Some look to lithium to charge up a portfolio

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: Can investors buy into the lithium battery boom?

A: The Achilles heel of most of our gadgets remains the battery. And some think lithium holds the answers.

Smartphones and tablets continue to get faster and more capable. But even today, users are constantly charging their devices.

The more powerful devices get, the bigger demands on the battery. And while computer chips get smaller, devices can only get so svelte because there needs to be room for a big battery pack.

Researchers continue to look for ways to make batteries smaller and last longer. So far, lithum has been a critical part of these next generation batteries. This element is used in most batteries that power everything from computers and smartphones to electric cars.

There aren't many ways to play the lithium business, yet. One possibility is investing in Chemical & Mining Co. of Chile. The stock trades on the New York Stock Exchange under the symbol SQM. Chemical & Mining produces a whole host of commodities, including iodine and lithium. Its lithium business sells to companies that make batteries, but a vast majority of Chemical & Mining's business is selling products used in agriculture. Similarly, FMC sells many agricultural chemicals, but also has a lithium business.

Short of these stocks, investors can also think about buying into the stand-alone companies that make or research batteries. Many of these companies, though run out of money before they have feasible products.