Lithium Stock Acquisitions Heat Up

The red-hot lithium sector continues to deliver as a commodity and for the portfolio.

Lithium Stock Acquisitions Heat Up, stock prices continue to rise.

Lithium carbonate prices were up around 500% in 2021 and are up some 100% this year.

Cathode prices are up 30% this year and more than 100% since January 2021.

Surging prices have led to a rush of M&A that will continue in 2023 and beyond.

There have been 19 significant deals in the past 12 months totaling over $4 billion. The average price has been $222 per tonne of lithium-bearing rock.

The 19 deals are double the number in the 12 months preceding it with SPG Global citing the deal value increasing ninefold. 

Lithium Investing M&A Key Facts you should know!

War, recession, lockdowns, protests, hawkish Fed — nothing has been able to slow down momentum in the lithium sector.

The momentum will continue as governments around the world accelerate their energy transition goals and get increasingly protective of their domestic resources.

The Canadian government, citing national security, announced on November 2nd that it was ordering three Chinese companies — Hong Kong-based Sinomine Rare Metals Resources Co. Ltd. and Chengze Lithium International Ltd., and Chengdu, China-based Zangge Mining Investment Co. Ltd. — to divest their ownership interests in Canadian junior lithium companies Power Metals Corp., Lithium Chile Inc. and Ultra Lithium Inc., respectively.

While China is not the biggest producer of any of the main metals and minerals necessary for batteries, it is capable of producing all of them and has been very active investing in mines around the world. 

China is also home to three quarters of all battery cell manufacturing capacity. And it processes nearly 60% of all the lithium that’s mined in the world. 

Production of many energy transition minerals today is more geographically concentrated than that of oil or natural gas.

Needless to say, there's a global scramble to develop independent supply chains away from China. 

The amount of time it takes to bring new supply online, coupled with political uncertainty and exploding demand, provides a fertile environment for profit.

In addition to global bipartisan support, battery and even traditional mining and energy companies are in discussions to add lithium to their commodity mix.

Those that don’t will be playing catch up to those that do for years.

My friend, colleague and business partner Nick Hodge has uncovered a lithium company positioned to help provide the critical supply the world is scrambling for.

It just received its federal and local permits to begin construction. 

And it’s entertaining offers from major miners and automakers. 

It will likely be one of the biggest lithium winners over the next few years as this lithium pandemonium plays out. 

So make sure you check out the research video we just put out about it.

Gerardo Del Real

Gerardo Del Real
Editor, Daily Profit Cycle