2021 has been quite an interesting year for lithium stocks. These assets opened 2021 pretty high, but then trended downwards for a while. Now it seems like the momentum for lithium stocks is picking up. Many lithium companies are experiencing price increases that are higher than what we have seen in recent history. To understand why this is happening, we first must understand why lithium stocks are so valuable.
The largest reason for this material’s popularity is because lithium plays a very important role with electric vehicles. Most electric vehicles are using lithium ion batteries in their cars. This means that as the demand for lithium has increased with the popularity of electric vehicles over time. In the last year this popularity has only grown more. There are many lithium stocks that have risen to popularity as a result of the electric vehicle growth.
The general sentiment around electric cars is that they are the future of the automobile. This makes it seem like lithium stocks are poised for a great time ahead of them in the market. But lithium stocks are still in a volatile position despite all of the positives going for them. If an improved battery technology is created it could hurt lithium stocks. Despite this, is not likely that these batteries will become obsolete any time soon. For this reason many have placed a bullish sentiment around lithium stocks in 2021. It is important to stay up to date on sector news and world news to know what is going on with these assets. For example, if Tesla announces very good sales it can help bring the price of lithium stocks up. With all of this in mind, let’s look at three lithium stocks to watch.Top Lithium Stocks To Watch
- Lithium Americas Corp. (NYSE: LAC)
- Piedmont Lithium Inc. (NASDAQ: PLL)
- Albemarle Corporation (NYSE: ALB)
This first lithium stock, Lithium Americas Corp., was a penny stock just one year ago. Now the company is valued at more than $16.22 per share on average as of June 4th. But what does this lithium company do specifically? Lithium Americas is a resource exploration company that searches for lithium deposits in a variety of locations. The company has 100% interest in the Cauchari-Olaroz Project, Thacker Pass project, and more. The projects in question are located in Argentina and Nevada.
On May 28th, Lithium Americas and Ganfeng Lithium commenced expansion planning at Cauchari-Olaroz. This expansion will be for at least an additional 20,000 tons per annum of lithium carbonate equivalent production from Cauchari-Olaroz. The Chairman of Lithium Americas, George Ireland said, “Caucharí-Olaroz is on track to become the largest new lithium brine operation in over 20 years. With construction for Stage 1 expected to be complete within the next year, together with Ganfeng Lithium, we are beginning to plan our next phase of growth in Argentina.”
The initial operation was just 40,000 tpa, but this 20,000 increase will be great for the company. It will provide further details of the expansion plan in the fourth quarter of this year by the fourth quarter of 2021, and an updated feasibility study next year. For right now, it seems like LAC stock is driven by the price of lithium itself and its demand. Will you add LAC to your lithium stock watchlist?Piedmont Lithium Inc. (NASDAQ: PLL)
Piedmont Lithium Inc. is an exploration focused lithium stock. It will explore and develop various resource projects all over the United States. Piedmont has 100% interest in the Piedmont lithium project located in North Carolina. It also owns another property in Kings Mountain, North Carolina.
Back in April the company noted its lithium resources being increased by 40%. This company is involved heavily in the lithium market. In fact, PLL is one of the largest lithium stocks that is publicly traded. Keith D. Phillips said this in regards to the mineral resources being increased, “Increasing the scale of our North Carolina mineral resource to 39.2 Mt at 1.09% Li2O establishes our asset as one of the largest spodumene resources in North America – and the only one in the United States. The expanded resource offers the potential for increased annual lithium production.” Will PLL make your lithium stock watchlist this month?Albemarle Corporation (NYSE: ALB)
Ablemarle Corporation is a lithium stock that develops, manufactures, and markets engineered specialty chemicals. It operated in three different segments, being Lithium, Bromine Specialties, and Catalysts. Its Lithium segment sells lithium compounds like lithium carbonate, lithium, hydroxide, and more. These are used for batteries in electric vehicles among a variety of other things. Ablemarle’s cesium products are used in pharmaceutical and chemical industries.
On June 1st the company completed the sale of its Fine Chemistry Services business to W.R. Grace & Co. for about $570 million. The CEO of the company Kent Masters said, “The sale of our Fine Chemistry Services business has enabled us to unlock substantial value from our portfolio of quality assets. With the proceeds from this transaction, we have enhanced our available resources to execute our long-term growth strategy.”
In addition to that recent announcement, the company also just released its sustainability report. This report has set meaningful and achievable targets for greenhouse gas emissions and water use. ALB started the year at $150 per share on average. Now this lithium stock is worth more than $172 per share. This one of the largest if not the largest lithium stock to buy. Will you add it to your watchlist?Lithium Stocks In The Market
Often when an EV company like Tesla has a big stock uptick, it can affect the lithium stocks that have contracts or are associated with companies like Tesla Inc. Since lithium ion batteries are used in so many types of technology, it is likely that the material will stay necessary for a very long time. For now, which companies will make your list of lithium stocks to watch?