SQM - 2 Lithium Stocks To Watch Before July 2024
2024-06-26 10:39:35 ET
The lithium sector has become a focal point for investors as demand for this critical mineral surges. This is driven primarily by the electric vehicle (EV) and renewable energy industries. Lithium is a key component in rechargeable batteries. This makes it indispensable for powering a range of technologies from smartphones to electric cars. As global efforts to reduce carbon emissions intensify, the shift towards electric vehicles and renewable energy solutions has led to a dramatic increase in demand for lithium.
Investing in lithium stocks offers significant growth potential, given the expanding market for lithium-ion batteries. However, this market is not without its challenges. The extraction and processing of lithium can be environmentally taxing and politically sensitive, given that major lithium reserves are concentrated in a few countries. This can lead to volatility in lithium prices and the stocks of companies that mine and process the mineral.
Buyers of lithium stocks must consider these dynamics. While the long-term outlook seems promising due to the relentless drive towards greener technologies, short-term fluctuations in supply and demand can affect stock prices. Investors should prepare for potential regulatory changes, technological advancements that could alter demand. As well as shifts in international relations that might impact lithium supply chains. Considering this, here are two lithium stocks to check out in the stock market today.
Lithium Stocks To Buy [Or Avoid] Today
Albemarle Corp (ALB Stock)
Starting off, Albemarle Corporation (ALB) is a global specialty chemicals company. The company focuses on the production of lithium, bromine, and catalyst solutions. It is one of the largest providers of lithium used in electric vehicle batteries and other applications.
Just this month, Albemarle announced its detailed project plan for developing the Kings Mountain Mine in North Carolina. The plan outlines responsible land and material use. This includes using existing sites to reduce new land disturbances and managing non-ore materials sustainably. It aims for environmental protection and robust community engagement, emphasizing safety and responsibility in tapping this significant lithium resource. The project, pending necessary approvals, could yield about 420,000 tons of lithium-bearing spodumene concentrate annually. Which is crucial for sustainable transportation and defense applications.
Year-to-date, shares of ALB stock have dropped by 33.27%. Though, during Wednesday morning’s trading session, Albemarle stock opened higher, up 5.69%, currently trading at $98.05 per share.
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Sociedad Quimica y Minera S.A. (SQM Stock)
Next up, Sociedad Quimica y Minera S.A. (SQM) is a Chilean chemical company that is one of the world’s leading producers of lithium, iodine, and specialty plant nutrients. SQM plays a role in the global lithium market, crucial for battery production in the electric vehicle and energy storage sectors. The company also produces potassium nitrate and sodium nitrate, used extensively in fertilizers and industrial applications.
Moreover, last month, SQM reported its first quarter 2024 financial and operating results. In detail, the company experienced over 30% year-on-year growth in lithium sales volumes, surpassing 43,000 metric tons. Additionally, SQM concluded the acquisition of the Andover lithium project in Western Australia and successfully completed the ramp-up of the Dixin lithium hydroxide conversion facility in Sichuan, China.
In 2024 so far, shares of SQM stock have pulled back by 29.27% YTD. While, during Wednesday’s mid-morning trading session, SQM stock is up 4.53% on the day, currently trading at $42.04 a share.
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