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How to buy lithium

These market-shaping events and many more have analysts bullish on long-term fundamentals for the commodity; they are particularly positive on lithium demand as adoption of electric cars increases. Technical-grade lithium is used in ceramics, glass and other industrial applications, while battery-grade lithium carbonate and lithium hydroxide, which are much more expensive, are used to make lithium-ion batteries. These lithium products can also be used for technical applications in a pinch. The lithium market is attracting investor interest, but where is the best place to start? Operating profit margins rose into the 40% range in 2022, helping the company invest in expanding its production.

The company announced on Oct. 19 it would receive around $150 million from President Biden’s infrastructure bill. The funds will go toward expanding its U.S. lithium battery manufacturing, the company said. With EV purchase subsidies phasing out in 2023, analysts forecast China’s EV sales will also slow. The drop off in sales, in turn, would drive lithium prices in China lower. Morgan Stanley forecasts prices of $67,500 per ton in the first half of 2023, falling to $47,500 per ton in the second half of the year. A lithium market outlook report from Morgan Stanley analysts on Nov. 28 said „with demand headwinds looming, we believe a near-term (lithium) price correction is in sight.“

Is it a good time to buy Lithium Americas stock?

The mine boasts an impressive 179.4 megatonnes of LCE and is on the cusp of production with roughly 50 years of useful life. Meanwhile, its operations in Argentina are also anticipated to make a massive impact, producing 40,000 tonnes of LCE from 2022 onwards. The firm is making sure that they are ready to capitalize on the current boom in demand for lithium products, and it looks like a very positive move for them overall. LIT invests in companies throughout the lithium cycle, including mining, refinement and battery production, cutting across traditional sector and geographic definitions. „A price correction is due, as extreme market tightness is likely to unwind in 2023,“ the analysts wrote.

The South American country’s president recently announced intention to nationalize the lithium industry with a state-owned company. This would affect the financial results for companies that operate in Chile, as well as any company with plans to develop lithium mining there. Chile’s National Congress would need to sign off on the plan before it proceeds.

Yu added the U.S. will need its Free Trade Agreement partners to meet plug-in electric (PEV) battery demand. „I would really like to encourage, once again, entrepreneurs to enter the lithium refining business. You can’t lose. It’s a license to print money,“ Musk said. Morgan Stanley predicts the strong EV demand in 2022 is unlikely to carry over into 2023. So far in 2022, global EV sales are up 70%, or around 2 million units, according to Morgan Stanley.

How to buy lithium

You need a brokerage account to access the NYSE market and buy LAC shares. None of these companies make any representation regarding the advisability of investing in the Funds. With the exception of BlackRock Index Services, LLC, who is an affiliate, BlackRock Investments, LLC is not affiliated with the companies listed above.

How to Invest in Lithium (& Why You Should)

However, as an emerging growth play, Livent’s pockets aren’t as deep as some of its larger peers, although it does have minimal debt. As is the case with all mining operations, getting new lithium projects up and running can be a costly endeavor. It can take many years to ramp up to full production, draining a mining company of its cash and other liquidity in the process.

How to buy lithium

This has led to rising prices for metal as supply remains tight and demand is increasing. Around 57% of the world’s lithium deposits are in countries like Argentina, Bolivia and Chile. As the demand for lithium continues to ramp up and cause higher prices, analysts maintain their belief that OROCF is one of the best lithium stocks out there. This is evidenced in the consensus Moderate Buy rating and $11.40 price target, representing implied upside of 45%.


Investors might take solace in knowing that SLI plans to protect its breakthrough technology with patents. If their projects pay off, back that up with an impressive portfolio, and the public could be assured of a steady stream of income for many years to come. This ground-breaking approach could give them a real edge over the competition, allowing them to supply their customers with a high-quality product in no time.

Efforts to Open Nevada Lithium Mine Facing Lawsuit – The Detroit Bureau

Efforts to Open Nevada Lithium Mine Facing Lawsuit.

Posted: Wed, 19 Jul 2023 21:28:23 GMT [source]

However, Bolivia’s vast stores are not yet considered commercially viable. Meanwhile, lithium stocks, Sociedad Quimica Y Minra (SQM), Albemarle (ALB) and Livent (LTHM) have advanced around 83%, 11% and 5% on the year, respectively. The Global X Lithium & Battery Tech ETF (LIT) has lost more than 20%. The Amplify Lithium & Battery Technology ETF (BATT) has dumped about 33%.

Sociedad Química y Minera de Chile (SQM​​)

But investing in a lithium stock-heavy exchange-traded fund, or ETF, can give your portfolio exposure to lithium with less risk. Lithium ETFs include a basket of stocks related to the lithium industry. LIT invests in companies that span the lithium production cycle, such as mining, refining and battery production. Australian mining company Galaxy Resources Limited has lithium mining operations in Australia, Argentina and Canada. The company is involved in mineral exploration and processing with its main activities focusing on the production of lithium carbonate.

In fact, Lithium Americas is among the 33 undervalued stocks our analysts like for the second quarter. The global energy transition marathon and its demand for electric vehicles sent lithium demand into overdrive in 2022. Prices for the energy-savvy metal surged around the world over the past year, dragging lithium stocks on a bumpy ride.

Lithium stocks are the shares​ of companies that engage in the mining or processing of lithium. Unlike other precious metals such as gold and palladium, traders are not able to invest in lithium as a commodity​. Instead, they can gain exposure through investing in publicly traded lithium companies. Lithium Americas currently does not have any projects in production and is not generating revenue. Lithium is an essential component not just in battery technologies but also in other environmentally-friendly products such as electric vehicles. With its utility across multiple industries, demand for lithium has surged, and companies worldwide are working hard to ensure ample supplies.

  • That separation, which will create two separate companies from LAC’s North American and Argentine business units, will likely occur later this year.
  • These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries.
  • Yu added the U.S. will need its Free Trade Agreement partners to meet plug-in electric (PEV) battery demand.
  • Our valuation will include all of Lithium Americas’ assets until the separation of the U.S. and Argentina businesses is finalized; this is currently planned for the second half of 2023.

The management group has a long history of success in the resource sector of Argentina and a strong track record of government and community relations. The premiums and discounts for funds with significant holdings in international markets may be less accurate due to the different closing times of various international markets. Because the Funds trade during U.S. market hours while the underlying securities may not, the time lapse between the markets can result in differences between the NAV and the trading price. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated. The Global X Lithium & Battery Tech ETF (LIT) invests in the full lithium cycle, from mining and refining the metal, through battery production. Albemarle is also likely to receive federal support through the Inflation Reduction Act.

With recent improvements now complete, the company thinks it will be able to increase its market share in supplying lithium, mainly for EV batteries. Although lithium prices can be volatile, Albemarle has proven itself over the years to be a durable mining operation with the ability to bring lithium to market. It has minimal long-term debt and plenty of cash to fund new projects, and it generates consistent operating profit margins in the low- to mid-teens. If you’re looking for individual stocks to bet on long-term lithium usage, Albemarle is a great place to start your search.

How to buy lithium

The capacity of this facility has increased to over 17,000 tonnes per annum of lithium carbonate. The two companies are also looking to construct a plant in Naraha, Japan, in order to expand their production of lithium hydroxide. Lithium Americas aims to become a low-cost pure-play lithium producer. The company doesn’t have any lithium sales volume currently, but it is developing three resources that should eventually enter production, with the first project set to begin selling lithium in the second half of 2023. Cauchari-Olaroz and Pastos Grandes are brine resources located in northwestern Argentina. As electric vehicle adoption increases, we expect lithium demand to grow by the double digits annually.

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