3 Lithium Stocks With Short-Term Catalysts Ahead


  • Each of the stocks below has compelling reasons to buy in the short term.
  • Albemarle Corporation (ALB): Increased lithium conversion capacity is expected to boost its productivity soon.
  • Lithium Americas (LAC): Recently spun off its Latin American division, offering investors diversified exposure.
  • Rio Tinto (RIO): Has immediate tailwinds due to materials shortages in the developing economiesof China and India.
lithium stocks - 3 Lithium Stocks With Short-Term Catalysts Ahead

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Lithium stocks still have plenty of gas in the tank amid the world’s transition to electric vehicles. But despite this apparent tailwind, there is good reason to believe that these developments have not yet been fully priced into the valuations of these companies.

The stocks discussed in this article have company-specific catalysts and positive developments expected to propel their share prices upwards.

So here are the best lithium stocks to consider buying in November.

Albemarle Corporation (ALB)

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Albemarle Corporation (NYSE:ALB) has been identified by analysts for its sustained increase in lithium conversion capacity, which is expected to boost its growth.

The bull case for ALB stock is further amplified by its significant growth in net sales, driven by a 10% increase year-over-year, and strategic expansions in the Energy Storage segment with new partnerships and global investments, such as the Meishan project in China.

Despite a forecasted flat to a slight decline in adjusted EBITDA for 2023, the company is on track to achieve substantial productivity benefits, and its collaboration with Caterpillar (NYSE:CAT) and a $90 million U.S. Department of Defense award underscore its strengthening position in the lithium market.

Lithium Americas (LAC)

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Lithium Americas (NYSE:LAC) offers investors a solid reason to invest today. This is due to its recent corporate restructure, spinning off Lithium Americas Argentina (NYSE:LAAC) and allowing both entities to focus on unique growth opportunities within the lithium sector.

LAC retains Nevada’s promising Thacker Pass asset, with production expected in 2026. With a robust cash position and a strategic investment from General Motors (NYSE:GM), LAC is well-positioned to develop this critical lithium project.

Meanwhile, the LAAC spinoff benefits investors from geographical diversification into the Latin Americas and more streamlined operational management.

These developments make LAC one of those lithium stocks to buy.

Rio Tinto (RIO)

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Rio Tinto (NYSE:RIO) is projected to become the largest supplier of lithium to Europe in the next 15 years.

Over the short term, the bull case for RIO is buoyed by a positive outlook on iron and copper prices, with iron expected to remain strong due to Chinese stimulus measures and copper prices anticipated to rise, as current capital expenditures are not sufficient to meet the demand from the energy transition. 

The company’s production is up, with increased iron ore, aluminum and copper shipments. RIO also foresees robust growth in steel demand driven by India and ASEAN countries, which is expected to absorb additional market supply.

These tailwinds are all expected to become a boon for the company’s stock price moving forward.

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

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-lithium-stocks-with-short-term-catalysts-ahead/.

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