3 Lithium Stocks to Watch

Sep 23, 2021 | MINING, INVEST IN BORON

3 LITHIUM STOCKS TO WATCH

Mining for Lithium is not an easy job. To be cost-effective requires stringent procedures and regulations in place and also needs to have a decent turn-around time and stand up to the promise of being a long-term supply source for clients. We look at three Lithium stocks and the companies that have not only shown profit through an otherwise tumultuous period but also served their clients’ present needs with a roadmap for the future.

Lithium stocks boron

WHY LITHIUM IS VALUABLE

Lithium is one of the most valuable metals on earth, and it has an incredible number of uses. Lithium-ion batteries are now powering cell phones, laptops, electric cars and much more. The demand for lithium will only continue to grow as technology advances. Investors who want to take advantage should buy stocks in companies that mine or process lithium and/or complementary minerals like boron before prices skyrocket.

While the primary driver of Lithium’s demand comes from the EV industry, the EV industry is still in its incubation period and not yet ready to overtake ICE vehicles completely. Notwithstanding, supply-demand will change in the following years as advanced energy agendas come to the fore with Governments and industry sectors looking for low carbon approaches to production and supply.

#1 Livent – The lifeblood of EV

Livent has been trying to change the energy landscape for years. They partner with their customers to safely and sustainably convert potential into commercial progress, meeting high technical requirements while driven by industry-leading material science expertise as well as a passion that’s second only to excellence.

Livent is a company that went public in late 2018 and then doubled its stock (Lithium stocks) price between 2019 and 2020. While the company’s USP is Lithium products, its essential compounds are Lithium Carbonate, Lithium Hydroxide and Lithium Chloride. These compounds are crucial for manufacturing electric vehicles and drive over 60% of the company’s revenue.

Most observers see Tesla as the face of revolution in the automobile sector with their great electric vehicles that are unparalleled in terms of safety, self-driving capabilities, and much more. Tesla has been turning profits for the last couple of months, and its stock has an overall bullish sentiment in the market.

Tesla is a key partner for Livent who have a supply agreement that is valid until the end of 2021. Investors are beginning to understand that their strategic partnership with Tesla is crucial for its revenue, at least in the short term. Livent’s priority is to maintain its relationship with Tesla to show investors that they’re capable of handling Lithium production for the best companies in the world.

#2 Lithium Americas

Lithium Americas is a small-cap Canadian miner with operations in Nevada and Argentina. One of its projects, the Lithium Triangle Project (LAP), has the potential to be one of lithium’s most prosperous regions due to vast untapped reserves that could become profitable if prices continue rising as expected over time.

Because of the company’s exceptional performance over time and its close proximity to Tesla’s Giga Factory, it is being considered as an acquisition target for Tesla which may boost the share price in the short term. In the case where the company isn’t acquired by Tesla, the company is still respected by a number of EV manufacturers and because of the size and growth prospects for the EV sector, Lithium Americas should be able to show above average returns for the foreseeable future. This will have impact on lithium stocks. 

#3 Albermarle

Albermarle is a speciality chemicals maker that produces lithium salts essential to making batteries such as lithium carbonate and hydroxide. This gives it an advantage over other companies on this list because of its manufacturing expertise, which should lead towards greater profits in the near future with no major R&D costs required for innovation or invention since the company already has these specialties at their disposal. Additionally, not only does Albermarle offer investors high dividends but also pays out generous annual bonuses largely due to recent investment returns from 2017-2020.

Because of the company’s leading position in the Lithium mining and products industry, it is a candidate for growth in the upcoming EV revolution.  Albermarle has strong financials and the company only expects to get better from here on out; good news for investors who want to share in its Lithium mining success.

LITHIUM POINTS THE WAY TO Boron UPTICK

While many market watchers have directly shifted their investment interests from fossil fuels to Lithium (Lithium stocks) due to demand and reforms in energy sector practices, others have overlooked other rare earth minerals that are at the cusp of innovation and may well overtake Lithium in terms of world demand.

One such element is Boron. Boron has wide applications in solar energy, osmotic energy, as well as for applications in the aircraft industry and the EV industry. Current research points out that Boron can not only be helpful in the development of hardware for the renewable energy industry but may also be a source of energy in the future.

When it comes to Boron, there is endless potential for its uses and who knows where exactly boron mining companies’ stock prices may end up. One company which combines both Lithium and Boron in its story is American Pacific Borates (ABR), which recently announced the potential to mine Lithium at its Borates site in California; another potential stock to watch for savvy investors  considering Boron as part of their portfolio.

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PODCASTS, MINING

Podcast – Boron and U.S. Rare Earths

Podcast - Today, we're going to take a look at boron and US rare earths and the stockpiling policy. The US is boosting the stockpile of its rare earth materials, such as cobalt and lithium. But why is this? The answer is partly to reduce dependence on China and partly to have a strategic policy towards rare earth sourcing and distribution.