This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any ico expert review issuer or security in particular. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries. Lithium-ion batteries are getting larger and larger, and so more lithium is needed. Though traders are advised to consider other battery technologies and their impact on lithium prices, like non-flammable zinc-oxygen batteries and hydrogen batteries with lithium-ion’s tenfold energy-weight ratio. Investing in lithium stocks is the same as investing in any other kind of stock.
Vertex Minerals Limited (ASX: VTX) – Trading Halt
The future will be powered by lithium, a metal that is the key ingredient for making lightweight, power-dense batteries used in next-gen technology like electric vehicles, otherwise known as EVs. And with the expected electric vehicle revolution coming over the next ten years, it seems safe to say that the demand for lithium will continue to outpace the supply. This gap means your investment has a high chance of growing over the next ten years. Keeping an eye on the electric vehicle industry, especially in developing new and better battery technology, is a key preparation step for investing in lithium. Mining companies must extract and refine lithium from the Earth to produce lithium. Miners can extract lithium from hard rock or a more liquid substance called brine.
- On the periodic table, lithium’s symbol is “Li,” and it has the least density of all elemental metals.
- NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor.
- But today, you can see a Tesla vehicle on the road pretty much anywhere you go.
- Research helps you understand the landscape and makes you more likely to make good decisions.
- But despite the ramp-up in usage and value, lithium remains a volatile and controversial mineral for investments.
Foreign lithium markets are a potentially great investment for multiple reasons. Still, the two main reasons are that foreign governments are incentivizing battery technology and that many of the biggest lithium reserves exist in Brazil, Argentina, Australia, Chile, and China. The preparation steps above will give you a solid background in understanding the lithium industry and how you can expect the supply and demand relationship to change over time. Research your brokerage options and use the platform that best suits your investing goals. For example, if you’re looking to speculate through options or futures contracts, you’ll likely need a different broker than an investor who wants to invest in common stocks and ETFs. Lithium-ion is used in the fabrication of rechargeable batteries, making it a crucial commodity for electric vehicles, mobile phones and all kinds of electronics.
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Use these time-tested investing strategies to grow the monthly retirement income that your stock portfolio generates. “The newcomers want one lithium price, but the existing market has a wide range of lithium chemicals and then grades within a specification.” Chile’s pending nationalization of the lithium industry could pose risks for SQM shareholders, though.
One of the younger firms on this list of best lithium stocks, Pilbara was incorporated in 2005 and primarily produces lithium through a wholly-owned project located in a region of Western Australia. That site is billed as the largest independent hard-rock lithium operation in the world, and Pilbara has estimated the mine life at 34 years of output. But today, you can see a Tesla vehicle on the road pretty much anywhere you go.
Unlike metals such as gold, there’s no universal consensus on a single lithium price. Lithium mined in South America could vary from the lithium spot price published in Asia. Since prices can differ depending on the market, investing directly in lithium can be tricky (and risky). SQM predicts demand for lithium will outpace supply over the long term, so it has been investing to increase its production capacity.
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The final component of growing lithium demand is its use in consumer electronics such as laptops and cellphones. To help lessen wild swings in value, consider buying a lithium ETF such as the Global X Lithium & Battery Tech ETF (LIT 6.3%) or invest in a basket of lithium stocks such as the ones listed above. Given the ups and downs in lithium production, keep any investment in this niche of the mining and chemicals industry small, and stay focused on the long term.
Rely on Companies with Big Market Share
Before getting into the specific steps to investing in lithium, reviewing some of the preparation you can do beforehand might be helpful. You can also diversify your investment in lithium by buying an exchange-traded fund (ETF) that splits up your investment into a plethora of lithium companies. However, many people find it how to start and run an insurance brokerage firm easier to work through a step-by-step process to make a smart investment, especially when it is an industry as open and growing as lithium. So, investing in lithium has the potential to be particularly profitable over the next few years.
If you have questions about which lithium stocks are right for your portfolio, it is always recommended to consult a financial advisor. As you probably know, batteries are the most prolific consumers of the world’s lithium, and understanding the lithium battery industry will help bitcoin mining what is it you make intelligent investments. Or, knowing ahead of time that you expect the lithium industry to grow so much, you can invest in infrastructure and companies adjacent to this industry.