Contributor, Benzinga
June 17, 2021

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Albemarle (XNYS:ALB)

With 5,400 employees and operations in over 100 countries, Charlotte, North Carolina-based Albemarle Corp. is a global supplier of specialty chemicals, including lithium. The company’s recent acquisitions include the Kemerton Lithium Project in Western Australia, lithium hydroxide and carbonate conversion assets in China and  Rockwood Holdings Inc. ,which has a leading position in the bromine, lithium and catalyst solutions markets. Founded in 1887, Albemarle Corp. is the company with the longest history and the highest stock price among those listed here. 

$289.07
3.17[1.11%]
Last update: 12:52PM (Delayed 15-Minutes)
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Day Range285.640 - 289.37552 Wk Range169.930 - 334.550Open / Close288.595 / -Float / Outstanding103.369M / 117.153M
Vol / Avg.538.284K / 1.490MMkt Cap33.865BP/E21.67650d Avg. Price251.010
Div / Yield1.580 / 0.55%Payout Ratio11.940Total Float103.369MEPS-

Lithium Americas (XNYS:LAC)

Formerly known as Western Lithium USA Corp., the company became Lithium Americas Corp. in March of 2015. Lithium Americas Corp. is a development-stage company that owns an interest in the Thacker Pass project in northern Nevada as well as in the Cauchari-Olaroz Project located in the Jujuy province of Argentina. Lithium Americas stock is traded on both the NYSE and the Toronto Stock Exchange (TSE). The stock also currently qualifies for Benzinga’s stocks under $20 category. 

$25.2132
0.5132[2.08%]
Last update: 12:52PM (Delayed 15-Minutes)
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Day Range24.370 - 25.27552 Wk Range17.575 - 40.390Open / Close25.100 / -Float / Outstanding104.560M / 135.000M
Vol / Avg.2.441M / 2.321MMkt Cap3.404BP/E-50d Avg. Price22.060
Div / Yield- / -%Payout Ratio-Total Float104.560MEPS-

Livent (XNYS:LTHM)

Founded in 2018 and based in Philadelphia, Livent Corp. is a specialty chemicals company that manufactures performance lithium compounds. The company also produces high-purity lithium metal used to produce lightweight materials for the aerospace industry and nonrechargeable batteries. In addition to its lithium products, Livent also makes specialty polymers and does chemical synthesis for clients in North and Latin America, the Middle East, Asia Pacific, Europe and Africa. 

$26.81
0.71[2.72%]
Last update: 12:51PM (Delayed 15-Minutes)
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Day Range26.290 - 26.91052 Wk Range18.260 - 36.380Open / Close26.605 / -Float / Outstanding135.993M / 179.374M
Vol / Avg.1.917M / 3.668MMkt Cap4.809BP/E25.75950d Avg. Price23.890
Div / Yield- / -%Payout Ratio-Total Float135.993MEPS-

Noram Lithium (OOTC:NRVTF)

Noram Ventures Inc. is a junior exploration company involved in the acquisition and exploration of mining properties that was founded in 2010 and is headquartered in Vancouver, British Columbia, Canada. Its flagship operation is the 14,740-acre Zeus lithium project property in Nevada’s Clayton Valley, which is located next to Albemarle Corp.’s Silver Peak mine that is also a major lithium mining operation. The company’s Jumbo Flake Graphite property is a 15,048-hectare property with over 26 mineral tenures located in the Arrow Lakes region of British Columbia. Although Noram Ventures’s stock currently falls into our stocks under $5 category, the company is still in its exploration and development stage, so it could present a good long-term lithium investment opportunity. 

$0.5966
-0.0236[-3.81%]
Last update: 12:25PM (Delayed 15-Minutes)
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Day Range0.589 - 0.62052 Wk Range0 - 0.725Open / Close0.620 / -Float / Outstanding- / 88.843M
Vol / Avg.71.404K / 53.071KMkt Cap53.004MP/E82.55550d Avg. Price0.470
Div / Yield- / -%Payout Ratio-Total Float-EPS-

Global Battery Metals (OOTC:REZZF)

Based in Vancouver, British Columbia, Canada, Global Battery Metals Ltd. is involved in the acquisition, exploration and development of mines and mineral properties. Its largest holding consists of a 55% stake in the Lara Socos porphyry copper-molybdenum property in Peru. The company also holds an option to acquire a 90% interest in the North West Leinster Lithium Property in the Republic of Ireland and an interest in the Lithium King property in western Utah. 

Since REZZF and NRVTF are Canadian stocks, you can buy them directly on the TSE, or you can purchase them in the U.S. OTC market as American Depository Receipts via a broker with access to that market.

$0.1424
0.0098[7.39%]
Last update: 12:30PM (Delayed 15-Minutes)
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Day Range0.132 - 0.16252 Wk Range0.061 - 0.260Open / Close0.132 / -Float / Outstanding- / 67.701M
Vol / Avg.24.416K / 57.124KMkt Cap9.641MP/E-50d Avg. Price0.100
Div / Yield- / -%Payout Ratio-Total Float-EPS-

Thanks to global green initiatives and the increasing demand for electrical vehicles (EVs), lithium stocks could be a good place to invest if you’re looking for growth and capital appreciation. As one of the core components of lithium ion batteries that power EVs and mobile devices, lithium miners and their stocks stand to reap the rewards of this booming market. 

With national governments incentivizing EV ownership in pursuit of a greener world, demand for lithium is expected to increase with a compound annual growth rate (CAGR) of 10% through 2026. While the bulk of lithium demand resides with the EV manufacturers, other applications for the metal include consumer electronics, energy storage, medical and other end-user industries. 

Many of the stocks covered in this article already have made substantial moves to the upside over the past 2 years. As with any industry in the early stages of growth, however, these stocks could continue to appreciate and provide investors with dividend income. 

Overview: Lithium Stocks

Lithium is a soft, silver, white-colored alkali metal and a chemical element with the atomic number of 3 and the symbol Li. The metal is present in the minerals spodumene and lepidolite and was discovered in 1800 by Brazilian chemist and statesman José Bonifácio de Andrada e Silva in a mine on the Swedish island of Utö. 

The first industrial uses of lithium were in high-temperature stable greases used in aircraft engines. Demand for lithium increased after World War II because of its role in the production of tritium, which was used as a solid fuel in nuclear fusion weapons. Lithium was later used to lower the melting temperature of glass and aluminium oxide. 

Demand for lithium decreased after the Cold War ended until 2007 when lithium ion batteries came on the market. In 2010, 40% of lithium was used to manufacture glass and ceramics and 14% for batteries. Since then, demand for lithium has increased exponentially because of its use in EVs, consumer electronics and other products. 

Best Online Brokers for Lithium Stocks

Of the 5 stocks we’ve selected, 3 can be purchased through any major broker with access to major U.S. stock exchanges like the New York Stock Exchange (NYSE) and the Nasdaq Stock Market. The 2 other stocks trade on the over-the-counter (OTC) market, so you should consult with your stock broker to see whether they have access to those markets.  

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Features to Look for in Lithium Stocks

Type of mines: 

The production of lithium comes from 2 major types of mines: hard rock mining and extraction from brine deposits. Brine deposits consist of ground water accumulations that contain lithium with lithium from these deposits extracted as a salt. Hard rock production involves a more traditional mining technique with lithium taken from a mineral called spodumene. 

The 2 predominant types of lithium are lithium carbonate and lithium hydroxide, with lithium hydroxide the preferred type for battery production. Lithium mined from spodumene can be turned into either of the 2, but lithium extracted from brine must 1st be turned into carbonate before conversion into hydroxide. Because of the lack of hydroxide conversion, miners with hard rock operations would be more suitable to supply the EV market. 

Fundamentals: 

Much like other publicly traded stocks, the company’s fundamentals play a key role in its stocks’ capital appreciation. Whether the company is currently making money, its level of debt and other fundamentals can be a good indicator that the stock will appreciate in time. Statistics such as a stock’s earnings per share and other indicators of the financial health of a company can provide indications of a stock’s future performance. 

Partnerships: 

Many lithium mining operations are located outside of the U.S. Also, international mining companies often must partner with local firms to access the natural resources of the country where deposits are located. The world’s largest producer of lithium is Chile with more than half of the world’s production. Australia, Argentina and China are also significant producers of lithium. 

Is Now the Time to Buy Lithium Stocks?

Although lithium ion batteries have been around for some time, their use has become increasingly relevant to the lithium mining industry because of the push for environmentally sound policies and the growing popularity of EVs and electronic devices that use them. 

If you’re interested in investing in an industry projected to grow significantly, you should seriously consider buying lithium stocks since demand for the metal is expected to increase considerably over the next few years. Also, as new technologies emerge that use lithium, demand for the metal could rise even more.

Some of the lithium stocks listed above even qualify for our stocks under $10 category, although any could be a good fit for a portfolio. Lithium penny stocks might show especially notable growth. Even if the market pulls back from its current levels, lithium stocks could represent a good long-term investment.