Three lithium stocks to benefit from growth tailwinds

The global lithium-ion battery market is poised to top US$70 billion by 2025, and these producers are well-positioned to reap a windfall of growth and profitability

Vikram Barhat 28 December, 2018 | 6:00PM

Growing environmental awareness and a regulatory push for clean energy continue to accelerate adoption of electric vehicles (EVs) and alternative sources of energy. As a result, the market for battery storage has seen exponential growth in recent years. One of the direct consequences of the rechargeable battery trend is the demand spurt for lithium. A key component of rechargeable batteries, lithium is crucial for the production and proliferation of EVs, smartphone batteries, and battery storage packs that both supplement and substitute conventional grid-connected energy.

The global lithium-ion battery market is poised to top US$70 billion by 2025, growing 15% annually. Much of the demand is fueled by what appears to be just the beginning of the EV revolution. As battery-powered cars, longer-lasting smartphones batteries, and stationary storage gain traction, demand for lithium is expected to continue to grow steadily.

Leading lithium producers are well-positioned to reap a windfall of growth and profitability from these trends. At their current valuations, far below their fair value, it’s hard to ignore their upside potential and their attractiveness as long-term investment bets, according to Morningstar equity research.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Albemarle Corp88.60 USD3.83
FMC Corp107.01 USD-0.49
Sociedad Quimica Y Minera De Chile SA ADR31.23 USD2.23

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.

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