The lithium supply chain is getting stronger, and it is just getting started. Nothing proved that more than Livent (NYSE: LTHM) and Abermale (NYSE: ALB) earnings for Q1 2022. Surpassing expected earnings and experience rapid quarterly growth, Livent led the charge. Livent has now increased their expected earnings for 2022 to range between $755M to $835M from the orginal $540M - $600M, indicating that Lithium is on the move (Assis, 2022).
Livent impressed investors with a 32.18% day.
The following lithium companies also followed suit.
Abermale (NYSE: ALB)
Owners of the only producing lithium mine in the United States, Silver Peak (pictured above), Abermale is one of the world's lithium leaders. With 2 fully operational mines in Chile and Nevada, USA, as well as soon to be producing in Australia and North Carolina, Abermale finds itself on top. Considered by EV-News.com to be the blue chip of Lithium mining companies, this could potentially be a safe investment in a lithium company. (NOT FINANCIAL ADVICE).
Investors witnessed a 24.41% jump today for Abermale
"Lithium and other essential minerals for EV batteries serve as the foundation of this monumental shift towards the electrification of transportation.The EV Supply Chain constraints originate from the lack of these minerals available for the industry. Invest in the root of the industry." - Alan Dowden, editor-in-chief of EV-News.com and MBA - Supply Chain Management student.
Lithium Americas (NYSE: LAC)
In the northern part of Nevada, near Winnemucca, is Lithium Americas' pride and joy, Thacker Pass. Thacker Pass is the United States' largest known lithium reserve and the world's second largest. With the recent permit approvals at the local and state governments in February of this year (2022), Thacker Pass' lithium is expected to find its way out to the ground in the later part of 2023.
Besides the behemoth of what is Thacker Pass, Lithium Americas has a sleeping giant hidden in the salt flats of Argentina. Cauchari-Olaroz will see production in the upcoming months. While Thacker Pass will be a quarter-acre open pit mine, Cauchari-Olaroz is using evaporation ponds to extract the lithium.
Cauchari-Olaroz will process and refine the lithium directly as the source. This same concept will be developed at Thacker Pass. This will eliminate the dependency on China, whom currently owns the monopoly on processing and refining of most global earth minerals.
LAC rose 11.83%, a much needed bounce after dropping from near all time highs of $41.
Lithium Americas also recently acquired Millenial Lithium, and are now owners of Pastos Grande, a lithium mine located 62 Miles or 100km from Cauchari-Olaroz.
Piedmont Lithium (NYSE: PLL)
Located not far from the up-and-coming city, Charlotte, North Carolina, this Lithium company has already signed a 5 year contract with TESLA (NYSE: TSLA). To begin in 2023 and TESLA having the potential to extend it another 5 years, Piedmont has proven to investors the benefits of investing early as well as receiving a contract from a major automotive OEM. The stock price was in the single digits in 2020. Today, Piedmont Lithium's stock is $71.50.
A 5.69% increase today is a great day in today's market.
References
Assis, C. (2022, May 3). Livent stock rallies 14% after Q1 earnings, higher lithium prices. MarketWatch. Retrieved May 4, 2022, from https://www.marketwatch.com/story/livent-stock-rallies-14-after-q1-earnings-higher-lithium-prices-2022-05-03
Editor-in-Chief Statement
The following is my personal perspective as to why I have 50% of my EV portfolio invested in the mining industry. This is not financial advice. I am a strong believer in bringing the Lithium Supply Chain to the United States and develop a local fortitude in the global race for energy. I have given multiple presentations regarding lithium in my MBA program, which specializes on Supply Chain Management. I have been complemented highly from multiple professors for my expertise and knowledge surrounding this space. I am dedicated to the EV industry and invested in financial success.