In this article, we'll discuss the 10 biggest lithium stocks to invest in. If you want to read more about lithium stocks, please go directly to: The 5 best lithium stocks to invest in.
Lithium prices are among the most volatile in the metals market. This trend has continued over the past few years, even as demand for electric vehicles and clean energy equipment increases. After surging to record highs in the post-pandemic boom, lithium prices have undergone a sharp correction in the past few months, falling nearly 70% year-on-year at the end of last month. In China, prices have fallen from a high of over $81,000 per ton in November 2022 to around $20,000 per ton in February due to a slowdown in EV demand.
This slowdown coincided with a macro-crunch in the global economy and an oversupply in the market as lithium capacity began to be delivered at an accelerated pace compared to the previous year. In response to falling prices, some large lithium companies have begun scaling back or completely shutting down operations until prices stabilize.Estimates from the U.S. Geological Survey suggest Despite the slowdown in demand, global lithium production was around 180,000 tonnes last year.
Market analysts at investment bank Goldman Sachs had expected the slowdown to occur as early as 2022. In June, Nicholas Snowdon and Aditi Rai I have written In a note to customers, it said a sharp correction in lithium prices would occur. They predicted a surge in investor capital into supply investments tied to the long-term EV demand story, essentially trading spot-driven products as forward-looking stocks. Experts say this fundamental pricing error has caused supply to respond far faster than demand trends.
Despite short-term headwinds, the general consensus in the mining and automotive industries is that long-term demand for lithium will continue to outpace demand for other metals for years to come. For investors, the current market isTSLA), Albemarle Corporation (NYSE:ALB), QuantumScape Corporation (NYSE:QS) at a discounted price. These companies are leading the lithium revolution. For example, here's what his CEO of QuantumScape Corporation (NYSE: QS), Jagdeep Singh, said during his talk: Fourth quarter financial results briefing of his company.
“From the single-layer pouch cell we announced in December 2020 to the 24-layer A0 cell we shipped in December 2022, we have made remarkable progress toward commercializing solid-state lithium metal batteries. The best-performing of these, Volkswagen's battery division PowerCo, reports, based on tests in its German laboratory, exceed 1,000 cycles and maintain 95% capacity. In 2023, we began commercializing these A0 prototypes, and advances in cathode loading, packaging efficiency, and process quality led to our first commercial products. , QSE-5, has been introduced to our site.
When it comes to the combination of product development, customer engagement and financial strength, I believe our leadership in next-generation batteries is stronger than ever. When we begin shipping his QSE-5, it will be the world's first solid-state lithium metal battery technology for automotive applications, the culmination of years of development by the QuantumScape team, and further solidify our leadership in next-generation battery technology. I will do it. . However, the start of low-volume production of our first products is not the end of the journey, but just the beginning. To truly realize the promise of our breakthrough technology, we will need to increase production by orders of magnitude from today. Therefore, early last year, I set out to hire a leader with extensive experience in high-volume production of advanced technology products. ”
our methodology
The largest companies in the Lithium sector have been selected and ranked based on hedge fund sentiment. Companies that purely deal with lithium were selected for the list. We also discuss analyst ratings for each stock to provide readers with context for their investment choices. Hedge fund sentiment for each stock was calculated using data from approximately 900 hedge funds tracked by Insider Monkey in Q4 2023. The consensus top 10 stocks selected by hedge funds have historically outperformed the S&P 500 index by more than 140 percentage points. 10 years (Please see here for the detail). That's why we pay close attention to this often ignored metric.
Assembly line for lithium-ion batteries for energy storage solutions. Workers work behind the scenes.
The biggest lithium stocks to invest in
10. Lithium Americas Corporation (NYSE:rack)
Number of hedge fund holders: 9 people
Lithium Americas Corp. (NYSE:LAC) is a resource company with operations in the United States and Argentina. On March 15th, investment advisory firm Evercore ISI maintained an Outperform rating on shares of Lithium Americas Corporation (NYSE:LAC) and lowered the price target from $13.00 to $9.00.
9 hedge funds in Insider Monkey's database held $15 million worth of shares in Lithium Americas Corporation (NYSE:LAC) at the end of Q4 2023, up from $48 million in the previous quarter. It was about the same amount.
Along with Tesla Inc. (NASDAQ:TSLA), Albemarle Corporation (NYSE:ALB), and QuantumScape Corporation (NYSE:QS), Lithium Americas Corporation (NYSE:LAC) is one of the largest lithium stocks to invest in. is.
Asset management firm Massif Capital highlighted several stocks in its Q4 2023 investor letter, including Lithium Americas Corporation (NYSE:LAC). here The fund says:
“We currently have small investments in two lithium mining companies, Lithium Argentina (LAAC) and Lithium Americas Corporation (NYSE:LAC). entity (Lithium America Original). This entity was the long-running Massif Capital Investment, which launched at approximately $2.5 per share in March 2020. At the time, the company was based in Argentina Two assets were in pre-production stages, a lithium brine deposit and a US-based clay deposit, but were considered to have little value due to the state of the processing technology.
We took full advantage of the stock's volatility throughout 2020, 2021, and 2022, repeatedly selling both puts and calls in the company, reducing the cost of entry to below zero through the premium earned on these options trading activities. . In 2021, the stock peaked at about $39 per share for him, an increase of about 1,460% from the purchase price. Given the state of the company's assets, the entire position should have been cut rather than just a trim. We had confidence in our management team, and the momentum and enthusiasm for all areas of EV and batteries was strong, so there was potential for the market price to go well beyond what was reasonable. Furthermore, the lithium prices we were seeing at the time suggested that the fair value of the two development assets was well above his $40 per share, making it difficult to understand how long the upward price trend would continue. I was having a hard time. ” (Click here to read the full article)
9. Microvast Holdings, Inc. (NASDAQ:MVST)
Number of hedge fund holders: 11 people
Microvast Holdings, Inc. (NASDAQ:MVST) provides battery technology and energy storage solutions for electric vehicles. In mid-December, investment advisor Cantor Fitzgerald maintained an Overweight rating on Microvast Holdings (NASDAQ:MVST) stock with a price target of $8.
11 hedge funds in Insider Monkey's database held $14 million worth of Microvast Holdings (NASDAQ:MVST) stock at the end of Q4 2023, compared to 13 companies valued at $24 million.
8. FREYR Batteries (NYSE:Frey)
Number of hedge fund holders: 11 people
FREYR Battery (NYSE:FREY) manufactures and sells battery cells for energy storage systems, electric mobility, marine and aviation applications. At the end of Q4 2023, 11 hedge funds in Insider Monkey's database held FREYR Battery (NYSE:FREY) shares worth $35 million, and 16 held 9,600 shares in the previous quarter. It was worth $1,000,000.
7. Piedmont Lithium Company (NASDAQ:PLL)
Number of hedge fund holders: 12 people
Piedmont Lithium Inc. (NASDAQ:PLL) is an exploration stage company engaged in the exploration and development of resource projects in the United States. On February 16th, investment advisory firm BMO Capital initiated coverage on Piedmont Lithium, Inc. (NASDAQ:PLL) stock with a Market Perform rating and a $10 price target.
At the end of the fourth quarter of 2023, 12 hedge funds in Insider Monkey's database held $19 million worth of Piedmont Lithium, Inc. (NASDAQ:PLL) stock, compared to 10 in the previous quarter. The company was worth $43 million.
Asset management firm Massif Capital highlighted several stocks in its Q4 2023 investor letter, including Piedmont Lithium Inc. (NASDAQ:PLL). here The fund says:
“On the short side of the book, I worked on two types of lithium short stories throughout 2023. The first is a traditional alpha-focused corporate short story. Specifically, from Canada to Ghana We evaluated Piedmont Lithium Inc. (NASDAQ:PLL), a junior development company with exposure to assets ranging from You can't, world.
Piedmont is a classic mining stock promotion with little chance of anything substantial. In 2023, he made a 23% return on shorts and closed out in the fourth quarter. I recently re-entered shorts and am currently up another 50%. ”
6. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of hedge fund holders: 17 people
ChargePoint Holdings, Inc. (NYSE:CHPT) provides electric vehicle (EV) charging networks and charging solutions. On March 6th, Investment Advisor Benchmark maintained a “buy” rating on ChargePoint Holdings, Inc. (NYSE:CHPT) stock with a price target of $4.25.
17 hedge funds in Insider Monkey's database held shares of ChargePoint Holdings, Inc. (NYSE:CHPT) worth $9 million at the end of Q4 2023, compared to 16 hedge funds in the previous quarter. It was worth $50 million.
Along with Tesla Inc. (NASDAQ:TSLA), Albemarle Corporation (NYSE:ALB), and QuantumScape Corporation (NYSE:QS), ChargePoint Holdings Inc. (NYSE:CHPT) is one of the largest lithium stocks to invest in. is.
Click to keep reading to see the 5 best lithium stocks to invest in.
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Disclosure. none. The 10 biggest lithium stocks to invest in Originally published on Insider Monkey.
