- As the world transitions towards renewable energy and electric transportation, the demand for lithium, a key component in rechargeable batteries, is reaching unprecedented heights
- Four notable lithium stocks to investigate are Brigadier Gold, Livent, Albemarle and Lithium Americas
- See below for a primer on their considerable investment prospects, including reliable capital, ongoing expansion, and favorable near-term forecasts
The demand for lithium, a key component in rechargeable batteries, is reaching unprecedented heights.
In fact, the market for lithium-ion batteries alone is expected to triple in size by 2025, and the electric vehicle industry is projected to account for nearly half of the global demand for lithium by 2030.
Here are four notable lithium stocks to investigate:
Brigadier Gold Limited (TSXV:BRG), a lithium exploration company based in Quebec, Canada, offers significant potential for investors looking to take advantage of the rapidly growing demand for lithium. Brigadier’s Nemaska2 lithium property, located in the Nemaska Lithium District, is adjacent to several successful lithium projects and has access to infrastructure such as an airport and a paved highway. The company’s exploration efforts in the region have been bolstered by Quebec’s support for resource development and Canada’s intention to invest C$2 billion in a mineral strategy aimed at creating a supply chain for EV batteries.
Livent Corporation, a fully integrated lithium company based in Philadelphia, is currently focused on two projects: lithium hydroxide in North Carolina and carbonate expansion in Argentina. The company’s first 10,000 metric ton expansion of its lithium carbonate production is almost complete in Argentina, with commercial volumes expected in the second half of 2023. In North Carolina, Livent is qualifying products with customers at its new 5,000 metric ton lithium hydroxide line, with commercial volumes to be delivered in 2023. Livent has demonstrated strong year-over-year earnings growth, with a significant increase in revenue and net income in Q4 2022.
Albemarle Corporation, a specialty chemicals company based in North Carolina, has shifted its focus to lithium and reported a net income of $1.13 billion in its latest earnings report, primarily driven by a fivefold increase in lithium sales. The company anticipates a significant increase in revenue and adjusted earnings per share in 2023.
Lithium Americas (TSX:LAC) is a resource company based in Canada with operations in the United States and Argentina. The company owns interests in several lithium projects, including the Thacker Pass mine in Nevada, which received a $650 million equity investment from General Motors in January. Construction for the mine began in March, and it is expected to produce significant cash flow once production starts, making it a potentially profitable investment opportunity in the lithium market.
Adapted from RazorPitch.