The 3 Lithium Stocks You Need to Own Now for Maximum Returns

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  • These are some of the hottest lithium stocks to own today.
  • Livent Corp. (LTHM): The company crushed earnings thanks to strong demand.
  • Lithium Americas (LAC): The company is proceeding with its Thacker Pass mine with GM.
  • Albemarle (ALB): The industry’s 800 lb. gorilla is just starting to come back strong.
lithium stocks - The 3 Lithium Stocks You Need to Own Now for Maximum Returns

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Lithium demand – and related lithium stocks could go into overdrive, especially with electric vehicle sales set to accelerate.  According to the International Energy Agency (IEA), “Global sales of electric cars are set to surge to yet another record this year, expanding their share of the overall car market to close to one-fifth.” In addition, the IEA noted, “The new edition of the IEA’s annual Global Electric Vehicle Outlook shows that more than 10 million electric cars were sold worldwide in 2022 and that sales are expected to grow by another 35% this year to reach 14 million.”

That will require an obscene amount of lithium, though.

In fact, according to Stellantis CEO Carlos Tavares, there’s not enough lithium go around for the industry’s plans. In fact, he notes we need to replace 1.3 billion cars with clean mobility, which will need a substantial amount of lithium. All of which will require a lithium supply we may not ever have access to.

That supply-demand issue could send lithium – and lithium-related stocks to the moon.

Livent Corp. (LTHM)

Livent Corporation logo on a phone screen. LTHM stock.
Source: Ralf Liebhold / Shutterstock

Earlier this month, I mentioned Livent (NYSE:LTHM) as one of the top lithium stocks. One, it was cheap at triple bottom support. Two, it just crushed earnings thanks to strong lithium demand. It posted an EPS of 60 cents on $235.5 million in sales. The Street was only looking for 39 cents in earnings on sales of $230.2 million. Even better, LTHM raised its full-year guidance. It now expects its EBITDA to fall between $530 million and $600 million. That’s well above prior EBITDA guidance for $510 million to $530 million.

In addition, the company has 17 offices or manufacturing facilities, including its “largest and most diverse manufacturing facility” in North Carolina. It will soon start phase two of its carbonate capacity expansion in Argentina, with commercial production following. When I mentioned LTHM, it traded at around $23. It’s now up to $24.89 and could test $27.

Lithium Americas (LAC)

smartphone with logo of Canadian company Lithium Americas Corp on screen
Source: Wirestock Creators / Shutterstock.com

I also highlighted an opportunity in Lithium Americas (NYSE:LAC), initially trading at $19.20.

Now up to $22.19 and running, I still like the stock because of its progress with its Thacker Pass mine, which is also America’s largest known lithium source. The company is helping with General Motors (NYSE:GM), which invested $650 million in Thacker Pass. Plus, we must consider Lithium Americas is expected to make its first delivery in the second half of 2026, at which point the profits should roll in.

Even better, just last night, the Biden Administration said it had completed a court-ordered review that should ensure construction continues at a Nevada lithium mine, despite legal challenges brought by conservationists and tribal leaders, as noted by the Associated Press.

Albemarle (ALB)

Albemarle (ALB) logo on a mobile phone screen
Source: IgorGolovniov/Shutterstock.com

And, of course, no lithium stock list is complete without Albemarle (NYSE:ALB).  When I mentioned this opportunity – along with LAC and LTHM—it traded at $180.  It’s now back to $205.67.  From here, I’d like to see it closer to $230 in the near term.

 In fact, with heavy EV demand, I’d still use recent ALB weakness as a buying opportunity. Also, as we wait for lithium prices to push higher and for ALB stock to recover, we can get paid to wait. All after the company announced a quarterly dividend of 40 cents per share, or $1.60 annualized. It’s payable July 3 to shareholders of record as of June 16.

In addition, we also have to consider that global lithium demand is expected to grow five-fold by 2030. The U.S. is a significant driver of that demand, and Albemarle is a prominent name domestically, as InvestorPlace contributor Alex Sirois noted.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.


Article printed from InvestorPlace Media, https://investorplace.com/2023/05/the-3-lithium-stocks-you-need-to-own-now-for-maximum-returns/.

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