Keep an eye on Livent Corp. (LTHM).
After pulling back from about $33 to $28, the lithium stock is starting to pivot higher. Last trading at $30.25, we’d like to see it test $33 again initially before challenging $36.
With severe supply-demand issues, lithium prices are only set to soar again. Automakers are scrambling for supply. And firms, such as Trafigura say lithium “demand will hit 800,000 tons of lithium carbonate equivalent this year — overshooting supply by 140,000 tons — and sees demand rising by a further 200,000 to 250,000 tons annually through 2025.”
“Lithium demand has remained robust despite some near-term supply chain disruptions and global macro concerns,” said Paul Graves, president and CEO of Livent. “Published lithium prices moved higher in the third quarter amid continued favorable market conditions. Livent achieved higher realized prices and delivered increased volumes to customers.”