This article covers three great lithium stocks to invest in this month.
Lithium Americas (LAC) is a lithium mining startup with two major lithium projects coming online this year.
Livent Corporation (LTHM) is a leading pure-play lithium producer expected to double its production capacity by next year.
Albemarle Corporation (ALB) is a specialty chemicals giant focused on expanding its hugely successful lithium business.
Lithium element on the periodic table. Lithium stocks.
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Lithium demand has soared over the past few years with the surging popularity of electric vehicles (EVs). Multiple market studies suggest that the industry will grow at an incredible pace over the next ten years. Hence, lithium stocks can potentially be lucrative investments down the line.
Lithium stocks have been performing well for the better parts of the past couple of years. A lot has to do with the mind-boggling growth in EV sales. In 2021, EV sales volume shot up to 6.7 million units, representing a 108% bump from 2020. By 2030, demand for lithium will rise to two million metric tons.
Lithium prices are rising aggressively as supply has failed to keep up with ballooning demand. Therefore, lithium-producing firms are in for some enticing price realization in the foreseeable future.
Lithium Americas logo on a phone screen in front of a computer showing their website. LAC stock.
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Lithium Americas (NYSE:LAC) is a lithium mining start-up with plenty of potential to profit from booming lithium demand. Moreover, with producer nations looking to foster a domestic production base, the company can benefit immensely from the trend.
The Canadian lithium miner has a couple of major lithium projects that could bring in the big bucks in the coming years. The first is its Argentinian lithium brine project called the Cauchari-Olaroz, which should commence production later this year. Moreover, it has also acquired one of its peers in Millennial Lithium, with major lithium mining assets in Argentina.
Furthermore, LAC is working on another exciting project in Nevada called Thacker Pass. According to the company, it is the largest known lithium resource in the U.S. However, it has been the subject of controversy, but it could be a massive money-spinner for LAC stock if it gets through the legal hurdles.
Livent Corporation (LTHM)
Livent Corporation logo on a phone screen. LTHM stock.
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Livent Corporation (NYSE:LTHM) is one of the top integrated pure-play lithium producers. It sells lithium compounds to EV original equipment manufacturers and leading battery makers across the globe. International diversity has been one of its key differentiators, which gives it access to multiple manufacturers. It produces lithium with the lowest-cost resources, giving it a major competitive advantage. Livent currently has over 20,000 metric tons production capacity, which could double by the fourth quarter of 2023.
The firm has been extracting lithium from Salar del Hombre Muerto in Argentina for the past two decades. It also produces qualified battery-grade lithium in the U.S. and China and is on track for capacity expansions.
Moreover, the financials are rock solid for the business, with revenues above 45% in the past year. Additionally, its EBITDA growth was at a spectacular 365% for the year. With the rising lithium demand and stronger margins, the business is in for another robust showing this year and beyond.
Lithium Stocks: Albemarle Corporation (ALB)
Albemarle (ALB) logo on a mobile phone screen
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Albemarle Corporation (NYSE:ALB) is a specialty chemicals producer that aims to expand its lithium business rapidly. It’s not a sector pure-play, but its lithium segment now accounts for 41% of total revenues and over 50% of its adjusted EBITDA. Last year, its lithium business grew at 19% compared to just 6% of total revenue growth. Albemarle’s lithium business will become a major growth catalyst, with the industry expected to grow extensively over the next few years.
The company has been investing heavily in acquiring lithium mining and converting properties in recent years. For instance, it acquired lithium converting giant Guangxi Tianyuan Corporation, strengthening its position in China. Moreover, Albermarle has a 49% stake in the Greenbushes mine, producing more than 60,000 metric tons every year.
In terms of financials, the firm has been knocking it out of the park. Its top- and bottom-line performance last year tracked well over its five-year averages. Additionally, it has been a dividend aristocrat, boasting 28 consecutive years of growth.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
