Are These The Best Lithium Stocks To Invest In Now?
While investors weigh out their options in the stock market today, lithium stocks could make for an interesting play. After all, the sector consists of mining companies and tech firms that work with this increasingly precious metal. What’s the big deal about lithium might you ask? Well, simply put, lithium is a core component in many prominent pieces of tech in our world today. This is most apparent when you take a look at the usage of lithium-based batteries. The likes of which power a wide array of tech from our handheld electronics to automobiles. Notably, regarding the latter, this is where electric vehicles (EVs) come into play.
As countries across the globe continue to ramp up their efforts against climate change, EVs are increasing in popularity. By and large, the jump from conventional combustion engines to electric ones has and continues to be a go-to strategy for reducing global emissions. In fact, recent talks about President Joe Biden signing the Defense Production Act to ramp up domestic production of precious metals like lithium continue to drive investor interest in lithium stocks.
As a result of this rapidly growing market for lithium, companies at every stage of the industry are thriving. For instance, we could look at the likes of QuantumScape (NYSE: QS) and Albemarle (NYSE: ALB). While one is a battery tech firm and another a mining company, both companies’ shares are up by over 12% in the past month. With all this in mind, here are four lithium stocks to consider in the stock market now.
Lithium Stocks To Buy [Or Sell] Ahead Of April 2022
- Lithium Americas Corporation (NYSE: LAC)
- Standard Lithium Ltd. (NYSEAMERICAN: SLI)
- Livent Corporation (NYSE: LTHM)
- Sociedad Quimica y Minera de Chile (NYSE: SQM)
Lithium Americas Corporation
For starters, we will be taking a look at the Lithium Americas Corporation, or LAC for short. In brief, LAC, as the name suggests, is a mining company that specializes in advancing lithium projects. Overall, the company primarily operates in Argentina and the U.S. In Argentina, its Caucharí-Olaroz site is moving towards its first production phase. In the U.S., LAC’s Thacker Pass received its Record of Decision approval and is moving towards construction. Even after gaining over 120% in the past year, investors continue to flock to LAC stock.
For one thing, the company’s core focus on mining lithium is helping it ride industry tailwinds now. At the same time, the company does not seem to be slowing down on the operational front as well. In its latest press release, the firm provided several key updates on its flagship projects in Argentina and the U.S. On one hand, the construction of its Caucharí-Olaroz mine is advancing well and LAC is expecting operations to begin by H2 2022. On the other hand, LAC is also moving forward with the Feasibility Study of its Thacker Pass project. While doing so it is actively optimizing engineering to complete capital and operating estimates. As LAC gains momentum, would LAC stock be a top pick for you?
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Standard Lithium Ltd.
Standard Lithium is an innovative technology and lithium development. In fact, the company’s flagship project is located in southern Arkansas. This consists of over 150,000 acres of permitted brine operations, from which the company extracts lithium. The company also operates a first-of-a-kind industrial-scale direct lithium extraction demonstration plant. The demonstration plan utilizes Standard Lithium’s proprietary LiSTR technology to selectively extract lithium from Lanxess’s tail brine. The demonstration plant is being used for proof-of-concept and commercial feasibility studies. SLI stock has more than doubled in the past year alone.
In January, the company provided a project update on several projects and other related developments. Diving in, the company says that its SiFT lithium carbonate plant was installed at the site in the third quarter of last year and has been successfully commissioned and used to produce battery-quality lithium carbonate at the plant. Standard Lithium has also expanded its internal team and retained additional consulting services to advance all necessary project definition work for its first commercial lithium plant. The company has completed initial site selection work within the available property envelope to determine a suitable location, and initial environmental and permitting screening has been completed with no significant issues noted. All things considered, is SLI stock worth investing in right now?
Livent Corporation
Following that, we have Livent Corporation, a fully integrated lithium company. The company manufactures lithium for a range of lithium products that include lithium-based polymers, specialty polymers, and chemical synthesis applications. It continues to meet the most demanding technical requirements, driven by its high-performance product solutions, industry-leading material science expertise, fully integrated supply chain, and passion for excellence. LTHM stock has enjoyed gains of over 50% in the past year.
Last month, the company reported its fourth-quarter and full-year 2021 financials. Diving in, revenue for the quarter was $122.9 million, up by 50% year-over-year. It also reported a GAAP net income of $7.5 million or $0.04 per diluted share. “Lithium demand growth was strong throughout 2021 and has continued to grow in 2022,” said Paul Graves, president, and chief executive officer of Livent. “Published lithium prices in all forms rose to record-setting levels in January, and we continue to realize significantly higher prices across our entire portfolio.” The company also announced that it has begun engineering work on a second capacity expansion program, which will contribute to another 20,000 metric tons of lithium carbonate capacity in Argentina. With this piece of information, is LTHM stock a buy right now?
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Sociedad Quimica y Minera de Chile
Sociedad Quimica y Minera (SQM) is a chemical company and a supplier of iodine, lithium, and industrial chemicals. The company is also one of the world’s biggest lithium producers. It develops and produces diverse products for several industries like the health, nutrition, automobile, and technology sectors. It also holds a leading world position in the lithium, iodide, and thermo-solar salts markets. SQM stock is up by over 60% in the past year.
If anything, the company appears to be going from strength to strength on the financial front. Namely, SQM posted stellar figures across the board in its fourth fiscal quarter financial update earlier this month. To begin with, the company raked in a total revenue of $1.08 billion for the quarter, representing gains of over 111% year-over-year. Over the same period, SQM is also looking at gains of over 350% in both its net income and earnings per share. Throughout the fiscal year, SQM also saw record sales volumes, topping the 100,000 metric tons mark for the first time. After considering all of this, would SQM stock be a top lithium stock to buy in your books?
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