Investors may want to use any signs of weakness in the lithium market as opportunity.
All as EV demand accelerates. According to the International Energy Agency, about a fifth of all cars will be electric this year. Sales are expected to grow by 35% globally to 14 million this year. In the U.S. alone, total auto sales fell 8% year over year, according to Cox Automotive, as noted by Electrek.co. Meanwhile, EV sales were up 65%, surpassing 800,000 in volume for the first time. Then in the first quarter of 2023, EV sales broke another record, passing 250,000, and claiming more than 7% of total U.S. auto sales.
Now, we’re learning that EV sales jumped to more than 10 million in 2022, with China accounting for about 60% of the sales. All as global leaders race to put millions of EVs on the roads to battle climate change issues.
As demand increases, automakers will need far more lithium, which could be great news for stocks, such as Lithium Americas (LAC)—which is moving forward with its Thacker Pass project.