👉 Background: Liontown Resources is a WA-based mining company that specialises in mining lithium. It was founded back in 2006 and has made a big name finding and producing battery minerals.

👉 What happened: This crew have been real busy signing deals with big name companies like LG, Tesla and now Ford. Yup, the L-crew will supply Ford with 150,000 metric tonnes of a special lithium material every year for 5 years.

👉 What else: Shares in Liontown Resources rose around 16% on the news, which is great news for all pick-and-shovel players!

What's the key learning?

💡Back in the gold rush days, there was no guarantee prospectors would find gold. However, traders made money selling picks and shovels regardless of gold diggers' success.

💡 A pick-and-shovel company is one that provides the materials (aka Liontown) to a growing industry, as opposed to the end product (an EV). We don't know which EV company will be the winner - it could be Tesla, Ford, or even Rivan. But we do know they all need lithium batteries!

💡When crypto mining was booming, computer chip companies like Nvidia saw a boost in their share prices as crypto miners bought their products in bulk. But if the industry slows down... Then the picks and shovels will too.

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