These Lithium Stocks Are Booming
When it comes to lithium stocks, many investors were overlooking them. That was until electric vehicles rose in popularity. Let’s start off by talking about the association with lithium stocks and electric vehicles. Lithium is used to create lithium ion batteries. These batteries are used in electric vehicles. Most electric vehicles in production at the moment use lithium ion batteries. This means as the EV sector continues to grow, so does the market for lithium. Many lithium companies have partnerships for distribution with big automakers such as Tesla and BMW. This creates even more opportunities for these assets to strive. Lithium ion batteries are also used in a variety of tech products as well. It has growth to be one of the top used battery types. There are a few things to keep in mind when investing in lithium stocks.
The first of which is keeping up with the latest news related to the sector. Keeping up with the electric vehicle sector right now can help when investing in lithium stocks as well. It is also important to note the volume of a lithium stock. For example, if a stock is going up but its volume is low, it could suggest that it may fall soon. That isn’t to say these stocks are without risk. These mining stocks are performing well but there are things that could make them go down. If another battery type is found in the future that is more efficient and cost effective it could have a bad effect on these stocks. Let’s take a look at the top four lithium stocks to watch at the moment that are performing well in the market at the moment.
Top Lithium Stocks To Watch
- Lithium Americas Corp. (NYSE: LAC)
- Johnson Controls International plc (NYSE: JCI)
- Sociedad Química y Minera de Chile S.A. (NYSE: SQM)
- QuantumScape Corporation (NYSE: QS)
Lithium Americas Corp.
First up on this list of lithium stocks to watch is Lithium Americas Corp. Lithium Americas is a lithium company with a focus on resources. It will primarily explore for lithium deposits at its various locations. It has interest in the Cauchari-Olaroz project in Argentina, and the Thacker Pass lithium project in Nevada. Let’s look at the company’s recent performance in the market.
Its latest update comes from March 2nd, 2021. The company reported its full year and fourth quarter results for 2020. The company experienced net loss instead of income in 2020. This is due to the pandemic primarily. Its cash and cash equivalents went up significantly year over year though. It has also continued construction at Cauchari-Olarez with COVID health and safety protocols in place. The company seems to be making progress in all the right directions. In the last year LAC stock has gone from just above $2 a share to $16 a share as of March 22nd.
Johnson Controls International plc
Next up on this list of lithium stocks to watch is Johnson Controls International plc. Johnson Controls is a tech and industrial company. It will design, sells, installs, and services different products. These include heating, ventilating, a/c, and more. Many of the company’s products include lithium ion batteries in them, hence why the company has made it on to this list. So what has this company been up to in recent history?
Johnson Controls increased its share repurchase authorization by $4 billion on March 11th. Additionally it raised its annual dividend to $1.08 per share. Its new dividend payout ratio is at 42%. The CEO and Chairman of the company, George Oliver said, “Today’s announcement reflects the strength of our balance sheet and liquidity position, as well as confidence that our operating performance will continue to generate strong free cash flow while allowing us to invest in our businesses.” That is the latest that has come from the corporation. In the last year the company has gone from $25 a share on average to $59 a share as of March 22nd.
Sociedad Química y Minera de Chile S.A.
Now let’s talk about Sociedad Química y Minera de Chile S.A. Sociedad Quimica y Minera de Chile is a producer and distributer of lithium, plant nutrients, iodine, potassium chloride, and sulfate. It also offers industrial chemicals and more. The corporation sells products under brands such as Ultrasol, Qrop, Speedfol, and Allganic. Many of its products are used for different types of films, batteries, etc. Let’s see what Sociedad Química y Minera de Chile has been up to in the market.
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SQM filed its annual report on form 20-F for 2020 on March 15th. Since the results were released the company has decreased in stock price. But in the last 6 months and year the company has significantly increased in stock price. SQM stock is at $54 a share as of March 22nd. In January it reached its one year high at $57 a share. That is the latest that has come from Sociedad Química y Minera de Chile.
The final company on this list of lithium stocks is QuantumScape Corporation. The company creates solid state lithium metal batteries. The batteries are used only in electric vehicles. The company is about 10 years old, and already has investments from industry giants such as Volkswagen and Bill Gates. So what has the corporation been up to in recent history?
At the market close, QuantumScape announced a proposed offering of Class A common stock. This is an offering of 13 million shares. The company will grant underwriters the option to purchase an additional 1,950,000 shares of class A common stock. The net proceeds will be used for building a larger QS-0 pre-pilot line that it recently announced. It will also be used to cover its joint venture with VW equity contributions, such as with the 20GWh expansion of QS-1 joint manufacturing facility. As a result of these investments QS stock has gone from under $10 a share just one year ago to now being at $64 a share. And back in December, QS stock reached as high as $114 a share.
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