Lithium is a soft, silvery metal and has the lowest density of all metals.
The most important use of lithium is in rechargeable batteries for mobile phones, laptops, digital cameras, and electric vehicles. On top of that, it is also used in some non-rechargeable batteries for things like heart pacemakers, toys, and clocks.
Lithium metal is made into alloys with aluminum and magnesium, improving their strength and making them lighter. While Lithium oxide is used in special glasses and glass-ceramics. And the list goes on.
As this element becomes the crucial constituent for lightweight, power-dense batteries used by electric vehicles (EVs), the price of lithium has more than doubled since 2015 given the trend in the demand for EVs
Lithium Americas Corporation (LAC)
Founded in 2007 in Vancouver, Canada. Lithium Americas is focused on advancing lithium projects in Argentina and the United States to production. In Argentina, Caucharí-Olaroz is advancing towards the first production as the largest new brine operation in over 20 years and Pastos Grandes, in proximity to Caucharí-Olaroz, represents regional growth. Thacker Pass in northern Nevada, the largest-known lithium resource in the US, has received its Record of Decision from the Bureau of Land Management and is advancing towards construction. The company trades on both the Toronto Stock Exchange (TSX: LAC) and on the New York Stock Exchange (NYSE: LAC).
Risk Factor: LAC is not currently producing lithium or earning revenue from both of the said projects, as they are still under development.
However, it should be noted that the opportunity of buying into an underdog arises if they successfully set their projects in motion, making them one of the lithium stocks that could do well.
Albemarle (ALB)
Headquartered in Charlotte, NC, Albemarle Corp (NYSE:ALB), Albemarle Corporation (NYSE: ALB), is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The companies are involved in many of the world’s largest and most critical industries, from energy and communications to transportation and electronics. Lithium is ALB’s largest contributor of revenue, making up about 55% of their revenue. While ALB is headquartered in US, they also own lithium mines in Chile and Australia.
As of 2020, Albemarle was the largest provider of lithium for EV batteries. Albemarle, Sociedad Química y Minera, and FMC Corporation collectively produce just over half of the world’s lithium and lithium storage products, while just under half is produced by China. They are investing to double their domestic production of lithium as auto manufacturers want to avoid disruptions from international supply chains.
Its presence in Chile for more than 40 years, and has just inaugurated its third chemical conversion plant in May 2022, La Negra III/IV, in Antofagasta, Chile, as one of the most modern chemical conversion plants in Latin America. With new technology, the plant is expected to double lithium production from lithium concentrate from brine and further reduce the company’s low-freshwater consumption in this process, marking a clear commitment to sustainable production.
Livent Corporation (LTHM)
Headquartered in Philadelphia, Livent Corporation is a fully integrated lithium company. It manufactures lithium for use in a range of lithium products, which are used primarily in lithium-based batteries, specialty polymers, and chemical synthesis applications.
It is focused on supplying high performance lithium compounds to the electric vehicles (EV) and broader battery markets. It produces lithium compounds, including battery-grade lithium hydroxide for use in high performance lithium-ion batteries. It also supplies butyllithium, which is used in the production of polymers and pharmaceutical products, as well as a range of specialty lithium compounds including high purity lithium metal, which is used in non-rechargeable batteries and in the production of lightweight materials for aerospace applications. Its product category includes Battery-Grade Lithium Hydroxide, Non-Battery Hydroxide, Lithium Carbonate, and Lithium Chloride. Its application is polymers, greases, electric vehicles, aerospace, and others.
It runs mines in Argentina and Canada. Given their resources, they are one of Tesla’s main suppliers of lithium.
Their revenues saw a significant increase over the past year, increasing up from $288 million in 2020 to $420 million in 2021. If lithium prices remain high, so should their future revenues.
