The world of lithium is at the intersection of traditional mining and cutting-edge technology. Lithium, a soft, silver-white metal, is primarily used in rechargeable batteries, which are becoming more vital each day. These batteries aren’t just in our phones and laptops but are crucial in powering electric cars. As global focus shifts towards more eco-friendly transportation options and with the surge in popularity of electric vehicles, the demand for lithium is skyrocketing.
For investors, this surge in demand presents a potential goldmine for lithium stocks. The logic is simple, the rise of electric vehicles and renewable energy solutions means a greater need for efficient batteries. And these batteries, for the most part, rely heavily on lithium. Thus, as the need for these batteries grows, so does the demand for lithium.
But, as with any investment, there are risks. Extracting lithium can be an unpredictable business, influenced by various factors such as environmental concerns and geopolitical tensions, especially since lithium reserves are concentrated in a few regions globally. There’s also the ever-present challenge of technological advancements, a new breakthrough in battery technology could shift the demand landscape. Nevertheless, for those who are optimistic about the future of electric cars and renewable energy, the lithium sector could offer intriguing investment opportunities. All things considered, here are two lithium mining stocks to watch in the stock market right now.
Lithium Stocks To Buy [Or Avoid] In 2023
Albemarle Corporation (ALB Stock)
First, Albemarle Corporation (ALB) is a global leader in the production of specialty chemicals and advanced materials. With a rich history and a forward-looking approach, the company focuses on creating innovative solutions in areas such as lithium, bromine, and refining catalysts.
Earlier this month, Albemarle Corporation completed the restructuring of its MARBL joint venture with Mineral Resources Limited. This move, which followed regulatory approval, grants Albemarle full ownership of the Kemerton lithium hydroxide processing facility in Australia. It also retains its complete ownership of two lithium processing facilities in China. Additionally, the revised terms solidify joint ownership of the Wodgina mine. In detail, it will be split evenly between both companies, with Mineral Resources overseeing operations. Albemarle is set to pay Mineral Resources between $380 to $400 million. This covers various settlement adjustments and part ownership of Kemerton.
In the last month of trading, shares of ALB stock have pulled back by 16.90%. Meanwhile, during Monday’s pre-market trading session, Albemarle stock is trading lower ahead of the open by 1.11% at $137.14 a share.
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Sociedad Química y Minera de Chile (SQM Stock)
Next, Sociedad Química y Minera de Chile (SQM) is a Chilean-based global company that focuses on diversified production of specialty plant nutrients and chemicals. Notably, SQM is one of the world’s largest producers of lithium and lithium derivatives, critical components for rechargeable batteries used in electric vehicles and electronic devices.
Just last month, Sociedad Quimica y Minera de Chile announced that it had received IRMA 75. For context, this is for its mining operation in the Salar de Atacama from the Initiative for Responsible Mining Assurance. Additionally, this is the company’s highest score to date. Moreover, SQM is one of the first lithium mining companies to go through a global IRMA audit.
In the last month of trading, shares of SQM stock have dropped by 8.32%. While, during Monday’s pre-market trading session, SQM stock is trading down by 1.43% at $50.95 a share.