The pullback in lithium stocks is opportunity.
In fact, after pulling back in recent weeks, Albemarle (ALB), Lithium Americas (LAC), Livent (LTHM), and American Lithium (LIACF) are all just starting to bottom out and pivot higher.
After all, it’s tough to argue against the lithium story.
With substantial demand, and significant supply shortages, lithium prices just ran about 400% year over year. However, with shortages persisting, lithium prices could head higher – which could be great news for related companies.
All thanks to a massive, global shift to electric vehicle adoption. At the moment, governments all over the world want millions of EVs on the roads over the next decade. The U.S. for example wants about 50% of all car sales to be electric by 2030. Companies, like Ford, General Motors, Volkswagen, and Mercedes are racing to develop them.
But there’s a MAJOR problem. We just don’t have enough lithium supply.
In fact, according to Forbes:
“It is estimated that the U.S. alone will need 500,000 metric tons per year of unrefined lithium by 2034 just to power EVs. The U.S. produces just a fraction of that today. The current global production of lithium in 2020 was about 440,000 metric tons of lithium carbonate equivalent (LCE, contains about 18% of pure lithium), and not all of that is in pure enough form for batteries, according to Chris Doornbos, CEO of E3 Metals Corp, a lithium extraction firm located in Calgary, Canada, which plans to produce battery-grade lithium hydroxide.”
With the lithium story only set to accelerate, weakness in related stocks is opportunity.
