LAC:CC - Livent Lithium Americas win Buy ratings at Piper on multiyear supply tightness

Livent ( NYSE: LTHM ) and Lithium Americas ( NYSE: LAC ) are both initiated with Overweight ratings with respective $42 and $38 price targets at Piper Sandler, as lithium names slip slightly from recent YTD highs.

Piper's Charles Neivert sees a disconnect between lithium supply and strong demand for lithium products for electric vehicle battery production for at least the next 3-4 years and perhaps longer, which would help sustain lithium pricing.

Neivert notes Livent ( LTHM ) will be adding considerable capacity to its portfolio for both lithium carbonate and lithium hydroxide during 2023-24, with further capacity expansions slated for 2025 and beyond.

The analyst believes Lithium Americas' ( LAC ) Thacker Pass ultimately will be completed since lithium independence is critical to U.S. climate goals, and notes the company will begin lithium carbonate production in its Argentina joint venture with Ganfeng in Q4 2022 or Q1 2023.

Lithium carbonate prices in China have climbed to record highs in recent days on strong electric vehicle demand .

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