The global lithium market is tightening Current lithium prices are not sustainable
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Crisis will eventually lead to opportunity for lithium stocks.
For one, current lithium prices are not sustainable. Two, production cutbacks could eventually lead to a sizable drop in supply, as we saw the last time lithium prices plummeted. Plus, as noted by Bank of America:
â2023 marked a huge drop in lithium prices, as the market flipped from the 2022 deficit into surplus. Inventory levels in China for lithium carbonate were elevated in February, but started to trend down in March [and pricing] started to show some strength. While EV sales growth has slowed, it is still 20% for the next few years, and thus we expect the global lithium market to tighten near-term,â as quoted by Barronâs. --------------------------------------------------------------- [Gold Is Headed Above $3,000 per Ounce (Here's How to Play It)]( [gold flag](
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Bank of America analyst Byrne also upgraded the ALB stock to a buy rating with a price target of $156 from $137. Analysts at Citi also raised their price target on ALB to $135 from $125. And, as of this week, analysts at Berenberg upgraded ALB to a buy rating, with a price target of $160.
As noted by Investing.com, âBerenberg's outlook for Albemarle is optimistic, citing several factors for the positive sentiment. The firm expects a rise in lithium volumes and an upward trend in lithium prices, negating the need for Albemarle to seek additional equity financing in the near future. The analyst also views the recent skepticism around electric vehicle (EV) sales growth as an opportunity.â --------------------------------------------------------------- [JOLTS OVERNIGHT TRADE DEMONSTRATION]( [oxford 4/9](
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Or, you can diversify at a lower cost with an ETF like the Global X Lithium & Battery Tech ETF. Some of its top holdings include Albemarle, Tesla, BYD, Panasonic Holdings, and Livent to name some of its 46 holdings. ---------------------------------------------------------------
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