by Ian Cooper
With growing demand for electric vehicles, lithium will remain a hot commodity. For one, supply can’t keep up with demand. In fact, according to Stellantis CEO Carlos Tavares, there’s not enough lithium to go around.
“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. Not only the lithium may not be enough, but the concentration of the mining of lithium may create other geopolitical issues,” he said, as quoted by The Detroit News.
That being said, here are a few ways to trade the lithium boom.
No list of hot lithium stocks is complete with the 800 lb. gorilla Albemarle. Helping, UBS analysts just upgraded the stock to a buy rating, with a price target of $225. Even Benchmark just said ALB is the best “growth opportunity.” All with ALB sales expected to grow about 12% a year between now and 2025, with EV growth and all things green.
UBS upgraded ALB to a buy rating, with a price target of $225. Baird also boosted its price target to $228. All because lithium shows no signs of cooling off. Better, Albemarle is now working with Ford Motor to deliver battery-grade lithium, which could lead to the development of about three million Ford EV batteries.
CEO Kent Masters even bought 5,470 shares for an average price of $181.64 in early May for just under $1 million. The CEO now holds more than 51,000 shares of Albemarle stock worth almost $10 million.
Lithium Americas (LAC)
Or, take a look at Lithium Americas, which is developing one of North America’ largest lithium sources, the Thacker Pass Mine. Helping, the company just started construction at the mine, with a $650 million investment from General Motors. Better, LAC is expected to make its first delivery in the second half of 2026, which could produce big bucks for the company.
Even better, Lithium Americas will soon split in two, which includes its North American and Argentinian business units. Lithium Argentina, for example, will focus on the company’s 44.8% interest in Caucharí-Olaroz, its 100%-owned Pastos Grandes project, and its interest in the Sal de la Puna. Meanwhile, Lithium Americas will focus on its Thacker Pass lithium project in Humboldt County, Nevada.
Or, we can take a look at lithium-related ETFs:
With an expense ratio of 0.47%, the IDRV ETF gives me access to 59 EV-related stocks, such as Li Auto, Aptiv, BYD Ltd., Tesla, Samsung, Ganfeng Lithium, QuantumScape, ChargePoint Holdings, and dozens more.
Or, look at the Global X Lithium & Battery Tech ETF (LIT) invests in the full lithium cycle, from mining and refining the metal, through battery production. Some of its top holdings include AlbemarleTDK Corp. Panasonic, BYD Co., Tesla,Livent Corp, Piedmont Lithium, andStandard Lithium.