3 Best Lithium & Battery Stocks To Buy

Lithium and lithium batteries are the fuel that will power the electric vehicle revolution well into the 21st century. Lithium is such an important component for EVs that automobile manufacturers are signing agreements with lithium suppliers to ensure an uninterrupted supply of the chemical. Lithium stocks stalled as EV production was negatively impacted by the pandemic. As EV production begins to ramp up, expect lithium stocks to resume their climb.

ALBEMARLE CORP (NYSE: ALB)

Albemarle considers itself as the industry leader in lithium. It is vertically integrated with capabilities from raw material extraction to manufacturing. The company has locations in North and South America, Europe, Asia, and Australia, with each site located in low-risk areas containing solid infrastructure. Albemarle is not entirely dependent upon its automotive customers, with customers in the electronics and communications sectors.

Albemarle delivered net sales of $829 million in 1Q21, an increase of 12% year-over-year. Its net income was $95.7 million, an increase of 10% YOY. The company is projecting net sales of $3.2 - 3.3 billion for fiscal 2021.

QUIMICA (NYSE: SQM)

Quimica is the largest lithium producer in the world. It is headquartered in Santiago, Chile with its mining operation based in the Atacama Desert of Northern Chile. In addition to being a major lithium supplier to EV manufacturers, Quimica also supplies the chemical to air conditioning, cement, metallurgy, and glass manufacturers.

Quimica's 1Q21 numbers beat analyst predictions, coming in with revenue of $528.5 million, or $0.26 per share. The company's revenue for all of 2020 was $1.8 billion, with a gross profit of $482.9 million.

LIVENT CORP (NYSE: LTHM)

Livent supplies lithium to a wide range of companies in several categories: energy storage and batteries for EV manufacturers, polymers to the tire industry, lithium hydroxide for use in grease that can be used in extreme temperatures, aerospace, pharmaceuticals, and industry. The company holds over 40 patents.

In 2020, Livent had revenue of $288.2 million, with a GAAP loss of $19 million. Livent's 1Q21 numbers had surprise announcements in both revenue and EPS. Its revenue was $91.7 million, a $10 million surprise while EPS was $0.02, a 100% surprise.