Lithium stocks charged up from EV adoption

Electric vehicle adoption and an exponential growth in applications are fueling demand for this key battery component

Vikram Barhat 30 October, 2019 | 1:06AM

Lithium salts

The lithium market is bouncing back as the battery-operated eclectic vehicle (EV) revolution spurs demand.  Lithium is the main ingredient in rechargeable batteries used in EVs, portable electronic devices, and energy storage packs.

As electric vehicle adoption increases globally from 2% of new-vehicle sales in 2018 to 15% by 2028, lithium demand is forecast to grow roughly 5 times to 1.5 million metric tons, according to Morningstar equity analyst Seth Goldstein. The number of electric cars on the road is projected by the International Energy Agency to jump from 5 million in 2018 to a staggering 145 million by 2030. As a result, production of lithium-ion batteries is expected to increase significantly, boosting lithium demand. Roskill, a firm that specializes in research and consulting in metals, minerals and chemical industries, forecasts lithium demand from battery applications to rise 25% per year through to 2028.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Albemarle Corp93.58 USD-3.01
Livent Corp10.35 USD-4.08
Sociedad Quimica Y Minera De Chile SA ADR36.12 USD-3.11

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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