Lithium could be one of the hottest stories of 2022.
For one, according to Bloomberg, “Global lithium consumption is projected to grow fivefold by end of this decade, according to BloombergNEF. Tightening supplies are sparking a wave of deal making among lithium miners, with Ganfeng and other producers involved in a flurry of acquisitions in recent months.”
Two, according to S&P Global, “There is the quadrupling of demand in just five years and probably a growth of six or seven times over 10 years. So, clearly the industry is not prepared today for that level of demand – the amount of incremental capacity that the industry needs over the next 10 years is at least 1.5 million mt and in terms of capital investment, will probably require $45 billion-$50 billion of investment into new projects or expansions of existing operations.”
Three, according to Benchmark Mineral Intelligence, “there’s a lack of available material.”
Until that changes, lithium prices – and related stocks could rocket to higher highs.
Look at Lithium Americas (LAC) for example.
Analysts at National Bank just reiterated an outperform rating on the stock with a price target of $40 a share. Granted, the company isn’t producing lithium just yet, but that’s expected to change in the new year. Construction activities at Caucharí-Olaroz remain on track to achieve first production by mid-2022 on the initial 40,000 tonnes per annum operation.
At Thacker Pass, results of a Feasibility Study on the first phase of Thacker Pass (for at least 30,000-35,000 tpa of lithium carbonate) are expected by year end. Engineering is underway to consider a 20,000 tpa lithium hydroxide chemical conversion plant, to provide flexibility to meet potential customer and partner needs.
Or, look at Albemarle (ALB).
Shares of ALB are up to $276, with the lithium story showing no signs of slowing down.
In fact, according to Bloomberg, “Albemarle Corp., the world’s biggest lithium producer, is expanding as quickly as possible and evaluating new opportunities as buyers of the battery metal struggle to keep up with surging electric-vehicle demand.”
Or, look at Livent (LTHM).
Livent is now up to $30.84, and could see $40 in the new year.
“Livent remains on track to deliver its near-term capacity expansions, with the 5,000 metric ton hydroxide addition in Bessemer City and initial lithium carbonate expansion of 10,000 metric tons in Argentina expected to reach commercial production by the third quarter of 2022 and the first quarter of 2023, respectively. The phase 2 carbonate expansion for an additional 10,000 metric tons is scheduled to be in commercial production by the end of 2023,” according to a Livent press release.
