Where renewable technology is growing rapidly and huge companies like Tesla are relying on lithium as a key ingredient of its products, the demand for lithium has increased greatly. Albemarle is the biggest company on the list and the world’s largest lithium producer. Albemarle operates the only active lithium mine in the U.S., located in Silver Peak, Nevada. Lithium is ALB’s biggest line of business, accounting for just over half of the company’s revenue. There are several ways to invest in lithium as a commodity if you are interested in it. You can pursue the stocks of companies that produce this material, or those that use it in vehicles, batteries and related applications.
Make sure to keep your seed phrase safe, and take note of your wallet address. The Federal Reserve has raised interest rates significantly, which has contributed to the overall declines in the stock market as a whole. To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Rates Investing Products. That could explain why the stock is the best performer on the list over the last two years, rallying over 1,500%.
The Fed Is Poised to Pause Interest Rate Hikes – What This Means for You
After many lithium stocks reached record highs in late 2021, the sector hit a bit of a roadblock in 2022 and many stocks are well off their highs. Li-Cycle Holdings is relatively a newcomer to the industry, after an initial public offering in 2021. The company recycles batteries to recover lithium and other materials. on our Product Library in order to discover further lithium share prices.
You can also invest in groups of lithium stocks by buying a stake in funds, like ETFs. Alternatively, you can participate directly in lithium with options and futures. Chilean chemical company Sociedad Química y Minera de Chile is one of the world’s biggest lithium producers.
Use our news and insight tools to keep track of news about lithium and the overall industry. Get advice on achieving your financial goals and stay up to date on the day’s top financial stories. Presence in two mines, including the largest known lithium mine in the U.S. Following nine rate increases since March 2022, the Federal Reserve seems close to pausing its hikes.
You also have the option to not to execute this contract if you choose. With futures, on the contract’s expiration date you must follow through on the deal even if it is a money-losing position. With an options contract, at the expiration date you can decide not to follow through on the deal if it is unprofitable. ETFs, or exchange-traded funds, are investment funds that focus on a particular investment theme or type of company.
Users can also enter terms such as ‘lithium’ directly in the search function to discover more relevant stocks and ETFs that are available to trade on. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
Apply any risk-management orders, such as stop-loss orders, and confirm your trade.
Depending on How the instrument’s price fluctuates, you may decide to ‘go long’ and buy, or to ‘go short’ and sell. , such as cars and scooters, which has seen production levels increase greatly since it first began. There are many other uses for lithium, such the creation of ceramics and glass. After two banner years in 2020 and 2021, stocks fell into a bear market in 2022.
The company has seen strong earnings per share and sales growth over the last four quarters, jumping more than 432% and 265%, respectively. Based on the company’s earnings performance this year so far, it should top 100% year-over-year EPS growth in 2022. There are a limited number of public companies that mine and refine lithium, plus a host of smaller startup operations that are in the early exploration or development stages of their resources. Forbes Advisor has identified eight lithium stocks that are worth looking at, including both more speculative startup names for well-established mining companies. However, unlike a futures contract, a standard options contract operates on a cash settlement.
Founded in the late 1960s, the company benefits from the fact that its home country has one the largest lithium reserves in the world. The company also benefits from its production of potassium nitrate and iodine. US-based company Albermarle is one of the largest providers of lithium for batteries that power electric vehicles. It produces both types of lithium, carbonate and hydroxide, as the company sources lithium through its brine and rock mining operations within several countries. As well as being immensely successful in the electric car industry, the company also produces over 100 lithium-based products for a range of other industries. In order to protect itself from any great potential losses from volatility in the market, Albermarle can also benefit from the successes of its bromine segment.
The company anticipates that lithium mining and refining operations will begin in Quebec in 2023 and Ghana in 2024, followed by Tennessee in 2025 and North Carolina in 2026. But some of these projections depend on tough local and national permitting reviews. While the company has reported negative EPS and negligible for more than 10 years, analysts are projecting positive EPS of $1.01 per share in 2023 and an estimated $307 million in sales.
Exchange-traded fund, or ETF, can give your portfolio exposure to lithium with less risk. Lithium ETFs include a basket of stocks related to the lithium industry. One of these ETFs is the Global X Lithium & Battery Tech ETF . LIT invests in companies that span the lithium production cycle, such as mining, refining and battery production.
Investing in Lithium Stocks
This year is likely to be the company’s strongest sHowing since it was spun off from FMC Corp. in 2018. Over the last year, SQM has grown sales by 177.7%, while EPS is up 519.9%. Industry analysts are forecasting five-year annualized EPS growth of 14.7%. Sociedad Química y Minera de Chile—usually referred to simply as SQM—is based in Chile. The company harvests lithium resources from some of the best deposits in South America, such as the salt flats of the Atacama Desert. Besides lithium, the company also produces iodine, potassium, industrial chemicals and nitrates for fertilizers.
How to trade on lithium shares
Lithium is an essential part of powering our technology, including cellphones, laptops and electric vehicles. All of this technology uses lithium-ion batteries, which means the demand for lithium will remain high for years to come. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site.
An in-depth look at the leading lithium stocks in the U.S stock market this year. Here’s what you need to know.
Due to the fact that the risk is spread across multiple securities at the cost of only one trade, many consider ETFs to be a low-risk investment. Lithium is a critical material for manufacturing batteries used in laptops, cell phones and electric vehicles, or EVs. With demand for all of these products surging, so is the demand for lithium. The new company, Livent, had a limited history operating as an independent company before the pandemic struck.
When you open a new, eligible Fidelity account with $50 or more. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Investing in Aluminum Stocks This metal has multiple applications, meaning companies in this sector can be great investments. Once you are done with the previous steps, you can click on the Swap button. Currently, PLL has zero sales and has reported negative EPS for the last five years.