Which lithium stocks are the best for your watchlist in 2021?
When it comes to investing in lithium stocks, it is important to look at the market for electric vehicles. Most production battery electric vehicles use lithium-ion technology. As you know, the EV market has grown huge in the last decade. In the last few years especially, electric vehicle popularity has skyrocketed. A lot of this momentum started with Tesla Inc. (NASDAQ: TSLA). The company was able to bring EVs to the mainstream. This inspired many other automakers such as Audi, Ford, and Chevy to make their own fully-electric offerings.
Now it seems like most if not all automakers are leaning towards creating electric vehicles. Audi suggested that they want their entire product lineup to be electric by 2025. Considering the company has put out only a couple of EVs at the current date, this is a very ambitious goal. For now, it seems like there is no alternate technology that will replace lithium-ion batteries any time soon. This means that the demand for lithium will remain high as long as the EV demand is.
In the last year and a half, many lithium stocks have skyrocketed in value. The auto industry is facing a lot of parts and vehicle shortages. This includes electric vehicles, and this has caused a lot more demand to exist in the market. For many investors, lithium stocks are a long-term play. This is because of the consistent growth of the sector over an extended period of time. Lithium stocks may not be at their highest point right now, but volumes remain solid as it seems investors still believe in the sector. Currently, the market has a lot of inflation fears amid all of the financial aid provided by the government. Nobody knows for sure how this may impact mining stocks such as those that process lithium. For now, let’s take a look at three lithium stocks that have potential in the market in 2021.
Top Lithium Stocks To Watch
- Lithium Americas Corp. (NYSE: LAC)
- American Battery Metals Corporation (OTC: ABML)
- Piedmont Lithium Inc. (NASDAQ: PLL)
Lithium Americas Corp. (NYSE: LAC)
Lithium Americas Corp. is a mining stock that explores at various lithium deposits. Currently, the company owns interests in the Cauchari-Olaroz Project and the Thacker Pass Project. These projects are located in Argentina and Nevada respectively. Despite its international operations, the company is based in the United States.
On July 12th, Lithium Americas announced that it has entered an agreement to acquire 42,857,143 subscription receipts of Arena Minerals Inc. This private placement is valued at C$0.14 per subscription receipt. This makes the total consideration of the deal $4.8 million USD. This gives Lithium America’s future optionality to advance its exploration in Argentina.
The President and CEO of Lithium Americas Corp., Jon Evans said, “We look forward to working with Arena Minerals and Ganfeng to support the pursuit of resource exploration opportunities in Argentina. This investment will allow Lithium Americas to advance our long-term resource development plans while maintaining our team’s focus on execution at Caucharí-Olaroz and the Thacker Pass project.” With this recent advancement in mind, will you add LAC to your list of lithium stocks to watch?
American Battery Metals Corporation (OTC: ABML)
American Battery Metals Corporation is a lithium stock that explores, mines, extracts, and recycles battery materials around the world. It actively owns 647 placer mining claims on 12,940 acres of land. It also has a 120-acre parcel of private property with water rights. This land is located in the Western Nevada basin in Nye County, Nevada.
On July 8th, American Battery Metals Corporation provided an update on its Pilot Plant. The company announced that its mass grading permit has been approved at the location. CEO Doug Cole said, “Progress continues on our Lithium-Ion Battery Recycling Pilot Plant with the approval of our mass grading permit. The final step prior to site construction work is the submission and approval of the core/shell building permit. We believe we will be prepared to submit the core/shell building permit next week.”
The company is working with multiple companies to design and construct the plant and storage facility. After the company’s building permit is approved, American Battery Metals will start grading at the site. This all depends on when the city decides to review and approve the venture. With this information to note, will ABML enter your list of lithium stocks to watch?
Piedmont Lithium Inc. (NASDAQ: PLL)
Piedmont Lithium Inc. is a mining stock that explores and develops various resource projects. Its wholly-owned Piedmont lithium project covers about 2,322 acres. This property is located in North Carolina. The company additionally owns another 61-acre section of land in North Carolina as well.
On July 1st, Piedmont Lithium announced that it has expanded its Spodumene resources through investments in IronRidge Resources. This was accomplished to help progress Piedmont to become the number one producer of lithium hydroxide, which is its current goal. The company will now receive a 50% interest in IronRidge Resource’s Ghana-based lithium portfolio. The deal includes other things such as a binding supply agreement for 50% of the company’s spodumene concentrate production.
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Piedmont’s President and CEO Keith D. Phillips said, “We are very pleased to announce a partnership with IronRidge Resources to jointly develop their outstanding spodumene project portfolio in Ghana. We consider IRR’s Ewoyaa Project to be among the world’s most promising spodumene projects.” At the start of 2021, PLL stock was at $28 per share on average. Now the company’s stock price has reached nearly $67 per share as of July 14th. With this in mind, will PLL make it onto your lithium stock watchlist?
Which Lithium Stocks Made Your Watchlist?
There are a lot of things to consider when investing in lithium stocks. In general, there are a few things impacting the stock market right now. The pandemic is still roaring on in many places around the world, even though it has calmed down in the United States. Inflation is also a fear to many investors at the moment. There is a lot of hope for lithium stocks as the electric vehicle and technology sectors continue to grow over time. Considering this, which lithium stocks are on your watchlist at the moment?
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