Despite Lower Prices, The Lithium Market Still Remains Hot The lithium market is expected to continue seeing high demand for the next few decades. For example, EV production in China should increase to 9M cars in 2023 from 6.5M in 2022, a leap of 2.5M vehicles. The growth has led Albemarle to be called a Signature Pick by Wells Fargo, with the target price nearly $100 above the current price.
https://www.barrons.com/amp/articles/albemarle-stock-bullish-lithium-5723874f
Why am I talking about Albemarle? Well they own the only active US-producing lithium mine, however, the company is already at maturity, meaning there’s not too much upside potential for them. That’s where $SCV.V comes in with one of the largest land packages in Clayton Valley, adjacent to Albemarle’s mine.
- Recent drilling has confirmed volcanic ash at the property.
- They were able to discover a previously unknown section of the Esmeralda Formation which could signify high levels of lithium.
- On the data is compiled, they’ll be able to target additional drilling at the property, of which we should see some catalysts come out.
Overall, with the lithium market being such a hot topic right now, it’s all about picking the right exploration company. As a North American company right next to the only active US mine, there are a lot of signals showing that at the current $10.6M valuation, there could be a lot of upside potential left here.