Bacanora boom

Does the market dream of electric cars? I hope so, as my tip for 2016 is lithium producer Bacanora Minerals.

The market for the lightest of the metallic elements has grown between 8-12pc over the last 15 to 20 years, underpinned by strong demand from computer and mobile phone makers, who use it in batteries. But the next phase of growth should be driven by electric vehicles.

Back in August, Bacanora – which is developing the world-class sonora Project in Mexico – jumped after announcing the signing of a landmark supply contract with Us electric car pioneer Tesla Motors.

The sonora Project is estimated to contain around 9 million tonnes of lithium carbonate. If it comes into production as planned towards the end of 2018, it will become an internationally significant producer.

Bacanora shares leapt 60pc higher over the past year, but at 73.5p there is still more to go.