Lithium prices are soaring as demand continues to significantly outweigh supply.
In an article titled “Lithium Prices Have Nearly Doubled in 2022 Amid Insane Commodity Rally,” OilPrice.com writer Alex Kimani reported that this rapid doubling comes on the heels of 2021’s quadrupling of lithium prices. Kimani ads: “…lithium producers have been caught flat-footed again, ill-prepared to meet the current even stronger demand surge fueled by the global energy transition and EV revolution.” Plus, consider this: by 2050, the global need for lithium could be as much as five times higher than what is mined today, according to the World Bank.
In short, lithium prices aren’t likely to pull back any time soon. But with that being said, investors may want to keep an eye on these lithium stocks.
Lithium Americas (LAC)
Over the last few days, shares of Lithium Americas are up about $5 a share on the lithium story. It’s also running higher, as it nears construction at Thacker Pass. “With the final key state environmental permits in hand, Lithium Americas can begin to advance Thacker Pass towards construction,” said Jonathan Evans, President and CEO, in a company release. “Thacker Pass provides an opportunity to enable a U.S.-based battery supply chain for the growing electric vehicle market.”
Standard Lithium (SLI)
Right now, Standard Lithium is focused on its 3,140,000 tonne LCE Indicated Resource 150,000+ acre joint venture Lanxess Project, located in south Arkansas. According to CEO Robert Mintak, the company’s Lanxess Project is well positioned to serve the American EV market, and potentially Europe’s, as well.
Livent Corp. (LTHM)
Over the last weeks, shares of LTHM ran from a low of about $23 to $25.30, all thanks to strong earning, guidance, and lithium demand. The company posted EPS of $0.08 on sales of $123 million, beating expectations for EPS of $0.07 on sales of $106 million. Going forward, according to Barron’s, “Livent expects to generate about $180 million in Ebitda, short for earnings before interest, taxes, depreciation, and amortization, on about $570 million in sales. Analysts were projecting closer to $160 million in Ebitda on $515 million in sales.”
2022 is shaping up to be the most expensive year ever.
The rampant price gouging is only going to get worse.
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