The global EV rollout should spark serious demand
- Forward-looking investors should consider these lithium stocks that will make you rich in 10 years.
- Rio Tinto (RIO): Rio Tinto provides a massive and diversified footprint.
- Lithium Americas (LAC): Lithium Americas enjoys strong analyst support.
- Piedmont Lithium (PLL): Piedmont also rates highly among market experts.
- Livent (LTHM): Livent features strong fiscal performances.
- Pilbara Minerals (PILBF): Pilbara banks on its namesake resource base.
- American Lithium (AMLI): American Lithium offers a possible domestic route.
- Nevada Lithium Resources (NVLHF): Nevada Lithium is strictly for gamblers.
While electric vehicles are the future, interested investors may actually perform better with lithium stocks that will make you rich in 10 years. Fundamentally, the world doesn’t need that many auto brands, meaning consolidation will materialize. However, the underlying industry will always need lithium, thus boding well for companies extracting this critical resource.
Further, the investment thesis of lithium stocks that will make you rich in 10 years centers on hard data. According to Grand View Research, the global lithium market sized reached a valuation of $6.83 billion in 2021. Further, the segment may expand at a compound annual growth rate of 12% between 2022 and 2030, culminating in sector revenue of just under $19 billion.
What’s more, it’s always possible that the above figure could be understated – and perhaps quite dramatically. According to other industry insiders, demand for lithium could keep ballooning. Indeed, the acceleration of productions utilizing the metal demonstrated no signs of slowing down. Therefore, you should keep close tabs on the lithium stocks that will make you rich in 10 years.
Rio Tinto (RIO)
A giant in the metals and mining space, Rio Tinto (NYSE:RIO) deserves consideration among lithium stocks that will make you rich in 10 years. No, it’s probably not going to skyrocket immediately. However, if you give yourself a decade as per the motif of this article, then shares could certainly blossom.
Fundamentally, what’s arguably most attractive about Rio Tinto is its broad footprint. Undoubtedly, its lithium business unit attracts investors for the global EV rollout implications. However, the company also delivers resources that have a wide range of applications – including for EVs – such as copper. As well, it commands relevancies in seemingly mundane but vital commodities like salt.
Further, market participants will likely enjoy Rio’s solid financials, especially after 2022’s equities sector rout. Enjoying a stable balance sheet, Rio shines a spotlight on its excellent profitability margins. Also, on an objective basis, its shares are undervalued. Presently, the market prices RIO at 11.2-times forward earnings, below the sector median of 13.6 times.
Lithium Americas (LAC)
A mid-cap play, Lithium Americas (NYSE:LAC) carries a market value of $2.7 billion at the time of writing. Moreover, the company is off to an auspicious start to the new year, gaining almost 12% since the Jan. opener. It’s a welcome change of pace. In the trailing year, LAC stumbled badly, giving up 28%.
Much of the enthusiasm focuses on Lithium Americas’ acquisitive strategies. Earlier this month, the company “…bought all issued and outstanding shares in Arena Minerals in a deal valued at US$227 million for its Pastos Grandes lithium project,” per Mining Journal.
In addition, LAC benefits from robust support among covering analysts. As of this writing, seven Wall Street experts peg LAC as a buy while one rates it a hold. Significantly, no analyst rated shares a sell, facilitating a consensus strong buy view. Just as importantly, the average price target for LAC stands at $35.22, implying a potential upside of 77%. To be fair, on paper, Lithium Americas seems a bit overpriced. However, for those willing to ride out the narrative, LAC is one of the lithium stocks that will make you rich in 10 years.
Piedmont Lithium (PLL)
Featuring a market cap just north of $1 billion at the present juncture, Piedmont Lithium (NASDAQ:PLL) might step into mid-cap territory for some market observers. Still, it’s a relatively little-known enterprise, with PLL only attracting an average trading volume of 468,000 shares. However, with patience, it could be one of the lithium stocks that will make you rich in 10 years.
Earlier this month, Piedmont added two new directors to its board: Christina Alvord and Michael Bless. Based on Mining.com’s writeup, they seek to “…provide additional executive, operational and strategic guidance to support the company’s mission of becoming a US-based lithium supplier.” Notably, on the day of this disclosure, PLL stock soared.
Again, what makes Piedmont so attractive to investors is the enthusiastic support from Wall Street analysts. Out of four experts, all of them rate PLL a buy, naturally facilitating a strong buy consensus view. Further, the experts’ average price target hit $111.75, implying a near doubling of the current share price. Thus, PLL deserves close attention as one of the lithium stocks that will make you rich in 10 years.
Headquartered in Philadelphia, Pennsylvania, Livent (NYSE:LTHM) represents one of the more well-known enterprises in the lithium ecosystem. Carrying a market cap of $4.3 billion, the average trading volume for Livent is 3.96 million shares. Still, its stature didn’t spare LTHM from choppiness throughout 2022. Fortunately, Livent is also off to an auspicious start, gaining 27% of equity value since the January opener.
What makes Livent stand out from the crowd is its quarterly financial performances. Since the fourth quarter of 2021, the company beat its consensus estimate for earnings per share. Further, the earnings nominally have grown substantially from the doldrums of 2020 and 2021.
At the current juncture, Wall Street analysts rate LTHM as a consensus moderate buy. Among 10 experts, four of them assigned it as a buy while the remainder assessed it as a hold. However, the average price target ranks rather highly at $30.50. This implies an upside of over 26%. Thus, LTHM could make for a decent pick among lithium stocks that will make you rich in 10 years.
Pilbara Minerals (PILBF)
Heading into the speculative portion of lithium stocks that will make you rich in 10 years, we begin with Pilbara Minerals (OTCMKTS:PILBF). An Australian lithium and tantalite mining company, Pilbara represents its country’s leading ASX-listed pure-play lithium firm. Most notably, the company rose to fame because it’s located in Australia’s resource-rich Pilbara region.
While a speculative venture, PILBF held its own through the troubles of 2022. For example, in the trailing year, shares managed to gain nearly 2%. Further, it’s also off to a great start in the new year, moving up 15.5%. Geopolitically, lithium may enjoy a cynical upside catalyst. With Russia rearing its ugly head along with the west’s constant conflicts with China, both sovereign states and private enterprises will need access to relatively conflict-free lithium. It’s possible that Pilbara could fit nicely into this role, making it a worthwhile consideration for lithium stocks that will make you rich in 10 years.
American Lithium (AMLI)
Although it’s good to have friends abroad, for EVs and other advanced technologies to be viable, we’ll need a combination of domestic resources and supply chains closer to home. Theoretically, American Lithium (NASDAQ:AMLI) may be able to help.
Currently, the company offers two intriguing projects. First, the TLC Lithium Project is located near the town of Tonopah, Nevada, facilitating superior logistics, particularly regarding development and water resources. Second, the company is working at the Falchani Lithium Project located in Peru, which represents the sixth-largest lithium deposit in the world, per American Lithium’s website.
Another notable factor is that the company recently listed its shares on the Nasdaq exchange, giving AMLI far greater visibility. Previously, shares traded hands on the over-the-counter market. Although a positive development, investors should be aware that American Lithium’s financials could use some work. Nevertheless, if you want to take a potshot with speculation funds, AMLI could be an interesting candidate for lithium stocks that will make you rich in 10 years.
Nevada Lithium Resources (NVLHF)
Generally speaking, when engaging in a commodity-based investment, you want to gear your portfolio to the more established (and thereby more predictable) enterprises. However, every now and again, you find yourself with some loose cash. Rather than waste it on something completely stupid and ephemeral, you might want to speculate on Nevada Lithium Resources (OTCMKTS:NVLHF).
The key word here is not lithium stocks that will make you rich in 10 years. No, that’s the SEO keyword (or rather phrase). Instead, it’s speculation. You don’t want to invest any more money than you can comfortably afford to lose in NVLHF. Chances are, Nevada Lithium Resources will provide a tax deduction rather than lithium resources if you get my drift.
If you don’t, shares trade for only 12 cents a pop. However, if you can get over this inherent risk factor, NVLHF appears to have hit a baseline bottom since July of last year. Also, Nevada Lithium isn’t completely speculative, featuring an okay balance sheet. One highlight is its equity-to-asset ratio of 0.93 times, ranking above 71% of the mining industry. Still, let me remind everyone: NVLHF is only for gamblers.
This post originally appeared at InvestorPlace.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.