Use Weakness in Lithium Stocks as an Opportunity

Investors may want to use weakness in lithium stocks as an opportunity.

All as the world works to put millions of electric vehicles on the roads.

For that to happen, we need far more lithium than we have now.  In fact, at the moment, there’s more demand than supply, which isn’t going to change that quickly.

As noted by Bloomberg: Analysts at Macquarie Group Ltd. warned of a “a perpetual deficit,” while Citigroup Inc. nearly doubled its price forecast for 2022, saying an “extreme” rally could be coming.  That being said, recent weakness in stocks like Lithium Americas (LAC), Albemarle (ALB), and Livent (LTHM) could be an opportunity.

We also have to consider that Albemarle just boosted its outlook because of big demand.

“Demand for electric vehicles — and the batteries that power them — has driven prices for key metals higher, even sparking fears of shortages of materials like lithium, cobalt and nickel. Lithium supplies are a concern in particular because there’s no substitute for it in electric vehicle batteries. A gauge of lithium prices more than doubled in the first four months of this year after surging 280% last year,” added Bloomberg.