Lithium Demand: Nirvana for Investors

The demand for electric vehicles is increasing the demand for lithium. A key component in batteries, lithium production has more than doubled over the last decade.

While there are other uses for lithium, nearly half of all lithium mined is used for rechargeable batteries. The demand is only expected to increase as the widespread adoption of electric vehicles overwhelms existing supply.

Lithium comes from two different sources; mining hard rock, or extracting it from brine deposits. Brine deposits are groundwater accumulations of lithium which are extracted as a salt.

With asteroid mining decades away, investors need to look to terrestrial sources. Most of the world’s lithium is concentrated in a handful of countries. Chile has over half of the world’s reserves, but Australia is the leading producer.

STOCKS TO CONSIDER

As electric vehicle adoption increases, analysts expect high-double-digit annual growth in lithium demand worldwide. The expected demand has encouraged more companies to enter the market.

Here are a few options to take a look at:

Albemarle ( ALB)

Albemarle is a leading producer of lithium. Their operations include brine extraction in Chile and hard rock mining in Australia and the United…