3 Lithium Stocks for EV Battery Moonshot
In Part 1 of last week’s Winning Investor Daily article, I shared how electric vehicle (EV) batteries are racing toward a revolution…
An innovative revolution.
Innovation increases productivity, which promotes new value and growth.
And that’s what we’re witnessing in real time in the evolution of EV batteries.
Batteries are becoming cheaper, offering unmatched energy and now fully charging in under 15 minutes. And most importantly? They have a much longer life.
In that article, I highlighted how one startup, Redwood Materials, is developing new ways to recycle EV batteries.
These recycled batteries will either power electric cars again or be used as stationary energy storage.
According to Redwood Materials, six gigawatt-hours (GWh) of end-of-life batteries — enough to build more than 60,000 EVs — come through its doors each year!
And the new EV opportunity before us doesn’t stop with battery recycling…
Lithium Shortage = Government Spending
The U.S. government is also turning to innovation! It’s looking for any way possible to meet rising EV demand.
Lithium, as you may know, is key to EV batteries. And it’s in short supply.
The Associated Press reported that the U.S. is looking for new lithium sources:
The element is critical to development of rechargeable lithium-ion batteries that are seen as key to reducing climate-changing carbon emissions created by cars and other forms of transportation. Worldwide demand for lithium was about 350,000 tons (317,517 metric tons) in 2020, but industry estimates project demand will be up to six times greater by 2030.
This sets up a boon for lithium mining and refining companies.
Next-Gen Lithium Companies to Watch
Checking my Bloomberg terminal, there are three North American companies to watch. These companies have moderate-high to high exposure scores in the lithium mining and refining space.
Albemarle Corp. (NYSE: ALB), based in North Carolina.
Livent Corp. (NYSE: LTHM)., based in Pennsylvania.
Lithium Americas Corp. (NYSE: LAC), based in British Columbia.
Among these three companies, there are two notable developments.
Albemarle plans to build a lithium processing plant in the U.S. The proposed plant would produce as much lithium as the entire company does today!
Per Reuters: “The plan reflects Albemarle’s emerging strategy to lead the U.S. lithium renaissance, from mine development to processing to manufacturing types of the metal used to make high-end EV batteries.”
And Lithium Americas Corp. officially opened its Lithium Technical Development Center last month. This will upgrade lithium into battery-grade material.
The company also anticipates construction of a Nevada mine to begin this year.
The plan is to develop the largest and most advanced new source of lithium in the U.S. Ultimately, this will help meet the country’s electrification needs — and move us one step closer to the EV revolution.
These are promising next-gen developments that we want to watch!
So Tell Us…
I hope you’re excited to see the EV future racing toward us! As I covered last week and today, this mega trend is full of potential — both for your portfolio and for you personally.
So tell me: Will a longer-lasting and cheaper EV battery encourage you to make your next car an EV? Or are you an internal combustion engine fan for life?
You can send an email to WinningInvestorDaily@BanyanHill.com with the subject line: “Amber’s Question.”
I look forward to reading your answers.
And don’t forget, you can follow Ian King and me on Twitter! Ian is @InvestWithIan, and I’m @ALancasterGuru.
Make sure to tune in tomorrow. Ian will be back with a fresh installment of Tomorrow’s Biggest Tech Trends Today, and he’s tackling a topic I know you’ll be interested in.
It’s a trend that’s threatening to topple a $686 billion monopoly.
I hope you won’t miss it!
Until next time,
Director of Investment Research, Strategic Fortunes
Disclaimer: We will not track any stocks in Winning Investor Daily. We are just sharing our opinions, not advice. If you want access to the stocks in our model portfolio with tracking, updates and buy/sell guidance, please check out Strategic Fortunes.