Kit Norton of the Investor’s Business Daily reports that projected long-term demand for the metal has kindled investor interest in lithium stocks. Norton writes:
For a clique latched to the sleek EV market, lithium stocks sure have been on a rocky road. After a few years when soaring EV sales had investors prizing all things lithium, lithium prices dropped more than 80% from their 2022 peaks. Shares of lithium mining companies fell with them. Lithium stocks began to rebound in August, cuing investors for a possible new drive – or maybe, a dangerous ride.
The rebound in lithium stocks got underway when the world’s largest miner of the metal, Albemarle (ALB), revealed plans to cut production and spending. Smaller peer Arcadium Lithium (ALTM) quickly followed. The moves stirred hopes that lithium supplies would soon revert closer to current demand. They quickly reversed the share-price declines of Albemarle and Arcadium. Other stocks also turned higher, including Lithium Americas (LAC), Sociedad Quimica (SQM) and Lithium Argentina (LAAC). […]
EVs Will ‘Determine Lithium Prices’
With EVs dominating the current lithium demand picture, lithium prices hinge on electric vehicle sales.
“It’s really the electric vehicle market,” Columbia University’s Moerenhout said, “that is going to determine lithium prices moving forward.”
Gay notes that energy-storage demand has grown, and demand for portable batteries is “reliable.” He agrees, though, that neither is substantial enough to drive lithium prices. […]
For investors eyeing lithium stocks, waiting may be wise.
The projected long-term demand for the metal has kindled investor interest in lithium stocks. Rio Tinto and analysts see lithium pricing rebounding along with EV demand in the coming decade, but nothing is certain.
“I’ve been wrong in the past,” CFRA’s Nasseff Mitsch said. “I thought lithium had bottomed out in June, but it kept going down.” […]
Lithium stocks also have low IBD Composite Ratings, which rate them on a 1-99 scale against all other stocks based on important fundamental and technical factors.
Read more here.
