Lithium stocks are still exploding, as hoped.
Look at Albemarle (ALB).
This morning, the stock took off after reporting a better than expected profit. The company posted net income of $1.13 billion, or $9.60 per share, as compared to a loss of $3.8 million, or 3 cents per share, year over year. All thanks to a five-fold jump in lithium sales.
As noted by Mining.com: “The results came despite the more-than 300% jump in the price Albemarle charges for its lithium, reflecting the aggressive hunt by automakers for fresh supplies of the battery metal as they build fleets of all-electric vehicles. Albemarle expects to raise its lithium prices this year by at least another 55%.”
Better, things may only improve from here.
That’s because global demand for lithium batteries is expected to jump five-fold by 2030, according to Li-Bridge, as noted by Reuters. All as demand for electric vehicles, and energy storage systems also increases. In fact, according to Li-Bridge, “Demand for lithium batteries in the United States is expected to grow more than six times and translate into $55 billion per year by the end of the decade, but still the country is expected to depend on imports for supply.”
Even more impressive, General Motors may pick up more lithium land.
After announcing plans to invest $650 million into Lithium Americas to secure lithium supply, this may be the first of many. “Automakers are starting to realize that the only way to guarantee lithium supplies is to own or have a controlling stake in the source,” added CNBC.
That being the case investors may want to also keep an eye on Livent (LTHM), Piedmont Lithium (PLL), Sociedad Quimica y Minera (SQM), Standard Lithium (SLI), and American Lithium (AMLI) to name a few.
With a green energy future ahead of us, and global leaders wanting millions of electric vehicles on the roads, lithium stocks are likely to remain red hot for quite some time.
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