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Investing in lithium: Why now could be the right time

Lithium-ion is used in the fabrication of rechargeable batteries, making it a crucial commodity for electric vehicles, mobile phones and all kinds of electronics. Lithium also fabricates ceramic glazes and glass, high-temperature lubricants and chemical polymers. The pharmaceutical industry even uses lithium salts in bipolar and antidepressant medications. Lithium Americas (LAC, $6.60) is a mining company that is progressing its lithium projects in Argentina and the U.S. toward production. Like so many of its fellow lithium stocks, LAC has struggled on the charts in 2023, down 13.5% for the year-to-date. OROCF has plans to ramp up its lithium production threefold by 2026 and intends to maintain its 10% share of the global lithium market on an international basis over the next 10 years.

What forms does the commodity appear in?

Register for an account to start spread betting and trading CFDs on lithium stocks or ETFs. Understanding the risks of trading with derivatives is important, and can be understood further by reading more about leveraged trading. The Brisbane-based company focuses on lithium and other mineral mining operations within Argentina. Orocobre is in partnership with Toyota Tsusho, and they are looking to grow its Argentinian-based flagship project, the Olaroz Lithium Facility. The capacity of this facility has increased to over 17,000 tonnes per annum of lithium carbonate.

What are some of the risks of investing in lithium stocks?

  1. As a result, demand for lithium has skyrocketed, with the price increasing 10-fold in the last two years.
  2. However, shares are now deep in the red amid a decline in lithium prices and elevated interest rates.
  3. We expect higher demand for lithium over the coming decade, as demand for EV batteries and renewable technologies continues to grow.
  4. Performance is shown on a total return basis (i.e., with gross income reinvested, where applicable).
  5. Many fortunes have been made by simply sitting back and letting compound interest work, but lithium investments are based on a volatile commodity and require more stringent monitoring.
  6. Investors should expect a high level of volatility in the company’s share price, due to its dependence on the underlying price of lithium.

Lithium supply is expected to briefly be in oversupply, which has sent prices back down to levels not seen since 2021. Based out of Brazil, Sigma Lithium is the smallest stock on this list, with a market value of less than $2 billion and total revenue of about $615 million annually. However, despite its more modest footprint, SGML has proven to be a significant player in the lithium sector. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. Here’s a look at some of the ways to make lithium one of your investments for the future.

Our Pick Of The Best Lithium Stocks & Shares

This would affect the financial results for companies that operate in Chile, as well as any company with plans to develop lithium mining there. Chile’s National Congress would need to sign off on the plan before it proceeds. Keep in mind, however, that every investor has their own individual needs based on their specific goals. If you have questions about which lithium stocks are right for your portfolio, it is always recommended to consult a financial advisor. Lithium-ion batteries are getting larger and larger, and so more lithium is needed.

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Unlike metals such as gold, there’s no universal consensus on a single lithium price. Lithium mined in South America could vary from the lithium spot price published in Asia. Since prices can differ depending on the market, investing directly in lithium can be tricky (and risky). Mining companies must extract and refine lithium from the Earth to produce lithium. Miners can extract lithium from hard rock or a more liquid substance called brine.

Lithium-ion batteries are what allow the majority of your mobile phones, laptops, and even electric cars to function as ‘nomad’ technologies. Alongside global demand for a commodity, other factors like technological advancement impact a commodity’s future price projections. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.

“The Takoradi port (deep sea port) and adjacent grid power will lend itself to a low carbon footprint, and the high quality product could be key to servicing the US and European battery market. It also owns processing facilities in China, Chile, the US and Australia and has received grants from the US government to increase its manufacturing capacity for the electric vehicle (EV) market. Albemarle is a leading lithium and chemicals company, headquartered in North Carolina in the United States. The company is quoted on the New York Stock Exchange and has a market capitalisation of around $28 billion. First, we provide paid placements to advertisers to present their offers.

She points to lithium sales increasing by over 300% in the most recent quarter, with the company also achieving an impressive growth of over 600% in year-on-year earnings per share. Returns data is sourced from Morningstar Direct and is based on total annualised returns fibonacci fibo retracement indicator for mt4 to the periods ending 10 January 2023. Returns are shown in pounds sterling equivalent for UK investors, and therefore include foreign exchange movements. As a result, demand for lithium has skyrocketed, with the price increasing 10-fold in the last two years.

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