Lithium Stocks That Could Explode in 2022

They pool funds from many investors like mutual funds do, but they’re typically less expensive, and your buy and sell orders are executed immediately when you place them while the market is open. Additionally, with the expansion in Argentina, capacity is likely to ramp up to 60,000 metric tons beyond 2023. Therefore, there is clear revenue and EBITDA growth visibility over the next few years.

Hence, it is also not reporting any profits, with a negative net income of $9.58 million in Q4 of its 2022 fiscal year. However, analyst forecasts project a median 76% 12-month increase in its share price. In terms of the asset base, Thacker Pass has an annual production capacity of 60,000 tons of lithium carbonate and a mine life of 46 years.

Like ALB, LTHM stock surged in the run-up to Q3 earnings, breaking above a 27.37 buy point, and sprinting higher. But lithium stocks quickly ran out of steam, undercutting their prior bases amid skepticism over the lithium price outlook. Yet that skepticism seems to have faded as prices of the battery metal keep pushing higher and the EV race among automakers intensifies.

With automakers accelerating their EV plans as much as possible, and surging oil prices only creating more appetite for EVs, lithium companies are enjoying a pretty ideal supply-demand backdrop. That’s especially true for proven and profitable operators such as ALB, LTHM and SQM. Lithium Americas is still a development-stage company but is targeting first production this year and expects key approvals for its Thacker Pass project by the end of March. Yet the reports from Albemarle and Livent offered a reminder that inflation pressures are pervasive. Many trends are coming together to support investing in lithium stocks. The price has already climbed but there’s plenty of room to grow.

Just consider the fact that the current penetration of electric vehicles in total car sales globally is still low. 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.

What is the attraction of lithium companies’ stock?

Of the seven analysts who have sounded off on LAC stock over the past three months, five say it’s a Buy. Deutsche Bank analyst Corinne Blanchard is positive about quite a few upcoming catalysts for the lithium investment. This includes production at LAC’s Caucharí-Olaroz mine, which is expected to start later this year. There’s also the ruling over an appeal to the Record of Decision filed in a federal court that is expected to come in Q3 2022.

Standard Lithium is testing its technology at another project located in the Mojave Desert named Bristol Lake. Investors should understand that EEMMF stock remains highly speculative. All of E3 Lithium’s CAD$ 49,000 of income in Q1 came from interest. In other words, it isn’t yet producing lithium at commercial scale. In general, the mining side looks somewhat interesting from an economic standpoint due to the inelastic demand of the raw material.

lithium stocks 2021

That’s why lithium batteries are likely to be the power storage system of the 21st century. And why these lithium mining companies could be the way forward. It’s helping power new technologies and this emerging trend is a great opportunity for investors. That’s why I jumped into the data and found three of the best lithium mining stocks. Given the bright outlook for lithium demand, we highlight why the below-mentioned lithium stocks should be added to your watchlist.

Nasdaq Futures11,911.50+7.25(+0.06%)

The rising prices of lithium and bromine resulted in Albemarle updating its fiscal 2022 outlook. It now expects net sales to jump between 60% and 70% year-over-year and be in the range of $5.2 billion to $5.6 billion. Adjusted EBITDA is now projected to arrive between $1.7 billion and $2 billion – a significant increase over the $871 million it reported in fiscal 2021. Blanchard expects that in the first quarter, lithium pricing likely approached around $25,000 per tonne for SQM, and this could be the main catalyst to drive EBITDA to $722 million. By the analyst’s estimate, for every $1,000 per tonne increase in the price of lithium, the company’s EBITDA is likely to change by $20 million every quarter. The Tesla Gigafactory in Nevada will be the world’s largest lithium-ion battery plant.

  • The firm has the financial resources to continue to approach that goal, so it remains a bet worth considering.
  • Where some traders are worried by possible volatility in the market, other traders view investing in lithium as a great opportunity to gain potential reward from a market that has seen a rapid rise in demand.
  • All this taken together, investors might see a number of long-term lithium winners over the next few years.
  • And they may be proven wrong if permitting falls through or any delays impact production.
  • Amid up and downs, LTHM stock has basically moved sideways over the 13 months.
  • 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.

A lot of lithium goes into each battery – about 21.4 kilograms per car. Lithium-ion batteries have the ability to store a lot of energy in a small space. Energy density is measured in watt-hours as a function of liters. The energy density of the basic lead-acid battery in your car is 30 Wh/L. That is because it can be hard to reconcile fast growth and rocketing commodity prices with shareholder value. As of Sep 30, Piedmont had cash and cash equivalents of $81 million, representing a strong cash ratio of more than 10.

For example, if the price has gone down due to a temporary oversupply situation — that’s something that will rise in due time. To this end, Key rates the shares a Buy, and his new price target, set at $108, indicates room for ~75% upside potential in the shares. While Lithium Americas is still pre-revenue, it is in a sound financial position.

Best Lithium Stocks To Buy in 2022

Stock prices can be volatile and susceptible to sharp fluctuations based on the market price of the material being mined and sold. Although global demand for batteries bodes well for lithium battery producers, expect plenty of volatility along the way. As a result, Harvey is optimistic toward Pilbara, with an Overweight rating. PILBF is the second of the Strong Buy-rated lithium stocks featured here, with a consensus price target of $2.76, representing implied upside of nearly 47% to current levels.

lithium stocks 2021

The Zacks Consensus Estimate for PLL’s fiscal 2022 and 2023 bottom line implies a year-over-year improvement of 49% and 8%, respectively. Strong financials with $482 million in cash and cash equivalents bode well. The Zacks Consensus Estimate for LAC’s 2022 bottom line implies a year-over-year improvement of 92.3%. Piedmont Lithium is a relatively new arrival on the lithium scene, but it’s rapidly attracting attention.

A well-diversified portfolio would have a mix of all types of lithium investments. If you need help putting this together, consult with a financial advisor for their advice on which lithium stocks to buy. North Carolina officials have voiced concerns about the environmental impact of Piedmont Lithium’s project. They could vote to delay it even further or block the mine completely. Given this political risk, and the fact that Piedmont still isn’t generating revenue, PLL stock could be riskier than more established lithium producer stocks. If they do end up opening their mine, however, shareholders should be rewarded when the sizable Tesla deal come through.

Lithium Stocks to Watch in 2021

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 umarkets scam 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.

Piedmont Lithium (NASDAQ: PLL)

This has caused interest in investing in lithium stocks to surge. While the lithium-ion batteries that power electric vehicles, smartphones and other tech have been making waves, it is also used in pharmaceuticals, ceramics, grease, lubricants and heat-resistant glass. Still, it is largely the electric vehicle industry that is boosting bdswiss forex broker review demand. In the second quarter, two pieces of news — Livent’s doubling of its ownership in Nemaska Lithium, bringing it to 50 percent, and its Q1 results — spurred a share price jump from US$21.37 on May 2 to US$28.55 on May 4. The company’s Q1 results show revenue increases of 17 percent quarter-on-quarter and 56 percent year-on-year.

Once these projects are operational, Lithium Americas will have an annual EBITDA potential of $800 million. Clearly, the company still looks attractive at a market capitalization of $3.7 billion. Some of the best lithium stocks have already dowmarkets witnessed a sharp rally in 2020 and 2021. It’s likely that the rally will sustain in 2022 and demand continues to grow. Low price, combined with North Carolina’s proximity to the lithium industry’s supply chain, has investors excited.

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