Keep an eye on lithium.
For one, according to Investor Intel,” Strong EV sales in China are leading to early signs of a China lithium price recovery. Lithium contract prices remain much higher than spot prices reflecting the past lithium price rise and the strong outlook for lithium demand in 2023.”
Two global demand for lithium batteries is 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.”
And, we’re now seeing hot M&A activity.
For example, lithium companies Allkem and Livent said they will combine in an all-stock $10.6 billion deal to create the world’s third-largest producer of the metal used to make electric vehicle batteries, as noted by Reuters.
“To develop more lithium projects, you need to be big enough to finance, you need access to resources and you need technical expertise,” Livent CEO Paul Graves said. “Combining the two companies helps us with all of those areas.”
In short, it’s time to take advantage of oversold lithium opportunities.
