Investors may want to take advantage of pullbacks in lithium stocks, like Albemarle (ALB).
That’s because the bull market alive and well, and is only set to accelerate. All with global demand for lithium batteries expected to jump five-fold by 2030, according to Li-Bridge, as noted by Reuters. In fact, according to Li-Bridge, “Demand for lithium batteries in the United States is expected to grow more than six times and translate into $55 billion per year by the end of the decade, but still the country is expected to depend on imports for supply.”
Even more impressive, General Motors may pick up more lithium land. After announcing plans to invest $650 million into Lithium Americas to secure lithium supply, this may be the first of many. “Automakers are starting to realize that the only way to guarantee lithium supplies is to own or have a controlling stake in the source,” added CNBC.
Better, ALB just declared a quarterly dividend of 40 cents per share. It’s payable April 3, 2023, to shareholders of record at the close of business as of March 17, 2023.
Oppenheimer also likes ALB, noting, “We view the incremental information on spot pricing, seasonality, and overall production levels for China EVs as comforting for bulls. ALB is assuming 40% Y/Y growth in EV production in China, which we believe could prove conservative given historical patterns and scale benefits to OEM cost structure likely will help drive higher volumes… We continue to believe ALB’s technology position in lithium extraction and processing is underappreciated by investors,” as quoted by TipRanks.com.