(C) Reuters. 2 Lithium Stocks Wall Street Analysts Love
The metal lithium is a valuable commodity that is used in electronic devices. Demand for it has been increasing, driven primarily by increased demand for electric vehicles (EVs). For investors seeking to capitalize on the rising demand for the element, Sociedad (SQM) and Lithium Americas (NYSE:LAC) could be solid bets. Wall Street Analysts strongly recommend these companies.As the demand for electric vehicles (EVs) increases with a growing global desire to transition to zero-carbon-emissions transportation, the demand for lithium has been increasing too. That’s because most EVs rely on lithium-ion batteries for power.
Investors’ interest in the lithium market is evident in the Global X Lithium & Battery Tech ETF’s (LIT) 50.4% returns over the past six months versus the SPDR S&P 500 ETF Trust’s (SPY) 27.8% gains. And, according to Mordor intelligence, the lithium market is expected to grow at a CAGR of more than 10% over the next five years.
Lithium is not only an important component for EV batteries, it is also used for energy storage in batteries for many other devices, such as cell phones, laptops, and grid storage. Consequently, lithium has become one of the most highly sought-after commodities. Given the commodity’s promising prospects, analysts are very optimistic about the performance prospects of Sociedad Quimica y Minera de Chile S.A. (SQM) and Lithium Americas Corp. (LAC) shares in the near term. So, we think it could be wise to bet on these stocks now.
2 Lithium Stocks Wall Street Analysts Love
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