The Lithium Mining Stock Market is Booming
Did you know that Argentina has provided the most lithium production to the entire world? A staggering 53% of lithium comes from Argentina alone.
Lithium is an alkali metal that is the lightest metal and lightest solid element on earth. It is incredibly flammable and reactive, so it must be kept in mineral oil.
It is also not freely created in nature; rather, it is a result of ionic compounds. It can be found in oceans and as a result of lithium brines.
This mineral resource is popularly known for use in mental health medications as lithium carbonate. Recently, however, its use in batteries has soared. Rechargeable lithium-ion batteries for small electronics in the home, cellphones, and car batteries have increased our lithium demand.
The boom is also due to the rising popularity and demand for more electrical vehicles.
This is in line with the Biden administration’s push for net-zero emissions and demands from other countries’ concerted efforts against climate change. The market demands of long-lasting batteries in our smartphones and computers have companies like Apple and Intel increasing their demands for more lithium, too.
5 Lithium Mining Stocks That Could Boost Your Portfolio
When finding the right stocks for your investment portfolio, there has to be a little bit of adventure-seeking and a bit of understanding the market. Using a stock trading site that keeps you informed on where the stock markets are, is very helpful.
Stock trading has always been risky, but some stocks are riskier than others.
Fortunately, lithium stocks are seeing a boom.
Let’s take a look at five top-performing lithium stocks in the market today.
- Tesla (NASDAQ: TSLA)
- Albemarle (NYSE: ALB)
- Livent Corp. (NYSE: LTHM)
- Piedmont Lithium Limited (NASDAQ: PLL)
- Sociedad Quimica Y Minera de Chile (NYSE: SQM)
Tesla (NASDAQ: TSLA)
Odds are, you have probably heard of Tesla.
Tesla is an American company that was founded in California as a response to growing concerns about climate change and our carbon footprint. While the company is well known for Tesla electric cars, the company also manufactures solar panels, solar roof tiles, and accessories that do not rely on fossil fuels.
Stock performance has been impressive over the last year. It is one of the more expensive stock options on the market but may be well worth the investment. 2020 proved to be an excellent year for stable growth that was followed by another magnificent boom in early 2021.
The stock has grown a staggering 270% in the last twelve months.
The 52-week low occurred in May 2020 when share prices were $161. The high took place at the end of January in 2021 when prices were $883 per share. At the time of this publication, the market cap was $568 billion.
The Biden administration is pushing for net-zero emissions, right along with several other global governments. With world leadership encouraging more “green” options, they are keen to support the companies at the forefront. These companies will demand even more lithium projects, and the mines will likely comply.
Albemarle Corporation (NYSE: ALB)
Albemarle is considered a socially conscious mining company that produces specialty chemicals. Headquartered in Charlotte, NC, Albemarle has production facilities in North and South America, Canada, Australia, Asia, and Europe.
Historically, the company has situated itself to provide for a wide range of applications across many markets.
Pharmaceuticals, agriculture, and batteries are the most popular. Some very specific applications include the technology for airbag ignition and industrial catalysts.
Over the past year, the company has seen 164% growth. Most of the growth occurred in 2020 and has sustained very well into 2021. A few small dips but that is to be expected in the stock market. The year low was in May of 2020 when stock shares were just under $60 each. The year high was mid-January of 2021 when the stock price was $185. At the time of publication, the market cap was set at $19 billion.
Albemarle’s commitment to so many markets that will benefit from their lithium supplies is what makes them such a top contender.
As demand grows, we will also find new uses for lithium and Albemarle will be sure to tap into those uses as well.
Livent Corporation (NYSE: LTHM)
Livent Corp is a company devoted to efficient energy use through its lithium technology. Livent has a focus on batteries, aerospace, and polymers.
Their tires, batteries, and storage systems are designed to be sustainable products while lowering the carbon footprint for the average user.
Livent stock is one of the more affordable on this list and may be the right choice for getting in on the ground floor.
The past year has resulted in a 210% growth, with the highest price boost occurring in the first month of 2021. The low over the past 52 weeks occurred in May of 2020 when shares were $5 a share. The high was when prices reached $23 in mid-January of 2021. The market cap, at the time of publication, was $2.5 billion.
Piedmont Lithium Limited (NASDAQ: PLL)
Piedmont Lithium Limited is located in the cradle of the spodumene industry in North Carolina. Piedmont is one of the few lithium producers that is an efficient, low-cost mining operation that provides lithium hydroxide for electric vehicles and battery storage systems.
Not only do they produce lithium, but they also produce precious metals, feldspar, mica, and quartz. This allows them to provide material for solar panels, countertops, colorants, and glass.
Piedmont is blazing the trail for two primary reasons:
- They are dedicated to the contribution and widespread use of electric vehicles.
- The practicality of the supply chain and materials for use in home remodeling and construction.
Construction is expected to rise over the next year as the pandemic eases and life begins to go outdoors.
By supporting the home construction and remodeling industry, they are securing their place in more than one market.
Lastly, when you have a low-cost producer and rising lithium prices, the return on investment will be more beneficial.
Sociedad Quimica Y Minera de Chile (NYSE: SQM)
To round out any portfolio, looking abroad and considering some international investments are great options.
Sociedad is a popular option due to its marketability across several industries. Whether you want to support technology, agriculture, or energy, this might be the company for you.
Operating in northern Chile, the lithium and derivatives contribute to industrial projects, assist automakers in electric vehicle production and pharmaceuticals.
Sociedad can source its vitality to its dedication to pharmaceuticals and to electric vehicles. The pharmaceutical industry will always need lithium and will find new uses for it. Investing in medicines and healthcare is a great option for any investor when considering the long-term benefits.
With the global push for vehicles that don’t rely on fossil fuels, jumping on this affordable stock now can mean higher returns later.
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Investors need to focus on the best stock options that reflect where the world is going, rather than on the old tried and true.
While China dominates the resources for lithium, other countries with lithium are making a name for themselves in the marketplace.
The above stock options are looking to their future as a sustainable business in the lithium market while protecting the environment and being socially responsible.
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Learn more about these businesses and their competitors so that your portfolio can be the best it can be.
Disclaimer: All investments involve the risk of loss. Nothing on this website should be misconstrued as investment advice. Any reference to an investment’s historical or projected performance is not a recommendation or guarantee of profit or desired outcome.