Take Advantage Of Skyrocketing Lithium Prices By Buying These 3 Stocks

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Lithium has become increasingly popular, given zero-emission initiatives worldwide and the growing electric vehicle (EV) market. Lithium is a key component used in electric vehicle batteries. 

The U.S. is narrowing the gap with China, which dominates the $46 billion lithium-ion battery industry, supported by President Biden’s emphasis on EV growth and significant investments by its automotive industry giants. Consulting firm AlixPartners expects companies to invest $330 billion globally in the EV supply chain over the next five years.

Lithium prices are skyrocketing, driven by heightened demand. The Mineral Intelligence index of lithium carbonate and hydroxide prices has more than doubled over the past year. In addition, the Global X Lithium & Battery Tech ETF (LIT) has gained 108.1% over the past year compared to the 32.4% gains of the broader SPDR S&P 500 ETF Trust (SPY) over the same period.

Hence, we think it could be wise to invest in fundamentally sound lithium stocks Albemarle Corporation (ALB), Livent Corporation (LTHM), and Lithium Americas Corp. (LAC) to take advantage of the rising prices.

Albemarle Corporation (ALB)

ALB is a worldwide manufacturer of engineered specialty chemicals, which operates through Lithium, Bromine Specialties, and Catalysts segments. Its Lithium segment produces lithium compounds and lithium specialties to be used in a variety of goods. ALB is based in Baton Rouge, La.

On Oct. 22, ALB declared that it had signed investment agreements to expand its lithium conversion capacity in the Chinese provinces of Jiangsu and Sichuan. The agreements align with the company’s expansionary strategy in China and its commitment to invest in new capacity to promote growth.

In September, ALB subsidiary Albemarle Lithium UK Limited signed an agreement to acquire all the outstanding equity of lithium converter firm Guangxi Tianyuan New Energy Materials Co., Ltd. “As the global transition to cleaner energy rapidly develops, this added lithium capacity will enable us to help our customers achieve their growth and sustainability ambitions,” said Kent Masters, Albemarle CEO.

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