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The analyst’s price target implies an upside potential of 22.9% from current levels. Lithium stocks have done well at Fundamental analysis for beginners weathering an otherwise volatile market. Share prices across many popular lithium-based companies continue to rise.
Chilean chemical company Sociedad Química y Minera de Chile is one of the world’s biggest lithium producers. Founded in the late 1960s, the company benefits from the fact that its home country has one the largest lithium reserves in the world. The company also benefits from its production of potassium nitrate and iodine. Investing in mining companies that produce base materials and chemicals can be a wild ride for investors. Stock prices can be volatile and susceptible to sharp fluctuations based on the market price of the material being mined and sold.
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Especially with rising demand for electric vehicles worldwide due to environmental concerns, the demand for lithium is likely to follow suit. Its profit grew nearly 6% from Q to Q2, the last quarter for which it has announced earnings. Revenue topped $9 billion in Q2 2022, a 269.42% increase year over year. On its balance sheet, we see increasing capital and assets, and the company doesn’t have much debt.
With the hope that the demand will continue to rise, many traders view lithium as an attractive investment right now. Otherwise, we consider many of the other lithium stocks as too risky, as there are many unknowns coupled with tremendous expectations. Because lithium is essential, but not a huge cost driver in battery production, battery makers are unlikely to significantly reduce their consumption even in the face of higher Lithium prices. This has the benefit of safety but it can also dilute the growth potential a “pure play” lithium battery maker might have. However, despite tremendous expectations, it should be noted that while lithium is an essential part to electric vehicles, it is not necessarily a fundamental cost driver. Mobil device adoption will continue to be a driver, but electric vehicles require thousands of times as much lithium and hence have a much larger influence.
Stay diversified with lithium battery stocks
The company maintains around $500 million in liquidity meaning it is stable relative to other names here. LAC is a reasonable lithium investment overall with strong upside. on our Product Library in order to discover further lithium share prices. While there very well could be many “winners” in the industry over the long-term, current investors will likely have to deal with substantial earnings volatility and high expectations in the short to intermediate-term.
While efforts are being made to boost the supply chain, prices for the metal should stay elevated for the time being. This is good news for those looking to gain exposure to lithium investments. Livent is currently producing qualified battery-grade lithium hydroxide in the Choosing The Right Forex Broker United States and China . Livent remains on track with near-term capacity expansions and a 5,000 metric ton hydroxide addition in Bessemer City. The acquisition of 25% indirect equity ownership in the Québec-based Nemaska Lithium project is also set to aid top-line growth.
Additionally, the company has guided for operating cash flow of $55 million for 2021. As cash flows accelerate, internal funding will support further organic and inorganic growth. Overall, LTHM stock is among the best lithium stocks to consider for 2022 and beyond with big expansion plans being the catalyst for sustained upside. The key point to note is that Livent has a current production capacity of 20,000 metric tons of lithium carbonate. The company expects to increase capacity to 40,000 metric tons by Q4 2023.
Livent Corp also announced its Q earnings as $0.37 per share, much higher than the expert estimate of $0.30 per share. Standard Lithium is an innovative technology and lithium development. In fact, the company’s flagship project is located in southern Arkansas.
Overall, the company primarily operates in Argentina and the U.S. In Argentina, its Caucharí-Olaroz site is moving towards its first production phase. In the U.S., LAC’s Thacker Pass received its Record of Decision approval and is moving towards construction. Even after gaining over 120% in the past year, investors continue to flock to LAC stock. I generally invest for the long term and look for companies at an attractive price that have the ability to grow naturally and who stand to benefit from large trends in the economy. I try to provide insight into how new developments at certain companies will affect their long-term prospects.
However, despite the potentially larger price swings in the short run, the tailwind of the massive and fundamental shifts in renewable energy is likely to gain even more momentum. Pilbara Minerals is a lithium pure-play, owning 100% of the world’s largest independent hard-rock lithium operation. The Nevada site, called the TLC Lithium Project, is of particular interest to investors. This location has over 5.37 million tonnes of measured lithium and another 1.76 tonnes of inferred lithium.
Piedmont Lithium (PLL)
Global X Management Company LLC is not responsible for the contents of third-party websites. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. Moreover, Allkem’s growth pipeline is “full,” with production more than doubling up at Olaroz. And its “greenfield brine project Sal de Vida in Argentina and James Bay Spodumene project in Canada offer additional medium-term growth,” Harvey adds. ALB has three business divisions, including lithium, bromite specialties and refining catalysts.
- This may perhaps be better viewed in one of my favorite Lithium Americas graphs showing the mismatch between supply and demand over the next 20 years.
- Sigma Lithium may be hit comparatively harder by a slump in lithium prices, as the company expects to begin production in the fourth quarter of 2022 , at the heart of the predicted downturn.
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- Yet the reports from Albemarle and Livent offered a reminder that inflation pressures are pervasive.
- I try to provide insight into how new developments at certain companies will affect their long-term prospects.
- More established lithium companies are already producing lithium and selling products.
This sizeable portfolio has largely been built in 2022, as the company has spent much of the year identifying and acquiring properties and land packages. For information about Sigma Lithium and What are Sector Exchange-Traded Funds? what has driven its share price, see its entry in the top US lithium companies section above. Here the Investing News Network takes a look at the top lithium stocks with year-to-date gains.
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Albemarle is well-positioned to benefit from more demand for EVs. Due to so many different applications of lithium, the prices are likely to rise. So not only will the demand increase, but its scarcity will naturally make the value rise. When it comes to batteries, lithium is currently the best material available on the market. While it might be worth investing in now, new kinds of batteries are already being developed, which will be a better option in the future.
In the last year, Pilbara Minerals has enjoyed a steady climb to new heights on the stock market. In addition to lithium operations, Allkem also owns Borax Argentina, an established boron producer and diversifying agent. The company advanced its Argentinian capacities with a recent investment in Arena Minerals for around $5 million.
To buy foreign companies, make sure your broker that has access to international markets. Livent is a lithium technology company that produces batteries for EVs and handheld devices. They also use lithium to produce alloys and advanced polymers used for aircraft, athletic footwear and other applications. If you’d like to profit from the surging interest in this essential commodity, here are some of the best lithium stocks, plus a look at the best strategies for investing in lithium. If you’re not looking to make a considerable investment, there are plenty of options with current prices as low as $15.