5 EV Stocks Investors are Missing

TL;DR

Despite the recent drop in lithium prices, the demand for lithium is expected to triple due to the increase in electric vehicle (EV) production. This has sparked a potential resource war for lithium, leading to opportunities in lithium and EV stocks.

Transcript

shares of Tesla are up 10x over the last 5 years and other eeve makers have doubled in the last 6 months there's a lot to like about those stocks but there's one part of the Eevee Market with even higher potential and in insanely cheap valuations right now A group of Eevee stocks that the market has forgotten just two years ago the global X lithium... Read More

Key Insights

• 💗 The drop in lithium prices is temporary, and the long-term demand for lithium is expected to increase significantly due to the growing EV market.
• 💦 China's control over lithium processing and the delay in restocking have contributed to the drop in lithium prices, but this is not a reflection of the long-term market potential.
• 🖐️ The shortage of copper is another significant concern in the EV market, with demand surpassing production estimates. Investors may consider Freeport-McMoRan (FCX) as a play in the copper market.
• 🥺 The resource war for lithium among countries could lead to further price increases, benefitting lithium and EV stocks.
• 🔋 The Global X Lithium ETF (LIT) provides diversified exposure to the lithium market, covering mining, refining, and battery production.
• 😑 Pure play lithium stocks worth considering include Lithium Americas (LAC) and Piedmont Lithium (PLL), which are in the pre-production phase.
• ❓ Other established players in the lithium market include SQM and Livent Corporation (LTHM).
• 🌥️ Albemarle Corporation (ALB) is the largest lithium producer and expected to experience revenue growth due to the supply deficit.
• 🍉 Investing in lithium and EV stocks should take into account geopolitical risks and long-term market potential.

Questions & Answers

Q: Why has the price of lithium dropped significantly?

The drop in lithium prices can be attributed to China's delay in restocking and the general economic slowdown, which impacted buyer incentives for EV cars earlier this year.

Q: Will the demand for lithium continue to increase?

Yes, the demand for lithium is expected to triple as the market share of EVs is projected to reach 30% by 2030. This will drive lithium prices back up to around $40,000 per ton.

Q: Are there any concerns regarding the supply of lithium?

Yes, a resource war for lithium is anticipated, as countries like China, Australia, Canada, and Chile scramble to secure access to lithium resources. This could further increase lithium prices.

Q: Is there a shortage of copper in the EV market?

Yes, electric vehicles require more than three times the amount of copper compared to traditional cars. The demand for copper is projected to exceed production, leading to potential price surges.

Summary & Key Takeaways

• The price of lithium has experienced a significant drop, leading to concerns in the EV market. However, the demand for lithium is expected to soar due to the growing demand for EVs.

• China's control over lithium processing and intense mining has led to a delay in restocking, contributing to the drop in lithium prices.

• The increase in demand for electric vehicles, with an expected 30% market share by 2030, will drive lithium prices back up, potentially reaching $40,000 per ton.

• The shortage of copper is another concern in the EV market, as electric vehicles require three times the amount of copper compared to traditional cars. Freeport-McMoRan (FCX) is a recommended investment in the copper market.