Lithium is a light and highly reactive metal that is widely used in the production of batteries. Particularly those used in electric vehicles (EVs) and renewable energy systems. The growth of the EV market has driven demand for lithium. Also, with the shift towards clean energy, this demand is expected to continue to grow. As a result, investing in lithium stocks has become increasingly popular among stock market investors. Specifically, for investors who are interested in gaining exposure to the rapidly growing clean energy industry.
Investing in lithium stocks can be a good way to gain exposure to the growing demand for this metal. This comes as the adoption of EVs and renewable energy systems continues to increase. Lithium stocks can include mining companies that extract the metal from the ground. As well as companies that produce and sell lithium products.
However, investing in lithium stocks can also be risky, as the industry is subject to a range of factors, including fluctuations in commodity prices, changes in technology, and government regulations. It is important for investors to carefully consider these risks before investing in the sector, and to diversify their portfolio to manage risk. With that being said, let’s dive into three lithium stocks to watch in the stock market right now.
Lithium Stocks To Watch Now
- Sociedad Quimica y Minera S.A. (NYSE: SQM)
- Albemarle Corporation (NYSE: ALB)
- Piedmont Lithium Inc. (NASDAQ: PLL)
Sociedad Quimica y Minera S.A. (SQM Stock)
Firstly, Sociedad Quimica y Minera S.A. (SQM) is a Chilean company that specializes in the production of lithium, iodine, and other specialty chemicals. With operations in South America, Europe, and Asia, SQM is one of the world’s largest producers of lithium.
Back in November 2022, the company reported its 3rd quarter 2022 financial results. Specifically, the company notched in Q3 2022 earnings of $3.85 per share, exceeding the consensus estimate of $3.40 per share, on revenue of $3.0 billion, beating the expected revenue of $2.7 billion. This was a significant increase from the previous year, with revenue growing by 347.1% on a year-over-year basis.
Since the beginning of 2023, shares of SQM stock have increased by 15.63% so far. Meanwhile, on Friday’s mid-morning trading session, shares of SQM dropped by 7.34% on the day trading at $88.67 a share.
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Albemarle Corp (ALB Stock)
Next, Albemarle Corporation (ALB) is a global specialty chemicals company that produces a wide range of products, including lithium, bromine, and catalysts. Albemarle Corporation (ALB) is a global specialty chemicals company that produces a wide range of products, including lithium, bromine, and catalysts.
Earlier this week, Albemarle reported its Q4 2022 financial results. Diving in, the company reported earnings of $8.62 per share, along with revenue of $2.6 billion. For context, Wall Street consensus estimates for the quarter were earnings of $8.46 per share, and revenue estimates of $2.6 billion. What’s more, ALB notched in a 193.1% increase in revenue versus the same period, a year prior.
Year-to-date so far, ALB stock has advanced by 19.35%. Additionally, during Friday’s morning trading session, shares of ALB stock dropped by 10.34% on the day, trading at $256.02 a share.
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Piedmont Lithium (PLL Stock)
Last but not least, Piedmont Lithium Inc. (PLL) is a lithium-focused exploration and development company that is working to develop a world-class lithium project in North Carolina. The company’s flagship project, the Piedmont Lithium Project, is one of the largest known lithium resources in the United States.
Earlier in the week, Piedmont Lithium announced it signed an agreement with LG Chem, in which LG Chem will make a $75 million equity investment in Piedmont and commit to purchase 200,000 metric tons of spodumene concentrate from Piedmont over a four-year term. LG Chem will also buy around 1.1 million newly-issued shares of Piedmont common stock for a total consideration of $75 million. This is expected to close on or around February 24, 2023.
Since the start of 2023, PLL stock has rebounded a whopping 52.38% year-to-date. While, on Friday ahead of the lunchtime trading session, shares of Piedmont Lithium stock are down 11.18% on the day, trading at $65.25 per share.
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