Crisis Has Become an Opportunity for Lithium Stocks – 7/21

Company: Albemarle (SYM: ALB)

The pullback in Albemarle (SYM: ALB) is overdone. 

Not expecting for it to stay this low for long, I’d buy it here. While we wait for the eventual recovery, we can collect its 1.73% yield. Its new dividend of $0.405 is payable Oct. 1 to shareholders of record as of Sept. 13.

Company: Sociedad Quimica Y Minera (SYM: SQM)

Sociedad Quimica Y Minera is also a buy on weakness.

While we also wait for SQM to recover, we can also collect its yield of about 5.09%.

According to SQM Chief Executive Officer Ricardo Ramos: “We believe that the strong demand growth in the lithium market seen since the beginning of the year could continue for the remainder of the year, with total lithium demand surpassing 1.1 million metric tons during 2024. Given this positive trend in demand growth, especially in China which accounts for almost 75% of global lithium demand, and our updated sales volumes outlook for the year, we believe that our sales volumes could reach 200,000 metric tons in 2024.”

Company: Arcadium Lithium (SYM: ALTM)

Arcadium Lithium (SYM: ALTM) is also a buy on weakness.

As a low-cost lithium producer, the company should see massive acceleration in earnings growth with heavier demand for lithium. Two, analysts at RBC Capital just initiated a buy rating on the stock with a price target of $4. As noted by the firm, ALTM offers investors “the most vertically integrated, and diversified lithium and chemical exposure across our coverage.”