Which lithium stocks are experiencing momentum?
When electric vehicle companies, such as Tesla Inc. (NASDAQ: TSLA), perform well, lithium stocks tend to follow suit. Lithium stocks had a lot of traction at the start of 2021 but then fell back. Now that EV equities are regaining market traction, lithium stocks are following suit. As 2021 progresses, investors want to know what the reopening will mean for the electric vehicle sector and lithium.
This material is employed in markets other than electric automobiles. Many of the electronics you use on a daily basis make use of lithium-ion battery technology. Lithium-ion batteries are utilized in scooters, tools, electric toothbrushes, laptop computers, digital cameras, and many more applications. This battery technology is even used in pacemakers for the heart. So, even when demand for electric vehicles is low, which is rare, lithium is still required globally.
But what is causing such a surge in lithium stock prices? The first reason is related to electric automobiles. Every year, the EV market expands. Stocks of electric vehicles are rising, production is increasing, and sales are greater than ever. Lithium-ion batteries are used in most, if not all, of the production electric vehicles. So which lithium stocks are performing well in the market right now?
Top Lithium Stocks To Watch
- Livent Corporation (NYSE: LTHM)
- Lithium Americas Corp. (NYSE: LAC)
- Piedmont Lithium Limited (NASDAQ: PLL)
Livent Corporation (NYSE: LTHM)
The price of the first lithium stock, Livent Corporation, has risen dramatically in the last year. But what exactly does Livent do? This lithium stock is a corporation that manufactures and sells lithium batteries. It also supplies polymer and chemical synthesis software. Livent has offices in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It also provides lithium compounds for use in applications such as lithium hydroxide for ceramics.
Companies in the lithium-ion battery market are in their strongest position in a long time. Livent is part of this tidal surge. Paul Graves, the company’s president, and CEO, recently spoke at the Goldman Sachs Industrials & Materials Conference. A few months ago, the corporation also revealed its first-quarter results. Its sales climbed by 12% from the fourth quarter of 2020 to the fourth quarter of 2021. Its adjusted EBITDA has also increased by 98 percent from the previous quarter.
The CEO of the company, Graves said, “We are becoming increasingly confident in the trajectory of lithium demand growth over the coming years behind the increasing support for electrification from OEMs, governments, and consumers alike. At Livent, we are focused on executing on our expansion plans as we continue to build upon our low cost and sustainable operations, and our position as a partner of choice to leading auto OEM and battery producers.” Based on this new info, will LTHM be on your lithium stock watchlist?
Lithium Americas Corp. (NYSE: LAC)
Lithium Americas Corporation is a resource firm that searches for lithium resources. The corporation has a stake in the Cauchari-Olaroz Project, the Thacker Pass Project, and other projects. These projects are located in Argentina and Nevada, respectively. The lithium Americas industry has gained a lot of traction in the previous year as the EV and tech markets have risen.
On November 17th, the company entered a definitive agreement to acquire Millennial Lithium Corp. The company made this agreement payable in common shares of Lithium Americas. It will now be interesting to see how this acquisition affects the company in the future.
The President and CEO of Lithium Americas, Jonathan Evans said, “This transaction is a rare opportunity to add a complementary lithium brine project and leverage our expertise developing Caucharí-Olaroz as the largest new lithium carbonate operation to come online in over 20 years. We are confident Pastos Grandes can provide significant value for all shareholders as we execute on our growth strategy in the region over the coming years.” Based on this new info, will LAC be on your list of lithium stocks to watch?
Piedmont Lithium Limited (NASDAQ: PLL)
Piedmont Lithium Limited is a lithium stock that researches and develops a wide range of resource projects in the United States. The business owns the whole Piedmont lithium project in North Carolina, which spans over 2,126 acres. It also has a 61-acre tract in Kings Mountain, North Carolina for similar exploration.
On November 10th, Piedmont Lithium presented a new Corporate Overview Presentation. Overall market circumstances, lithium supply and demand estimates from industry analysts, pricing trends, and a status report on Piedmont’s numerous resources in North Carolina, Quebec, and Ghana are all included in the new presentation.
The CEO and President of Piedmont, Keith Phillips said, “The tremendous momentum in the EV industry continues to accelerate, especially in North America with near-daily expansion announcements from battery makers and electric vehicle makers alike. One thing that remains a constant in this electric environment is the need for lithium to power the industry’s projected growth”. In 2021, PLL stock has gone up in the market. Based on this new info, will PLL stock make your lithium watchlist?
Top Lithium Stocks To Buy?
Over the last year, lithium equities have outperformed the market. But how does this pan out in the future? Since the start of 2020, some of the best-performing mining stocks have been in this category. The need for lithium will only increase as EV firms and IT companies continue to demand battery technology for their goods. There does not appear to be a superior battery technology on the horizon that will be able to replace lithium-ion anytime soon. This is why lithium has such a strong bullish sentiment. Despite the favorable results, many businesses, such as Rio-Tinto (NYSE: RIO), are joining the lithium market. Will these companies make it onto your mining stock watchlist, keeping this in mind?
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