Do These Lithium Stocks Have Potential This Week?
When investing in mining stocks, lithium stocks have been overlooked by investors in the past. That was until the last year happened. Some of lithium’s success can be attributed to the pandemic as its caused price increases for the mineral. But most of lithium’s success is related to something else.
The correlation between electric vehicles and lithium is very real. As I’m sure you know, the largest automotive trend of the last decade has been EVs. These automobiles are increasing in production and sales every single year. As a result, electric vehicles producers such as Telsa have seen huge market gains in the last year.
But you must look at the materials used in order to make an electric vehicles. One of these components are lithium ion batteries. These batteries are currently thought to be the best for use in the cars. For this reason, most if not all production electric vehicles actively use these lithium ion batteries. They are known for their power, strength, and longevity.
Why Are Lithium Stocks Going Up?
There have been plenty of
lithium stocks rising up in the market
. When the value of the material is higher, related stocks will go up. Often battery stocks can increase in value in these situations as well. It is important when investing in lithium stocks to check out EVs and see how they are doing as well, as the sectors go hand in hand. There has been a slight pull back in lithium stock prices in 2021, with them opening the year rather high. Yet there are still many lithium stocks that are performing well in the market. This sector is newly popular so it is unsure where it could end up in the long term. The EV market shows no signs of slowing down so it seems like lithium will be here for a long time. Let’s see three
lithium stocks
that are showing higher market performance in April.
Top Lithium Stocks To Watch
-
Albemarle Corporation (
NYSE: ALB
) -
Rio Tinto Group (
NYSE: RIO
) -
Piedmont Lithium Limited (
NASDAQ: PLL
)
Albemarle Corporation
The last 6 months for this lithium company have been extremely good. Ablemarle is a
lithium stock
that develops, manufactures, and markets engineered specialty chemicals. It operated in three different segments, being Lithium, Bromine Specialties, and Catalysts.
Its Lithium section offers lithium compounds like lithium carbonate, lithium, hydroxide, and more. This is used for batteries in electric vehicles among a variety of other things. Its cesium products are used in pharmaceutical and chemical industries.
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The company released an update that could impact its stock price fairly soon. Albemarle announced that it will be releasing its first quarter 2021 earnings results on Wednesday May 5
th
, 2021. This update could show a lot of recovery for the company has reopening has been huge in the last few months. This presentation will take place at 9am E.T. via a webcast on their website. The company also recently announced the upsize and rearly results of its previously announced cash tender offers. The offer has been increased from $100 million to $128,388,000. This lithium stock is up more than 60% in the last 6 months.
Rio Tinto Group
This next
lithium stock to watch
‘ just released a big update that could largely impact the company. This is a mining company that explores for, mines, and processes various mineral resources. Rio’s main products are aluminum, silver, molybdenum, copper, diamonds, gold, borates, titanium, salt, iron ore, and uranium. Rio does aluminum smelting, and many types of mining. Things are now changing for Rio Tinto’s role within
mining stocks
.
On April 7
th
, Rio Tinto announced that it has begun producing lithium. The lithium will be made from waste rock at a borates mine in California. A demonstration plant has already started producing with 10 tons expected per year at the moment. This demonstration plant will run for all of 2021, and the company will decide whether to build a full scale plant for $50 million or not. If they do, it will have an annual capacity of 5,000 tons.
This will be a tough market for Rio to enter, as there are many companies that are ahead of the punch. It will be interesting to see how this new lithium stock performs in the market as things ramp up at this demonstration lithium plant. RIO stock has held its own in the last 6 months without the need for lithium though. RIO stock is up about 30% in the last 6 months.
Piedmont Lithium Limited
Piedmont has been a major name when it comes to
lithium stocks
. If you’ve already dabbled in this market then surely you have heard of this corporation. If you’re new here or simply have not heard of them, Piedmont Lithium is a company that explores and develops various resource projects all over the United States. The company has a 100% interest in the Piedmont lithium project that covers more than 2,126 acres in North Carolina. It additionally owns a 61 acre property in Kings Mountain, North Carolina for similar exploration purposes.
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Hot Lithium Stocks To Watch In April 2021
On April 8
th
Piedmont announced that it has increased its lithium resources by 40%. Its total global mineral resources have reached 39.2 Mt @ 1.09% Li
2
O. This has the potential to give the company increased annual lithium production which it is focused on.
Keith D. Phillips, President and Chief Executive Officer said this about it, “Increasing the scale of our North Carolina mineral resource to 39.2 Mt at 1.09% Li
2
O establishes our asset as one of the largest spodumene resources in North America – and the only one in the United States.”
In other news, Piedmont recently recruited David Klanecky to join the company as its Executive Vice President and Chief Operating Officer. Klanecky has a lot of experience in the industry making him a good fit for the company. PLL stock trajectory in the last 6 months has been absolutely amazing. PLL stock price has gone up more than 109% in the last 6 months.