Canadian company Lithium Americas Corporation develops lithium mining projects in Jujuy, Argentina and Thacker Pass in Nevada, USA. USA Thacker Pass is the largest known lithium source in the US. In an effort to increase market share, LAC acquired Millennial Lithium Corp, a lithium mine developer in Argentina, for $ 400 million in November 2021. The above-mentioned Chinese lithium miner Ganfeng Lithium is the largest shareholder in LAC with a 12.5% interest. Because projects are still in the development phase, LAC does not generate any income. Like Piedmont Limited, it is one of the most speculative lithium games. Given the ups and downs in lithium production, keep any investment in this niche in the mining and chemical industries small.
It produces both types of lithium, carbonate and hydroxide, as the company obtains lithium through its brine and stone mining activities in different countries. In addition to a huge success in the electric car industry, the company also produces more than 100 lithium-based products for various other industries. To protect yourself from a great potential loss of market volatility, Albermarle can also take advantage of the successes of its bromine segment. While the demand for rare and precious metals used in the production of electric vehicle batteries remains strong, investors are faced with a unique situation where prices have fallen to a low point. A key metal, lithium, It has seen its prices drop by more than 40% in the past year, a decline that has affected the profit margins of the major producers and eliminated most of their share price gains in recent years.
When you invest in a share, you own the shares directly and benefit from any appreciation of the share price and the dividends paid. Although lithium has a wide range of applications, demand for electric vehicles is expected to overshadow lithium mining stocks existing supply of traditional and established markets. This means that the prospects for lithium will largely be determined by the adoption of electric cars. The US, Canada and Australia have made significant gains year after year.
Although a significant amount of capital has already been committed, more investments are expected to meet expected growing supply chain demand by 2030. Analysts Robert Kort and Mike Harris wrote in a letter to investors last week that “they believe that current valuations of lithium stocks seem too high.”. Lithium Americas’ impressive price performance over the past 2 months is mainly about investor confidence in equities. Both institutions and private investors have talked about these shares and top fund managers have constantly collected shares. As a result, the price has risen because the constant inflow into shares has raised the momentum of the company. I think this award is just the beginning and this $ 3.6 billion lithium conglomerate could remain a Wall Street favorite if they crush their first operating tax revenues in the third and fourth quarters of this year.
Although not very scarce, lithium is expensive to extract from hard rock minerals or salty brine. Years of underinvestment in new projects and difficulties in obtaining permits have limited delivery. Lithium mines take a long time to reach capacity, so supply can be limited for a while.
USA It is not surprising that the main end markets of Piedmont include the storage of electric vehicles and batteries. However, it has expanded to brine and even clay activities by investing or cooperating with other companies operating in Argentina, Mexico and Ireland. Ganfeng also has extensive medium-sized power activities in China that produce lithium carbonate and hydroxide. The Chinese Ganfeng Lithium team (market limit of $ 38.34 billion) is located in Shenzen and Hong Kong and offers the largest exposure to the lithium supply chain. Extract lithium from four hard rock projects, one called Ningdu Ganfeng in China and three in Australia called Mount Marion, Pilbara and Altura. You can also buy and maintain lithium stocks with our exhibition platform.
Analysts predict an increase of approximately 60% in the price of their shares over the next 12 months. One thing to keep in mind, however, is that your most recent profit report left much to be desired. Although it continued to increase its revenues year after year, the quarterly finances for September 2021 showed a negative net result, a negative profit margin and a decrease in available cash. Nevertheless, the outlook for ALB remains positive, with an increase in the expected stock price in the next 12 months. Lithium carbonate prices more than doubled in 2021 as car manufacturers accelerate the production of electric vehicles. Benchmark Mineral Intelligence, a lithium-oriented research agency, expects a lithium deficiency in 2022.
And IHS Markit, another research provider, expects the market to double between 2021 and 2025. Standard Lithium develops a processing technology to extract lithium from the brine. This extraction process, known as “LiesTR”, would drastically reduce the time it takes to extract lithium from the brine; It can also be greener. To test his dissertation, SLI is working on an iconic project called the “Lanxess Project” in southern Arkansas. SLI was supported by Koch Strategic Platforms, part of Koch Industries, which made an investment of $ 100 million.