2 Stocks to Look for Amidst the Wild Lithium Race

There is a lot of excitement surrounding lithium right now. The lithium price skyrocketed by nearly 500% in 2022. The rise is particularly because lithium demand from the electric vehicle industry is growing at twice the rate of lithium production.

Saqib Iqbal, a financial analyst at Trading.biz, explains why these two stocks can capture this white gold rush.

• Lithium prices soared nearly 500% in 2022 due to skyrocketing EV demand.
• Albemarle Corp. (NYSE: ALB) is a top lithium producer with a 57% upside potential.
• Lithium Americas Corp. (NYSE: LAC) owns a major US mining deposit backed by a powerful partner.

“The US is in a rush to find lithium deposits because of the EV megatrend and energy security. The US announced a 10-year strategy in 2021 to encourage more domestic mining endeavors. The Biden administration has also advocated for a mining boom to enhance the nation’s energy security.

So, naturally the US mining companies will get a boost, rising their stock prices. Two such stocks to look for are Albemarle Corp. (NYSE: ALB) and Lithium Americas Corp. (NYSE: LAC).”

Albemarle Corp. (NYSE: ALB)

With a market capitalization of $11.2 billion, Albemarle has the largest market capitalization in the sector. It has two main business units, one of which is Albemarle Energy Storage, which focuses exclusively on lithium-ion batteries and energy transition.

Since Albemarle is expanding its role in domestic production, Saqib believes Albemarle is well-prepared for the expected rise in lithium prices.

The company’s share price is down more than 33% YTD. However, this makes it an attractive buy, as the price can increase by 57%.

Lithium Americas Corp. (NYSE: LAC)

Lithium Americas Corp. has just made an important bet on its majority ownership of Thacker Pass, one of the biggest lithium deposits in the United States.

The US Department of Energy approved a $2.3 billion loan to Lithium Americas. This is excellent news for investors since the government thinks the Thacker project, which is anticipated to begin construction in 2027, would be profitable.

LAC is trading at a mere $2.65, which is super-cheap given the company’s prospects. So, buying and holding will definitely pay off.