One of America’s biggest lithium companies, Lithium Americas, took off this week. Shares of the stock rose over 10% on Thursday. Today, $LAC was cleared to begin mining at Thacker Pass, and its planned output will make Lithium Americas one of the largest lithium miners in North America. 💰 💰
However, Lithium America’s price action had less to do with their approval and more to do with an upgrade from analyst Cowen. In its report, Cowen explained that lithium’s demand would exceed supply. For the unacquainted, that means lithium might see a shortage in the near future.
Lithium has become a crucial component in the battery technology that powers your phone, electric vehicles, and other technology. Increased prices could make lithium companies a killing. 📈 🚀
Lithium’s rising prices have already been observed in China, where the price of battery-grade lithium carbonate has risen 38.8% in the last month. The resource hasn’t posted a single down day since June. Its rise preceded the boost in Seaborne Asian lithium prices. However, in Europe and the U.S., lithium prices have stayed “largely stable.” If Asia is any indication, that could easily change.
The Global X Lithium & Battery Tech ETF — which mostly invests in lithium & battery companies in China, the U.S., and South Korea — has risen 130% this year.