Our modern world has a voracious appetite for metals, and smart investors can leverage that for profits. The list of metals is extensive, and ranges from lesser-known rare elements such as scandium, yttrium, and gadolinium to the vital component of every battery in every digital device, lithium. Lithium has been growing in value as laptops, ipads, and smartphones, with lithium-ion batteries, have proliferated, but in recent years the expansion of electric vehicles – and their far larger battery packs – has pushed the price of lithium sky-high.
From an investors perspective, this opens up several avenues for opportunity, particularly in lithium mining and lithium processing.
In a report from B. Riley Securities, analyst Matthew Key lays out the current status and path forward for the lithium industry: “Lithium has arguably been the best-performing commodity since the start of 2021, with current pricing for carbonate and hydroxide at $74,000/Mt and $80,500/Mt, respectively, primarily from battery demand for electric vehicles. Overall, we believe the strong outlook for EV sales will support robust pricing over the near term…”
Key’s description shows why now is the right time for investors to consider lithium, as a portfolio option. So let’s take a look at two lithium stocks that the analyst has given Buy ratings along with double-digit upside potential – on the order of 40% or more. In fact, Key’s view is no outlier. Running the tickers through TipRanks’ database, we found out that each boasts a “Strong Buy” consensus rating from the broader analyst community.
Lithium Americas (LAC)
First up, Lithium Americas, is developing two major lithium mining and processing projects, the Cauchari-Olaroz mine in northern Argentina and the Thacker Pass mine in Nevada. Thacker Pass is potentially North America’s best lithium mine, with the largest known lithium reserves in the US. Between the two projects, Lithium Americas expects to generate approximately 100,000 tons of usable lithium annually.
For now, the company is still in development…