Elon Musk wants to mine it, battery makers are crying out for it. Lithium, the wonder metal at the heart of the global shift to electric cars, is in a full-blown crisis, pushing pricesup almost 500% in a year.
With electric vehicle adoption rising and the clean energy transition underway, demand for lithium has been increasing strongly.
More than half of the global resources are located in the so-called lithium triangle between Argentina, Bolivia and Chile. Much of the remaining supply comes from deposits of an igneous rock called spodumene, withAustralia the biggest miner.
Pilbara,the largest ASX-listed lithium player, on Tuesday night revealed that it had secured a price of $US5955 a dry metric tonne for a cargo of spodumene with 5.5 per cent lithia. Analysts turn more bullish on lithium after Pilbara'srecord dealhas reinforced analysts'bullishlithium predictions.
But which lithium shares could be in the buy zone?
Analysts at Morgans have named$Allkem Ltd (AKE.AU)$their top pick in the lithium industry. Morgans has anaddrating and$14.83 price targeton its shares. They expect electric vehicle demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification.
Another lithium stock to look at is$Mineral Resources Ltd (MIN.AU)$. Goldman Sachs is very bullish on Mineral Resources and currently has abuyrating and$73.80 price targeton the company's shares. It is the company behind the massive Wodgina operation, which is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years. It also has the Mt Marion Lithium Project and exposure to iron ore.
Mooers, which lithium stocks are your top picks ?
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NDNSTEED : Piedmont lithium and sayona Mining.
tat nhien pham NDNSTEED : yes
Hodog : SLI below $6.
Amani koala OP NDNSTEED : Great choices!