by Ian Cooper

Lithium stocks are coming back strong.

Especially with electric vehicle sales set to accelerate. According to the International Energy Agency (IEA), “Global sales of electric cars are set to surge to yet another record this year, expanding their share of the overall car market to close to one-fifth.”

In addition, the IEA noted, “The new edition of the IEA’s annual Global Electric Vehicle Outlook shows that more than 10 million electric cars were sold worldwide in 2022 and that sales are expected to grow by another 35% this year to reach 14 million.”

Better, according to Stellantis CEO Carlos Tavares, there’s not enough lithium go around for the industry’s plans. “We know that we need lithium. We know that we are not producing as much as we need. We have right now 1.3 billion cars (that are) internal combustion engine powered on the planet. We need to replace that with clean mobility. That will need a lot of lithium,” he said, as quoted by The Detroit News.

No wonder lithium stocks are pushing higher again, including:

Albemarle (ALB)

Not only is ALB getting a boost from the lithium supply-demand story, the company just announced a definitive agreement with Ford Motor. ALB will deliver battery-grade lithium hydroxide to support the automaker’s ability to scale electric vehicle (EV) production, according to the press release. Albemarle will supply more than 100,000 metric tons of battery-grade lithium hydroxide for approximately 3 million future Ford EV batteries. The five-year supply agreement starts in 2026 and continues through 2030.

Lithium Americas (LAC)

Lithium Americas has been explosive. Since the start of 2023, the LAC stock jumped from a low of about $18 to $22.88, and could double from here, especially as it nears production at its Thacker Pass mine. Better, General Motors invested $650 million in the company to receive access to Phase 1 production at Thacker Pass through a binding supply agreement.

Better, the company will separate into two divisions, including its North American and Argentine business units. The Separation will establish an Argentina focused lithium company and a North America focused lithium company.

Lithium Argentina will own Lithium Americas’ current interest in its Argentina lithium assets, including the 44.8% interest in Caucharí-Olaroz, the 100%-owned Pastos Grandes project and the 65% interest in the Sal de la Puna project. Lithium Americas (NewCo) will own the 100%-owned Thacker Pass lithium project in Humboldt County, Nevada.

Global X Lithium & Battery Tech (LIT)

With an expense ratio of 0.75%, the Global X Lithium & Battery Tech (LIT)invests in the full lithium cycle, from mining and refining the metal, through battery production. Some of its top holdings include Albemarle TDK Corp, Panasonic, BYD Co., Tesla, Livent Corp, Piedmont Lithium, and Standard Lithium.