In 2021 the price of lithium doubled compared to the previous year and set a record in its most important market, China. According to a Bloomberg forecast, the demand for lithium will grow between 25% and 35% per year during the next decade, and a significant deficit is expected in the second half of the decade.
Lithium is a key component for electric vehicle batteries whose extraction and treatment is undergoing a process of change, with the aim of being able to satisfy its enormous demand within a transition towards the green economy.
This is all well-grounded on what is going on right now. Inflation and fuel prices are soaring, which has revved up electric vehicle (EV) adoption in key markets such as the U.S. and Europe. Benchmark Minerals says that EV penetration rate of 4.3% in 2020 will jump to 30.7% in 2030.
As things stand, lithium stocks are sizzling in preparation for the supply crunch that awaits around the corner. In this context, these are the top five lithium stocks to own right now
Lithium Americas Corp (NYSE:LAC)
Lithium Americas is a Canadian company operating in the U.S. and Argentina. It closed 2021 on a high and this year is inches from reprising last year’s stock success. The stock ramped up by 132.03% in 2021 on the soaring price of spodumene and lithium carbonate.
The latter’s spot price in China quadrupled while it grew by 79% globally. President Biden’s extra support to mining companies is giving LAC stock a big push, and it is currently rated as a “buy” by MarketWatch.
American Lithium Corp (OTCMKTS:LIACF)
American Lithium Corp. said it would launch the last phase of its first preliminary economic assessment on the Company’s TLC Lithium project with the appointment of DRA Global as lead engineer.
The firm has various advanced lithium exploration projects in Peru and two in the U.S, and recently announced the acquisition of Green Technology Metals Ltd (ASX:GT1) shares for a total of $10 million.
Albemarle Corporation (NYSE:ALB)
Despite nearly a sixfold surge in the global lithium prices last year and almost 67% year-to-date, company stock added 15% in the previous 52 weeks but lost 18.5% during the same period.
Overvaluation and off-target management expectations slapped a “sell” rating on ALB back in November. However, the company has since recovered and a sizeable improvement is on the cards in 2022.
Judging by a solid market outlook, stout growth, the higher lithium demand, and reasonable valuation, the stock is anticipated to recover back to a positive trend in the next quarters.
Sociedad Química y Minera de Chile (NYSE:SQM)
Among the several mining chemicals, the Chilean company extracts there is lithium carbonate. With a market cap of $21 billion and stock price increase of 43.6% year on year, SQM is a stock to own as the globe transitions towards electric mobility.
According to Simply Wall St, earnings are forecast to grow by 22.3% over a year after growing 225% in the last year. The consensus outlook for earnings per share (EPS) in 2022 has improved. While the net income forecast is expected to grow 194% next year, the consensus price target rose from $77.42 to U$80.92.
Rio Tinto Group (NYSE:RIO)
Rio Tinto shares have a PE ratio of 5.50 as of April 25, and they offer a forward yield of 11.77%. The stock’s value has jumped by 7.28% over the last six months.
Rio Tinto Group is one of the best lithium stocks to buy right now —it is a high-momentum value stock pick that offers a great dividend. The company is betting hard on becoming “zero-carbon” while its gaining popularity among top hedge funds.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
What Is the Role of Fintech Companies in the Payments Ecosystem
The CEO of BIT2ME referred to the future of fintech as "good". However, he stated, "We live in a society...
UN Report Calls on Member States to Stop Criminalizing Drug Users
The report shows that a growing number of countries in all regions are adopting policies and practices that decriminalize drug...
Markets Heated Up This Past Week as Guidance from the Fed Was Bearish
The Fed left rates unchanged at this past week's meeting as expected but the guidance was hawkish. Markets didn't like...
Current Woes in Bonds Promise Future Grief for Stocks: Focus on Dow Jones
If you’re bullish, maybe you should lower your expectations of what the stock market can do for you in the...
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [uMobix Affiliate Program Review]
This week, we're covering everything from hustle culture to spying on kids, making this affiliate digest look like it has...
Crowdfunding1 week ago
Out Of Raises €2.4 Million Through Equity Crowdfunding, in 2 Weeks
Africa2 weeks ago
African Climate Summit: Solutions to the Global Climate Change
Impact Investing4 days ago
Rooftop Solar Photovoltaic Market to Reach $84.2 Billion by 2030
Fintech2 weeks ago
The Turnaround in Interest Rate Will Create Winners and Losers in the Fintech Sector