Thanks to the electric vehicle boom and Joe Biden, lithium stocks have been explosive.
For one, Joe Biden seems to want far more EVs on the road.
In fact, Biden’s web site noted, “There are now one million electric vehicles on the road in the United States. But a key barrier to further deployment of these greenhouse-gas reducing vehicles is the lack of charging stations and coordination across all levels of government. As President, Biden will work with our nation’s governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030.”
Two, there is substantial demand for electric vehicles now – and likely in the future. California Gov. Gavin Newsom, for example, just signed an executive order banning the sale of gasoline-powered passenger cars in the state starting in 2035.
Three, “Forty percent of the company’s U.S. entries will be battery electric vehicles by the end of 2025. Barra also announced an increase in GM’s financial commitment to EVs and AVs today to $27 billion through 2025 – up from the $20 billion planned before the onset of the COVID-19 pandemic,” according to General Motors’ Chairman and CEO Mary Barra.
However, for any of that to happen, the world must have far more lithium supply.
Over the next four years, demand is expected to more than double, as the production of EV batteries gears up for big growth, as reported by Creamer Media’s Mining Weekly.
That being said, here are three of the top lithium stocks to consider:
- Global X Lithium & Battery Technology ETF (NYSEARCA:LIT)
- Albemarle Corp. (NYSE:ALB)
- Lithium Americas Corp. (NYSE:LAC)
Lithium Stocks: Global X Lithium & Battery Technology ETF (LIT)
One of the best ways to diversify your EV portfolio is with an ETF, such as LIT. The Global X Lithium & Battery Tech ETF invests in the full lithium cycle, from mining and refining the metal, through battery production, says Global X.
Not only does this ETF give investors exposure to lithium and battery stocks, such as Albemarle Corp., LG Chem, Samsung, Tesla (NASDAQ:TSLA), BYD Co. (OTCMKTS:BYDDF), and Panasonic Corp. (OTCMKTS:PCRFY), it does so at less cost. For example, if you were to buy 10 shares of every listed stock, it would cost thousands of dollars. But with this ETF you can gain exposure at just $54.50 a share.
Albemarle Corp. (ALB)
The last time I weighed in on Albemarle, I noted it could run to $100, near term, “given the likelihood of higher demand.” But ALB did better than that, running to a recent high of $140.84 a share. From here, I strongly believe it could run to $180.
All thanks again to exceptional lithium demand. The lithium market could benefit from a Joe Biden victory, noted Albemarle Corp. CEO Kent Masters, as quoted by Bloomberg. “There’s the incentives, and the emphasis that’s put on electrification and EVs around that. The market side of it would be more favorable with Biden.”
Lithium Americas Corp. (LAC)
Lithium Americas Corp. operates as a resource company in the United States, with interests in the Cauchari-Olaroz Project in Jujuy province of Argentina and owns a 100% interest in the Thacker Pass lithium project in northwestern Nevada.
When I last mentioned LAC on July 21, I said it could run to $10, near-term. It’s now up to $10.40 and could easily run higher with lithium demand surging. Helping, the company just got final approval for its Nevada lithium project, with full federal permitting expected by early 2021. Plus, according to Reuters, “Lithium Americas has said it plans to spend $400 million on the first phase of its Thacker Pass project with output of 20,000 tonnes of lithium annually. The mine is expected to open by 2023.”
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.
