Throughout 2021, one of the most interesting sectors to watch has been lithium stocks. While many investors have profited from lithium stocks, these assets are also rather volatile at the moment. This increased volatility came as a result of the pandemic and the shifting economy caused by it. Not only did this affect lithium, but many other mining stocks such as those related to gold and silver were impacted by the global pandemic.
Lithium stocks have grown in popularity over the last decade because of electric vehicles. Lithium-ion batteries are one of the main components used to make these vehicles. For this reason, as the EV sector grows, so does lithium. The pandemic hurt the market for electric vehicles because of the global chip shortage. Despite this shortage, the popularity of these vehicles is not going away. Most of not all major automotive manufacturers have some sort of plan related to making electric vehicles. It seems impossible to go one month without hearing about some new faster or longer range electric vehicle that is coming to change the game.
Lithium is one of the fastest growing elements in the world. In fact, Statista believes that the material will double in demand over the course of the next few years. This is why many investors have chosen lithium stocks for their portfolio. Because of the current market volatility, it can be a bit more difficult to day trade these mining stocks. Regardless, there are many lithium stocks that are showing high market performance recently. Let’s look at three of these companies that could make your watchlist in October 2021.Top Lithium Stocks To WatchAlbemarle Corporation (NYSE: ALB)
Ablemarle Corporation is a chemical company that develops, manufactures, and markets various products. For the most part, Albemarle sells Lithium, Bromine, and Catalysts primarily. Included in its sales are materials for lithium batteries for use in electric vehicles and electronics.
On September 30th, the company announced that its subsidiary Albemarle Lithium UK Limited has acquired all of the outstanding equity of Guangxi Tianyuan New Energy Materials Co. Ltd. The acquired company is a lithium converter that is located in China. Albemarle will acquire all of the outstanding equity from Tianyuan’s shareholders for about $200 million. This transaction is expected to close in early 2022.
CEO Kent Masters said, “This will be a key component of our next wave of projects designed to increase our conversion capacity in a capital-efficient manner in the coming years. As the global transition to cleaner energy rapidly develops, this added lithium capacity will enable us to help our customers achieve their growth and sustainability ambitions.” In the last 6 months, ALB stock is up in the market. With this in mind, will ALB make your list of lithium stocks to watch?Livent Corporation (NYSE: LTHM)
Livent Corporation is a lithium penny stock we’ve mentioned on this site before. This is a manufacturing business that makes and sells lithium batteries. The company also sells polymer and chemical synthesis applications as well. It operates in North America, Latin America, Europe, Middle East, Africa, and the Asia Pacific.
Back in August, the company released its second quarter results for 2021. The company’s revenue grew 11% quarter over quarter to $102.2 million. This number was also 57% higher year over year. Its adjusted EBITDA rose 44% higher than the previous quarter and 150% higher year over year.
President and CEO Paul Graves said, “Lithium market conditions remain very positive in 2021 and we see the trends continuing into 2022. Pricing conditions have significantly improved during the year and we have seen a notable improvement in lithium hydroxide and carbonate demand alongside strong global electric vehicle sales growth.” Noting this info, will LTHM be on your lithium stock list?Piedmont Lithium Inc. (NYSE: PLL)
Piedmont Lithium is a company that explores and develops various resource projects all over the United States. The company has a 100% interest in the Piedmont lithium project that covers more than 2,126 acres in North Carolina. It additionally owns a 61 acre property in Kings Mountain, North Carolina for similar exploration purposes.
Back in August, the company gave an update on its accomplishments and development plans for the future. The company’s President and CEO Keith D. Phillips said, “Piedmont is positioned to become a leading producer of lithium hydroxide while positively impacting the communities in which we operate by creating jobs, attracting other EV supply chain participants, increasing the tax base, and broadly supporting other local small businesses. Through direct investment and contracted offtake, we control a significant quantity of potential spodumene concentrate production in three critical locations.” Will PLL stock make your watchlist in October?Top Lithium Stocks To Buy?
When deciding the best lithium stocks to buy things can get confusing. That is why it is important to stay up to date with the latest in the market. For now, which lithium stocks will you place on your watchlist in October 2021?