Lithium stocks could see higher highs.
For one, demand shows no clear signs of slowing. In fact, Elon Musk just said, “I would really like to encourage, once again, entrepreneurs to enter the lithium refining business. You can’t lose. Lithium batteries are the new oil.”
That being said, investors may want to keep an eye on lithium stocks, and ETFs, such as:
Global X Lithium (LIT)
Not only does this ETF offer great diversification, it does so at less cost. At $79 a share, with an expense ratio of 0.75%, the LIT ETF offers exposure to stocks, such as Albemarle (ALB), BYD Co. (BYD), LG Chem (LG), Tesla (TSLA), Livent Corp. (LTHM), Lithium Americas Corp. (LAC), Quantumscape Corp. (QS), and Piedmont Lithium (PLL).
Amplify Advanced Battery Metals and Materials ETF (BATT)
Another solid ETF to consider is the Amplify Advanced Battery Metals and Materials ETF. With an expense ratio of 0.59%, BATT offers exposure to companies involved in battery storage, battery metals and materials, and electric vehicles. Some of its top holdings including Tesla, Glencore PLC, Nio Inc., Li Auto Inc., and LG Chemical to name a few.
Albemarle (ALB)
With the strength of the lithium boom, ALB has been hot.
Net sales came in at $1.48 billion, an increase of 91%. Net income came in at $406.8 million, or $3.46 per diluted share; Adjusted diluted EPS of $3.45 was an increase of 288%. Adjusted EBITDA came in at $610 million, an increase of 214%. It also expects to see significant growth in full-year 2022 results including net sales of $7.1 – $7.5 billion and adjusted EBITDA of $3.2 – $3.5 billion. With revised guidance, the company also expects to be free cash flow positive in 2022.
