3 Lithium Stocks With Deal-Making Potential

Read The Full Article On: Investorplace

The lithium boom is creating incredible opportunity with lithium stocks.

All thanks to an electric vehicle (EV) boom that’s showing no signs of cooling off.

In fact, there’s so much demand for lithium, Tesla (NASDAQ:TSLA) just signed a lithium ore supply deal with Piedmont Lithium (NASDAQ:PLL).

Plus, as reported by Barron’s contributor Al Root:

“There’s only one thing standing between Tesla and world domination, the global supply of lithium. And that’s good news for lithium producers. Right now, the world mines roughly 400,000 tons of lithium a year, enough to power 2 million to 3 million electric vehicles, though only a third of that goes to EVs right now. That number will have to increase perhaps as much as tenfold to meet Musk’s goal, and that doesn’t take into account other automakers.”

In addition, global governments are providing a big catalyst for lithium.

California Gov. Gavin Newsom just signed an executive order that will ban the sale of gas-powered passenger cars in the state starting in 2035, for example.

Plus, consider this. Without lithium, the electric vehicle story could be stopped dead in its tracks. With big demand, I’m again noting these are some of the top ways to trade the boom with these lithium stocks.

  • Global X Lithium & Battery Tech (NYSE:LIT)
  • Lithium Americas Corp. (NYSE:LAC)
  • Albemarle (NYSE:ALB)

Lithium Stocks: Global X Lithium Battery Tech (LIT)

rows of lithium ion batteries

Source: Lightboxx/ShutterStock.com

The last time I weighed in on the LIT ETF, it traded at just $36.63. That was on July 21.

As I wrote at the time, this exchange traded fund “invests in the full lithium cycle from mining and refining to battery production.” The fund contains 42 holdings, with another member of this list – Albemarle – at the top with nearly 10% of the fund’s weight.

Now the ETF is up to $41.50 and could easily explode higher. All because it’s very well diversified with full lithium stocks from mining and refining to battery production. The best part – at less than $42 per share, the LIT ETF is offering you exposure to heavyweight stocks, like Albemarle and Tesla.

Lithium Americas Corp. (LAC)

Source: Bjoern Wylezich/ShutterStock.com

On July 21, I also highlighted opportunity in Lithium Americas Corp. At the time, it traded at just $5.85. It’s now up to a nearly $15 per share.

Lithium Americas Corp. operates as a resource company in the United States, with interests in the Cauchari-Olaroz Project in Jujuy province of Argentina and owns a 100% interest in the Thacker Pass lithium project in northwestern Nevada.  In addition, the company announced it completed its transaction with Ganfeng Lithium Co. Ltd. with respect to their joint venture company, Minera Exar S.A.

“The transaction with Ganfeng Lithium further strengthens our long-term partnership in Argentina as we work together to bring Caucharí-Olaroz into production,” said Jon Evans, president and CEO. “With an additional $40 million in cash on our balance sheet and over $200 million in available capital to fund our share of Caucharí-Olaroz, Lithium Americas remains in a strong financial position as we advance both of our projects.”

Albemarle (ALB)

albemarle logo on a mobile phone screen

Source: IgorGolovniov/Shutterstock.com

Our third hot pick from July 21 was Albemarle, which traded at $87.23. It’s now up to $97 and could easily challenge a recent high of $101 shortly.

One of the company’s top segments is lithium, which offers lithium carbonate, lithium hydroxide, lithium chloride and value-added lithium specialties, as well as reagents, such as butyllithium and lithium aluminum hydride for applications in lithium batteries for consumer electronics and electric vehicles.

In recent days, according to a recent news release, the company was selected by the U.S. Department of Energy as a critical partner for two lithium research projects. Albemarle will work with two Energy Department labs on the company’s approved projects. The first project, in collaboration with Argonne National Laboratory, is “Advanced Brine Processing to Enable U.S. Lithium Independence.”

The second project, in partnership with Pacific Northwest National Laboratory, is “Scaling Up of High-Performance Single Crystalline Ni-rich Cathode Materials with Advanced Lithium Salts.”

Leave a Reply

Your email address will not be published. Required fields are marked *