Lithium stocks are skyrocketing.
And they’re not likely to come down any time soon.
With electric vehicle demand only accelerating, and automakers in desperate need of supply, lithium may be one of the hottest opportunities around.
Look at Albemarle (ALB), for example.
Net sales came in at $1.48 billion, an increase of 91%. Net income came in at $406.8 million, or $3.46 per diluted share; Adjusted diluted EPS of $3.45 was an increase of 288%. Adjusted EBITDA came in at $610 million, an increase of 214%. It also expects to see significant growth in full-year 2022 results including net sales of $7.1 – $7.5 billion (>2x 2021) and adjusted EBITDA of $3.2 – $3.5 billion (>3x 2021). With revised guidance, the company also expects to be free cash flow positive in 2022.
Albemarle’s outlook for 2022 has continued to improve based on expectations for ongoing demand strength and tightness in the markets it serves.
Even Livent (LTHM) has been explosive.
LTHM is up on news that General Motors will pre-pay it $198 million for guaranteed lithium supply.
Livent will provide battery-grade lithium hydroxide to GM over a six-year period beginning in 2025. Over the course of the agreement, Livent will increasingly supply battery-grade lithium hydroxide to GM from its manufacturing facilities in the U.S., with the goal of transitioning 100% of Livent’s downstream lithium hydroxide processing for GM to North America. The agreement is expected to help secure supply for GM while assisting Livent in expanding its North American capabilities, as noted in a recent press release.
Or, if you’re looking for broader exposure to lithium, take a look at the Global X Lithium & Battery Tech ETF (LIT). With an expense ratio of 0.75%, some of the ETF’s top holdings include Albemarle, BYD Co., Tesla Inc., LG Chem, Livent Corp., and Lithium Americas to name a few.