How to Trade the Coming Lithium Boom


The next lithium boom is nearing.

And now may be the best time to jump in.

All on forecasts demand could outweigh supply on the heels of the electric vehicle boom.

In fact, EVs could dominate demand for lithium over the next 10 years, reports Reuters, accounting for more than 75% of the lithium’s consumption.

But there’s a problem.

There may not be enough supply to meet all of the demand.

According to Reuters, “If every EV company took their 2023 plans and went to the lithium market today, they’d probably only get about 15% of their needed supply of lithium.”

That’s part of the reason Tesla just said it wants to be a lithium miner.  Tesla also has plans “for 3 terawatt hours of battery-making capacity to supply its vehicles by 2030.  That is an increase of more than 50 times today’s available supply,” as noted by Barron’s.

“The lithium industry needs to spend about $7 billion to expand its mining capacity. And that is a drop in the bucket compared with the investments needed to make batteries and assemble cars,” they added, creating a big opportunity for lithium stocks.

Some of the top lithium stocks to keep an eye on include:

  • Lithium Americas (LAC)
  • American Lithium Corp. (LIACF)
  • Albemarle Corp. (ALB)
  • Sociedad Quimica y Minera (SQM)

A fifth way to trade the lithium boom is with the Lithium & Battery Tech ETF (LIT), which currently trades at $40.  Some of its top holdings include Albemarle Corp., Tesla Inc., LG Chem Ltd., and Ganfeng Lithium.



Please enter your comment!
Please enter your name here