Litman says this is exactly when you want to buy in. Hope you’ve found this week’s insights interesting and helpful. EXCITING NEWS AHEAD The world of work has shifted, and there’s no going back. The barriers to entry have never been lower for talented professionals to work independently, and today’s massive external workforce is hardly a pandemic-produced fad. Business owners can only survive in the new work landscape by partnering with this deep talent pool. With decades of experience in both small-business entrepreneurship and executive management at PwC, I truly believe that the future of work is independent. With that, I’m happy to share with you that my book, co-authored with Walter Scott Lamb, is now available for pre-order on Amazon! 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