Top Lithium Stock To Watch
Lithium stocks have been a high performing sector in the last year. When many think of mining stocks, they will generally turn to gold or silver. But these investors are missing out on a huge market. Over the course of the last year and a half the lithium sector has grown in large numbers.
So why is lithium performing so well in the market? This is because lithium has a very important role with electric vehicles. Most electric vehicles are using lithium ion batteries in their cars. This means that as the demand for lithium has increased with the popularity of electric vehicles over time. This has been especially apparent in the last year. There are many lithium stocks that have risen to popularity as a result of the electric vehicle growth. Some analysts have predicted that all cars on the road will be electric vehicles in the next few decades.
Lithium stocks are still volatile despite all of the positive aspects of them. If a better battery technology is created as mentioned before, it could hurt lithium stocks. It is not likely that these batteries will become obsolete any time soon though. Although many lithium stocks have been performing well, there are precautionary steps that an investor can make before entering the sector. These seem obvious on the surface but can often be overlooked even by seasoned investors. One way to stay in the know when investing is with world news. World news that isn’t directly associated with the sector can often still have an effect on performance. Sector news is important as well. This could mean, for example, a sudden shortage of lithium that causes the price to move up. For now, let’s take a look at three lithium stocks performing well today.
Top Lithium Stock To Watch
Livent Corporation (NYSE: LTHM)
Livent Corporation is a lithium stock that engages in the manufacturing and selling of lithium ion batteries. It also deals in specialty polymer and chemical synthesis applications. It actively operates out of North America, Latin America, Europe, and more. Livent offers lithium compounds to be used for a variety of purposes as well. This is another high performing lithium company that has seen a lot of momentum in the last year. So what do Livent’s recent advancements look like at the moment?
On June 10th the company announced the pricing of an offering of 13,000,000 shares of common stock. The public offering priced, $17.50 per share is expected to bring in net proceeds of $219.4 million after deducting discounts and commissions. The net proceeds will be used for growth capital expenditures. These include lithium capacity expansion, general corporate purposes, and repaying outstanding amounts under its revolving credit facility. Keeping all of this information in mind, will LTHM stock make your watchlist this week?
Lithium Americas Corp. (NYSE: LAC)
Lithium Americas Corp. has been a huge lithium stock gainer in the last year. The return to investors who got in early has been large because of sector growth. Lithium Americas is a resource company searching for lithium deposits. It holds interest in many different projects throughout the world. Lithium Americas currently holds interest in the Cauchari-Olaroz Project, Thacker Pass project, and more. These projects are located in Argentina and Nevada.
The latest update from the company comes from June 10th. This is when the company announced two new directors and confirmed the election of board of directors. These directors are Kelvin Dushnisky and Jinhee Magie. The Chairman of the Board at Lithium Americas, Geroge Ireland said, “We are pleased to welcome Kelvin and Jinhee to our Board. Their knowledge and experience will be an excellent complement to the Board as we begin the transition from developer to operator.” One year ago the company was under $5 per share on average, and now LAC stock is at $13.60 per share. So will LAC stock make your lithium watchlist?
Albemarle Corporation (NYSE: ALB)
Ablemarle Corporation is a lithium stock that develops, manufactures, and markets engineered specialty chemicals. It operated in three different segments, being Lithium, Bromine Specialties, and Catalysts. Its Lithium section offers lithium compounds like lithium carbonate, lithium, hydroxide, and more. This is used for batteries in electric vehicles among a variety of other things. Its cesium products are used in pharmaceutical and chemical industries. Its bromine solutions are given for fire safety, chemical synthesis, water purification, beef and poultry processing and more.
There has been no new company specific news causing Albemarle stock to go up recently. But now an update has been released that could drive the price of ALB once again. On August 4th, 2021 the company will be releasing its second quarter 2021 earnings results. Earnings results are a huge deal in the mining industry as they can cause a company to go either way in the market. So with this in mind, will ALB make your mining stock watchlist?
The Future of Lithium Stocks
Lithium stocks and other mining assets can look attractive to long term investors, as it seems like the demand for lithium and other materials is constantly moving upwards resulting in share price increases. Now you may ask as prices go up, is it “too late” to invest in lithium stocks? That decision is up to the investor, but it seems like there is a lot of potential for lithium stocks in the market based on past market performance. So which companies will make your watchlist this week?
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