Countries all over the world want millions of electric vehicles all over the roads, in an effort to reduce emissions. Major auto companies are changing their fleets to electric. General Motors announced it’ll increase global spending on EVs to $435 billion through 2025. Ford Motor Company recently announced that sales of its EVs jumped 117%.
In addition, according to Reuters, more investment in lithium production is needed to meet future needs of the electric vehicle supply chain, analysts say. “
Things are heating up and there is huge anxiety about where lithium supply is going to come from in the near future,” said Benchmark Mineral Intelligence analyst George Miller. “If new lithium doesn’t start coming to market, we might start to see electric vehicle production rates hamstrung by a lack of raw material supply.”
It’s why Lithium Americas (LAC) – which we highlighted at $19.56 on August 31 – is now up to $23.34. From here, it could see $30, near-term with the supply-demand issue.
While we still like LAC at current prices, another one to consider is Albemarle (ALB).
After pulling back from $250 to $230, the stock is sitting at double bottom support, and could run back to test its $250 high, near-term. Analysts like the stock, too. UBS raised its price target to $290 from $240. BMO Capital raised its target from $265 to $290. Oppenheimer raised its from $250 to $296. RBC Capital raised its target from $218 to $246. Deutsche Bank raised its price target from $245 to $270.
All with the lithium boom showing no signs of cooling.