From Ian Cooper

Lithium stocks could see higher highs.

For one, demand shows no clear signs of slowing.  In fact, Elon Musk just said, “I would really like to encourage, once again, entrepreneurs to enter the lithium refining business. You can’t lose.  Lithium batteries are the new oil.”

Two, the International Energy Agency (IEA) estimates we could see 135 million EVs in the next 10 years. Three, analysts at Ernst & Young say EV sales could outpace combustion engines in Europe, China, and the U.S. in the next 12 years.

There’s just one problem.

Unfortunately, we don’t have enough supply to meet demand.  All of which is putting big pressure on lithium companies to find more supply. 

That being said, investors may want to keep an eye on lithium stocks, like Albemarle (ALB), where net sales came in at $1.48 billion, an increase of 91%. 

Net income came in at $406.8 million, or $3.46 per diluted share; Adjusted diluted EPS of $3.45 was an increase of 288%.  Adjusted EBITDA came in at $610 million, an increase of 214%. It also expects to see significant growth in full-year 2022 results including net sales of $7.1 – $7.5 billion and adjusted EBITDA of $3.2 – $3.5 billion. With revised guidance, the company also expects to be free cash flow positive in 2022.