As the new year has begun investors are looking at stocks to diversify their portfolios. With the current surge in the development of lithium-powered batteries for electronics, and now within the automotive industry, this is a business that is seeing higher demands for the compound. Companies involved in the manufacture and production of lithium as raw material and product form are worth consideration when they meet other criteria that indicate a potential for growth and profitability. We’ve included those involved with the actual exploration, mining and development of the products as well as companies that invest in teh projects located within the famed Lithium Triangle with the coveted brine lakes where raw materials are gathered. Here are 20 Lithium stocks worth considering for 2020.
10. Albemarle Corporation
Ticker symbol: ALB
Albemarle is a company that develops and manufactures lithium on a global scale. Although this is a volatile stock, the outlook is good for increased demand from manufacturers of batteries to power electric vehicles and electronics in the consumer market. Lithium is used in the production of rechargeable batteries. This business is based in Charlotte, North Carolina adn produces a variety of lithium-based products and compounds.
9. Sociedad y Minera de Chile
Ticker symbol: SQM
Sociedad y Minera de Chile is a Chilean company based in Santiago that produces lithium and its derivatives along with other industrial chemicals and specialty fertilizers. It’s a diverse company that sells products through a global network of distributors. The company was established in 1968 and has grown past the unicorn status to become a multi-billion dollar venture. This is a lithium stock that is most attractive for long-term investors as the dividend paid currently is modest.
8. FMC Corporation
Ticker symbol: FMC
FMC Corporation is a chemical company that is divided into two operational segments including FMC Lithium and FMC Agriculture. The Lithium manufactured by the company is used in batteries, polymers, pharmaceuticals, greases, lubricants, ceramics, and other industries. The company has been in business since 1883 and it is well-established in the Philadelphia, PA area. More than 7,000 workers are employed at FMC corporation. Its second leg of operation is FMC Agriculture. In recent years, earnings have been the best for the company. FMC is a good bet for diversification of your portfolio with minimal risk.
7. Talison Lithium
Ticker symbol: TLH
Talison Lithium is a company that operates in Western Australia in the Greenbushes hard rock mine. The annual export of lithium products is more than 350 tons. Talison owns a Chilian project that is comprised of eight brine lakes. The company was purchased by Rockwood which was purchased by Albermarle in 2014 for a sum of $6.2 billion. It is a JV by Chengdu Tianqui Industry Group and Albermarle
6. Galaxy Resources
Ticker Symbol: ASX: GXY
Galaxy Resources has seen a rise in its share price that has been fairly impressive. Previously at A$0.01 per share, it has risen to A$0.45 per share. The company merged with General Mining which also saw an increase from A$0.04 to A$0.74 per share, a higher percentage of increase. The merging of the two companies with stocks on the rise makes Galaxy Resources stock to keep your eye on.
5. Pilbara Minerals
Ticker symbol ASX: PLS
Pilbara Minerals is a company that is located in the Pilbara region of Western Australia. An exciting contract signed with General Lithium of China for the export of lithium products signals that the company will see an increase in revenues as they have already begun to ramp up their production. One of the drivers for the new contract is the increase in electric automobiles being made by Chinese automakers. The demand is increasing and Pilbara Minerals may just be reaping the benefits in the near future.
4. Global X Lithium
Ticker symbol: LIT
Global X Lithium ETF tracks the price movement of lithium. This is a fund that maintains active monitoring of the market and it has holdings in chemical companies, mining operations, battery manufacturers along with companies within other industries. This stock offers a lower risk for investors with the potential for greater rewards for long-term investments.
Ticker symbol: RM
Rodinia Lithium is a company that is based out of Toronto, Canada. Holdings include exploration rights within the Lithium triangle lakes as well as the company’s flagship Salar de Diabilillos project in the Lithium Triangle. It also has rights to the Clayton Valley project in Nevada with more than 70 thousand acres of land with brine deposits. Rodinia Lithium has a massive customer base and shows tremendous potential for long-term growth.
2. Lithium Americas
Ticker symbol: LAC
Lithium Americas is a company based in Toronto, Canada. This company owns approximately 400,000 acres of land in an ideal location of the Lithium Triangle. Mitsubishi holds an equity interest in Lithium Americas with interests in the lithium for batteries used in electric automobiles. Investors should know that the main project for Lithium America is the Cauchari-Olaroz project which generates 11.7 million tons of lithium carbonate annually. This makes the operation the 3rd largest brine resource on the planet. Experts venture that the life of the project which extends out for approximately 40 years. Feasibility studies have been completed and production is set to launch.
1. Ganfeng Lithium
Ticker symbol: GNENF
Gangfeng Lithium is a Chinese company that has recently become an up and coming player in teh business of lithium production. The company has already made significant investments in the expansion of its lithium assets. It has invested in the Argentinian Cauchari Olaroz site operated by Lithium Americas with an investment of $160 million to give Gangfen Lithium a fifty percent split in proceeds.