The search for lithium becomes enormous and mass deficits are getting faster. Lithium prices have grown unregulated by double figures each year since 2014. Prices have already risen by 18% in the year, and whenever experts report a peak of silver white metal, it continues to move north.
This is mainly due to the hyper-growth in the electric vehicle industry (EV), which is undergoing a boom to rival the oil boom of the 20th century. Industry has grown by almost 50% over the past few years and is now on the verge of something even bigger.
Tesla (NASDAQ: TSLA) is the best-known sector of the EV, as evidenced by $ 55 billion in market capitalization, the largest automaker in the US. Tesla represents only 30% of total US electric vehicle sales, with other companies such as Nissan-Renault Alliance, General Motors, Ford, BMW and Daimler Mercedes having a huge presence.
All these companies share one thing – they rely heavily on lithium-ion batteries to power their electric cars.
Here are 5 top EV shares that we can invest in:
1. Albemarle (NYSE:ALB)
The big push of Albemarle is already connected to lithium and encounters a huge future demand driven by the energy revolution, partly due to the introduction of electric cars in the masses.
Lithuanian madness is phenomenal for old manufacturers like Albemarle, which manages the only lithium mine in the United States.
Albemarle’s shares rose by 72% in one year, surpassing analyst expectations and earnings for at least four consecutive quarters.
2. Bearing Resources Ltd. (TSX.V:BRZ) (OTCQB:BRGRF)
It is a young company that has the potential to increase profits in lithium space and has just acquired a world-class resource and a second-largest Lithium project in the world – in Chile.
They have already launched a $ 7 million research program. This is one of the top quality lithium projects in the world.
But the most important factor here is the degree: This junior miner has acquired the highest quality resources there – 2-4 times higher than all the projects in Argentina:
3. Tesla Motors Inc. (NASDAQ:TSLA)
Tesla surpassed GM’s giant market share this year – a major, unexpected feat. This is not a one-time occurrence: Tesla will keep inertia because they are the future.
Ultimately, Tesla’s electric cars will be more profitable than traditional cars and will be easier to manufacture. The cost will continue to fall, especially now that Tesla opens a huge battery plant in Nevada.
It is entirely possible that Tesla sells over 2 million cars a year in less than 6-7 years. For the next year, Tesla will produce 500,000 cars. Although stocks are already growing, there is still a very long way up and still a good deal right now.
Tesla’s share prices do not seem to lend weight.
4. Sociedad Quimica y Minera S.A. (NYSE:SQM)
SQM is another key to Chile’s lithium. The company is expected to have a truly impressive 5-fold increase in EBITDA by 2020, and this is largely due to lithium. SQM is currently accelerating its joint production project with Lithium Americas in Argentina.
This company has access to huge reserves, right in the heart of the South American lithium triangle that covers Chile, Bolivia and Argentina. He is also one of the largest lithium producers in the world – and knows that this metal is his future.
The fact that the growth of lithium demand is even stronger than this year than expected was an even stronger impetus for SQM. It is now planning to increase its Lithium capacity in Chile to 63,000 tonnes per year – from 48,000 tonnes per year at present.
5. Ford Motors (NYSE:F)
Ford had a tough year, but the changes are in place – and these changes look more direct to the obvious future of EV.
The recent expulsion of CEO Mark Fields talks about the will of the automotive giant to fight for a market share in an industry that is changing so fast that the giants play a serious game of catching up (with Tesla mostly).
Ford’s shares have lost 40% of their value under Fields, so now is probably the best time to get into the game. Moving towards the future is Ford’s key motivator, so we expect to move forward.
Source: Yahoo Finance
Jr Trader Ivan Ivanov