Consequently, it has benefitted immensely from this diversity, with its top and bottom lines growing by triple-digit margins year-over-year. EBITDA growth is at over 501% with the robustness in Lithium prices, which should continue to improve at a staggering pace for the foreseeable future. The most critical use of lithium is in making rechargeable batteries for electronic devices, including electric vehicles, digital cameras, mobile phones, and laptops. The metal can also be used in non-rechargeable batteries for items, such as toys, clocks, heart pacemakers, etc. Since lithium is one of the highly demanding commodities with immense use and benefits, investing in lithium stocks can be a good decision.

• On February 10, the company announced a quarterly cash dividend of $0.175 per share of common stock to holders as of March 12, 2021.
• Revenue and income have been positive throughout 2021, with share prices reflecting the positive momentum.
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Albemarle Corporation is one of the largest lithium producers in the world, with locations on six continents. Our guide on lithium provides a deep dive into what lithium stocks are poised for massive growth in the near future. The Portfolio section of your site will display the value of your portfolio, with P&L being determined by price feeds coming in from the stock market. This is also the area of the site to visit when you decide to sell out of some or all of your position. The process for selling is the reverse of the one used to buy, and once executed, the sell trade will convert the stock into cash, which will be credited to your online account. Stop-lossinstructions andtake-profitorders are risk management tools built into the trading system.

Stock Strategies

The deal represents nearly one-third of Piedmont’s annual output from its North Carolina deposits. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector. From the perspective of shareholder value creation, Freeport returned $2.2 billion to investors in 2022 as compared to $800 million in 2021. Based on price realization, I expect dividend growth in the next few years. The company is on a high growth trajectory as it aggressively expands its lithium conversion capacity.

The company’s Pilgangoora Project is situated in Western Australia and houses more hard-rock lithium than anywhere else. Its proximity to both road and port makes the location very effective for removal. It just so happens that the Nevada project is also relatively close to Tesla’s Gigafactory. This would make it relatively easy for American Lithium to strike a deal with the EV powerhouse. Allkem Limited is an Australian supplier that focuses on low-cost lithium carbonate and boron. Piedmont reported last year that a binding agreement was signed with Tesla to supply spodumene concentrate from its North Carolina deposits.

Quantumscape Corporation (NYSE: QS)

Let’s face it – lithium has become a highly-demanding metal in the industry because of its widespread use. Though lithium is not that precious, companies across the globe have been quick to mine this metal as it has become an essential component in multiple fast-growing markets. In this article, we will discuss the 11 best lithium battery stocks to buy now.

Lithium carbonate is usually the first chemical in the lithium mining or production process, with elements such as lithium hydroxide being generated with succeeding steps if required. If we talk about top lithium-producing countries, Australia is the world’s largest lithium producer, followed by Chile, China, and so on. Arena Minerals is a Canada-based integrated lithium brine company, having lithium assets in Argentina. The company holds around 65 percent stake in the Sal de la Puna project.

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If you’re searching for the best Lithium stocks, ALB can be a good choice. After all, they are the world’s largest lithium producer having mines in Australia and Chile. The analyst has a Buy rating with a price target of $40 on the stock, implying an upside potential of 16.9% at current levels.

Livent was a top supplier for Tesla and has a lithium hydroxide supply contract in place through the end of 2021. Very recently, the company has also announced the establishment of a significant new lithium conversion facility in the Southeast. Albemarle Corp. aims to make the project fully operational by the end of 2029. Once finished, the plant will have the capacity to process up to 100,000 tons of lithium every year. The chemicals company has a significant lithium business that develops a broad range of lithium compounds. Probably the best thing about buying a Quantumscape Corporation stock is its newness to the market.

According to the IEA, the number of EVs produced more than doubled in 2021 to 6.6 million. Indeed, in the past CEO Elon Musk has likened lithium mining to ‘minting money,’ and has hinted plans to start his own lithium company to gain some control of the supply chain. It controls two lithium deposits in Western Australia and is expanding its portfolio through additional exploration, partnerships, and acquisitions. Its cornerstone is the Kathleen Valley project, one of the world’s largest and highest-grade hard rock lithium deposits. Core Lithium is developing one of Australia’s most capital-efficient spodumene lithium projects, the Finniss Project in the Northern Territory. The prospector’s definitive feasibility study concluded that the mine has 173,000tpa of lithium concentrate, with a 10-year mine life, and this was recently upgraded to 10.1Mt at 1.48% lithium oxide.

Money: Master the Game

Lithium-ion batteries have been around for a while but the sudden surge in demand has made it a hot commodity. For the investment-savvy, this is an exciting time to explore lithium stocks. The soft metal holds the potential to become a strong, future-focused commodity. In November 2021, Lithium Americas Corporation got hold of Millennial Lithium Corp for $400 million. This acquisition will support their growth in the field of lithium mining.

Investing in lithium can be a great way to tap into the electric vehicle market and green energy in general. And plenty of penny stocks are poised to profit off rising lithium demand. It is undervalued at current levels and has a lot of potential upsides. Investors should keep an eye on E3 Metals as it could be one of the top lithium penny stocks to invest in for 2022. I think buying lithium stocks could be another good option for me as battery production steadily increases. I’d certainly rather buy one of these shares rather than an EV stock like Tesla or NIO.

Top 10 Best Lithium Stocks For 2023

It produces and manufactures https://1investing.in/ batteries, battery chargers, power machines, and even battery accessories. There are currently 14 hedge funds investing in Sociedad Quimica y Minera with the Citadel Investment Group being the largest stakeholder at $55 million. It is one of the largest producers of lithium in the world, seeing $505 million in revenues from the chemical in 2019. Though a relative newcomer to the lithium market, PLL is dead set on becoming the largest domestic supplier of lithium hydroxide for all sorts of batteries. And with its ongoing project in North Carolina, it’s certainly on its way to making that goal come true. Though there are choices abound, we have taken the liberty of compiling the 10 best lithium stocks that are sure to make you a pretty penny.

But lithium batteries charge quicker, and have no memory issues, meaning their maximum charging capacity isn’t affected by each charging cycle. And nickel batteries run hotter quicker, so usually require a cooling system. Its diversification into iron ore and partnerships with global players makes MIN a safer choice for risk-averse investors. Lithium is a silvery-white alkali metal, with special properties that make it extremely useful in the production of lithium-ion batteries that act as the power source for Electric Vehicles. This makes the stock more at the mercy of demand declines and even demand-supply saturation.

Lithium As An Investment

Moreover, their infrastructure target stands at $8.14, implying nearly 51% upside potential. Worth $7.1 billion in 2021, and it is forecasted to be valued at $15.45 billion by 2028, at a compound annual growth rate of 11.75% over the forecast period from 2022 to 2028. The market for lithium is growing globally due to its use in the production of batteries, solar panels, and chemicals. The Lithium Industry Association predicts that the demand for lithium will increase from 292,000 metric tons in 2020 to 2.5 million metric tons by 2030. This is primarily driven by the growing use of lithium-ion batteries in electronics and vehicles. The demand for the lithium market has grown dramatically, increasing by 3000% since 2010.

Those on the list are all worth considering, but the most crucial consideration is whether your funds will be safe. 45 hedge funds are investing in FMC as of the fourth quarter of last year. The largest of these is Pelham Capital with over $119 million worth of stocks. Recently though, the company has seen a dip in sales, citing the low prices of lithium brought on by the effects of the pandemic. Despite that though, analysts are optimistic and believe that prices will rebound — forecasting a future price of $190 per stock compared to the current price of $160.

Also, you have the Argentinian Cauchari-Olaroz asset, which also boasts a 40-year life and an EBITDA visibility of a colossal $308 million. Based on these epic assets, Tiprank’s analysts’ rate LAC stock as a Strong Buy, which is 70% undervalued. Furthermore, it entered a joint venture with Canadian Nemaska Lithium, a 50% owner. It expects Nemaska to produce revenues as early as the first half of 2025. In fact, the mining capacity expansions from Livent are all expected to be complete within a couple of years.

In financial matters, the company garnered $82 million in revenue by the end of the fourth quarter of 2020. There are currently over 20 hedge funds investing in Livent Corporation with Joho Capital increasing its shareholdings by more than 70%. However, the company gave a soft guidance, citing weak lithium prices. Despite this, Deutsche Bank analyst David Begleiter reiterated his Buy rating for the stock with a $190 price target. The analyst believes the market overreacted to the guidance and Albemarle’s bullish thesis remains intact. Sociedad Quimica Y Minera De Chile develops and produces products that focus specifically on plant nutrients, iodine, lithium, and industrial chemicals.

The Canadian and United States markets could also deliver nearly $400 billion in revenue by the end of the forecast period. The company also completed the advanced phase of its lithium concentrate pilot last March 2022, which means it could likely produce enough raw materials to create the batteries. You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today toget instant access to our top analyst recommendations, in-depth research, investing resources, and more. Investing in lithium equities or ETFs that invest in lithium is a surefire way to diversify your portfolio. Discover how to increase your chances of trading success, with data gleaned from over 100,00 IG accounts.

In fairness, Lithium Americas does offer some attractive metrics, like a three-year book growth rate of 49.9%. Apparently, analysts love it, pegging LAC as a unanimous strong buy. Moreover, their average price target stands at $34.85, implying 80% upside potential. More widely, many investors choose to buy shares in a diversified miner like Rio Tinto to gain exposure to lithium while limiting overall risk. Of course, this cuts both ways, with diversified miners unlikely to feel the full benefit of any future price rise.